DESAI, C. J. : This is an appeal by the Electric Inspector to Government from a judgment of our brother Jagdish Sahai quashing by certiorari his order dated 19-11-1958 cancelling the licence granted to the respondent under Clause 12 of Notification No. 877/EI-86-1938, dated 2-6-1942, issued by the State Government of U.P., debarring him from obtaining a licence for the next two years.

2. The respondent is a contractor who undertakes electrical installation work. The Indian Electricity Act enacted to amend the law relating to the supply and use of electrical energy has created, the Central Electricity Board to exercise power conferred by S. 37. The power is to make rules to regulate transmission, supply and use of energy and generally to carry out the purposes and objects of the Act including rules providing for the protection of persons and property from injury by reason of contact with or the proximity of, or by reason of the defective or dangerous condition of any appliance or apparatus used in the transmission, supply or use of energy. In exercise of this power the Central Electricity Board has made Indian Electricity Rules, 1937. Rule 48(1) reads as follows :

"No electrical installation work...... shall be carried out upon the premises of or on behalf of any consumer or owner for the purposes of the supply of energy to such consumer or owner, except by an electrical contractor licensed by the State Government in this behalf."

This is the only rule regarding a licence for carrying out electrical installation work; there is no rule laying down the conditions of a licence, to whom a licence can be granted or refused, what are the conditions to be fulfilled by a person applying for a licence, what is the duration of a licence, by whom and in what circumstances can a licence be cancelled, what is the remedy against cancellation of a licence etc. There is no rule expressly empowering the State Government to make rules regarding a licence. Rule !8(2) laid down that Rule 48(1) would come into force in respect of any State on such day as the Stale Government may by notification in the official Gazette appoint. The State Government on 2-6-1942 issued notification No. 877/EI-86-1938 prescribing conditions for the grant of licences to electrical contractors under Rule 48 Cls. 12, 15, 16, 17, 19, 20, 21 and 24 deal with qualifications, application for licence, fees, responsibilities of an electrical contractor, cancellation of a licence and renewal of a licence. The only qualification required is possession of instruments for carrying out the tests of electrical installation required under the Indian Electricity Rules.

An application for a licence is to be made on a prescribed form, and a licence is granted on a prescribed form on payment of a fee of Rs. 100. Subsequently, a fee of Rs. 25 is to be paid for annual renewal. A contractor is responsible for submitting certain returns and any other return or information which the Electric Inspector may require, for maintaining only bona fide, certificated and full time employees, for maintaining a register of supervisors, wiremen and apprentices and for the quality of all materials used and the work carried out by his employees, for removing or rectifying defects in any work found to be defective by the Electric Inspector and for undertaking electrical installation work only on a written contract. Clause 21 is to the effect that the Electric Inspector may at any time cancel a "licence if the person to whom the licence is granted is in his opinion not fit to hold the licence" and every order made by him is subject to revision by the State Government. A licence is granted in a prescribed form and must be renewed "annually".

Clause 24 provides that "failure to renew a licence shall render such licence liable to cancellation, and the full initial fees will be charged for the issue of a new licence" and that an "application for renewal together with the licence shall be submitted to the Elec