( 1 ) THIS is a petition under Article 226 of the Constitution of India by a Contractor, who took the Contract of purchase of Tendu leaves from the Government for the year 1970 under the M. P. Tendu Patta (Vvapar Viniyaman) Adhiniyam, 1964, and the M. P. Tendu Patta, Nivamavali, 1965 and 1966, and by this petition, he seeks a renewal of the contract for the Years 1971 and 1972 on the same terms.

( 2 ) A State monopoly was created by enactment of the M. P. Tendu Patta (Vvapar viniyaman) Adhiniym, 1964, which received the assent of the President on 23-111964 and which came into force from 28-11-1964. It will be necessary o consider some relevant provisions of the Act later on. The appellant Firm had purchased the right of collection of Tendu leaves for the year 1970 which provided for a renewal clause for a further period of two years on certain terms. It may be relevant to reproduce Condition No. 25 of the Tender Notice which is as follows:-

"25. (1) Unless earlier determined under the terms of the Agreement, there will be yearly renewal of Agreement by 31st October each year by issue of an order by Government in writing. Maximum period for renewal will be up to 31st Decemb