( 1. ) THE petitioner took an excise contract for sale of country liquor for a consideration of Rs. 4,81,000 in an auction for the year 1978-79. Under the terms of the licence granted to the petitioner it was required to lift 548 proof litres of Mesala liquor and 1608 proof litres of plain liquor in each quarter from the warehouse. The petitioner committed breach of this condition. Consequently the Collector imposed penalty amounting to Rs. 15,452 which is being recovered from the petitioner as arrears of land revenue. By this petition under Article 226 of the Constitution, the petitioner challenges the said demand.

( 2. ) SECTION 17 of the M. P. Excise Act, 1915 provides that no intoxicant shall be sold except under the authority and subject to the terms and conditions of licence granted in that behalf. Section 18 enables the State Government to lease to any person amongst others the right of selling by wholesale or by retail any liquor, intoxicating drug within any specified area. Section 27 empowers the State Government to accept payment of a sum in consideration of the grant of any lease under section 18. It is under these provisions that excise contracts for sale of l