The appellant does not require a central license under the Industries Act for manufacturing potable alcohol as it does not qualify as an industrial undertaking.

1. Leave granted.

2. The appellant, Ramnarayan Satyanarayan Agrawal Distilleries Pvt. Ltd., and Associated Alcohols and Breweries Ltd., the respondent No. 1 are both manufactures of potable alcohol. The respondent No. 1 belongs to Kedia Group of Distilleries Companies and enjoys a virtual monopoly in the manufacture of potable alcohol in the State of Madhya Pradesh along with two other business houses. According to the appellant, this monopoly continued until the judgment of this Court in the case of State of Madhya Pradesh v. Nandlal Jaiswal , 1986 (4) SCC 566 , in which the policy decision of the State Government to grant licence to set up new distilleries at new sites was upheld.

3. On 26th April, 1993, the Under Secretary, Government of Madhya Pradesh, Commercial Taxation Department, issued an order to the Excise Commissioner. By this order, this State Government granted permission to give licence in favour of the appellant to manufacture potable alcohol in the interest of more competition. The order was to the following effect :-
 GOVERNMENT OF MADHYA PRADESH COMMERCIAL
 TAXATION DEPARTMENT
No. B-1-64/85/VA.KAR/5
 Bhopal
 dated 26th April, 1993
To
 The Excise Commissioner,
 M. P. Gwalior.
 Subject : Regarding grant of DI licence to Messers Ramnarayan Satyanarayan Agrawal, Bilaspur for manufacture of industrial alcohol.
 Reference : Your memo No. 3/2/670 dated 20.4.93.
The State Government grants permission for manufacture of potable alcohol in order to encourage greater competition for issuance of licence to Messres Ramnarayan Satyanarayan Agrawal Distilleries Pvt. Ltd., Chherka Bench, Bilaspur, which produces industrial alcohol.
2. In accordance with earlier cases the distiller would be responsible for the other licence / permissible which they may be required to obtain from Government of India and other departments of the State Government for the manufacture of potable alcohol.
 By order and in name of the
 Governor of Madhya Pradesh
 (R. S. DUBEY)
 Government of Madhya Pradesh
 Commercial Taxation Department.
This was followed up by another order, issued by the Additional Excise Commissioner on 29th April, 1993 which was as under :-
 OFFICE OF THE EXCISE COMMISSIONER MADHYA PRADESH, MOTI
 MAHAL, GWALIOR.
No. 3/2/19-83/920 Gwalior dated 29/04/93.
To
 M/s. Ramanarayan Satyanarayan Agrawal
 Distilleries Pvt. Ltd.
 Chherpha Bandha,
 Bilaspur,
 Madhya Pradesh.
 Subject : Regarding grant of licence DI to M/s. Ramanarayan Satyanarayan Agrawal, Bilaspur for manufacture of industrial alcohol.
 Reference : The previous memo No. B-l-64/85/Va. Kar 5 dated 26.4.93 of the State Government, Commercial Taxation Department.
With reference to the aforesaid government order, permission is granted to you to manufacture potable alcohol under the DI licence granted to you on the condition that you would be responsible for obtaining the necessary licence / permission from the Government of India and other departments of the State Government according to rules applicable thereto and further that you would be required to follow all the necessary terms and conditions under the Excise Act.
 Sd/-
 Additional Excise Commissioner
  Madhya Pradesh.

4. The aforesaid two orders were passed in pursuance to the appellant's application for permission to manufacture potable alcohol. The appellant has claimed that the order dated 26.4.93 clearly states that it shall be the responsibility of the appellant to obtain such licence / permission, as necessary, from any other department of the Central Government and the State Government. All other d