Judgment

B.P. JEEVAN REDDY, J.- The Union of India represented by the Union Territory of Pondicherry is the appellant in these appeals which are directed against the judgment of a Division Bench of Madras High Court in a batch of writ petitions filed by the respondents, arrack licensees of Pondicherry and Mahe. Civil Appeal Nos. 1543-1630 of 1984 pertain to Pondicherry territory while Civil Appeal Nos. 693 to 695 and 695-A pertain to Mahe territory. In the Union Territories of Pondicherry, Mahe and Karaikal, arrack licences are granted by way of auction. For the excise year 1981-82 (commencing from July 1, 1981 to June 30, 1982) auctions were conducted in June 1981. The writ petitioners were the highest bidders in respect of respective shops. They made the necessary deposits and obtained permits to commence their business with effect from July 1, 1981. The arrack licensees from Pondicherry territory also deposited the three months rental at the inception of the excise year as required by the rules. They drew supplies from the Government depots and carried on their business for a period of three months. Thereafter they approached the High Court at Madras by way of writ petitions for