- (1.) The appellants in these appeals have questioned a judgment and order dated 13-11-1989 passed by the High Court of Karnataka in a batch of writ petitions challenging the validity of two notifications issued on 13-9-1989, the effect whereof was to create a monopoly in favour of Mysore Sales International Ltd. (MSIL), a public sector undertaking, in terms whereof the wholesale distribution of liquor and brewery was to be dealt with exclusively by it.
(2.) According to the appellants in terms of licences granted in their favour under the Karnataka Excise Act, 1965, in Form No. 2, they were free to sell their product either to the Distributors possessing CL II licences or directly to wholesellers possessing CL I licences who in turn would sell to the retailers, namely, Cl 2 licences.
(3.) On 13-9-1989 the Excise Rules framed under the Karnataka Excise Act were amended, in terms whereof the State was to appoint an Agency as its sole Distributor as a result whereof manufacturers of liquor etc. were required to sell their products to it only, enabling the latter to sell the same to the wholesellers who in turn could sell the same to the retailers.;