JUDGMENT 1. - In exercise of the powers conferred by the Indian Post Office Act, 1898, the Central Government made Indian Post Office Rules, 1933 (for short the Rules). Under rule 194-B no person shall sell or distribute postage and stamps or deal in any other manner in postage stamps except under and in accordance with the terms and conditions of a licence issued by the Central Government or by such officer or authority as the Central Government may authorise in this behalf. 2. It appears that a decision taken by the Postal Department that the sale of stamps and postal booking or registered clearing, registered posts and any other work assigned by the Central Government Authority may be assigned under a licence to the postal agents. Under the aforesaid scheme a licence was given to the petitioner and an agreement was made on May 26, 1986 between the petitioner and the Post Master. The licence was given for the period of three years and as such will expire on 29th day of May, 1989. It appears that as the postal agency was given to the petitioner society, some persons from the area other than for which the licence was issued were offering registered letters and the petitioner society as postal agent was receiving these registered letters and was registering them. An objection was raised by the Post Master to the aforesaid effect and the petitioner- society in its reply dated 13th July, 1987 came-out with the case that if anybody from the outside are offered registered letters then there was no prohibition under the scheme or the agreement not to accept the same. In Annexure-7 dated 12.8.1987 the petitioner society was intimated that because it was doing bulk-booking by registered-letters, the same being against the rules, the licence given to it will be deemed to have been cancelled after one month of the notice. The petitioner challenged the aforesaid Annexure-7. 3. The return has been filed on behalf of the non-petitioners and we have heard learned counsel for the parties. Mr. Gupta, learned counsel for the non- petitioners would not refer to any clause of the agreement which prohibits a postal-agent, in this case the petitioner society, from booking bulk registered letters. His contention is that the matter relates to contract and this Court should not exercise its powers under Article 226 of the Constitution of India. Mr. Gupta, learned counsel for the non- petitioners would not refer to any clause of the agreement which prohibits a postal-agent, in this case the petitioner society, from booking bulk registered letters. His contention is that the matter relates to contract and this Court should not exercise its powers under Article 226 of the Constitution of India. We may state that we have already said earlier that the rules were framed in the exercise of powers, vested in the Central Government by the Indian Post Office Act, 1898. We have also made the reference to rule 194-B under which the postal stamps can only be distributed or sold under the licence. A look at rule 58 of the Rules which is in para III, will show that letters, letter cards, postcards, book and pattern-packets parcels and newspapers prepaid with postage at newspaper rates of postage may be registered at any post office for transmission by post to any other post office or postal-agents and they are bound under the rules to accept pre-paid registered letters and to transmit the same to any other post office. Thus, it cannot be said that the matter is simply contractual. The licence has been granted under the rules and as staled earlier the stand taken by the non-petitioners that the society could not have booked bulk registered letters is arbitrary and against the rules. It cannot be said to be in conformity with the terms of either to scheme or the licence. 4. Consequently we allow this writ petition. Annexure 7 dated 12.8.1987 is quashed.No order as to costs.Petition allowed. *******