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Bhandari took active part in the freedom struggle. In 1942 he formed the "Azad Morcha" in Jaipur and staged satyagrah. He was imprisoned for nine months. He also organised ‘Praja Mandal’ in Jaipur State. During the partition of India, he contributed in the rehabilitation of refugees from Sindh and Western Punjab.
He served as the Development and Agriculture Minister of Jaipur State in 1947 on being elected to the state's Legislative Assembly. Bhandari was a member of the Lok Sabha from 1952 to 1955 representing the Jaipur parliamentary constituency of Rajasthan.
Bhandari was a senior advocate on the rolls of the Bar Council of India. He was appointed a judge of the Rajasthan High Court in 1955 and he rose to become the Chief Justice there in 1968.
He also served as Chairman of the Revenue Law Commission constituted by the Government of Rajasthan and as a member of the Krishna Godavari Water Dispute Tribunal constituted by the Government of India. He was a founder member of the Indian Law Institute in New Delhi. He also served as the Chairman of the Governing Body of the Lal Bahadur Shastri College, Jaipur. He had six sons.
Daulat Mal Bhandari died on 10 January 2004 at Jaipur, Rajasthan at the age of 97.
- "Former Chief Justices". Rajasthan High Court. Retrieved 12 May 2017.