In this paper, the authors propose permission based Resource Management with Mutual Exclusion Algorithm for Mobile Ad-hoc NETworks (MANETs). To reduce the message cost, the algorithm uses the DAG (Directed Acyclic Graph) technique, which enforces MUTEX only among the hosts currently competing for the critical section. The authors propose mechanisms to handle doze and disconnections of mobile hosts. The algorithm can also tolerate link or host failure they would like to propose an algorithm which is completely fault tolerant (covers temporary and permanent faults). It also has the mutual exclusion property for critical resource management to solve permission based algorithm.