UNTON OF INDIA Vs. GODREJ SOAPS PRIVATE LIMITED

JUDGEMENT

(1.) This is an application for special leave to appeal against the order of the Division Bench of the Bombay High Court dated 22nd/23rd July, 1986 filed on behalf of the Union of India.

(2.) M/s. Godrej Soaps (P) Limited, and a shareholder and Director of the said company, Mr. A. B. Godrej who were petitioners went before the Bombay High Court in Writ Petition No. 1665 of 1986. The said petitioners who are respondents herein (hereinafter described as respondents) purchased 544.860 Metric Tonnes of Palm Kernel Fatty Acid on high sea basis imported under an additional licence. They challenged the action of the Customs authorities refusing to permit the clearance of the said Palm Kernel Fatty Acid in view of the decision of this Court in Raj Prakash Chemical's case and Indo Afghan Chamber of Commerce's case (supra).

(3.) It may be mentioned that one Messrs. Dimexon a firm carrying on business of importing rough diamonds and exporting cut and polished diamonds were issued Export House Certificate under the import policy for the period 1978-79 and certain additional licences in or about the month of July, 1986 covered by the licensing period AM-79. The said licence was claimed to have been issued in compliance with the order of this Court dated 18th April, 1985. As the purport of that order was the subject matter of two subsequent decisions of this Court and the genesis of the right of the present respondents was claimed from the said decision, it may not be inappropriate to refer to the said decision. The said decision was given in Civil Appeal No. 1423 of 1984. This Court held that there was no requirement of diversification of exports as a condition for the grant of Export House Certificates in the Import Policy for the year 1978-79. In that appeal, this Court confirmed the High Court's judgment quashing the order whereby the Government had refused Export House Certificates on the ground that the petitioners in those cases had not diversified its export and as such were not entitled to Export House certificates. The High Court quashed that order. This Court confirmed that direction of the High Court and further directed the Union of India and its employees to issue the necessary Export House Certificates for the year 1978-79 within a period of three months from the date. This Court further directed as follows: