HILL TILLER AND GO Vs. COFFEE BOARD BANGALORE

JUDGEMENT

(1.) This appeal by certificate is directed against the judgment and order dated June 5, 1968 of the Mysore High Court dismissing Writ Petition No. 1765 of 1966 filed by the appellants under Article 226 of the Constitution.

(2.) The facts giving rise to the writ petition may be stated thus: Chicory, a component used for blending with coffee, used to be imported from foreign countries. Prior to 1-10-1960 licences for import of Chicory by 'Actual Users' were issued directly to them by the Joint Chief Controller of Exports and Imports, Madras. Between 1-10-1960 and 30-9-62 these imports were canalised through the Coffee Board but on and after 1-10-62 these imports on account of 'Actual Users' were stopped as the Government discontinued the scheme of allotment of Chicory to 'Actual Users". Blended coffee has been a commodity for export earning valuable foreign exchange and with a view to give incentive to exporters of coffee from India, the government introduced a scheme called Coffee Export Promotion Incentive Scheme in the year 1962 whereunder through the Coffee Board allotment of Imported Chicory was done to persons who exported coffee. The value of Chicory so allotted to each exporter registered with the Board was related to the amount of foreign exchange earned by him on the export of blended coffee. The scheme was published in a Circular dated September 19, 1962 addressed by the Coffee Board to all Registered Exporters whereunder initially in respect of coffee shipped by the Indian exporters for consumption in U.S.A. from 1-1-1962 to 30-6-1962 the quantity of imported Chicory to be allotted to the exporters was to be calculated on 10% of the foreign exchange equivalent in rupees earned by each exporter on the quantity of coffee shipped to U.S.A. and "the rate for allotment of imported Chicory to the exporters will be the same as that fixed by the Board for allotment of imported Chicory to Actual Users". The scheme remained in force from 1-1-1962 to 30-4-1966 whereafter it was discontinued; but for periods subsequent to June 30, 1962 under different circulars issued from time to time the quantity to be allotted was altered, for instance, for the period from 1-1-1963 to 30-6-1963 the quantity was reduced to 2 1/2% of the foreign exchange equivalent in rupees earned by each exporter in respect of quantities shipped to U.S.A. and to the extent of 1 1/2% in respect of quantities shipped to non-bilateral account countries except U.S.A. and for the period 1-7-1963 to 30-9-1963 the allotment of Chicory was reduced to 2% of the foreign exchange earned by the exporters but it was again enhanced to 3% which enhanced allotment continued in respect of exports up to 30-4-1966. It appears that after the said scheme was discontinued, the Coffee Board had with it on 1-5-1966 a balance stock of 508 tonnes of imported Chicory which the Coffee Board started disposing of in small quantities by public auction.

(3.) On September 7, 1966 the appellants filed a Writ Petition No. 1765 of 1966 against the Coffee Board and the Union of India seeking a mandamus directing the respondents, particularly the Coffee Board to make the allotment of the balance quantity of imported Chicory lying with it to registered exporters of coffee in equitable proportions according to what they were entitled to on the basis of the circulars on the percentage of their earnings of foreign exchange on their export of coffee and an injunction restraining it from selling or disposing of the same in any other manner. Such reliefs were sought on two grounds, namely, (a) that the balance stock of Chicory lying with the Coffee Board which had been imported on Exporters' account must be regarded as being held in trust for registered exporters of coffee and that the Coffee Board could not sell or otherwise deal with or allot such Chicory to any other person and (b) that in determining the value of the Chicory that had been allotted to the exporters of the coffee on the basis of the foreign exchange earned by them the Coffee Board had wrongly taken the price inclusive of import duty paid by it and handling and administrative charges and other expenses incurred by it while only the C.I.F price of Chicory should have been adopted and this had resulted in allotment of lesser quantities of Chicory to the exporters. Negativing both the grounds the High Court dismissed the writ petition of the appellants. As regards the first ground the High Court, on the material placed before it by the Coffee Board came to the conclusion that the total quantity of Chicory imported by the Coffee Board on Exporters' account i.e. under licences granted by the Government of India under the Coffee Export Promotion Incentive Scheme was only 2140 tonnes while the total quantity of Chicory allotted to exporters for the entire period of the scheme was 2615 tonnes, that is to say, the total allotment to exporters was in excess of the total quantity imported under the scheme, which excess quantity was perhaps diverted from the quantity of Chicory imported on Actual Users' Account and, therefore, the registered exporters could not claim any further allotment from out of the said stock of 508 tonnes of Chicory. Regarding the second ground the High Court took the view that the appellants had failed to substantiate how they were entitled to claim that C.I.F. price of imported Chicory should have been adopted for determining the value of the Chicory allotted to the exporters.