AZICO TRADERS Vs. COFFEE BOARD

JUDGEMENT

(1.) This writ petition is directed against the circular letter dated 24-6-1980 underAnnexure-B claiming interest and penalty from the petitioner on the ground that itis invalid, illegal, arbitrary and ultra viresthe powers of the respondents and alsoas being in contravention of public policyand fundamental right of the petitioner under Article 19(1)(g) of the Constitution. The legality of the Circular dated 23-9-81 under AnneXure-C is also challenged. In short, the petitioner has questioned the levy of godown charges and insurance charges and has sought for refund of interest to the petitioner in a sum of Rs. 14,199-46.

(2.) The petitioner is an Exporter of coffee and has registered as Exporter with respondent-1 Coffee Board. Section 14 of the Coffee Act, 1942 ('the Act' for short) requires every owner of coffee estate to register himself with the Coffee Board. Section 17 of the Act prohibits sale of coffee in the Indian market by any registered owner for which no internal sale quota is allotted to the estate and at prices higher than those stipulated by the Coffee Board. The registered exporter is prohibited from sale of coffee except as provided under Section 18 of the Act. Section 20 of the Act confers on the Coffee Board the exclusive right to export coffee from India and the exported coffee cannot be reimported into India except in accordance with the permit granted by the Board. All coffee produced by a registered estate in excess of the internal sale quota allotted is required to be delivered to the Board and it is the responsibility of the Board to take suitable measures to maiket the coffee and all sales thereof shall be conducted by or through the Board. Under Section 47 of the Act, all contracts for sale of coffee to the extent they are repugnant to the provisions of the Act shall be void.

(3.) For sale of coffee in the course of export, the Coffee Board conducts auctions known as 'export auctions' periodically and in order to participate in these auctions, the exporters are required to register themselves with the Board and the Board maintains a list of registered exporters and gives each of them a permit which authorises them to take part in the export auctions. The permit contemplates payment of security deposit as well as a standing deposit from the registered exporter. If it is found that the permit holder has sold or attempted to sell coffee purchased at the export auction has sold the same in the internal market without the written permission of respondent-2, the permit is liable to be withdrawn and cancelled by respondent-2. Violation of any of the conditions of the permit entails cancellation of the permit. Participation in the export auction and the conduct of the auction are based on the terms and conditions of sale of coffee in the course of export as provided under Annexure-A.