PREM G S INTERNATIONAL Vs. UNION OF INDIA

JUDGEMENT

(1.) The prayer in this writ petition is for a mandamus to the Respondents "to pay a sum of Rs.29,32,660/- to the Petitioner with interest @ 24% p.a. with quarterly rest till final realization of money".

(2.) Pursuant to the notification dated 31st August 1990 issued by the Joint Secretary to the Government of India, Ministry of Textiles regarding a scheme for export of the garments from India during the year 1991 the Petitioner was granted export licence (VISA) for export of 6000 dresses to M/s Ivory International, Miami, USA. Due to the change of fabric from cotton to rayon, the Petitioner applied for grant of extension of time to execute the order after depositing 30% bank guarantee with the Apparel Export Promotion Council (AEPC). Extension up to 10th May 1991 was granted by the AEPC. The goods were to be shipped from Madras.

(3.) According to the Petitioner in the meantime the Government granted General Extension to the validity of the certified Shipping Bills up to 31st May 1991. Accordingly the Petitioner's Clearing Agent submitted documents to the office of the AEPC at Madras for grant of extension of the validity of the Shipping Bills pending 6000 dresses up to 31st May 1991. However, it was refused by order on the ground that the confirmation of the submission of the 30% bank guarantee sent by the AEPC, Delhi had to be made available to the Madras office. Since the instructions were unable to be sent by the AEPC, Delhi to its Madras office, the Petitioner was denied the right to ship the garments against the licence granted by the AEPC. Ultimately AEPC forfeited 40% bank guarantee amount.