LIPTON INDIA LIMITED Vs. GOVT OF INDIA

JUDGEMENT

(1.) This writ petition has been filed by the petitioner feeling aggrieved by the orders of the respondent dated 12/14 December, 1988, 4th April, 1989 and 15/16th May, 1989. The case of the petitioner has been that the petitioner was enjoying 25% increase in their production capacity under a press note of 1975. While that was still in force, Government of India issued another press note on 1st January, 1986 which reads as under: .

(2.) Following the said press note the petitioner filed an application requesting endorsement of the enhanced licensed capacity to the extent of 49% on its licence. Such enhancement was to take place after the requisite modernisation and replacement of the old equipments. In support of need for modernisation the petitioner had submitted the certificate from a Chartered Engineer. On the said application the Director Vanaspati passed a very short and criptic order on 12/14th December, 1986. That order by no means can be described as well considered decision and cannot be sustained at the very outset. However my attention has been drawn by counsel for the respondent to order dated 4th April, 1989 wherein reasons for refusal to endorse the additional capacity on the licence had been furnished. I need not address myself to order dated 15/16th May. 1989 purporting to be final rejection by Government of India since this order also does not give any reason but merely relies upon the order dated 4th April, 1989.

(3.) In the writ petition there is no plea of malafides on the part of the respondents nor is there any challenge to the existence of power with the respondents to grant or withold such enhancement in the licensed capacity. The only challenge to the decision of the Government is on the ground of arbitrariness and that of basing its decision on reasons which are not germane to the conditions prescribed in the Press Note of 1st January, 1986.