PRAKASH TEXTILES Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner is aggrieved by the order of the Second Appellate Committee of the Government of India, Ministry of Textiles passed on 14.09.2002. The question in this petition relates to the utilisation of the export obligation of the petitioner under the Garment Export Entitlement Policy.

(2.) In this particular case, the relevant year is 1999. The revaliation of export quota which was granted to the petitioner was under the condition that the petitioner would provide a Bank Guarantee to ensure that it met its export obligation by 31.12.1999. The admitted position is that the petitioner could not meet the export obligation by 31.12.1999. However, the petitioner sought to invoke the Force Majeure condition in order to submit that invocation of the Bank Guarantee and forfeiture of the amount of the Bank Guarantee ought not to be done under the Policy itself as the petitioner was prevented from meeting its export obligation because of the Force Majeure conditions.

(3.) In this case, the petitioner initially pleaded that it was prevented from meeting its export obligations due to fog and bad weather as well as the Y2K problem at Mumbai Port. However, at the Second Appeal stage, the petitioner gave up its ground with regard to the Y2K problem. Learned counsel for the petitioner has pointed out from the First Appellate order dated 04.04.2002 passed by the Textile Commissioner that the petitioner had, in point of fact, submitted evidence in the form of a Meteorological Department Certificate dated 07.03.2001 indicating the fog and bad weather conditions prevailing during the period 20.12.1999 to 31.12.1999. This was not accepted as a valid reason constituting a Force Majeure condition by the First Appellate Committee. In Second Appeal, however, the same was dismissed by the Second Appellate Committee on the following reason:-