DSJ COMMUNICATIONS Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner has filed this writ petition under Articles 226 and 227 of the Constitution of India seeking quashing and setting aside of a letter dated 21.01.2010 whereby the Directorate General of Foreign Trade (DGFT) had communicated the decision of the EPCG Committee, taken on 12.11.2009, inter alia, rejecting the request of the petitioner for extension of period for fulfilling its export obligations and also inclusion of an alternate export product for the purpose. The said letter dated 21.01.2010 (hereinafter referred to as the 'impugned order') further informed the petitioner that the EPCG Committee had directed the Regional Authority to initiate action for recovery of customs duty with interest, forfeiture of Bank Guarantee and action under the Foreign Trade (Development and Regulation) Act, 1992 (FTDR Act). The petitioner has further prayed that the respondent no.1 be directed to take up the matter of the export obligations of the petitioner afresh.

(2.) The relevant facts are summarized as follows:

(3.) The petitioner company stated that it could not perform its export obligation on account of mitigating circumstances as the petitioner company stated that it is engaged in publication of 'Dalal Street Journal' and thus has vital information about the stock market. Due to its experience in this field the petitioner undertook, with the support of Doordarshan, to start a TV program and related software, based on the stock market and international finance market. The petitioner, on receiving Doordarshan's in-principle consent to air its content on their forthcoming channel titled "DD3" as well as the microwave link permission from the Ministry of Communication, Government of India, decided to import the capital goods worth US $4,73,916/- required to telecast stock and financial market information. The capsules made for airing were also planned to be exported to other countries. The petitioner thereafter made heavy investments for hiring staff, building infrastructure and entering into agreements with various intermediaries on the basis of Doordarshan's assurance. However the project was abruptly abandoned due to Doordarshan deciding against the introduction of the DD3 channel. The petitioner states that in the given circumstances the petitioner was unable to create and export video software on its own and thus, could not fulfill its export obligations. It is contended that the failure to do so, was beyond the control of the petitioner and the abandoning of the DD3 channel by Doodarshan and the consequent loss suffered made it impossible for the petitioner to make and export any "Video Software". Apparently, the petitioner also made a reference to the Board for Industrial & Financial Reconstruction under the provisions of the Sick Industrial Companies (Special Provisions) Act, 1985.