GUJARAT OXYGEN LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) This petition under Article 226 of the Constitution of India by Gujarat Oxygen Ltd. challenges the legality and validity of the order dated 16th August 1978 passed by the Chief Controller of Imports & Exports refusing to revalidate the licence granted to the petitioner on 8th May 1974 for import of 1575 cylinders of gas. The petitioner company was originally owned by Polygas Limited, Bhavnagar, but it changed hands. The company was originally located at Bhavnagar but the new management shifted the company from Bhavnagar to Limdi. The afore- mentioned licence for import of 1575 cylinders was valid up to 14th January 1978. On 27th December 1977 the new management applied for revalidation of the licence. The Chief Controller of Imports & Exports wrote to the petitioner company inquiring about the date of the valid contract signed by the company for the import of the cylinders to enable them to consider the request for the revalidation of the licence. The petitioner company on 5th May 1978 wrote to the Controller of Imports and Exports informing that M/s. Pannonia Foreign Trading Company, Budapest (Hungary) had accepted their order for 1575 oxygen cylinders vide their letter dated 12th May 1977 and the period of delivery quoted by them was four months after their opening the letter of credit which they hoped to open with Bank of Baroda, Ahmedabad as soon as the licence is revalidated. The company requested for revalidation of the licence till 14th January 1979. On 20th June 1978 the Controller of Imports and Exports wrote to the petitioner for sending a copy of the contract signed by it with the foreign supplier. On 7th July 1978 the petitioner sent to the Chief Controller of Imports & Exports a photostat copy of the order and confirmation of the said order from the supplier. On 16th August 1978 the Controller of Imports & Exports refused the request for revalidation.

(2.) After the above refusal the petitioner company took up the matter with the Minister of Commerce. The Minister of Commerce vide letter dated 9th July 1979 informed Mr. Viren J. Shah, Member of Parliament, that the import of gas cylinders is not being allowed on account of the availability of indigenous cylinders with M/s. Bharat Pumps & Compressors ltd. and, therefore, regretted that the licence could not be revalidated. On 25th August 1979, the petitioner served a notice on the Chief Controller of Imports & Exports for reconsideration of the case for revalidation of the licence failing which the respondent No. 2 was told that legal action shall be taken.

(3.) On 7th April 1980, the Petitioner company filed the present petition for a writ of mandamus requiring the respondents to revalidate the licence up to a reasonable date to enable the petitioner to import 1575 gas cylinders covered by the licence.