AJANTA TUBES LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) This judgment will also dispose of C.W.P. No. 1537 of 1985 and C.W.P. No. 2169 of 1985 as the common question involved in all these petitions is regarding the application of clause 6 of the Imports (Control) Order, 1955, hereinafter called the Order. The challenge in these petitions is to the debarring order dated 17.2.1985 read with debarring circular dated 2.3.1984 and the consequential letters issued by the respondents.

(2.) M/s. Jain Sudh Vanaspati Company Limited imported certain amount of Beef Tallow. A show cause notice dated 14.11.1983 was issued to the said company. The operative portion of the show cause notice is contained in paragraph 3, Which is to the following effect:-

(3.) As a consequence of the aforesaid order the three petitioner companies who had some of the directors common to M/s. Jain Sudh Vanaspati Company Limited were also debarred from getting any import licences under clause 6 of the said order on the ground that some of the directors were common as they were also the directors of M/s. Jain Shudh Vanaspati Company Limited. The respondents went to the extent of informing the banks dealing with the petitioner companies and instructed them not to open any L.Cs. for import of goods and also issued circulars to the various agencies without specifically mentioning the names of the companies or its directors. The consequence of this order and the various letters has been that the working of the petitioner companies has been prejudiced to a very great extent.