TRANQUIL RUBBER SALES LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner obtained a special licence under the Import Trade Control Policy. The description of goods is stated to be 3.866 metric tonnes of polyether polyon. It is a licence issued as per decision taken in the 9th RSLO meeting held on 23.12.1991. The approximate value is stated to be as Rs. 1,71,248/-.

(2.) When the petitioner applied to the second respondent for opening a letter of credit, it was returned on 5.5.1992 stating that as per the guidelines of the Reserve Bank of India, the bank was in a position to establish a letter of credit at the official exchange rate as on the date. There is a communication dated 5.5.1992 from the Joint Chief Controller of Imports and Exports to the petitioner in which it is clearly stated that the licence issued by the department was essentially a permission to import and it did not entitle the petitioner to make imports at any particular exchange rate other than what was stipulated by the Reserve Bank of India in its guidelines. Hence, it is stated that the authorised foreign exchange dealers would release foreign exchange at rates fixed by them on the basis of the Reserve Bank of India guidelines.

(3.) Aggrieved by the same, the petitioner has filed this writ petition for issue of a certiorarified mandamus for quashing the communication dated 5.5.1992 and a consequential direction to the second respondent to open a letter of credit for the quantity of goods covered by the licence issued to it.