UNION OF INDIA Vs. UNIVERSAL EXPORTERS

JUDGEMENT

(1.) These Writ Appeals are directed against the judgment of our learned brother Ramanujam, J. (Printed at page 177 infra). The short facts are as follows: The petitioners before him were carrying on garment export business at Madras. They were granted necessary export quota on the strength of their past export performance.

(2.) The Cotton Textile Export Promotion Council had been entrusted with the function of granting export assistance for cotton textiles. The ratio of such assistance was decided by Export Promotion Council for the period 1.4.1978 to 31.3.1979. The terms and conditions of the assistance were informed to all garment exporters. The petitioners relying on the said announcement, began to prepare for the export by buying huge stock of cloth and cutting them to various export garment specifications and quantities. As and when they were ready, they were exported to foreign buyers. The petitioners firm and other exporters received a circular from the Export Promotion Council informing the exporters of the constitution of a sub-committee to streamline the procedure for disbursement of cash assistance to the exporters of cotton textiles. As stated above, the period of validity of the said scheme of assistance was from 1.4.1978 to 31.3.1079. All of a sudden, it was decided by the respondent to withdraw the same with effect from 1st January, 1979 in the following terms:

(3.) Mr. P. Narasimhan, learned Senior Additional Central Government Standing Counsel would urge that this is not a case of promissory estoppel because such a doctrine would apply only if there is a total withdrawal of the scheme. On the contrary, there was partial modification by an order dated 6th January, 1979. Under those circumstances, there is no scope for the application of the scheme. This is the only point urged before us.