DENA BANK Vs. G S SAWHNEY

JUDGEMENT

(1.) The petition is to quash the orders dated 8lh May, 1968, 30th July, 1968, 19th Nov., 1968, 13th Jan., 1971 and 21st Jan., 1972 and for an order for the refund of fine of Rs. 3,99,000/- paid by the petitioners to the Customs Authority, and for costs of the petition.

(2.) The facts that give rise to the petition are that on or about 7th Apr., 1967 an Import Licence was issued to the firm known as Messrs. Industrial Engineering Co. (for brevity's sake hereinafter referred to as 'the said firm)' On 14th Oct., 1967 the said firm applied to the licensing authority for amending the licence to cover the import of mutton tallow. By a letter dated 8th Nov., 1967 the section officer of the office of the Chief Controller of Imports and Exports returned the licence to the said firm duly amended and revalidating the same up to 7th June, 1968. Thereafter the said firm by a letter dated 12th Feb., 1968 addressed to the office of the Chief Controller of Imports and Exports acknowledged the amendment of the licence to cover mutton tallow as also revalidating of the licence up to 7th June, 1968. By the said letter the said firm requested the authority to confirm the amendment and the revalidation of the licence, since this confirmation was required by Messrs. Godrej Soaps Pvt. Ltd. in whose favour a letter of authority had been issued by the said firm. By a letter dated 23rd Feb., 1968 the office of the Chief Controller of Imports and Exports confirmed the said position.

(3.) It appears that during the course of the correspondence, the said firm applied to the Dena Bank (i. e. the petitioners in this case) to open letters of credit and this was done on 16th Jan., 1968. Thereafter the petitioners obtained an irrevocable letter on 191h Mar., 1968.