BALWANTRAI MAGANLAL MEHTA Vs. M C SATYAWADI

JUDGEMENT

(1.) By this petition filed under Article 226 of the Constitution of India, the petitioner is challenging the legality of the order passed by the Under Secretary to the Government of India declining to interfere with the order of the Joint Chief Controller of Imports and Exports forfeiting the bond executed by the petitioner. The under Secretary conveyed the decision to the petitioner by letter dated December 22, 1997.

(2.) The facts which have given rise to this petition are as follows : On November 20, 1972, the general trade arrangement was arrived at between the Government of India and the Government of Afghanistan, under which imports of certain goods from Afghanistan were contemplated against exports of specified goods from India. In pursuance of this arrangement, the Central Government issued a Public Notice No. 93/72 on June 30, 1972. By the said Notice the Government laid down the policy regarding the imports from Afghanistan against corresponding exports from India to that country, and vice versa. In accordance with the provisions of the said Notice, the petitioner applied to the Joint Chief Controller of Imports and Exports on December 18, 1972, for a Customs Clearance Permit for import of dry fruits from Afghanistan worth Rs. 50,000/- during the period 1972-73. The petitioner executed a bond on December 18, 1972, whereby the petitioner and the Indian Overseas Bank jointly bound themselves to the President of India in the sum of Rs. 25,000/-. The petitioner was granted the Customs Clearance Permit dated January 8, 1973 for import of dry fruits from Afghanistan and in pursuance of that permit the petitioner imported almonds worth Rs. 47,970/- on February 20, 1973. In pursuance of the Public Notice, the petitioner was obliged to export goods falling under Schedule B-I to the said Public Notice worth 50 per cent of the value of the imported goods and also to export goods falling in Schedule B-II worth 50 per cent of the value. The Items under Schedule B-I was Indian Black Tea, while Item in Schedule B-II was Indian Art Silk Piece goods. The dispute in this petition is in respect of export of Silk Piece goods of the value of Rs. 23,985/-.

(3.) The export was to be completed within a period of six months from the date of import, but as the steamers were not available, the Government extended the period from time to time. The first extension was upto August 30, 1973 by Public Notice dated June 12, 1973. The second extension was upto November 30, 1973 by Public Notice dated September 4, 1973, while the last extension was upto March 31st, 1974 by Public Notice dated January 8, 1974. The petitioner filed the Bill of Lading on March 29, 1974 in respect of Silk Piece-goods and the shipment took place on May 4, 1974. In the meanwhile, the Joint Chief Controller of Imports and Exports, passed an order on December 21, 1973 forfeiting the bond executed by the petitioner for his failure to export the goods by the end of November 30, 1973. On the date when the order was passed by the Controller, the extension upto March 31, 1974 was not granted. The order passed by the Controller was communicated to the petitioner on February 27, 1974.