DARSHAN OILS PVT LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) THIS petition is companion to Writ Petition No. 56 of 1984 in which we had delivered judgment on July 20, 1993. The facts which gave rise to the filing of this petition are as follows.

(2.) THE petitioner No. 1 is a Private Company registered under the Indian Companies Act and carries on business as traders and general oil merchants. The Government of India had declared import and export policy for period April 1983 to March 1984. The import of split stearin fatty acid was not canalised when the policy was declared by Government of India. The petitioners entered into contract with M/s. Haji M. Moosa and Company, Singapore for purchase of 150 metric Tonnes of split stearin fatty acid on August 1, 1983. In pursuance of the contract, the petitioners opened irrevocable letter of credit in favour of the vendor on October 3, 1983.

(3.) ON November 11, 1983, the Government of India, Ministry of Commerce, issued a public notice providing for amendments to import and export policy for April 1983-March 1984. The amended policy, inter alia, provided that import of fatty acids and acid oils can only be through the canalising agency. A paragraph was added to Appendix 9 which sets out canalised items and the heading of paragraph was "fatty Acids and Acid Oils". The paragraph provides that import will be made only by State Trading Corporation of India under Open General Licence on the basis of foreign exchange released by the Government. The items of fatty acids and acid oils are then set out and Item No. 9 refers to other fatty acids, pure or mixed including acid oils, all types, Paragraph 3 of the Public Notice reads as follows: