AUTHUR IMPORT EXPORT CO Vs. UNION OF INDIA

JUDGEMENT

(1.) THE petitioner No. 1 is a partnership firm and established an Industrial Undertaking in pursuance of licence granted under the Industrial Undertaking Rules, 1952. The petitioners have installed capacity for manufacturing of the mixed waste yarn. The manufacture of the yarn requires hard synthetic waste as raw material. The waste is hardly available indigenously as the available waste is used by the spinning mills in the reprocessing and is mixed with viscose, cotton, wool, etc. The petitioners are, therefore, required to import waste yarn.

(2.) IN accordance with the provisions of Paragraph 82 (1) of the Import Export Policy, the petitioners applied for issuance of supplementary licences to actual users and the application was recommended by the Textile Commissioner. The petitioner was granted supplementary licence on July 16, 1986 for import of hard synthetic waste of c. i. f. value of Rs. 50 Lacs. On issuance of the licence, the petitioners approached several foreign suppliers. However, the suppliers indicated their inability to supply material as required by the petitioners. Ultimately, the petitioners located the foreign supplier but as the validity period of the licence was coming to an end, the petitioners applied for issue of fresh supplementary licence or revalidation of the existing one on December 30, 1987. The application remained pending till the validity of the original licence expired on May 11, 1988. On May 16, 1988, the petitioners filed fresh application for grant of supplementary licence in view of new Import and Export Policy for year 1988-91 which came into force with effect from april 1, 1988. The application was rejected on the ground that the waste yarn is indigenously available. Against the order of rejection dated August 11, 1988, the petitioners moved the Textile commissioner pointing out the requirement of mixed waste yarn. On the representation made by the petitioner to the Textile Commissioner as well as the Government of India on October 31, 1989 the Ministry of Textile made a reference to SASMIRA enquiring about the availability of the synthetic waste in the country. On November 15, 1989, SASMIRA informed the Ministry that synthetic waste is hardly available in the country and the availability is only 2% of the total indigenous requirements. In spite of SASMIRA's recommendation for grant of licence in view of the fact that there are only five importers, the request made by the petitioners remained unheeded and that gave rise to the filing of this petition on April 23, 1990.

(3.) THE learned Single Judge admitted the petition and directed the respondents to revalidate the licence till December 31, 1990. In pursuance of the revalidation, the petitioners placed order for import and registered the contract with Syndicate Bank. The respondents, in the meanwhile, preferred appeal on June 27, 1990 before the Division Bench against the order of the trial Judge directing revalidation of the licence. The appeal was admitted and the order was stayed. The appeal was disposed of on January 8, 1993 and the order of the Single Judge directing revalidation pending hearing of the petition was set aside and the petition was set down for hearing. Accordingly, the petition is placed for final hearing.