ASIAN PAINTS INDIA LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner Company has filed this petition under Article 226 of the Constitution of India for quashing and setting aside orders dated 27th Feb. 1974, 16th November 1974 and 4th August 1980, passed by the Joint Chief Controller of Imports and Exports and for a Writ of Mandamus or any other appropriate Writ, Direction or Order directing the respondents to withdraw and/or cancel the said orders and to issue Import Licences of the value of Rs. 1,75,271/- for the items specified in the three import licences bearing Nos. 2666861, 2666862 and 2666863 dated 23rd March 1973.

(2.) The three licences were issued to the petitioner company as a nominee of M/s Shahidabhai and Co., M/s. Zakaria Shahid Impex Pvt. Ltd. and M/s. Pearson Traders registered exporters under the handicrafts scheme. These licences were valid for 35 items mentioned in the lists attached to the said licences. The value of the said items, as mentioned in licence No. 2666861 was Rs. 1,11,837/-, in licence No. 2666862 as Rs. 20,111/- and in licence No. 2666863 as Rs. 43,323/-. Even though these licences permitted the import of 35 items the value of each of the items permitted to be imported was not specified separately in the licences. These import licences were granted on 23-3-1973 on the application dated 23-1-1973 submitted by the petitioner company for transfer of the import entitlement of the aforesaid registered exporters of handicrafts and in pursuance of the Import Trade Control Policy for the year April 1972 to March 1973 announced by the Government of India, Ministry of Foreign Trade in the Gazette of India Dt 3-6-1972.

(3.) One of the items which the petitioner was permitted to import on the basis of the three licences was Nitro Cellulose Cotton which is one of the principal raw materials for manufacture of lacquers and nitro cellulose lacquer. As these two items did not figure in list of the items covered by actual users licence produced by the petitioner and as the petitioner did not produce any evidence to show that the petitioner was actually engaged in the manufacture of lacquers, the Joint Chief Controller of Imports and Exports (hereinafter referred to as the JCCIE) by his letter dated 24-4-1973, (copy annexed at Ex. E to the petition) called upon the petitioner to produce a certificate from the Director General of Trade Development (hereinafter referred to as DGTD) that the petitioner was manufacturer of lacquers. By the said letter the JCCIE directed the petitioner to resubmit the three licences within seven days without having utilised the same and to produce the required certificate from DGTD within fifteen days. The petitioner company vide letter dt 10-5-1973 (Ex. F to the petition) informed the JCCIE that the company had taken up the matter with DGTD but did not take any further steps to produce the required certificate from the DGTD. The JCCIE therefore, by his letter dated 15/18th Oct. 1973 called upon the petitioner to produce the certificate from DGTD showing that the petitioner is holder of A. U. Licence/R.O. for nitro cellulose cotton other than 15-20 secs viscosity and nitro cellulose chips. The petitioner was also warned that if no reply was received within 15 days, such action as may be deemed necessary would be taken. No action was ever taken by the JCCIE and the petitioner committed the three licences by establishing letters of credit before 30th April, 1973 for Rs. 91,171/- and after 30-4-1973 for Rs. 81,228/- and utilised the three licences fully for the import of the items mentioned in the licences except item No. 35 i.e. nitro cellulose cotton.