MILTONS INDIA Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioners were registered exporters under the Import Export policy for the year 1978-79 pursuant to a Registration Certificate dated 11.10.1976 which was granted to them under the relevant import export policy. The scheme of benefits to registered exporters was continued under the import export policy for the year 1978-79. It is an accepted position that once an exporter has been registered, the registered shall remain valid for four years unless the exporter registered ceases to exist or his is deregistered for any reason or he becomes ineligible to hold the certificate. The registration certificate of the petitioners, therefore, would have ordinarily been valid up to 10th October 1980.

(2.) During June-October 1977 the petitioners agreed to export diverse quantities of cast iron pipes to Egypt on behalf of an Indian exporter who had entered into a contract for this purpose with the Egyptian buyer. Specifications for these cast iron pipes to be exported were also agreed upon. The petitioners accordingly, on behalf of the exporters exported these pipes of Egypt. The first consignment reached Egyptian Customs around November 1977. It seems that on checking the pipes the Egyptian buyers found the pipes sub-standard and also not as per their specifications. They also discovered holes in the pipes. They cabled their seller about these complaints on 14.12.1977. Ultimately they a complaint on 12.3.1978 to the Commercial Counsellor, Embassy of India, Cairo, Egypt. In the complaint details of shipments and their correspondence with the suppliers have been set out.

(3.) After the receipt of this complaint the Engineering Export Promotion Council (Respondent No. 4) who is the registering authority issued a show cause notice to be petitioners which is dated 2.10.1978 setting out details of the complaint received from the overseas purchasers. The petitioners sent a detailed reply to the show cause notice which is dated 7.11.1978. They also requested for a copy of the complaint received as also for a personal hearing. The Engineering Export Promotion Council sent a reply of 7th December 1978 annexing a copy of the complaint as requested by the petitioners. They also asked the petitioners for the details of shipments made by them. Copies of orders placed by the local exporters and copies of various other documents were also referred to in that letter. There is detailed reply dated 29.12.1978 of the petitioners giving parawise answers to this letter of 7.12.1978.