LAWS(P&H)-1993-9-5

UNION OF INDIA Vs. VED PAUL ANAND

Decided On September 13, 1993
UNION OF INDIA THROUGH THE CHIEF CONTROLLER IMPORTS AND EXPORTS UDYOG BHAWAN, NEW DELHI Appellant
V/S
VED PAUL ANAND Respondents

JUDGEMENT

(1.) The Chief Controller of Imports and Exports Vide his order dated 4/06/1980 (Annexure P. 7) imposed 'a penalty of Rs.20.00 lacs (Rs. Twenty lacs) jointly on the firm and/or its proprietors directors etc. under Section 4-1 of the Imports and Exports Control Act and also debarred the firm and its partners from receipt of import licence/ imported goods etc. for a period of 10 years under Clause 8 of the Imports Control Order.' In pursuance to this order, a circular dated 12/06/1980 was issued whereby Ved Paul Anand, the respondent, was debarred from the grant of import licences etc. He served a notice on the Chief Controller on 14/03/1981 requesting that his name be deleted from the circular as he had ceased to be a partner of M/s. Oriental Industrial Corporation, Mohali with effect from 15/04/1977. This request having been declined vide orders dated 18/04/1981 (Annexure P-9), the respondent filed a writ petition in this Court challenging the action of the Chief Controller inasmuch as he had been debarred from the issue of import licences. In the writ petition, the respondent specifically averred that the 'petitioner ia not challenging the order (Annexure P. 7) passed by the respondent, so far as the imposition of penalty is concerned.' This writ petition was admitted by the Motion Bench on 4/06/1982. Vide judgment dated 6/09/1982. The learned single Judge allowed the writ petition and quashed the impugned orders at Annexures P. 7 and P. 9 and issued a writ of mandamus to the respondent to delete the name of the petitioner from circular dated 12/06/1980. Aggrieved by this judgment, the Union of India has filed the present appeal. A few facts may be noticed.

(2.) The respondent was one of the three partners of M/s. Oriental Industrial Corporation, Mohali (hereinafter referred to as "the firm"). The other two partners were S/Sh. Surinder Kumar Anand and Walaiti Ram Chadha. The respondent claims that he remained a partner of the firm till 15/04/1977 when he had retired from the partnership. A copy of the dissolution deed was sent to the Register of the Firms on Sept. 1, 1977. Information was also conveyed to the Director of Industries and the Income-tax Officer, Rupnagar.

(3.) On 1/07/1977, the premises of the firm were inspected with a view to check up the proper utilisation of the goods imported by it under the category of 'actual users and under registered exporters policy ....." The Manager of the Unit, who was present, was unable to produce the documents/ records showing use of the import liceneses and utilisation of the imported goods. When the records were not produced for almost two years, the appellant served a notice dated 28/05/1979 giving the complete sequence of events and calling upon the firm to cause as to why penalty be not imposed upon it and it be not debarred from the receipt of licenses and allotment of imported goods. The firm was also called upon to furnish certain information including 'the full names and full addresses of proprietors, partners/ directors.' The firm was called upon to appear for personal hearing on 27/10/1979, December 3, 19 7/02/19 8/03/19 8/05/1980 and 2/06/1980. Every time request for adjournment was made. Even the records asked for were not produced. Accordingly, the authority proceeded to decide the matter 'on the basis of the documents, registers etc. already furnished by the firm.' It found that:-