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Issues:
Validity of extending the period of a duty-free import license. Analysis: The case involved a petitioner who had purchased a duty-free import license from Vishakhapatnam Steel Plant, which was endorsed in their favor. The petitioner claimed they could not fully utilize the license due to disputes between the licensing authority and the steel plant. The petitioner requested an extension of the license validity period, which was denied citing the absence of provisions for revalidation or extension of transferable licenses in the Exim Policy. The main issue was whether the licensing authority had the power to extend the license's validity. The court referred to Para 21 of the Exim Policy, which allows for relaxation of policy provisions in cases of genuine hardship. The Director General of Foreign Trade has the authority to grant such relaxation or relief as deemed fit. The court also cited a previous case where the power to extend the validity period was recognized to alleviate genuine hardship. Additionally, a Bombay High Court decision was referenced to support the contention that the licensing authority possesses the power to revalidate or extend the license period. The court noted that Para 21 of the Exim Policy appeared broader in scope than the previously mentioned clause. Several other decisions of the court were cited, emphasizing the authority of the licensing authority in similar matters. The court concluded that the power to extend the validity period of the license does exist, contrary to the sole ground for refusal being lack of power. As a result, the court made the rule absolute, quashed the communication denying the extension, and directed the respondent to consider and decide the petitioner's representation for revalidation or extension of the license period within a specified timeframe, providing the petitioner with an opportunity to be heard. The writ petition was disposed of with no costs incurred.
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