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Issues:
1. Eligibility criteria for grant of Export House Certificate under the Import Policy for the year 1981-82. 2. Rejection of the application for Export House Certificate by the Controller of Imports & Exports based on a decline in export value. 3. Legal challenge under Article 226 of the Constitution of India seeking to quash the rejection and obtain a writ of mandamus. 4. Interpretation of the eligibility conditions under the Scheme for Export House Certificate. 5. Application of the principle of administrative law in evaluating the actions of the executive agency. 6. Relief sought by the petitioners for the grant of Export House Certificate and additional license application. Analysis: The judgment of the Bombay High Court, delivered by Pendse, J., pertains to a petition filed by a partnership firm engaged in the import and export business seeking the grant of an Export House Certificate under the Import Policy for the year 1981-82. The petitioners, a Small Scale Industry registered with the Director of Small Scale Industries, applied for the certificate but were rejected by the Controller of Imports & Exports citing a decline in export value over the base years. The court examined the eligibility criteria laid down in the Policy, particularly paragraphs 175(a), (b), and (c), which specified the minimum export values and the requirement of exports in each year of the base period. The judge found that the mere decline in export value did not warrant rejection if the conditions were met, emphasizing that continuous growth rate was not a prerequisite under the Scheme. Furthermore, the court considered the principle of administrative law, citing a Supreme Court judgment to highlight the need for executive agencies to adhere strictly to the standards set in their actions. The judge agreed with the petitioner's argument that the Controller could not introduce additional requirements beyond those specified in the Scheme. Relying on this principle, the court held that the rejection of the Export House Certificate application was unjustified, and the petitioners were entitled to the relief sought. Consequently, the court granted the petition, quashing the rejection and directing the respondents to issue the Export House Certificate within a month. Additionally, the court instructed the respondents to consider any application for additional license, as per the Import Policy, within three months of granting the Export House Certificate. The judgment concluded by stating that no costs were awarded in the circumstances of the case, providing a comprehensive resolution to the legal dispute.
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