2018 (3) TMI 722 - HC - Customs

Issuance of cheque for the premium amount in lieu of surrendered REP licences - REP licences, Imprest Licence issued from time to time in accordance with the import-export policy in force - Held that - where advance/imprest licences have already been issued, the claim was to be filed with the licensing offices in Part-II of the application form. The claim shall be scrutinized and in the manner indicated in Part-II of the Circular along with E.P. copy of the shipping bill and bank certificates of export/realisation. The premium amount will then be paid for the unutilised CIF value, as indicated in the exchange control copy of the licence as on 1st March 1993. As far as pending advance licence application, it shall be filed with the licencing authority with whom the application for advance licence is still pending and there are other stipulations in para 2(c), which have to be complied with. Para 3(2)(d) deals with the pending claims of gem and jewellery REP licences. The petitioner must blame himself for having approached this Court belatedly and much after the cut off date. Secondly, the respondents are not obliged to preserve the records and endlessly. All that we have are three copies of applications made by the petitioner and we have referred to the details thereof There is thus merit in the contentions of the respondents that the scheme was to operate exclusively under the supervision of Reserve Bank of India. Secondly, the benefit of orders passed by this Court in the writ petitions which were filed in this Court but before the cut off date, can be of no assistance. The petitioner cannot be granted any relief - petition dismissed.

Issues Involved:
1. Entitlement to premium payment on surrendered REP licenses.
2. Timeliness and procedural compliance of the petitioner's claims.
3. Applicability of past court orders to the petitioner's case.
4. The role and response of the Reserve Bank of India (RBI) in premium payments.
5. Preservation and verification of records by the respondents.

Detailed Analysis:

1. Entitlement to Premium Payment on Surrendered REP Licenses:
The petitioner, a proprietory firm, sought a writ of mandamus under Article 226 of the Constitution of India, directing the respondents to issue a cheque for the premium amount of ?19,95,125 with interest at 18% p.a. from the date of filing premium claims against surrendered REP licenses. The petitioner relied on various circulars, including REP Circular No.11 of 1993 and REP Circular No.14 of 1993, which outlined the conditions and benefits for surrendering valid and unutilized licenses.

2. Timeliness and Procedural Compliance of the Petitioner's Claims:
The petition was filed on 11th September 2001, with the first relevant circular dated 5th May 1993. The circulars specified deadlines for filing claims and making payments, which the petitioner failed to meet. The court noted that the petitioner did not approach the court or appellate authority in a timely manner, and the claims were not filed expeditiously like others. The petitioner was required to comply with the stipulations in the circulars, including filing claims within specified dates and providing necessary documentation, which was not adequately done.

3. Applicability of Past Court Orders to the Petitioner's Case:
The petitioner cited several past court orders where benefits or payments of premiums were granted, such as M/s. Chowgule & Co. Limited Vs. Assistant Director of Foreign Trade and M/s. Atul Gems and another Vs. Union of India. However, the court found that these orders were not applicable to the petitioner's case as the petitioner neither approached the court nor obtained any favorable decision within the stipulated timeframe. The court emphasized that the benefit of orders passed in other cases could not be extended to the petitioner due to the delayed filing of the petition.

4. The Role and Response of the Reserve Bank of India (RBI) in Premium Payments:
The premium payments were subject to pre-audit by the RBI, and the scheme was to operate under the supervision of the RBI. The respondents highlighted that the RBI had agreed to make payments in specific categories of cases, including those where court orders were obtained before certain dates or where applications were complete with material information. The petitioner did not fall within these categories, and the RBI was not impleaded as a party respondent in the petition.

5. Preservation and Verification of Records by the Respondents:
The respondents stated that they could not verify the petitioner's claims due to the absence of records and particulars related to the three applications. The petitioner was asked to produce original receipts and other relevant documents, which were not provided. The court noted that the respondents were not obliged to preserve records indefinitely, and the petitioner's delay in approaching the court further complicated the verification process.

Conclusion:
The court dismissed the petition, stating that the petitioner did not meet the procedural requirements and deadlines specified in the relevant circulars. The petitioner's reliance on past court orders was found to be misplaced, and the RBI's role in pre-auditing premium payments was emphasized. The court concluded that the petitioner's claims could not be granted, and the rule was discharged without any order as to costs.

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