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Issues:
Challenge to the order of the Collector of Customs imposing a restriction on the number of persons allowed to sign documents for a Customs House Agent license. Analysis: The petitioners, a partnership firm of Licensed Clearing Agents, held a valid license under the Customs House Agents Licensing Regulations, 1984, renewed periodically. The issue arose when the Collector of Customs imposed a restriction that only one person could sign for one license, affecting the petitioners who operated as a family business with all partners qualified to transact business. The impugned order rejected their application for renewal based on this restriction. Upon examination of the Regulations, the High Court found no provision allowing such a restriction on a Customs House Agent holding a valid license. The Regulations only required partners or employees to be qualified and comply with stipulations for license issuance. The court concluded that the Collector lacked the power to impose the restriction, as it was not supported by the Regulations. The respondents attempted to justify the restriction to prevent fraud and monopolies, but the court held that even if the objectives were valid, the Collector had no authority under the Regulations to enforce such a restriction. The court emphasized that any practice must align with the Regulations, and if changes were necessary, they should be made through appropriate amendments. Consequently, the High Court quashed and set aside the Collector's order dated 29th April 1992, ruling it as illegal and unwarranted by the Regulations. The court directed the respondents to reconsider the petitioners' license renewal application in line with the judgment and the law, while also ordering the respondents to bear the costs of the petition.
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