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Issues involved: Reduction of import quota for raw material, alleged breach of Import Control regulations, challenge based on Article 14 of the Constitution, breach of principles of natural justice.
Reduction of Import Quota: The petition challenged an order reducing the entitlement of the petitioners to import raw material for manufacturing Sanitary Napkins by 20% for a specified period u/s clause 8 of the Import (Control) Order, 1955. The order was based on alleged illegal import of wood pulp between 1980 and 1985, leading to a breach of Import Control regulations. Alleged Breach of Import Control Regulations: The show cause notice issued to the petitioners alleged illegal import of wood pulp, violating Import Policy provisions. Despite the petitioners' responses and legal challenges, the Deputy Chief Controller found them in breach and debarring them from imports. Challenge under Article 14: The petitioners contended that the impugned order was discriminatory and violated Article 14 of the Constitution. They argued that the interpretation adopted discriminated against them compared to other similarly placed individuals, thus breaching their constitutional rights. Breach of Principles of Natural Justice: The petitioners raised a crucial challenge regarding the breach of principles of natural justice. They argued that the decision-maker did not provide a fair opportunity for the petitioners to respond to adverse material obtained post-hearing, violating principles of natural justice and Article 14 of the Constitution. Decision: The High Court allowed the petition, quashing the impugned order due to the clear breach of principles of natural justice. The Court emphasized that the decision-maker must not act on material not seen or commented on by the affected party, highlighting the importance of fair opportunity and procedural fairness. The Court declined remand, considering the long period since the order and the liberal import policy in place.
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