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1988 (4) TMI 182 - HC - Indian Laws

Issues:
Whether authorities are entitled to forfeit the amount under a bond executed by a petitioner for failing to export woollen fabrics as required.

Analysis:
The petitioner, a woollen textile mill, imported a machine subject to a condition to export woollen fabrics equal to the imported goods' value. The petitioner was unable to export directly but supplied fabrics to another company, Miltons Limited, which exported garments earning foreign exchange. The authorities proposed forfeiture for non-compliance, leading to the petitioner approaching the High Court under Article 226 of the Constitution.

The petitioner argued that exporting through an agency like Miltons Limited fulfills the bond's obligation, supported by a letter relieving the petitioner of direct export obligation. The Controller of Imports agreed that the petitioner could export through an agency, subject to certain conditions. Documents and certificates confirmed compliance with these conditions, including a certificate stating that blended fabrics with 35% wool qualify as woollen fabrics.

The Court found that the petitioner fulfilled the conditions specified in the letter from the Controller of Imports and the Assistant Director's certificate regarding blended fabrics. The Court concluded that there was no basis to take action against the petitioner and ruled in favor of the petitioner. The petition succeeded, and no costs were awarded in the matter.

 

 

 

 

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