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TMI Blog1989 (4) TMI 176X X X X Extracts X X X X X X X X Extracts X X X X ..... pies whereof are annexed at Exhibits 'A' and 'B' to the Petition. They were valid for a period of 12 months with an additional grace period of two months, for imports of stainless steel mE.L.T.ing scrap. Under these licences the Petitioners were to open Letters of Credit by 31st of March 1985 and effect shipment on or before 31st of May 1985. The foreign suppliers Messrs. Donarson Ltd., issued their Proforma Invoice dated 3rd December 1984 whereunder the shipment was to be effected between January and March 1985. On the 11th of December 1984, the Petitioners applied for an irrevocable Letter of Credit in favour of their foreign suppliers through Laxmi Commercial Bank Ltd. On the 13th of December 1984 an irrevocable Letter of Credit was acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and Exports, the 3rd Respondent herein, and by order dated 18th of March 1986, the Appeal was dismissed and the Petitioners were informed that the decision of the 2nd Respondent cannot be altered for the reason that there is no provision for re-validation of the licences in the existing Import Policy. On the 12th of February 1986, Canara Bank informed the Petitioners that it had taken over the Laxmi Commercial Bank Ltd. On the 23rd of December 1985, the Petitioners requested Ministry of Commerce, New Delhi, to re-validate their licences but that request was rejected by the Controller of Imports & Exports, Ministry of Commerce, New Delhi, by his letter dated 28th January 1986. On the 7th of April 1986, the Petitioners moved a Review Applica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cence, may be considered, on merits, by the licensing authority having regard to the period of delivery of the Capital Goods as contracted for by the overseas suppliers in the case of licences issued against tied credits or aids however, the terminal date will be kept in view while considering such requests for revalidation. The aforesaid clause would itself indicate that though under Clause 72, it is provided that no grace period for shipment of goods will be admissible, that provision is not a rigid embargo. Clause 74 clarifies that the period of validity means the period of shipment/despatch permissible for the goods concerned. Clause 80, on which Mr. Bulchandani placed emphasis, reads as under:- "80. On certain occasions such as dockya ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... equently, the Petitioners were required to request the Respondents to revalidate their licences. Consequently, they also required the extension of time to open fresh Letter of Credit in favour of their foreign suppliers. 4A. In my judgment, the view taken by the Respondents is clearly erroneous, in view of the aforesaid clauses found in the Hand Book of Import & Export Policy for April 1985-March 1988. If one peruses the Import & Export Policy April 1985-March 1988, it would be clear that under Clause 37, there is a clear power conferred for relaxation of the policy. Clause 37 provides : "Cases for relaxation of the existing policy/procedure where it creates genuine hardship or where a strict application of the existing policy is likely t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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