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TMI Blog1989 (3) TMI 289X X X X Extracts X X X X X X X X Extracts X X X X ..... s 2 to 4 therein to reimburse a sum of Rs. 1, 95, 859.40 due under the same Scheme. W.P. Nos. 3997, 3998 and 3999 of 1988 were filed for writs of mandamus against respondents 2 to 4 there in claiming reimbursement in a sum of Rs. 61, 676.70; Rs. 19, 07, 421/- and Rs. 11, 67, 327.90P. respectively under the same Scheme. 3. The case, shortly put in this : The first respondent in the appeals are the manufacturers of Steel Wire Ropes, which they export to foreign countries. They use Resulpharised Carbon Steel (forging quality carbon steel) for the manufacture of the said ropes. They purchase steel in the local market, but the price of steel in the local market is higher than the price in the international market. Consequently, the Indian producers, who manufacture their products out of Indian Steel are not able to compete in the global market. In order to enable the export and in order that the Indian manufacturers do not suffer unduly, the Union Government had sponsored a scheme called Internal Price Reimbursenent Scheme, 1981 (IPRS 1981). The said Scheme will be referred to as the 'Scheme' in our judgment. In and by the Scheme, an Indian Manufacturer utilising domestic steel for man ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Constitution since part of the cause of action arose within the territorial jurisdiction of this court. 8. The second question was whether a writ will lie against respondents 2 and 3 in the writ petition and they could be called authorities within Art. 12. The learned Judge on an elaborate consideration came to the conclusion that respondents 2 and 3 in the writ petitions were agencies or instrumentalities of the Union of India and are amenable to writ jurisdiction. 9. The third contention was whether the communication dated 2-9-1987 was liable to be quashed by a writ of certiorari. The learned Judge was of the view that even looked at it as an administrative order, it could be quashed. 10. The next question was whether any representation at all was made by the appellants before us. After analysing the scope of the Scheme, it was held that representation was made to the effect that if the scheme was followed, the manufacturers will be entitled to reimbursement of the price difference for the quality of steel used by them in the terms of the scheme. 11. The contention based on the annexure dated 15-9-1986 that the first respondent herein should have used imported high carb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o reject the contention by stating that "it is obvious that the only material or the basis on which the respondents in the writ petition seek to rely to show that the petitioner in the writ petition (first respondent herein) had used high carbon steel wire rods is of no assistance." In fact on 15-9-1986 the above letter was given to the Joint Chief Controller of Imports and Exports in response to a communication from the third respondent in the writ petition. In the letter issued by the Directorate General of Technical Development dated 30-4-1987 in response to a querry from the first respondent herein, it had been clarified that EN 8 DM wire rods are used in the manufacture of certain types of steel wire ropes. Under these circumstances, it was entirely for the petitioners to have proved the use of the same. It cannot be assumed as a fact and relief be granted. That is exactly what has been done by the learned single Judge. 13. Assuming that it has been so used, the Scheme, first of all, is non-statutory in character. Even otherwise, a careful reading of the same would clearly show that no promise is held out under the scheme. As to what exactly is the law of promissory estoppel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Union of India; therefore, they would definitely be the authorities under the control of the Union of India and hence Art. 12 of the Constitution would stand attracted. 19. We will consider whether the disputed questions of fact arise in these cases. One thing we wish to make clear that in paragraph-9 of the counter affidavit filed by the Union of India, it is stated thus: ".It is submitted that the petitioner did not use Resulpharised Carbon Steel (Forging quality carbon Steel) EN 8 DM as has been stated by him in the affidavit. The petitioner instead used 'High Carbon Wire Rods'. This is borne out by the records in the possession of the Ministry of Commerce, New Delhi. A copy of a letter from M/s. Usha Inter Continental, New Delhi dated 15-9-1986 addressed to the Jt. Chief Controller of Imports and Exports, New Delhi, which was submitted by the petitioner with his IPRS claims, which substantiates the claim of the Ministry of Commerce is given in Annexure-1." The question is whether this stand was taken earlier at any point of time by the Engineering Export Promotion Council, New Delhi or its Madras Branch. 20. Therefore, for the first time, as rightly pointed out by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hen comes the letter dated 30-4-1987 which was in reply to the letter of the first respondent dated 2-4-1987. As to how the reply came to be addressed could be seen if we go back to the letter dated 2-4-1987 of the first respondent herein. Therein, it is stated as follows: Dated: 2nd April, 1987 The D.G.T.D. (Import and Export Cell), Udyog Bhawan, New Delhi. Dear Sir, We are manufacturers and exporters of steel Wire Ropes. We have been using EN 8 DM wire rods for making those ropes for exports. We had applied to the EEPC for release of claims/subsidies attaching Chartered Engineer's certificates etc. (copies enclosed herewith). But E.E.P.C. has not been able to decide, since they do not have technical expertise and have declared on confirmation from your office that EN 8 DM can be used for manufacture of steel wire ropes. Accordingly, we request to kindly confirm that EN 8 DM can be used for manufacturing Wire Ropes under advice to the Regional Manager, E.E.P.Cs, Kannammal Building (1st Floor), 612, Anna Salai, Madras-600 006. Your early consideration will help us to overcome tremendous hardships for settling overdue matters with E.E.P.C. since over six months. Thanking y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, wire drawing process has to be resorted to. There is no forging process." On this, the Regional Manager wrote to the First respondent the impugned communicated dated 2-9-1987. It is to the following effect: "………………………This has reference to your various IPRS claims against export of steel wire ropes and claiming the price difference applicable for EN 8 DM Forging Quality Steel. Your applications were considered and the matter was referred to the Ministry for obtaining certain clarifications. The Ministry vide its letter No. 12(4)/87-Ep (Engg.1) dated 12th August, 1987 has clarified that the price difference applicable for EN 8 DM steel to be taken into account only where forging quality carbon steel is used for forging purposes for manufacture of the product exported. Since no forging process is involved in the manufacture of steel wire ropes, the price difference applicable for EN 8 DM forging quality carbon steel cannot be considered; even the said material is used in the manufacture of steel wire ropes exported by you. This is for your information ……" 22. Therefore, it could be clearly seen that a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accepted Council's plea and accordingly, IPRS '81 came into force on 9th February, 1981. Subsequently, following substantial increase in the various other items, the Government has also agreed to include the following items under this Scheme effective from the dates mentioned against each: With effect from (a) Forging quality Carbon Steel. 17th March, 1982 …………………………….." M.S. Wire rods is mentioned in para (iii) as Item No. 10. Resulpharised Carbon Steel is mentioned as item No. 14 of para (iii). In para (v), it is mentioned as follows: "WHAT IS DOMESTIC PRICE ? JPC plant price as on the date of export, for the category, quantity and size concerned, will be taken as domestic price. The Council has made representation to the Government that stockyard charges being paid by the exporters should also be reimbursed under IPRS 1981. The Government has accepted the Council's plea and agreed to reimburse the difference of stockyard charges (difference between the stockyard charges in force on the date of export minus the stockyard charges in force on the date of export minus the stockyard charges as on 8-2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Chartered Engineer's certificate had also been produced. Where, therefore, one of the items mentioned, Resulpharised Carbon Steel (EN 8 DM) had been used, it cannot be contended by any stretch of argument that the Scheme does not spell out a promise. We have already extracted the relevant portions of the Scheme. The Council made a representation to the Government that stockyard charges being paid by the exporters should also be reimbursed. The Government accepted the Council's plea. Then again, the detailed procedure has been set out in the Scheme in respect of submission of application, namely, as to where to apply and how to apply, in paragraphs (xiii) and (iv) thereof. So in accordance with this, when the first respondent submitted applications, they were forwarded by the Engineering Export Promotion Council, Southern Region, to the Engineering Export Promotion Council, New Delhi and thereafter the matter was examined. 26. Now to say that the Scheme does not hold out a representation is something which we are totally unable to appreciate. As a matter of fact, in the communication of the Government of India, dated 10th December, 1985 sent to the Executive Director, Engineering E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dministration, the Government has a power to nominate members. The accounts and books of the Council should be made available for inspection by officer duly authorised in this behalf by the Union Government. The budget prepared by the Committee for each year shall be supplied to the Working Committee and to the Union Government and no expenditure shall be incurred until the budget is sanctioned by the Working Committee after containing approval from the Government and the Government shall have power to give directions to the Council as to the performance of its functions in matters, involving national security or substantial public interest and the council will be bound to give effect to the same and the Government shall have power to call for such reports, returns and other activities of the Council as may be required from time to time. Further, the Engineering Export Promotion Council is nothing more than a disbursing authority and the funds required for payment under the scheme are to be provided only by the Union of India. Therefore, the appellants in W.A. Nos. 1570 to 1575 of 1988 are clearly are agencies or instrumentalities of the Central Government and are amenable to writ ..... 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