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TMI Blog2015 (9) TMI 143X X X X Extracts X X X X X X X X Extracts X X X X ..... for suspension order Nothing, in suspension order, which would hold that some situation which required immediate and emergent attention had taken place If authority suspended licence, it must make order in writing that must indicate some application of mind and relevant material There was absolutely no material in order of suspension Mere pendency of cancellation proceedings without anything could not be foundation for such order Impugned order quashed and set aside Petitioner to co-operate with authority in early conclusion of proceedings initiated pursuant to show cause notice Decided in favour of Petitioner. - Writ Petition No. 9873 of 2014 - - - Dated:- 3-11-2014 - S.C. Dharmadhikari and A.A. Sayed, JJ. Shri Prakash ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ject to such conditions as may be prescribed, for good and sufficient reasons, to be recorded in writing, suspend or cancel any licence, certificate, scrip or any instrument bestowing financial or fiscal benefits granted under this Act : Provided that no such suspension or cancellation shall be made except after giving the holder of the licence, certificate, scrip or any instrument bestowing financial or fiscal benefits a reasonable opportunity of being heard. 5. Mr. Shah submits that upon perusal of this provision, it is clear that a suspension or cancellation can be made only after giving a reasonable opportunity of being heard to the holder of the licence, certificate, scrip or any instrument bestowing financial or fiscal benefits ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t October, 2014. Against such an order as well as in terms of sub-section (5) of section 9, an appeal lies to the Appellate Authority. In that regard, he invited our attention to the wording of sub section (5) of section 9 and submits that this Writ Petition is not maintainable. It is also not maintainable because there was material for suspension of the authorization pending cancellation proceedings. That material is contained in an communication dated 30th October, 2014 and which is a Annexure to the show notice. He submits that the reasons for taking such steps are set out in this communication and there being a serious violation, the authority thought it appropriate to intervene. That in the meanwhile, the nominated agency certificate w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he show cause notice are serious enough and require the authority to step in to initiate cancellation proceedings, then, pending cancellation proceeding being concluded and for the reasons which may reflect adequate material for immediate action, the suspension also can be directed. We are aware of the fact that the violations and which have to be controlled and checked would preserve and protect the mandate of the Foreign Trade (Development and Regulation) Act, 1992. 9. Even if these principles and which are settled are taken into consideration, what we find is that the show cause notice was issued on 14th October, 20l4, the Petitioner was called for a personal hearing on 11th November, 2014. There may be a addendum to the show cause no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at some situation which requires immediate and emergent attention of the authority has taken place. For these reasons, the order of suspension can safely termed as high handed. If the authority suspends the licence, it must make a order in writing that must indicate some application of mind and to relevant and cogent material. In the present case, beyond reference to the show cause notice, there is absolutely no material in the order of suspension and which could be said to be the basis for exercise of the power. Mere pendency of cancellation proceedings without anything more could not be the foundation for such a drastic order. 10. As a result of the above discussion, the Writ Petition succeeds. The impugned order is quashed and set asi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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