GLASS CHATONS IMPORTERS AND USERS ASSOCIATION Vs. UNION OF INDIA
LAWS(SC)-1961-4-33
SUPREME COURT OF INDIA
Decided on April 10,1961

GLASS CHATONS IMPORTERS AND USERS ASSOCIATION Appellant
VERSUS
UNION OF INDIA Respondents

JUDGEMENT

Das Gupta, J. - (1.) This application under Art. 32 of the Constitution is for the protection of fundamental rights under Art. 19(1)(f) and (g), Art. 31 and Art. 14 of the Constitution. The second and the third applicants are merchants who used to import considerable quantities of glass chatons upto 1957. The first applicant is an Association of merchants, some of whom were importers and some the actual users. Import of glass chatons - which form an important part of the raw materials for the manufacture of glass bangles and other similar articles of wear - could be made only on licences granted by licensing authorities. Since 1955 the matter has been regulated by the Imports (Control) Order, 1955. This Order which was made by the Central Government in exercise of powers conferred by Ss. 3 and 4-A of the Imports and Exports (Control) Act, 1947, prohibited the import of a large number of goods including inter alia glass chatons, except under and in accordance with a licence, granted on application by the licensing authotiries under the Act. Police statements are made from time to time by the Government of India, indicating the policy for the issue of Import licences. The policy as regards the import of glass chatons for the period January 1957 to the end of March 1958 was that the import was totally prohibited. Since April 1958, the policy as laid down is that import was permitted only under the Export Promotion Scheme. It appears that in view of this policy statement no application was made at all by the second or third applicants or other merchants for the import of glass chatons. In 1957 or thereafter and no licence was issued to them. Licences were, however, issued in favour of the State Trading Corporation, for the import of glass chatons of the value of five lakhs of Rupees, for the period April-September, 1958, and again, for the import of these goods of the value of Rs. 1,25,000 for the period October 1958 to March 1959. The present application was made on April 27, 1959. The prayer is that respondents 1 and 2 - i. e., the Union of India and the Chief Controller, Imports should be directed (i) to "forbear, from giving the State Trading Corporation any preference over the petitioners, in the grant of permits", (ii) not to create a monopoly in favour of the State Trading Corporation, (iii) to cancel the import permits already granted in favour of respondent No. 3, the State Trading Corporation and the petitioners also prayed that the respondent No. 3 should be directed not to import on the basis of import licences already granted.
(2.) It has to be mentioned at once that the period of the import permit "already granted" as referred to in the petition has already expired and consequently, the last two prayers mentioned above cannot possibly be granted. There was no application at all by the second and the third applicants, or any of the merchants who form the association, the 1st appellant (applicant ) for the issue of any import licences; there can be no question, therefore, of respondents 1 and 2 being given any preference over the petitioners in the grant of permits. Nor is there, as far as can be made out, any scheme to issue fresh licences in favour of the State Trading Corporation so that apart from what has already happened there is no question of any future action "to create a monopoly in favour of the State Trading Corporation". Therefore, the petitioners cannot be given any relief on the present application.
(3.) Learned counsel, however, submitted that so long as Para 6(h) of the Imports (Control) Order, 1955, remains it will be useless for his clients to make any application for licences. Para, 6 lays down a number of grounds on which the Central Government or the Chief Controller of Imports and Exports may refuse to grant a licence or direct any other licensing authority not to grant a licence. The ground mentioned in the clause (h) is "if the licensing authority decide to canalise imports and the distribution thereof through special or specialised agencies or channels." Learned counsel has argued that this provision in clause (h) of Para, 6 is void being in contravention of Art. 19(1)(f) and (g), and Art. 31 of the Constitution. He also urged that to the extent S. 3 of the Import and Exports Control Act, 1947, permits the Central Government to make an order as in Para 6(h) S. 3 itself is bad. In view of these submission the learned counsel was permitted to urge his contentions against the validity of Para 6(h) of the Imports (Control) Order, 1955 and also his limited attack against the validity of S. 3 of the Imports and Exports (Control) Act, 1947.;


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