- (1.) This is an appeal by certificate under Art. 134 (1) (c) of the Constitution, against the judgment of the High Court of Calcutta, dated September 4, 1963 by which the conviction of the respondent Motilal Kanoria under S. 5 of the Imports and Exports (Control) Act, 1947 and the sentence of fine of Rs. 200 (in default simple imprisonment for one month) imposed by the Presidency Magistrate, 6th Court, Calcutta, were set aside and an acquittal was entered. The facts of the case are not in controversy and may, therefore, be stated briefly. Motilal Kanoria was a director of Lachminarayan Jute Manufacturing Co. Ltd., Calcutta. The Company was managed by a firm of the name of Mukhram Lachminarayan and Motilal Kanoria was one of the partners of the firm. The Company and the Managing Agents had a common address in Calcutta. Motilal Kanoria used to sign on behalf of the Managing Agents and also generally to deal with the affairs of the Company. All transactions in this case were by Motilal Kanoria and he had signed the documents to which reference will be made presently.
(2.) In February 1955 the Government India approved of the proposal of the Company to manufacture hackle and combing pins and sanctioned the import of plant and machinery for the purpose. The Company was permitted to apply to the Chief Controller of Imports, New Delhi, for a licence. The letter of Government is Ex. 2, dated February 4, 1955. On February 11, 1955 the Company applied to the Chief Controller of Imports, New Delhi, on the proper application form, for an import licence. In that application the Company stated that the machinery was to be installed or used at their Mills at Konnaggar, Eastern Railway (Ex. 1). On May 26, 1955 a licence was issued (Ex. 3). The licence read as follows :- "This licence is issued subject to the conditions to the goods licensed as detailed in the Policy Book for the current licensing period and any public notices that may be issued in this behalf from time to time. LICENCE No. 035925 Counterfoil Not available for foreign exchange unless authorised by Reserve Bank of India. IMPORT TRADE CONTROL (Valid for all India Ports) (Not transferable except under a letter of authority from the authority who issue the licences or from any Import Trade Controller) Messrs. Shree Luchminarain Jute Manufacturing Co. Ltd., of 59, Netaji Subhas Road, Calcutta-1, are hereby authorised to Import the goods of which particulars are given below :- 1. Country from which consigned. - West Germany. 2. Quantity and Description of goods. - Machinery as per list attached for the manufacture of Hackling and Combing pins. 3. Approximate value C. I. F. - Rupees 1,88,000 (Rupees One Lakh and Eighty-eight thousand only). 4. Period of shipment. - Revalidated upto 31st may 1957. 5. Name and Address of Manufacturer Shipper or Suppliers. M/s. Schunacher Metal Werke Aktiengeschellacheft. Aachen, Germany. 6. Limiting factor for purpose of clearing through Customs. - Value. 7. Name of actual user in India. - Self. This licence is granted under Government of India, late Commerce Department Notification No. 23.ITC/43, dated the 1st July 1943 as continued in force by the Imports and Exports (Control) Act, 1947 (XVIII of 1947) and subject to the rules and orders issued thereunder. This licence is also without prejudice to the applications of any other prohibitions or regulations affecting the importation of the goods which may be in force at the time of their arrival. (Sd.) Illegible Section Officer 26-5-55. for Chief Controller of Imports and Exports. 26th May 1955. Issued from file No. L.IV/49(11)CG/55. (Space for Endorsements by Import Trade Control Authorities) This licence is issued with an initial validity period of one year from the date of issue. It will be revalidated at or before the end of the said period of one year, for a further period of two years, provided satisfactory evidence is produced that the order for the goods has been accepted by the foreign suppliers and a firm contract is made within the initial period of one year. In no case, however, will the validity period extend beyond three years from date of issue."
(3.) In the covering letter, which was sent when forwarding the licence, the Chief Controller said inter aia, - " * * * * * * 3. The licence is granted to you subject to the following conditions :- (a) In case the project involves any capital issue and if such capital issue is not sanctioned the licence is liable to cancellation. (b) That if any sanction to the project is necessary under the laws of the Central, Provincial or a State Government the same should be obtained and the position reported to this office by the licensee; in the absence of such sanction being received the licence is liable to cancellation. 4. The licence is liable to cancellation if particulars as to progress of time in accordance with the detailed instructions contained in the accompanying slip are not furnished. 5. The Government do not guarantee for supply of raw materials required for manufacture of the goods. * * * * *";