- (1.) THE petitioner is a firm, which used to carry on business of manufac turing plastic goods. The import of certain raw material used in the manufacturing pro cess was subject to Import (Control) Order 1955 and administrative directions issued by the Central Government. The petitioner was granted two import licences, being actual users licence under the aforesaid rules and administrative orders, for importing certain quantities of Poly the lene Moulding Powder. The petitioner utilised these licences and im ported powder under the licence. Subse quently the petitioner had to close down his business, for certain reasons and as such the entire quantity of powder imported by him could not be put to use.
(2.) THE petitioner approached the Deputy Chief Controller of Imports and Ex ports Kanpur, for necessary directions for dis posal of the surplus powder and it trans pires that the Controller advised the petitioner to approach the Director of Industries, U. P., Kanpur for arranging for its disposal. The petitioner applied to the Director of Indus tries U. P. by a letter dated 7th April, 1969. The Director of Industries by a letter dated 10th December, 1969, directed the District Industries Officer, Lucknow to make enqui ries as to whether any industrial unit at Lucknow was willing to lift the material. The petitioner thereafter contacted the Dist rict Industries Officer and gave him details of the quantities of powder lying with him as also the total costs thereof. It seems that no progress in the matter was made and thereafter, the Director of Industries (Raw Material Section) U. P., Kanpur, sent a letter on the 24th June, 1970 to the Deputy Chief Controller intimating him the amount and value of the powder lying with the petitioner and also requesting him to take suitable ac tion in respect thereof. The petitioner too by another letter of the 28th December, 1970, requested the Deputy Chief Controller to per mit him to sell the material in the open mar ket and also informed him that the State Trading Corporation, New Delhi, one of the parties contacted for purchasing the powder Was not willing to take it. A similar re quest on the same date was made to the Director of Industries, U. P., Kanpur. The Director of Industries by another letter of 31-12-1970 requested the Chief Controller of Import to grant permission to the petitioner to sell the goods in the open market, as the matter was already delayed and on account of the fact that the goods had been stored for a long time, there was danger of their deteriorating. The Deputy Chief Controller, thereafter, acting on this request, published a trade notice on 5th January, 1971, inviting applications from actual users for purchase of goods. In the notice, it was insisted that the application should be accompanied by the recommendation of the sponsoring authority concerned and also an undertaking that the goods will be utilised in the purchaser's own factory and should be in terms of paragraph 94 of the Import Trade and Control Proce dure Rules, 1970. One Messrs. Kumar Plastic Industries of Mpradabad seems to have be come interested hi the purchase of this mate rial as the Director of Industries wrote a let ter to that firm in February 1971, intimating to it the procedure which it had to follow in case it wanted to make the purchase. It was stated in this letter that the proce dure for purchase would be that which was laid down in paragraph 94 of the Im port Trade and Control Procedure Rules 1970. After receipt of this letter, it appears that Messrs. Kumar Plastic Industries did not pur sue the matter further. After a pause of nearly four months, the Director of Industries U. P., Kanpur by his letter of the 18th June, 1971, requested the Deputy Chief Controller to grant permission to the petitioner for sale of the goods as in spite of efforts made by him, he has not been able to get any actual user for purchase of the goods and further that the efforts of the firm had proved futile. A similar letter was sent by the Director of Industries to the Deputy Chief Controller on the 7th July, 1971 and the request for per mission being granted to the petitioner for effecting a sale hi the open market was re peated. It appears that at some stage there after, the U. P. Small Industries Corporation Ltd., Kanpur became interested in the pur chase of the material and as such the peti tioner by another letter of the 7th August, 1971, intimated to the Director of Industries that they were willing to sell the entire mate rial at the rate of Rs. 6.35p. per kilogramme which was their cost price. This effort too subsequently proved to be futile, as the Cor poration has not purchased the material. The petitioner there after, filed the present writ petition and has prayed for a mandamus directing the respondents Nos. 1 and 2 to permit him to sell the material in question in the open market.
(3.) THE trade of export and import in goods is governed by the provisions of Im ports and Exports (Control) Act, 1947. In exercise of powers conferred by Sections 3 and 4 (a) of that Act, the Government of India has promulgated Imports (Control) Order 1955. Rule 5 of the Rules authorises the licensing authority to issue licences at taching certain conditions to the licence, inter alia in respect of disposal of goods covered by the licence. Rule 5 (1) and (2) of the Rules may be quoted:- "5. Conditions of Licences:- (1) Tho licensing authority issuing a licence under this Order may issue the same subject to one or more of the conditions stated below:- (1) that the goods covered by the licence shall not be disposed of, except in the man ner prescribed by the licensing authority, or otherwise dealt with, without the written per mission of the licensing authority or any per son duly authorised by it; (ii) that the goods covered by the licence on importation shall not be sold or distribut ed at a price exceeding that which may be specified in any directions attached to the licence; (iii) that the applicant for a licence shall execute a bond for complying with the terms subject to which a licence may be granted. (2) A licence granted under this Order may contain such other conditions, not in consistent with the Act or this Order, as the licensing authority may deem fit." ;