Paritosh Kumar Mukherjee, J. - (1.) This writ petition was moved on behalf of A.P.S. Associates Pvt. Ltd. and Anr. inter alia, praying' for an issue of a writ in the nature of mandamus directing the Respondents to withdraw, recall and cancel the purported telegrams dated March 23, 1989 and also £o allow time for making letter of credit arrangement and supply for 2147 tons of the subject material forthwith and also to grant 'No Objection Certificate' (shortly referred to as 'NOC') to the Petitioner forthwith for the balance quantity of 3073 tons of the subject material as stated in the writ petition.
(2.) The short facts stated in the writ petition are as follows: The Petitioner company carries on business of manufacturing steel/alloy steel, ingots, etc. and its licensed capacity is 7800 metric tonnes per year. A copy of the certificate of assessed capacity has been annexed to the writ petition as Annexure 'A' at p. 26. The Petitioner company is also registered as a small scale industrial unit with the Directorate of Cottage and Small Scale Industries. Government of Punjab. For the purpose of carrying on the aforesaid business, the Petitioner company requires melting scrap of carbon steel which under the relevant import policy was and still is a canalised item and the Respondent No. 1 is the designed canalising agency in respect of the said item. Pursuant to and in terms of the relevant import policy for the import of canalised items, the Petitioners applied for registration of their demand in respect of 6293 M.T. of melting scrap of carbon steel. The said application was accompanied by the necessary supporting documents. The sponsoring authority of the Petitioner No. 1 was the Government of Punjab District Industries Centre, Ludhiana. A demand draft for a sum of Rs. 1 lakh was enclosed with the application on account of earnest money as required under para. 213 of Chap. IV of the Import Policy from 1988 to 1991. Thereafter, the Petitioners were informed by the Respondent by the letter dated August 12, 1988, that the demand of the Petitioners was registered in respect of a quantity of 6290 M.T. of melting scrap, vide Registration No. FI/II/MS -123/88 -89.
(3.) Thereafter, as required under para. 219 of the relevant import policy for 1988 -91, the Petitioners caused to be opened a letter of credit being No. CBN/8/88 dated August 12, 1988, of New Bank of India, Ludhiana, for Rs. 25 lakhs in favour of the Respondent No. 1 in respect of 3 months' requirement of the Petitioners.;