Ajit Kumar Sengupta, J. - (1.) The petitioner No. 2, A.K. Arora carries on business in import and export of goods under the name and style of M/s. Arora International.
(2.) On or about 21st February, 1983, a REP licence for Rs. 2,27,700/-was issued by the Joint Chief Controller of Imports and Exports, New Delhi in favour of M/s. Asum Traders Private Limited of New Delhi, a Manufacturer Exporter on prior export basis. The said licence is governed by the Import and Export Policy of 1982-83. Against the item "description of goods" in the said licence the following endorsement appears : "Items mentioned under A.B.C. in column 4 of Appendix 17 of A.M. 83 Policy against Group 0.1 (0.one) as amended upto date with restrictions, if any, mentioned therein". One of the conditions of the said licence as specified in the said licence is to the following effect : "This licence shall be subject to the conditions in force relating to the goods covered by the licence as described in the relevant Import Trade Control Policy Book or any amendment thereof made upto and including the date of issue of the licence, unless otherwise specified."
(3.) The said licence is a transferable licence and was transferred by the said Asum Traders Private Limited in favour of the petitioner under paragraph 140 of the Import Policy of 1982-83 which reads as follows :- "Para 140. The REP licence will be issued in the name of the registered Exporter only and will not be subject to Actual User condition. Except for cases covered by paras 136(2) and 186(1), a licence holder may transfer the licence in full or in part in favour of any other person. The licence holder or such transferee may import the goods permitted therein but the facility of paragraphs 136(2), 137 and 146 shall not be available to any transferee, unless the transferee is himself a registered exporter and can satisfy the Custom authorities at the time of clearance of the goods, of his bonafides.";