Salil Kumar Datta, J. - (1.) This is an appeal from the judgment and order of Murari Mohun Dutt, J. dated June 27, 1974 whereby the connected Rule was discharged. On June 11, 1962 the Government of India granted an import licence to the appellant company for the import of capital goods (Plants -and Machinery) valued at Rs. 35 lakhs for the manufacture of cast iron spun pipes. The licence was subject inter alia to the condition that the company would have to export 15% of its total production for six years starting from the date of regular production. The export obligation, as required, was secured by an undertaking of the company dated Aug. 4, 1965. It will appear from its statement of export performance, the production commenced from Jan. 1966 when the requisite export commenced and continued thereafter.
(2.) By a circular dated Aug. 17, 1966 the Government of India informed the Secretary, Export Promotion Council that it was decided to grant cash assistance against exports effected from June 6, 1966 the date of devaluation of the Indian rupee on specified engineering products. Under that circular, there is no dispute (vide para. 12 of the petition, the company's claim in respect thereof is admitted in the affidavit-in-opposition para. 10 as substantially correct) that cast iron spun pipes, classified under ferrous castings would be entitled to cash assistance at the rate of 20%. The Joint Chief Controller of Imports and Exports of the Government (hereinafter referred as JCCI & E) issued cheques from time to time of sundry amounts as such cash assistance in favour of the company and during the period from July 1966 to June 1967 in all a sum of Rs. 2.81.267.00 as cash assistance was paid to the company by Sept. 18, 1967.
(3.) On June 4, 1969, JCCI & E informed the company that according to the then policy, no cash assistance was admissible against exports in discharge of export obligation in C. G. cases i. e. capital goods licences issued with prospective export obligation. By letter dated Dec. 28, 1970 the company was informed by JCCI & E that for export of Rubber Rings the company was considered entitled to cash assistance of Rs. 2,59,935/- for April-June, 1969. Rs. 1,76,256/- for July-September, 1969, for Rs. 1,00,497/- for October-December, 1969 and Rs. 59,579/- for January-March, 1970 all at 10%. Thereafter the company was informed by the said letter as follows:-- "You were paid an amount of Rupees 2,81,267/- against export of July. '66-June, '67 though you were under C. G. Licence obligation. So the entire amount of Rs. 2,81,267/- has been adjusted from the above cases viz. full amount of your A-J '69 exports i. e. Rs. 2,59,935/- and the balance amount of Rs. 21,332/- from your export of July-September, 1969. (Annexure 'K' to the petition).;