Union of India Vs Indo-Afghan Agencies

Petitioner: Union of India

Defendant: Indo-Afghan Agencies

(1968) 2 SCR 366

Statutes Referred:

The Contract Act, 1872

The Contracts and Specific Relief Act

The Constituion of India

Import and Export Act

Cases Referred:

Probhudas Morarjee Rajkotia &ors. V. Union of India & ors. 1966 SC 405, AIR 1966 SC 1044

Joint Chief Controller Madras v. Aminchand Mutha 1965 SC 2, AIR 1966 SC 478, 1999

M/S. Ramchand Jagdish Chand v. Union of India & ors. AIR 1963 SC 563, 1962 (2) SCJ 189 (1963) 3 SCR 72

Municipal Corporation of City of Bombay v. Secretary of State for India in Council 211 ILR

Facts of the Case

1. The textile commissioner has introduced a scheme called Export Promotion Scheme which provides incentives to the exporters of the woollen goods all over the world. The petitioner Indo-Afghan agencies at Amritsar had a dealing with Afghanistan to export woollen of 5,03,471 np value. But the defendant had failed to produce any value certificate of the deal.
2. So in the writ petition, the union was directed to issue a license to export the woollen items whether it is the raw material or the complete goods. But there were no such enquiry by the Joint Chief Controller of imports and exports that were granted by the High Court.
3. The central government has also issued periodical orders which should govern the import export policies especially for the huge bulky orders.

Issues Raised

1. On October 10, 1962 the government of India promulgated the export promotion scheme for the woollen textiles and woollen goods whether they are complete raw goods.
2. There were several clauses according to them that the commissioner and the government were reticulating the export and import orders passed by the central government.
3. The valuation of the woollen goods were also not specified by the textile department and were also determining the obligations under the scheme that were proposed by the commissioner.

Parties Contention

Petitioner

1. The petitioner has stated that the import and export department was not deploying the matter according to the said manner and should also reluctify the Article 226 of the constitution that might based on the foreign exchange value and to compel the necessitate circumstances by the limiting power of the executive action in the future.

Defendant

1. But the defense has not accepted the accusations that might taken upon them as they said that they should follow the orders that were directed by the commissioner of the import export department to deliberate the whole matter. As according to their denial, the petitioner has also raised the point that the central government approve the exact value of the matter in which they can proceed by keeping in mind that the annexure does not ensure any of the following matter.

Judgement

1. The court has taken the decision keeping in mind that the import and export controls act states that the arbitrariness of the citizen must be engulf the futuristic step of the scheme and the woollen industry.
2. According to section 3 of the act granting of license is essential for the department before deal taken place which might differ from the classes of the goods.
3. As the trade policy merely allows the repealation of the restrictions imposing the legislative directions to control the officers and sets of applications that might jumble the executive instructions and matters which impose the several restrictions upon the rights of citizens.

Rule of Law

The basic rule of law was applied here that according to the act, licensing, valuation should must or an essential point that should be followed or maintained by the industries.

Comment

According to my personal opinion, this case was the first notable case in India which held up the doctrine of promissory estoppel on the pedestal of law.

Conclusion

To conclude the above case, the court has taken the appropriate decision that act will be the superior of all the matters rather than nothing will not collapse in between of the case.