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TMI Blog1981 (10) TMI 175X X X X Extracts X X X X X X X X Extracts X X X X ..... ices relating to the import policy to be pursued and export promotion. During the financial year ending March 31, 1975 and until May 12, 1975 cash assistance and replenishment licences were available on diverse goods which were exported and in respect of which the necessary formalities were complete. Under the said policy, the exporters of electrical contacts made by silver or silver alloy/ copper containing less than 50% of silver were entitled to cash assistance and replenishment import licences. The exporters were eligible to replenishment licences to the extent of 40% or the F.O.B. value of the product exported and cash assistance to the extent of 25% of the F.O.B.value. In order to avail the assistance, it was incumbent upon the intend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncial year ending March 31, 1976 pertaining to the exports of electrical contacts and provided that for the purpose of calculating R.E.P. benefits, the licensing authority will exclude the value of silver from F.O.B. value of the exported products. The applications made by the petitioners of cash assistance and replenishment licences were turned down by three orders dated August 6, 1976, August 11, 1976 and December 28, 1976 by the Chief Controller of Imports and Exports. These three orders are not the speaking orders but are in the form of letters addressed to the petitioners and wherein it was observed by the Chief Controller that the claim made by the petitioners cannot be granted. No reasons are assigned for refusal of the claims of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of the policy in the interest of public. 6. Shri Korade, the learned counsel appearing in support of the petition, very rightly urged that the petitioners entered into contracts for export of goods on the assurance given by the Government. The learned, counsel pointed put that the petitioners entered into contract though it was wholly uneconomical only in view of the assurance given by the Government for cash assistance and replenishment licences. Shri Korade did not dispute that it was open for the Government to alter the policy but urged that such alteration cannot be upheld unless it is established by the Government that the alteration was demanded in the public interest. In my judgment, the submission of the learned counsel is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in such a case because, on facts, equity would not require that the Government should be held bound by the promise made by it. When the Government is able to show that in view of the facts which have transpired since the making of the promise, public interest would be prejudiced if the Government were required to carry out the promise, the Court would have to balance the public interest in the Government carrying out a promise made to a citizen to act upon it and alter his position and the public interest likely to suffer if the promise were required to be carried out by the Government and determine which way the equity lies. It would not be enough for the Government just to say that public interest requires that the Government should no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dixit of the Government, for it is the Court which has to decide and not the Government whether the Government should be held exempt from liability. This is the essence of the rule of law. The burden would be upon the Government to show that the public interest in the Government acting otherwise than in accordance with the promise is so overwhelming that it would be inequitable to hold the Government bound by the promise and the Court would insist on a highly rigorous standard proof in the discharge of this burden. But even, where there is no such overriding public interest, it may still be competent to the Government to resile from the promise "on giving reasonable notice, which need not be a formal notice, giving the promisee a reasonable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... extent to which they were entitled. Shri Korade points out that the statement initially made was an erroneous one and by an amendment the said error was corrected. Shri Chinai did not dispute that, in fact, no replenishment licences were granted but urged that the correction was made at late stage and, therefore, the relief should not be granted. I find no merit in this submission. 9. Shri Chinai also relied upon the contents of paragraph 11 of the decision of the Supreme Court in the case of the Deputy Assistant Iron and Steel Controller, Madras and another v. L. Manickchand Proprietor, Katralla Metal Corporation, Madras reported in A.I.R. 1972 Supreme Court 935. While considering whether the petitioner has an absolute vested right ..... X X X X Extracts X X X X X X X X Extracts X X X X
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