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Pan Parag India Ltd., Kothari Product Ltd. Versus Director General of Foreign Trade & Another

2016 (3) TMI 660 - DELHI HIGH COURT

Seeking direction to stop proceeding with the cases under Section 16 of the Foreign Trade (Development and Regulations) Act, 1992 - No jurisdiction of Director General to decide the review applications filed at the instance of DRI - Held that:- Section 16 of the Act, 1992 confers very wide powers of review upon the Director General. Also it contemplates review of judicial orders inasmuch as it states that the reviewing authority may “call for and examine the records of any proceedings”. Therefor .....

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cates, Mr. S.K. Dubey, Advocate with, Mr. Udit Malik, Advocate JUDGMENT Manmohan, J. (Oral) CM Appl. 9231/2016 (exemption) in W.P.(C) 2160/2016 CM Appl. 9313/2016 (exemption) in W.P.(C) 2174/2016 Allowed, subject to all just exceptions. W.P.(C) 2160/2016 & CM Appl. 9230/2016 W.P.(C) 2174/2016 & CM Appl. 9312/2016 1. Present writ petitions have been filed seeking a direction to respondent No.1-Director General of Foreign Trade, not to proceed with the cases under Section 16 of the Foreign .....

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ies upon a judgment of this Court in Samir Kohli & Ors. Vs. Union of India & Ors., W.P.(C) 4489/1995. The relevant portion of the said judgment is reproduced hereinbelow: - 28. ................... It is in this context that the power under Section 41 has been given to the Central Government. That provision reads as follows: 41. Control by Central Government (1) The Authority shall carry out such directions as may be issued to it from time to time by the Central Government for the efficie .....

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pose of satisfying itself as to the legality or propriety of any order passed or direction issued and may pass such order or issue such direction in relation thereto as it may think fit: Provided that the Central Government shall not pass any order prejudicial to any person without affording such person a unreasonable opportunity of being heard. xxx xxx xxx 29. The question whether the power under Section 41 (3) is quasijudicial or not has to be contextualized in the overall setting of the provi .....

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ions of the Master Plan; it would also consider the impact of its decisions, on the amenities existing in the area, and the likely additional pressures which they would be subjected to, etc. However, the interested parties cannot claim as a matter of right that their proposals ought to be accepted, or that the DDA should give each of them, a hearing, and issue a reasoned order. Now, in a given case, concerning an individual or a collective, such as a co-operative society, the same considerations .....

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n cannot be considered quasi judicial . Even so, the safeguard, to allay all apprehensions, is enacted through the proviso to Section 41 (3) that an order which can result in an adverse consequence to a party, should be preceded by notice to her (or him). 30. There is another way of looking at the matter. If one views the power of the Central Government in the overall setting of a law that essentially deals with town planning, the disput between DDA and the Central Government is a unique one; it .....

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haotic, and paralysed; every decision of the DDA, which implicates a case would be reviewable under Section 41 (3) and the DDA as well as the concerned party would have to be heard; the Central Government would then have to issue detailed reasoned orders. This would bog the entire process of planning and implementation of the Master and other plans in a modern, and efficient manner - a result surely not intended by Parliament. It is thus held that the power under Section 41 (3) of the Act is a s .....

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rector General. The relevant portion of the said Section reads as under:- 16. Review.-The Central Government, in the case of any decision or order made by the Director-General, or the Director- General in the case of any decision or order made by any officer subordinate to him, may on its or his own motion or otherwise, call for and examine the records of any proceeding for the purpose of satisfying itself or himself, as the case may be, as to the correctness, legality or propriety of such decis .....

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