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TMI Blog1984 (11) TMI 68X X X X Extracts X X X X X X X X Extracts X X X X ..... nt sent the licences to the Chief Controller and asked for endorsements thereon to enable them to import the drugs mentioned in Appendix 9. On 19th September, 1980 Miss S.K. Grewal, Joint Chief Controller of Imports and Exports, wrote to the 5th respondent enclosing therewith the licences. She stated that she had endorsed thereon: "The drugs appearing in Appendix 9", as desired by the 5th respondent and that the drugs could be imported without any restriction in respect of value or quantity. Alongside her endorsements upon the licences were her signature and the security seal of the Department. On 10th October, 1980 the 5th respondent wrote to the Chief Controller and asked for confirmation that the Import Policy applicable was the Import P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1981 and 7th February 1981 made by the Deputy Chief Controller of Imports and Exports all the licences were cancelled. It is an admitted position that the Petitioners were not served with any notice to show cause and that the orders were passed without hearing them. In the orders the Deputy Chief Controller recorded that notices had been issued on 14th January, 1981 to the 5th respondent asking it to show cause why the licences should not be cancelled on the ground that they had been forged by the 5th respondent itself or through its abetment. The 5th respondent was alleged therein to have committed a breach of the conditions of the licences and the rules and regulations relating to the import of goods. It was stated therein that the licen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o ensure that the licence is rendered ineffective immediately." The Deputy Chief Controller ordered cancellation of the licences. 6. The Petitioners then filed Writ Petition No. 1131 of 1981 to quash and set aside the orders of the Deputy Chief Controller cancelling the licences. 7. A few provisions must be noticed. Section 2(h) of the Imports and Exports (Control) Act, 1947, (as amended up to 30th April, 1979) defined a letter of authority to mean "a letter authorising the licensee to permit another person, named in the said letter, to import goods against the licence granted to the licensee". Paragraph 382 of the Hand Book of Import-Export Procedures, 1980-81, deals with letters of authority. It states that a licence-holder was thereby ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nything to be done by the owner or importer of any goods, it may be done on his behalf by his agent; when any person is expressly or impliedly authorised by the owner or importer of any goods to be his agent in respect of such goods for all or any of the purposes of this Act, such person shall, without prejudice to the liability of the owner or importer, be deemed to be the owner or importer of such goods for such purposes. Section III(d) provides that any goods which are imported or attempted to be imported contrary to any prohibition imposed by or under the Customs Act or any other law for the time being in force shall be liable to Confiscation. Section 112 makes provision for the imposition of a penalty upon any person who, in relation t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter of authority holder was not affected and the authority was not obliged to give him a show cause notice or to hear him before an order of cancellation was passed. 11. It is relevant to note that para 382 itself authorises the letter of authority holder to open letters of credit and to make remittances in payment. The definition of letter of authority in the Imports and Exports (Control) Act placed the letter of authority holder almost on a par with the licence-holder when it stated that another person named in the letter may be authorised to import goods against the licence granted to the licensee. The definition suggested that this was a letter to be issued by the authorities to the licensee but the provisions of para 382 make it clear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the impugned orders are, even otherwise, unsatisfactory. The show cause notices issued to the 5th respondent alleged that the licences had been forged. The 5th respondent denied this. The only basis upon which the Deputy Chief Controller came to the conclusion in the impugned orders that the 5th respondent had forged the licences or had abetted such forging was that it was seen that the licences were "purported to be signed by Miss S.K. Grewal, Joint Chief Controller of Import to and Exports, with Security Seal and rubber stamp. As these are functions performed by junior officers like Controller/Asstt. Chief Controller, this endorsement cannot be accepted as genuine." This is an assumption impermissible to a quasi-judicial authority. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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