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Withdrawal of redemption letter

ritu bhadana ,
  23 April 2009       Share Bookmark

Court :
bombay high court
Brief :
Withdrawal of redemption letter is assailed on several grounds. Contended that letter unreasoned and copy thereof was not even served on petitioner. Letter issued inadvertently through oversight. Cogent reasons have not been furnished by respondents. Reasons for said withdrawal cannot be furnished by way of an affidavit in reply. Respondents should pass fresh order after hearing the petitioner on question of fulfilment of export obligation. Appeal allowed by way of remand.
Citation :
Equivalent 2009 (235) ELT 0606 (Bom.)
IN THE HIGH COURT OF JUDICATURE AT BOMBAY

Ranjana Desai and J.P. Devadhar, JJ.

Anand Agro Chemicals India Ltd.

Versus

Union of India

Writ Petition No. 4531 of 2008, decided on 14-1-2009

[Order]. - P.C. :

Leave to amend. Amendment to be carried out forthwith.


2. Learned counsel for the petitioner seeks permission to delete respondent No. 3. Liberty granted. Respondent No. 3 stands deleted.


3. Rule. Rule made returnable forthwith.


4. Learned counsel for the respondents waive service. By consent of the parties, matter is taken up for final hearing forthwith.


5. The petitioner is a company incorporated under the Companies Act, 1956. The petitioner manufactures sugar and other related products. For the disposal of this petition, it is not necessary to go into the facts of the case in detail. Suffice it to state that the redemption letter dated 11-1-2008 was issued by the Foreign Trade Development Officer to the petitioner stating that the petitioner had met export obligation in full and the case has been redeemed in terms 4.26 of Handbook of Procedures 2004-09.


6. By further letter dated 22-1-2008 the respondents withdrew redemption letter dated 11-1-2008. However, copy of this letter was not served on the petitioner. According to the petitioner, the petitioner had addressed a letter to the 2nd respondent asking for a copy of this letter. But there was no response from the 2nd respondent. The petitioner got to know about this letter from the petitioner's bankers. We reproduce the relevant portion of the said letter as under :-

"The redemption letter dated 11-1-2008 issued in respect of advance authorization No. 0310314791 dated 2-2-2005 issued to M/s. Anand Agrochem India Ltd. may be treated as withdrawn and not to be honoured till further communication from this office. This may please be treated as most urgent. A copy of the said redemption letter is enclosed."

The petitioner is aggrieved by this letter.


7. We have heard learned counsel for the petitioner as well as the respondents at some length. The withdrawal of redemption letter dated 11-1-2008 is assailed on several grounds. It is contended that the letter is unreasoned and copy thereof was not even served on the petitioner. We find that Shri B.P. Bunker, Jt. Director General of Foreign Trade in his affidavit in reply dated 22nd September, 2008 has stated that letter dated 11-1-2008 is issued inadvertently through oversight. In our opinion, cogent reasons have not been furnished by the respondents. In any case, the reasons for the said withdrawal cannot be furnished by way of an affidavit in reply. In the circumstances of the case, we are of the opinion that the respondents should pass fresh order after hearing the petitioner on the question of fulfilment of export obligation. Hence we dispose of this petition by giving direction to the respondents to give a hearing to the petitioner regarding the fulfilment of the export obligation and pass a fresh order within a period of 6 weeks from the date of receipt of this order and communicate it to the petitioner.


8. We make it clear that we have not touched the merits of the case and the respondents may pass appropriate order independently on merits and in accordance with law.


9. Writ Petition is disposed of in the above terms with no order as to costs.

 
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Published in Corporate Law
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