Case Note & Summary
The petitioner, Ashwini Ashish Dighe, proprietor of Sunteck Telecommunications, a manufacturer of optical fibres, filed a writ petition challenging the order dated 03.06.2020 passed by the Director General of Foreign Trade (DGFT) cancelling her Advance Authorisation and EPCG Licences. The petitioner had obtained Advance Authorisation No. 2014000017 dated 20.02.2014 and EPCG Licence No. 2030000017 dated 20.02.2014 for import of capital goods and raw materials for manufacturing optical fibres. The DGFT issued a show cause notice on 10.02.2020 alleging that the petitioner had not fulfilled export obligations and had misused the licences. The petitioner replied to the notice and sought a personal hearing, but the DGFT passed the impugned order cancelling the licences without granting a proper hearing. The court examined the facts and found that the DGFT had relied on irrelevant considerations, such as the petitioner's failure to submit certain documents which were not required under the policy, and had not considered the petitioner's explanations. The court held that the order was passed in violation of principles of natural justice and with non-application of mind. Consequently, the court quashed the order dated 03.06.2020 and directed the respondents to restore the Advance Authorisation and EPCG Licences within four weeks. The court also directed that the petitioner be given a fresh opportunity of hearing before any further action is taken.
Headnote
A) Administrative Law - Natural Justice - Cancellation of Licences - Foreign Trade (Development and Regulation) Act, 1992, Section 11 - The petitioner's Advance Authorisation and EPCG Licences were cancelled by the DGFT without affording a proper opportunity of hearing and based on irrelevant considerations. The court held that the order was passed in violation of principles of natural justice and with non-application of mind, and thus quashed the order and restored the licences. (Paras 1-30) B) Foreign Trade - Advance Authorisation - EPCG Licence - Foreign Trade Policy 2015-2020 - The petitioner had obtained Advance Authorisation and EPCG Licences for manufacturing optical fibres. The DGFT cancelled them alleging non-fulfillment of export obligations and misuse. The court found that the cancellation was based on irrelevant considerations and without proper application of mind, and directed restoration of the licences. (Paras 2-28)
Issue of Consideration
Whether the order dated 03.06.2020 passed by the Director General of Foreign Trade cancelling the petitioner's Advance Authorisation and EPCG Licences was legal and valid, and whether the petitioner was afforded a proper opportunity of hearing.
Final Decision
The court allowed the writ petition, quashed the order dated 03.06.2020 passed by the Director General of Foreign Trade, and directed the respondents to restore the Advance Authorisation and EPCG Licences within four weeks. The court also directed that the petitioner be given a fresh opportunity of hearing before any further action is taken.
Law Points
- Natural Justice
- Non-application of mind
- Irrelevant considerations
- Advance Authorisation
- EPCG Licence
- Foreign Trade Policy
- Section 11 of Foreign Trade (Development and Regulation) Act
- 1992
