Full Judgment
M.L. Pendse, J.
1. The petitioners are small scale units registered with the Director of Industries, Bombay for the purpose of manufacture of Camphor Tablets. For the manufacture of Camphor Tablets, the petitioners are solely dependent on the supply of raw material in the form of Camphor Powder. The supply of Camphor Powder in the country is inadequate and therefore Camphor Powder is imported through canalising agency, that is, Director of Industries, Bombay. The petitioners applied for grant of licence for import of Camphor Powder and the application was recommended by the Canalising Agency for certain quantity. The Import Policy for the period 1985-88 provided that Camphor Powder is an item which is a canalised one and can be imported only through canalising agency.
2. The petitioners' application for import of Camphor Powder in the year 1986 was rejected by the Controller of Imports and Exports on the ground that the case for import cannot be considered on account of indigenous angle. It is difficult to appreciate what the Controller desired to connote by use of the word 'indigenous angle'. When the Controller declined to grant licence in the year 1986, the petitioners preferred Writ Petition No. 1451 of 1986 to this Court. The petition was heard on November 24, 1987 and the learned Judge directed the Controller to issue the necessary authorisation by observing that the alleged indigenous angle did not come in the way of other importers and there is no reason why the petitioners should have been chosen to flout that angle. As usual the Department carried an appeal against the order of the learned single Judge before the Division Bench even though the Department had not cared to file any return before the learned single Judge. The appeal was dismissed by the Division Bench and thereafter the Department was required to comply with the order of the learned single Judge.
3. In spite of this decision of the learned single Judge the Controller followed the same procedure in rejecting the application for the year 1987 on making an identical unintelligible order by claiming that import cannot be permitted on the ground of indigenous angle. The present petition is filed to challenge the correctness of that order.
4. Shri Shringarpure, appearing on behalf of the Department, applied for adjournment on the ground that the Department has not filed return. Shri Shringarpure has no answer as to why the Department was sleeping for more than two years. The petition was admitted on February 25, 1988 and hearing was expedited and the petition was directed to be placed on board in June 1988. In February 1990 the Department has still not decided to file return and possibly because the Department has no defence whatsoever in face of the decision of the single Judge in respect of import application for the earlier year. In these circumstances the adjournment cannot be granted.
5. On merits, there is nothing to be argued and it is difficult to appreciate why the Controller of Imports and Exports should have even resisted the petition at the stage of admission. The action of the Controller of Imports and Exports indicates that the Department believes in mere litigation and has no desire to carry out the writs of this Court. It is therefore necessary to issue afresh order in favour of the petitioners for the year 1987.
6. Accordingly, rule is made absolute and the Department is directed to issue necessary licence for import of Camphor Powder in accordance with the recommendations made by the canalising agency. The licence shall be issued within a period of four weeks from today. The Department shall pay the costs of the Petitioners.