J. FERNANDES & CO. versus THE DEPUTY CHIEF CONTROLLER OF IMPORTS & EXPORTS AND ORS.

Citation: [1975] 3 S.C.R. 867 · Decided: 07-03-1975 · Supreme Court of India · Bench: A.N. RAY · Disposal: Dismissed

Cited by 1 judgment(s) · cites 5 · see the full citation network in Lexace

Judgment (excerpt)

A 
B 
c 
' D 
J. FERNANDES & CO. 
v. 
THE DEPUTY CHIEF CONTROLLER OF 
IMPORTS & EXPORTS AND ORS. 
March 7, 1975 
[A. N. RAY, C. J. AND K. K. MATHEW, J.] 
867 
cdnstitution of India, 1950, Articles 73(l)Ca), 239(1), 240 
a11d 264(4)-
depen¥ing 011 whether licence was granted before or after liberation of Goa-
C/assi~cation, if valid. 
Co11stitwio11 of India, 1950, A rt. 32-Grant of import licence-Petitioner 
no't cha//e11gi11g the validity of the Statute or statutory orders-Wrong application 
of law, if ll i·iolation of fundamental. right. 
· 
Constitution of India, 1950, Ardcles 73(l)(a), 239(1), 240 and 246(4)-
Unfrm Territory, administration of-Union Government, if can issue executive 
directions to Administrator. 
Goa, Daman and Diu (Administration) Ordinance No. 2 cf 1962, Ss. 3, 4 
and 7 and Goa, Daman and Diu (Administration) Act No. 1 of 1962, Ss. 4, 5 
and 9-Validarion of all actions taken in good faith and for peace and r:ood 
Govemment of Goa, Damon and Diu-Licence granted contrary to prccedure 
or by mistake or inadvertence, if could be val(dated. 
Co11stitution of India, 1950, Article 19(1) (/)-Rejection of application for 
grant of impo/'f /icence-Petitione.r, if can claim fu11damen1a/. right· to the grant 
of licence on the basis of a policy statement. 
lmcmaticna/ Law-Acquisition of new Territory by Union of lndia-Rir:hts, 
if could be founded on pre-liberation law-Central Govemment (new Sovereign), 
E 
if can alter pre 1existing procedure for issuing impo~t licence. 
F 
G 
H 
The petitioners are a partnership firm. 
They are successors to J .. Fernandes 
& Comriany (Original concern) of which Joshino Fernandes was the sole proprie-
tor. Jn '.he month of October, 1961 the original concern booked orders for 
rurchn"~ ·of Surveying & Mathematical Instruments and Surgical & Sdentific 
Instruments with a German fir'm. 
The orders were accepted by the German firm 
on 7th November, 191!1. 
On 19/20 December, 1961 Goa was liberated, On 
18 Ja.nunry, 1962 the original con,cern applied to the Administrator of Goa for 
issuing an import licence for £32,652.10 for Surveying and Mathematical lnstru. 
ment< ~nd Surgical and Laboratory Equipments, along with necessary papers of 
.firm commitments. The ·original concern obtained a licence on 12 February, 
1962. The licence was No. 47. It opened a letter of credit on 21 February, 
1962 for 50 per ·cent of the licence. The Central Government on 21 February, 
1962 informed the Administrator, Goa, that the Central Government withheld, 
actio;i on all pending cases where import had been authorised. Pursuant thereto 
the Administrator, Goa issued directions to suspend issue of letter of credit ·and 
all cases refoting to firm commitments entered into before 18 December. 1961 
which were till then not disposed of, should be frozen. 
On April 2, 1962 the 
Administrator of Goa issued a Press Note that imports into Goa, Daman and 
Diu would be governed by three principles. First import would be allowed in 
cases (a) where letters of credits had been opened with the Banco National 
Ultra Marines on or before 18 December, 1961; (b) where goods were shipped 
on or before 20 December, 1961. 
Second, imports of certain specified items 
were banned. Third, imports would be allowed of certain goods to the extent 
of 50 per cent of imports actually made in the quarter of September, October 
and November, 1961. 
The petitioner's licence No. 47 was revalidated on 28 
May, 
1962 
for 
£ 16,000 for which the peytfoner had not till then opened letter of credit. 
868 
SUPREME COURT REPORTS 
Cl 97 51 3 s.c.It. 
27 February, 1962 is the date when the Administrator of Goa suspended issue of 
fo:sh letter of credit. In 'the month of July, 1962 the petitioner effected imports 
of goods for the full value. 
The Imports and Exports Control Act, 1947 was applied to Goa, Daman & 
Diu from 1 October, 1963. 
In October, 1964 the original concern was taken over by the petitioner. 
In 1967 the Hamd Book for the year 1967 declared the period 1 April, 1961 
to 31 March, 1966 as the basic period and any one year during the period could 
be: sele~ted a5 the basic import by the concerned party who would become the 
established importers. 
On 15 May, 1967 the petitioner applied to the licensing 
authorities 
for 
recognising the change in the constitution of the firm and fixation of quota for 
whkh they could import the goods. The licensing authorities recognised the 
ch~~ge in. the constitution but refused t

Excerpt shown. Read the full judgment & AI analysis in Lexace.