2017 (3) TMI 1278 - HC - Customs

Court dismisses writ petition on foreign company verification for Pre-shipment Inspection Agency licenses

The court dismissed the writ petition seeking verification of foreign companies for Pre-shipment Inspection Agency licenses due to vagueness and lack of ... Natural justice - the decisions taken by the Inter-Ministerial Committee were not preceded by proper verification of the credentials of the foreign companies - Held that: - one Rajat Kapoor has formed some bogus companies and has been trying to obtain licence of scrap verification and stating that grant of licence to such bogus companies would be a threat to security of India. Thus, the DGFT was called upon not to grant any licence to the said companies - the petition are absolutely vague and unsubstantiated - petition dismissed. Issues:1. Verification of Companies registered outside India for obtaining a license for Pre-shipment Inspection Agency.2. Allegations of lack of proper verification and guidelines for recognition of foreign companies.3. Allegations of bogus companies trying to obtain licenses posing a threat to national security.4. Dismissal of the writ petition on the grounds of vagueness and lack of genuine public interest.Analysis:1. The petition sought to direct the respondents to conduct verification of foreign companies seeking licenses for Pre-shipment Inspection Agency. The petitioner highlighted the absence of filed copies of public notices inviting applications and instead presented the Minutes of the Inter-Ministerial Committee's decisions to recognize foreign companies for issuing inspection certificates.2. The petitioner alleged that the decisions made lacked proper verification of foreign companies' credentials and pointed out the absence of guidelines for granting recognition to such companies. Additionally, a legal notice was issued concerning the formation of bogus companies attempting to obtain verification licenses, raising concerns about national security.3. Despite the petitioner's concerns, the court found the averments in the petition to be vague and unsubstantiated. It was noted that the petition seemed to target an individual company rather than genuinely serving public interest. As a result, the court decided not to entertain the writ petition and dismissed it accordingly.In conclusion, the judgment emphasized the importance of substantiated claims and genuine public interest in PILs. The dismissal of the petition underscored the court's stance on the need for clarity, specificity, and a broader public interest perspective in such cases.