Actual-user import licences must be read with the statutory scheme; diversion or sale of goods in breach can sustain convictions.

An import licence granted for actual-user purposes must be construed with the Imports and Exports (Control) Act, the Import Control Order and the import policy, so the licence conditions were enforceable according to that scheme. The authorised statutory complainant was competent to maintain the special leave appeal, as the High Court's use of the Public Prosecutor did not defeat that right. On the merits, the printing presses were acquired under actual-user restrictions and one was negotiated for sale and sold in breach of the licence terms; the sale was unlawful and the convictions were restored, with fines imposed in place of imprisonment.

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Issues: (i) Whether the Deputy Chief Controller of Imports and Exports had competency to maintain the appeal by special leave. (ii) Whether the condition in the import licence restricted the imported printing presses to use by the licence-holder and prohibited their sale to another party, so as to sustain the convictions.

Issue (i): Whether the Deputy Chief Controller of Imports and Exports had competency to maintain the appeal by special leave.

Analysis: The complaint had been lodged by the duly authorised statutory complainant under the Imports and Exports (Control) Act, 1947. The fact that connected proceedings in the High Court were taken in the name of the Public Prosecutor did not deprive the original authorised complainant of the ability to seek special leave and prosecute the appeal. The constitutional power under Article 136 and the Supreme Court Rules were wide enough to permit the appeal.

Conclusion: The preliminary objection was rejected and the appeal was held maintainable.

Issue (ii): Whether the condition in the import licence restricted the imported printing presses to use by the licence-holder and prohibited their sale to another party, so as to sustain the convictions.

Analysis: The licence condition had to be read with the statutory scheme of the Imports and Exports (Control) Act, 1947, the Import Control Order, 1955, the relevant import policy, and the classification of printing machinery in the import schedule. On that construction, the expression requiring use of the goods as raw material or accessories in the licence-holder's factory was not confined to consumable items in a narrow dictionary sense. The scheme showed that the printing presses were obtained as actual-user imports, and the evidence showed that one press had been negotiated for sale and sold in breach of the licence terms. The conduct was deliberate and contrary to the licence conditions.

Conclusion: The condition applied and the sale was unlawful; the convictions were restored.

Final Conclusion: The acquittal was reversed, the convictions under the import-control and conspiracy provisions were reinstated, and fines were imposed in place of imprisonment.

Ratio Decidendi: An import licence granted for actual-user purposes must be construed in light of the statutory import-control scheme and its conditions are enforceable according to that scheme; imported goods obtained under such a licence cannot be diverted or sold to another party in breach of the licence terms.

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