Discretionary licence renewal may still be considered where cargo norm shortfall arose from causes beyond the licensee's control.

Regulation 12(2) of the Customs House Agents Licensing Regulations, 1984 was treated as conferring discretionary power to renew a licence where performance is satisfactory against the prescribed norms. The public notice norms were not read as an absolute bar to renewal in every case of shortfall. If the deficiency arose from circumstances beyond the licensee's control and the explanation was accepted, the authority was expected to consider renewal on its merits and not refuse it on a purely technical basis.

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Issues: Whether the Commissioner of Customs had discretion under Regulation 12(2) of the Customs House Agents Licensing Regulations, 1984 to renew a licence despite the licensee's failure to meet the prescribed cargo norms, where the deficiency was due to circumstances beyond control and the explanation was accepted.

Analysis: Regulation 12(2) confers a discretionary power to renew a licence for five years if the licensee's performance is found satisfactory with reference to the prescribed norms. The language of the provision does not create an absolute bar against renewal in every case of shortfall, and the norms in the public notice were treated as guiding criteria to be assessed in context. Where the authorities accepted that the shortfall arose from causes beyond the licensee's control and found the explanation acceptable, there was no justification for a rigid refusal to consider renewal on the ground of technical deficiency alone.

Conclusion: The authority was required to consider renewal on its merits and could take a liberal view in the facts of the case; the refusal to consider condonation of the deficiency was not justified.

Final Conclusion: The matter was remitted to the Licensing Authority for fresh consideration of the renewal application in light of the Court's observations.

Ratio Decidendi: Where a statutory renewal provision vests discretion and the authority accepts that the deficiency occurred for reasons beyond the applicant's control, renewal cannot be declined by treating the prescribed norms as an inflexible bar.

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