Import licence conditions cannot override policy benefits when imposed without disclosed lawful authority.

A licensing authority cannot add a restrictive condition to an export house import licence on the basis of undisclosed instructions or its own reading of the import policy when that condition defeats benefits otherwise conferred by the policy and the licence. The governing principle is that conditions attached to an issued licence must have disclosed and lawful authority, and cannot be used to nullify policy rights available to a recognised export house. The impugned condition was therefore unsustainable and liable to be deleted, with consequential relief by way of licence revalidation.

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Issues: Whether the licensing authority could insert a restrictive condition in an export house import licence so as to deny the petitioner the facility otherwise available under the import policy, and whether such condition was sustainable on the basis of alleged existing instructions or the policy.

Analysis: The licence was issued under the statutory import-control regime and the relevant policy conferred facilities on a recognised export house. The restrictive condition inserted in the licence was not shown to rest on any disclosed or lawful authority, and the respondents failed to place a proper return before the Court. A licensing authority cannot, by reference to undisclosed instructions or its own interpretation of the policy, add a condition that defeats the rights flowing from the policy and the licence.

Conclusion: The restrictive condition was held unsustainable and liable to be deleted, and the petitioner was entitled to revalidation of the licence for the period directed by the Court.

Final Conclusion: The petitioner succeeded in obtaining deletion of the impugned licence condition and consequential renewal relief, with costs.

Ratio Decidendi: A licensing authority cannot impose a condition in an issued licence on the basis of undisclosed instructions or its own interpretation of the policy when the condition has the effect of defeating the rights otherwise conferred by the governing import policy.

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