Import licence revalidation turned on firm commitment and utilisation; refusal stood where no binding supply arrangement was shown.

Refusal to revalidate an import licence for gas cylinders was upheld because the applicant did not demonstrate the firm, irrevocable commitment and actual utilisation required within the licence period. Mere correspondence with a foreign supplier was insufficient, as no clear supply contract or binding commitment was shown, and satisfactory financial arrangements for the import had also not been established when revalidation was sought. The Court further held that it could not substitute its own view for that of the competent licensing authority on the material before it, so no writ interference was warranted.

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Issues: Whether the refusal to revalidate the import licence for gas cylinders suffered from legal infirmity warranting issuance of a writ of mandamus.

Analysis: The application for revalidation was required to show a firm and irrevocable commitment and utilisation of the licence within the validity period. The record showed only correspondence with the foreign supplier and no clear contract or firm commitment for supply. The petitioner had also not established satisfactory financial arrangements for the import even by the time revalidation was sought. In these circumstances, the authority's view that there had been no sufficient progress in utilisation of the licence could not be said to be wrong. The Court also held that it could not substitute its own opinion for that of the competent licensing authority on the material placed before it.

Conclusion: The refusal to revalidate the licence was upheld and no writ interference was called for.

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