Import-export policy relaxation permits revalidation of REP licences where genuine hardship would otherwise harm exports.

The Import & Export Policy for April 1985 to March 1988 was read as permitting relaxation in genuine hardship cases affecting exports. Although Clause 73 generally barred revalidation of import licences, Clauses 80 and 37 allowed ad hoc extension of validity and relaxation of policy or procedure where importers faced genuine difficulties and strict application would harm exports. On that construction, a refusal based only on alleged lack of power was untenable, because the policy itself supplied the necessary relaxation mechanism. The authority was therefore held to have power to revalidate the REP licences and extend the time for opening letters of credit.

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Issues: Whether the licensing authority had power under the Import & Export Policy for April 1985-March 1988 to revalidate REP licences and extend the period for opening letters of credit in a case of genuine hardship affecting exports.

Analysis: The relevant policy provisions were read together. Clause 73 generally barred revalidation of import licences, but the scheme of the policy also recognised relaxation in appropriate cases. Clause 80 permitted the Chief Controller of Imports and Exports to extend the validity period on an ad hoc basis where importers faced genuine difficulties and goods could not be shipped in time. Clause 37 further empowered relaxation of the existing policy or procedure where strict application would create genuine hardship or adversely affect exports. On these provisions, the refusal based solely on absence of power was untenable, because the policy itself conferred a relaxation mechanism that could be invoked where the facts justified it.

Conclusion: The licensing authority did have power to revalidate the licences, and the petitioners were entitled to the relief sought.

Ratio Decidendi: Where the import-export policy expressly provides for relaxation of policy requirements and ad hoc extension of validity to remove genuine hardship and protect exports, the authority cannot refuse relief on the sole ground that it lacks power to revalidate licences.

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