Public interest abeyance of import licences will stand where prima facie material supports statutory satisfaction and no arbitrariness is shown.

Clause 8-B of the Imports (Control) Order, 1955 permits the competent authority to keep the grant of import licences or allotment of imported goods in abeyance in public interest without assigning reasons, once statutory satisfaction is reached on the basis of material before it. On prima facie findings of misrepresentation and diversion of imported goods in breach of licence conditions and the import policy, the Bombay High Court held that the petitioners' assertions of bona fides did not displace that satisfaction. The Court declined to exercise writ discretion under Article 226, finding no arbitrariness or lack of supporting material to justify interference.

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Issues: Whether the writ petition challenging the order keeping the grant of import licences and allotment of imported goods in abeyance under Clause 8-B of the Imports (Control) Order, 1955 was liable to be entertained under Article 226 of the Constitution of India.

Analysis: Clause 8-B authorises the competent authority to keep the grant of licence or allotment of imported goods in abeyance without assigning reasons if, on being satisfied that further details need not be ascertained, such action is required in the public interest. The material placed by the authority disclosed prima facie investigation findings of misrepresentation and diversion of imported goods in violation of licence conditions and the import policy. The Court held that the petitioners' assertions of bona fides could not displace the statutory satisfaction recorded by the authority, and that no ground was made out to exercise writ discretion to interfere with the abeyance order.

Conclusion: The challenge to the abeyance order failed, and the petition was dismissed.

Final Conclusion: The authority's exercise of power under Clause 8-B was upheld, and no writ relief was granted against the impugned order.

Ratio Decidendi: Where the competent authority records statutory satisfaction on the basis of prima facie material that continuation of licence or allotment would not be in the public interest, the High Court will not interfere in writ jurisdiction unless the action is shown to be arbitrary or unsupported by material.

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