Import Policy revalidation allowed where genuine difficulty exists and licence validity may be extended on ad hoc basis.

The Import Policy's Clause 80 permitted an ad hoc extension of REP licence validity where importers faced genuine difficulty and shipment could not be completed in time. The Bombay High Court noted that the delay arose because the bank that issued the letter of credit was unable to honour it due to a moratorium, not because of any fault by the licence-holder. On that basis, the authorities had power to revalidate the licences, and refusal on the mistaken view that no such power existed was unjustified.

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Issues: Whether the authorities had power under the Import Policy to revalidate the REP licences and extend their validity on account of genuine difficulty.

Analysis: Clause 80 of the Import Policy contemplated that, where importers faced genuine difficulties and goods could not be shipped in time, the Chief Controller of Imports and Exports could, by general authorisation, extend the validity of a licence on an ad hoc basis for a specified period. The request for extension arose from the inability of the bank that had opened the letter of credit to honour it because of a moratorium, and not from any fault of the licence-holder.

Conclusion: The authorities did have power to extend the validity of the REP licences, and the refusal to do so was not justified; the appeal therefore failed.

Ratio Decidendi: Where the applicable import policy expressly permits an ad hoc extension of licence validity in cases of genuine difficulty, the authority cannot refuse revalidation on the erroneous premise that it has no such power.

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