Law:

Section:

Import license-Grant, according to declared policy of Government, depending on fulfilment of certain conditions (viz. export ofgoods)-License granted on fuNlment of conditions­ Government has no power to cancel-Export of'goods, created legal right in licencee to an import licence, of equivalent value-Import and Export (Control) Act (XXXIX of 1950), S. 3. An import licence for an Indian cinema film was granted in accordance with the declared policy of Government which was expressed as follows in a public notice :­ "In West Pakistan import licences will be granted to persons who after the issue of this notice, export Pakistani films to India with the approval of the C. C. I. & E. The value of import licence will depend on the sale proceeds of the Pakistani films exported." The licence was granted after proof of receipt in Pakistan of repatriated sale proceeds of a Pakistani film exported to India. The licence was, however, later cancelled on the ground that the application for licence was not accompanied by a Banker's certificate showing that the money earned by the film exported had been repatriated. The plea was also taken that the last date of the trade agreement then in force, viz. The 31st August 1956, by which date the proceeds of sale of the exported film had not been-received in Pakistan. Held, the licence granted was no mere act of discretion or unilateral act on the part of the Government. It was granted in fulfilment of an undertaking, which imposed certain priorconditions upon the applicant, which conditions he bad fulfilled, and thereby there had accrued in his favour, something in the nature of a legal right to an import licence of equivalent value. That right had been respected, and in so doing the Government had performed no bare uncontrolled act of discretion under their powers, but had exercised the relevant power as a matter of obligation in favour of the respondent. The pretext of non-compliance with the rule requiring submission of a Bank certificate with the import application was an after-thought, and in the light of the fact that a licence had actually been issued, after proof of the receipt of the sale proceeds of the film from…

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