The judgment of the court was delivered by
CHINNAPPA REDDY J.--We grant special leave and proceed to
dispose of the appeal.
M/s. Oswal Woollen Mills Limited, having its registered
office at Ludhiana, in the State of Punjab and a branch office at Calcutta, and
Narayan Das Jain, secretary of the company, have filed a writ petition in the
Calcutta High Court seeking various reliefs against the Union of India (through
the Secretary, Ministry of Commerce, New Delhi), the Chief Controller of Imports
and Exports, New Delhi, the Deputy Chief Controller of Imports and Exports,,
Amritsar, the Collector of Customs, Calcutta, and the State Trading Corporation
of India, New Delhi. The primary prayer in the writ petition is to prevent or to
quash an apprehended or purported action under cl. 8B of the Import Control
Order. All the other reliefs sought in the writ petition revolve round the
principal relief regarding cl. 8B of the Import Control Order. The other prayers
are either ancillary or incidental to the principal prayer or are of an
interlocutory character. Having regard to the fact that the registered office of
the company is at Ludhiana and the principal respondents against whom the
primary relief is sought are at New Delhi, one would have expected the writ
petition to be filed either in the High Court of Punjab and Haryana or in the
Delhi High Court. The writ petitioners, however, have chosen the Calcutta High
Court as the forum perhaps because one of the interlocutory reliefs which is
sought is in respect of consignment of beef tallow which has arrived at the
Calcutta Port. An inevitable result of the filing of writ petitions elsewhere
than at the place where the concerned offices and the relevant records are
located is to delay prompt return and contest. We do not desire to probe further
into the question whether the writ petition was filed by design or accident in
the Calcutta High Court, when the office of the company is in the State of
Punjab and all the principal respondents are in Delhi. But we do feel disturbed
that such writ petitions are often deliberately filed in distant High Courts, as
part of a manoeuvre in a legal battle, so as to render it difficult for the
officials at Delhi to move applications to vacate stay where it becomes
necessary to file such applications. More about this later.
It appears that an order under cl. 8B of the Import
Control Order had been made against the company on November 9, 1983, but the
writ petition was filed as if the order was in the offing and might be made at
any time. The writ petition was apparently filed in professed or real ignorance
of the order made under cl. 8B of the Import Control Order.
On November 22, 1983, a learned single judge of the
Calcutta High Court issued a rule nisi and granted an interim order in the
following terms :
" There will be an interim order of stay/injunction
in terms of prayers (j), (k), (1) and (n) of the writ petition till the disposal
of the rule. Liberty is given to the respondents to apply for vacation or
variation."
The rule was made returnable on January 31, 1984. Prayers
(j), (k), (1) and (n) of the petition were for the grant of :
" (j) Injunction restraining the respondents, their
servants and/or agents from filing any criminal complaint against the
petitioners or any of its directors or employees from initiating any
departmental proceedings under the Import and Export (Control) Act, 1947, and
the Import (Control) Order, 1955, against the petitioners or any of its
directors or employees till the disposal of the Rule;
(k) Injunction restraining the respondents from issuing an
order of abeyance under cl. 8B of the Import (Control) Order, 1955, and/or from
taking any action under such order of abeyance till the disposal of the Rule;
(l) Mandatory order directing respondent No. 5, Collector
of Customs, to permit the petitioners to re-export the consignment of inedible
beef tallow in terms of I.T.G. Public Notice No. 37 of 1983 dated September 1,
1983, with respect to the consignment weighing 456.316 MT which is lying at
Calcutta under s. 49 of the Customs Act;
(n) An order that pending the hearing and final disposal
of this writ petition, the petitioners be permitted to re-ship and/or re-export
the consignment of 456.216 MT of inedible beef tallow which arrived at Calcutta
as more particularly mentioned in annexure 'I'."
It is obvious that the interim order is of a drastic
character with great potential for mischief. The principal prayer in the writ
petition is the challenge to the order made or proposed to be made under cl. 8B
of the Import (Control) Order. 'The interim order in terms of prayers (j) and
(k) has the effect' of practically allowing the writ petition at the stage of
admission without hearing the opposite parties. While we do not wish to say that
a drastic interim order may never be passed without hearing the opposite
parties, even if the circumstances justify it, we are very firmly of the opinion
that a statutory order such as the one made in the present case under cl. 8B of
the Import (Control) Order ought not to have been stayed without at, least
hearing those that made the order. Such a stay may lead to devastating
consequences leaving no way of undoing the mischief. Where a plenitude of power
is given under a statute, designed to meet a dire situation, it is no answer to
say that the very nature of the power and the consequences which may ensure is
itself a sufficient justification for the grant of a stay of that order, unless,
of course, there are sufficient circumstances to justify a strong prima facie
inference that the order was made in abuse of the power conferred by the
statute. A statutory order such as the one under cl. 8B purports to be made in
the public interest and unless there are even stronger grounds of public
interest, an ex parte interim order will not be justified. The only appropriate
order to make in such cases is to issue notice to the respondents and make it
returnable within a short period. This should particularly be so where the
offices of the principal respondents and relevant records lie outside the
ordinary jurisdiction of the court. To grant interim relief straight-away and
leave it to the respondents to move the court to vacate the interim order may
jeopardise the public interest. It is notorious how if an interim order is once
made by a court, parties employ every device and tactic to ward off the final
hearing of the application. It is, therefore, necessary for the courts to be
circumspect in the matter of granting interim relief, more particularly so where
the interim relief is directed against orders or actions of public officials
acting in discharge of their public duty and in exercise of statutory powers. On
the facts and circumstances of the present case, we are satisfied that no
interim relief should have been granted by the High Court in the terms in which
it was done.
Orders under cl. 8B of the Import (Control) Order, similar
to the one made against Oswal Woollen Mills Limited, were made against various
import-export houses and, others. Some of these orders have been questioned by
the affected parties in different High Courts and, in some cases, interim orders
have also been obtained. One such writ petition filed by Liberty Oil Mills Pvt.
Limited has been transferred to this court from the Bombay High Court at the
instance of the Union of India. The case is now pending in this court and has in
fact been heard in part by this very Bench. Apparently, under the impression
that the questions at issue will be finally determined by this court in the case
of Liberty Oil Mills, the Union of India and the other authorities do not seem
to have moved expeditiously to contest the writ petitions filed in the High
Courts and to have the interim orders vacated. In the present case, an
application to vacate the interim order was filed in the Calcutta High Court on
February 1, 1984. In the meanwhile, Oswal Woollen Mills Limited went on writing
letters and sending telegrams complaining that the interim orders of the High
Court had not been obeyed and threatening action for contempt of court. On
January 6, 1984, an application to commit the Chief Controller of Imports and
Exports and others for contempt of. court was filed by the company. Notice to
the respondents was ordered on the same day and on February 3, 1984, overruling
the request made on behalf of the respondents that the petition to vacate the
interim order may be heard first, the High Court issued a rule in the
application for contempt of court against the Chief Controller of Imports and
Exports and the Deputy Chief Controller of Imports and Exports and directed them
to appear in person on March 6, 1984. Thereupon, the Union of India, the Chief
Controller of Imports and Exports, etc., have filed the present special leave
petition against the interim order dated November 22, 1983, of the Calcutta High
Court in Civil Rule No. 10933-W of 1983 and the rule for contempt of court
issued on February 3, 1984, in Civil Rule No. 571-W of 1984. We have heard Shri
Milon Banerjee, learned Additional Solicitor General for the petitioners, and
Shri Soli Sorabjee, learned Senior Advocate for the respondents.
We have already mentioned that the High Court was not
right in granting interim relief in the terms in which it had done so. We,
therefore, vacate the interim order dated November 22, 1983, made by the
Calcutta High Court. It has been pointed out to us that the Chief Controller of
Imports and Exports has himself issued a public notice dated September 1, 1983,
permitting re-shipment/re-export of import consignments which could not be
cleared consequent upon the Ministry of Commerce, Import Trade Control Order No.
27 of 1983 dated August 24, 1983. The public notice empowers the customs
authority to allow re-shipment/re-export having regard to the extent to which
foreign exchange spent on import will be earned back and subject to such other
conditions relating thereto as the customs authority may impose. We wish to make
it clear that the vacating of the interim order will not disentitle the writ
petitioners from seeking and taking advantage of the public notice dated
September 1, 1983.
In regard to the rule for contempt of court, we find it
difficult to sustain the same. Though ordinarily we would have left the matter
to be decided by the High Court, we think it unnecessary to do so in the present
case having regard to the elaborate arguments addressed to us by both parties.
The complaint of the writ petitioners in seeking the rule for contempt of court
was that the authorities had not dealt with their applications for licences,
etc., despite the " abeyance " order having been stayed. It is obvious
that the stay of the operation of the " abeyance " order merely meant
that the writ petitioners were entitled to have their applications disposed of
by the concerned authorities. The High Court not having set any limit of time
for the disposal of the applications, it was not for the writ petitioners to
impose a time-limit and demand that their applications should be disposed of
forthwith. If the writ petitioners were aggrieved by the failure of the
authorities to dispose of their applications expeditiously, it was open to them
to seek a further direction from the court fixing a limit of time within which
the applications were to be disposed of. We fail to see how the Chief Controller
of Imports and Exports or the Deputy Chief Controller of Imports and Exports
could be said to have committed any contempt of court, even prima facie, by
their mere failure to take action in the matter of the disposal of the
applications of the writ petitioners. In the circumstances, we perceive the
application to commit the authorities for contempt of court to be a device to
exact licences from them.
We accordingly allow the appeal, vacate the interim order
dated November 22, 1983, of the Calcutta High Court in Civil Rule No. 10933-W of
1983, and quash the rule for contempt of court issued on February 3, 1984, in
Civil Rule No. 571-W of 1984.
Before we part with the case, we may refer to a statement
made by Shri J. P. Sharma, Deputy Chief Controller of Imports and Exports, New
Delhi, in the affidavit filed by him before us to the effect that " in the
larger public interest, Government was unable to obey the interim order and had
taken the question to this hon'ble court which is pending decision shortly
". Torn out of the context in which it was made, unhappy language in which
it has been expressed is suggestive of contumaciousness on the part of J. P.
Sharma. However, he has filed further affidavits before us explaining the
context in which the statement was made and expressing his unqualified regret.
We accept his explanation and expression of regret. We are satisfied that Shri
J. P. Sharma did not mean what the language employed by him suggested. However,
we do wish to express our disapproval of the language employed which is
certainly suggestive of contumaciousness.
Appeal allowed