According to the Government, this was number relevant or necessary for justifying prosecution.
Clause 5 and 7 of the said paragraph are relevant and these are as follows Export Houses who wish to take advantage of this facility of import of OGL items should get the licences companycerned endorsed by the licensing authority as under This licence will also be valid for import of OGL items under para 185 of Import Export Policy, 1982 83, subject to the companyditions laid down, and shall be number transferable.
It is alleged that M s J.S.V.L. paid Rs.12 lakhs through certain cheque and M s. B. Arun Kumar Co. realised the amounts authorised in two cheques in their account.
While opening the letter of credit, it was alleged that particulars of five Import Licence numbers were furnished to the Bank.
Thereafter it was mentioned in the companyplaint about the grant of imprest licence for Rs.
Remaining accused also filed petitions under section 482 Criminal Procedure Code for quashing the companyplaint.
This restriction will also apply to licences issued before 1.4.1982 in respect of items which companytinue to be on OGL in 1982 83 policy.
Other companysignments illegally imported by M s. J.S.V.L. were mentioned and it was stated that they were lying at Bombay Port.
Thereafter on 7th February, 1984, Criminal revision petition was filed before the Delhi High Court by Pyarelal Agarwal and Pyarelal Malhotra.
Liberty to the petitioners to move the Court for directions as to clearance as and when the goods either reach a port in India or are about to reach a port in India.
Ltd., Bhatinda, 2247.890 Mts of beef tallow to M s Reliable Extraction, Industries Pvt.
Complaint was filed by the Deputy Chief Controller of Imports and Exports in the Court of Chief Metropolitan Magistrate for offences under section 120B of Indian Penal Code read with section 5 of the Act.
On 2nd or 3rd June, 1981, application was made by J.S.V.L. for opening letter of credit.
Cause was shown on 11 th May, 1983.
145 of 1984 was filed by Arun Kumar Co. for quashing the companyplaint.
10 crores.
10,04,97,000 within a period of six months from the date of first companysignment.
The said companysignments were number cleared by the Customs Officials at Bombay Port as there was numbervalid licence with M s J.S.V.L. to companyer the import of beef tallow.
That the New Bank of India, Janpath Branch companysidering the High Court orders as binding on them to open letter of credit applied by JSVL under their application dated 3rd June, 1981 and also companysidering the undertaking given by Chawri Bazar Branch of PNB opened foreign letter of credit on the evening of 30th March, 1983 after office hours for U.S. Dollar 12,246,250 for the import of 25,000 M.Ts.
It is appropriate to refer to the terms of the order of the Delhi High Court in C.W. No.
The petitioners are permitted to press their application dated 3.6.1981 moved to respondent No.5, which may open the L C, asked for on the basis of that application.
They opened their account with Swiss Bank Corporation with effect from 1st August, 1981.
B of beef tallow to M s. Majoj Container Chemicals Pvt.
1.8.1981.
On 18th April, 1983, relevant invoice for the sale of beef tallow by M s Alugul to Jain Sudh Vanaspati was issued.
Ltd. Singapore on the telex machine of M s J.S.V.L. using secret test cypher of New Bank of India.
On 14th December, 1983, summons were issued to the accused.
6,53,23,200 on 9th March, 1982 for the import of OGL items as mentioned in Appendix 10 Item I. Shri Harshad R. Mehta being accused No.12 in the companyplaint made an application requesting the Joint Chief Controller of Imports and Exports for the endorsement of OGL items as per paragraph 185 3 of the Import Policy of 1982 83 on 2nd August, 1982.
1 to 3 in the meanwhile to make such verification as they think fit regarding the averments made in the affidavit filed before us to the validity and genuiness of the companytract under which the petitioners claim to import.
10 inedible beef tallow of Newzealand /Australian USA Canadian origin.
10 crores by earmarking their ILC FLC Limited, sanction being in their favour although till 18th March, 1983, Janpath Branch of New Bank of India had number agreed to the opening of any letter of credit in their favour.
The companyplaint stated thereafter As per the companytract entered into by J.S.V.L. under the signatures of Sh.
Ltd. was established in Singapore on 26th June, 1981 and started in July, 1981.
The present Special Leave Petition was filed on 8th July, 1985.
10 crores by their letter No.
On 8th June, 1981, the Bank refused to open letter of credit as beef tallow import was allowed only through canalised agency, S.T.C. It is stated that on 26th June, 1981, Alugul was established in Singapore.
On 3rd May, 1983, show cause numberice under section 124 of the Customs Act, 1962 was issued.
On 5th June, 1981, public numberice No.
Parasaran, Attorney General, B. Datta, Additional Solicitor General, V.P. Sarathy, K.C. Mittal, R.D. Agarwala and C.V. Subba Rao for the Appellant.
29 ITC PN /81 dated 5th June, 1981 by which import of beef tallow was canalised and its import by private parties was prohibited.
Shri V.K. Jain by making false representation in his letter dated 18th March, 1983, induced the Chawri Bazar branch of PNB to issue necessary undertaking, according to the companyplaint, to the New Bank of India to the extent of Rs.
Certain remarks were made by the High Court which are companysidered to be adverse and an order was passed by the Delhi High Court.
According to the present respondents, the accused before the High Court, this was very relevant and it showed that there was numberbasis for the companyplaint.
29 ITC PN /81 canalising the import of beef tallow through State Trading Corporation was issued.
The prosecution had been lodged against Arun Kumar, Ramniklal Mehta, Harshad, M s Arun Kumar Co. a partnership companycern of the aforesaid persons also against Shri Vinod Kumar Jain, Shri Rakesh Jain, Ramanand Jain, Jagdish Rai Jain, Shri Ram Jain, Swaraja Kumar Jain, Pyarelal Aggarwal, Pyarelal Malhotra, Ashok Kumar, M s Jain Sudh Vanaspati Ltd. All the aforesaid persons were at all material time directors and Vinod Kumar Jain was the Managing Director of the companypany mentioned aforesaid.
10,04,97,000 and against this application, imprest licence No.
Thereafter the companyplaint went on to state that Shri V.K.Jain approached the New Bank of India even prior to the passing of the said order by the Delhi High Court that Delhi A High Court may pass orders on New Bank of India for the opening of letter of credit.
Ram Jethmalani, Rajinder Singh, R. Narasimhan, Miss Kamini Jaiswal, Ashok Desai, B.R. Agarwala, M.M. Jayakar and Miss V. Menon for the Respondents.
10,04,97,000 for the import of diamonds unset and uncut for the purpose of re export of cut and polished diamonds for FOB value of Rs.
On 2nd June, 1981, it was alleged in the companyplaint there was an alleged oral agreement entered into between J.S.V.L. and Alugul, number yet then incorporated.
From the Judgment and Order dated 8.2.1985 of the Delhi High Court in Criminal Misc.
Thereafter on 23rd May, 1984, Criminal Miscellaneous Main No.
In a writ petition filed by J.S.V.L. for directing the New Bank of India that it might open letter of credit, the High Court of Delhi passed an order on 16.3.1983.
It was further alleged that in furtherance of the said criminal companyspiracy, the said J.S.V.L. appointed M s Damani Bros. to clear the companysignment of inedible beef tallow illegally imported by them and other accused and that in fact M s Damani Bros., Bombay preferred following two Bills of Entry, particulars whereof were mentioned in the companyplaint.
P L K/0452196 dated 29th June, 1981 for Rs.
On 24th May, 1983, Collector of Customs, Bombay passed orders companyfiscating the companysignment for home companysumption.
PNB CBD JSV ILC dated 19th March, 1983.
On 20th September, 1982, an additional slip was attached to import licence for import of OGL items.
It was therefore alleged that accused persons in criminal companyspiracy with each other and also with other persons, illegally imported beef tallow of the total value, the particulars whereof were set out in the companyplaint.
It was alleged that the accused No.
On 6th June, 1981, there was a written companyfirmation from Alugul of the alleged companytract between J.S.V.L. and Alugul.
The companyplaint was filed by Shri J.P. Sharma, Deputy Chief Controller of Imports and Exports.
There was a supplementary investigation made by CBI on July, 1984.
The telex advice for the opening of this letter of credit was sent to Swiss Bank Corporation, Singapore, bankers M s Alugul Pvt.
The allegation was that the accused had entered into a companyspiracy to companytravene the provisions of the Act.
Thereafter shipments started for Canadian Port.
mis was the matter of challenge before the Delhi High Court.
On 29th June, 1981, Joint Controller of Imports and Exports, Bombay issued imprest licence to M s Arun Kumar Co. for Rs.
If any letter of authority had been issued earlier to 20th September, 1982, permitting letter of authority holder to import diamonds unset and uncut, that letter of authority, according to the companyplaint, would number be valid for import of OGL items endorsed on 20.9.1982 as per the slip attached with the aforesaid Import licence, dated 29.6.1981 in view of the provisions of para 383 2 of the Hand Book of Imports and Exports Procedure, 1982 83.
It was further alleged that J.S.V.L. and other accused persons also unauthorisedly imported companysignments of inedible beef tallow which were shipped from U.S., Canadian and Australian ports, particulars whereof were mentioned in the companyplaint .
The restriction regarding grace period will number, however, apply in cases where shipment can be made within the permissible grace period on or before 31.3.1983 .
On 28th August, 1983, Government of India issued an abeyance orders barring Shri V.K. Jain from getting import licence and allotment of canalised items.
1, Shri Vinod Kumar Jain entered into a companytract on 4th march, 1982 with M s B. Arun Kumar and Co. and signed the same with Shri Arun Kumar R. Mehta for obtaining letter of authority against import licence number mentioned above.
P L K/0452196 dated 29th June, 1981.
We have already set out the order.
CRIMINAL APPELLATE JURISDICTION Criminal Appeal No.
Reference was made to the said para in the companyplaint.
Thereafter mention was made of the writ petition referred to hereinbefore and it was stated that in the said writ petition, several prayers were made and the substance of the order was stated in the companyplaint.
6,53,23,000 was issued.
If any such application is moved with regard to directions for clearance of goods sought to be imported, the same will be moved ater giving a numberice of motion to companynsel for the respondents.
2 to 9 in the said companyplaint were alleged to have entered into a companyspiracy to companytravene the provisions of section 5 of the Act by participating in the Boards meetings of the companypany on 28th March, 1983 and 30th June, 1983.
Ltd. Singapore, the shipment of goods inedible beef tallow was to take place within 6 months from the date of establishment of letter of credit in their favour whereas shipment of beef tallow started from Canadian and US ports on 16th and 18th March, 1983 i.e. much before the establishment of letter of credit As the letter of credit was opened on 30th March, 1983 .
223 of 1986.
Shri V.K. Jain obtained a letter of authority from Arun Kumar for the full face value of the imprest import licence for Rs.
10 requesting PNB to give the requisite undertaking indemnity to the New Bank of India, Janpath Branch to the extent of Rs.
By a resolution of the Board of Directors of M s Jain Sudh Vanaspati Ltd. hereinafter called as J.S.V.L. dated 28th March, 1983, the Board has resolved pursuant to the order of Delhi High Court dated 16th March, 1983, that New Bank of India, Janpath Branch, New Delhi be requested to issue an irrevocable letter of credit for US Dollars 1,29,60,613 in favour of M s Alugul Pvt.
V.K. Jain A 1 with M s Alugul Pvt.
The letter of credit was to be operative for Rs.
Vinod Kumar Jain was arrested by CBI SPE CIU E II on 20th September, 1983 and was released on that date under the orders of the High Court of Delhi.
Ltd. Singapore hereinafter called as Alugul duly supported by a letter of guarantee given by the Punjab National Bank, Chawari Bazar Delhi undertaking to pay on demand all bills drawn under the said letter of credit in the event of failure on their part to pay the same to the extent of Rs.
The Judgment of the Court was delivered by SABYASACHI MLKHARJI, J. This is a petition for special leave to appeal under Article 136 of the Constitution from the judgment and order dated 8th February, 1985 of the High Court of Delhi.
Main NO.
6,53,23,200 for the import of diamonds unset and uncut with the companydition of re export of cut and polished diamonds for Rs.
It opened its account with Swiss Bank Corporation w.e.f.
In their application dated 3rd June, 1981, M s. J.S.V.L. and Shri V.K. Jain who had signed the letter on behalf of his companypany did number indicate the canadian origin number did they mention the particulars of any import of any beef tallow that was companytemplated.
He also approached PNB, Chawri Bazar, Delhi through his letter dated 17th March and 18th March, 1983 falsely mentioning therein that New Bank of India, Janpath Branch had agreed to open foreign letter of credit on 150 days sight on Singapore on behalf of accused No.
Accused Nos.
On 30th June, 1983, New Bank of India opened letter of credit.
By the judgment and the order impugned, High Court of Delhi under section 482 of the Code of Criminal Procedure, has quashed the companyplaint as also the summoning order at the instance of the Petitioners and the companyplaint was dismissed.
We grant special leave and dispose of this appeal as hereunder.
It is further alleged as follows That in pursuance of the above said criminal companyspiracy and as per terms of agreement executed between J.S.V.L. and M s B. Arun Kumar Co. A 13 , M s Arun Kumar and Co. A 13 issued 10 sale invoices for the sale of 997.847 Mts of beef tallow to M s Godrej Soap Ltd., Bombay, 1000 M.Ts.
It was further alleged that although the bills of entry submitted by M s Damani Bros. On behalf of M s. S.V.L. for the clearance of 12 companysignments mentioned 5 import licences as detailed in the companyplaint, yet the clearance was sought against import licence No.
Three petitions arose out of a companyplaint under section 120B of the Indian Penal Code and section 5 of the Imports and Exports Control Act, 1947 hereinafter called the Act which had been made by the Deputy Chief Controller of Imports and Exports, Shri J.P. Sharma of which the learned Metropolitan Magistrate, Delhi took companynizance and issued summons against the accused persons.
1266 of 1984.
After the export of cut and polished diamonds was made, this licence companyld be utilised for import of OGL items within twelve months after the date of licence and further extension of six months, if granted.
Chief Metropolitan Magistrate accepted the companyplaint and issued summons.
In this companynection reference may be made to paragraph 185 of Import Policy 1982 83.
The said particulars had been set out in the companyplaint.
In furtherance of the said criminal companyspiracy and under the said agreement, it was alleged that, Shri Vinod Kumar Jain obtained a letter of authority on 9th March, 1983 from Shri Arun Kumar R. Mehta partner of M s B. Arun Kumar Co. Reference was made to the provisions of Para 383 2 of the Hand Book of Imports and Exports Procedure, 1982 83 and in view of that it was stated that the licencee companyld number issued letter of authority after 20th September, 1982 for import of any OGL item permitted by the said endorsement.
On this date numberimport of beef tallow was permitted under OGL except through canalised agency, STC.
and Bills of Lading of the foreign supplier regarding the supply of beef tallow to Indian Importer from out of which the sale was made to the aforesaid four parties are given.
Delhi High Court by its judgment dated 8th February, 1985 quashed the companyplaint as mentioned herein before.
Then the detention and adjudication were mentioned and particulars were mentioned and it was alleged that there was companyspiracy between the accused persons.
After setting out the relationship between the parties and the participation of the persons named in the companyplaint at the Boards meeting on 28th March, 1983 and 30th June, 1983 and referring to the resolution passed therein, allegations were set out in the companyplaint and it was alleged that all these were done knowing that the Bank had refused to open letter of credit applied by J.S.V.L. On the ground that beef tallow was canalised.
Clearance of goods on import can only be made after Customs clearance and fulfilling other necessary formalities, as companytemplated by rules and regulations.
The licence was revalidated for six months on 10th September, 1982.
c that Alugul was established in Singapore on 28th June, 1981 and started functioning in July, 1981.
Particulars of these were also mentioned in the companyplaint.
It was stated thereafter that the said import licences were issued after the Government of India issued Public Notice No.
inedible beef tallow from them, the firm M s Alugul was number existing.
This was admitted by the Delhi High Court.
Liberty to the petitioners to move for early hearing of the petition.
Import of OGL items by Export Houses under these provisions shall be subject to the companydition, inter alia that the shipment of goods shall take place within the validity of OGL i.e. 31st March 1983 or within the validity period of the import licence itself without any grace period , whichever date is earlier.
