Legal principle

An order refusing a licence, which entails civil consequences and prejudice, cannot properly be passed without prior notice and an opportunity of hearing, and such an order is prima facie liable to be stayed.

Court decision

The court granted interim relief in favour of the petitioner: it stayed the operation of the impugned refusal of licence (DEL order dated 10th February 2026) for eight weeks from the date of the order. The respondents were directed to file affidavit-in-opposition within three weeks, with the petitioner at liberty to file a reply within two weeks thereafter, and the matter was listed after six weeks. This was a prima facie, interlocutory decision — no final determination of the validity of the refusal order was made.

Facts

M/s. Vinayak Oil and Fats Pvt. Ltd. moved the Calcutta High Court (Original Side, WPO/110/2026) against an order of refusal of licence — described as the 'DEL order' dated 10th February 2026; the extract does not identify the goods covered by the licence. The refusal order was passed by the Deputy Director General (respondent no.4) in purported exercise of power under Section 9 of the Foreign Trade (Development and Regulation) Act, 1992 read with Rule 7(1)(k) of the Foreign Trade (Regulation) Rules, 1993. The order was passed without issuing any prior notice or providing an opportunity of hearing to the petitioner. As a result, the petitioner faced civil consequences causing it prejudice, and sought interim protection against the operation of the order.

Key provisions

• Section 9, The Foreign Trade (Development and Regulation) Act, 1992 — Issue, suspension and cancellation of licence.