OSWAL WOOLLEN MILLS LTD. & ANR. vs UNION OF INDIA & ORS.

The Supreme Court held that the Replenishment Licence can be transferred and endorsed for import purposes under Paragraph 140 of the Import Policy, 1981-82, without the condition that it must be issued against the export of the transferee's own products. The Court found that the High Court erred in upholding the Circular dated 31-8-1981, which imposed such a condition, as it was not supported by the text of Paragraph 138(1). The appeal was allowed, affirming the appellant's entitlement to import under the transferred licence.