JUDGMENT

VENKATACHALIAH, J.:— By these two special leave petitions under article 136 of the Constitution, the Union of India and the Chief and the Joint Chief Controllers of Imports and Exports seek special leave to appeal from two appellate Judgments of the Division Bench of the High Court of Judicature at Bombay - both dated 17-2-1987 in appeals Nos. 179 of 1987 and 148 of 1987- affirming in appeal, orders of learned single Judges dated 5-9-1985 in W. P. 1125 of 1985 and dated 19-9-1985 in W. P. 1813 of 1985, respectively, by which the writ petitions filed by M/ s. Suksha Internationals and M/S. Nutan Gems, respondents in these appeals, were allowed and appellants directed to revalidate the imprest licences of the respondents and endorse them for import of OGL items, under paragraph 185(4) of the Import-Export Policy of 1982-83 (AM 1983).

2. Special leave, in both the petitions, is granted and the appeals taken up for final hearing, heard and disposed of by this common judgment. We have heard Shri Subbarao, learned counsel for the appellants and Shri Harish Salve, learned counsel for the respondents who were the writ petitioners before the High Court.

3. M/s. Suksha International, respondent in SLP 2579 of 1987, is a diamond exporter and is a registered Export House for the purposes of the Import Export Policy. The said export house was granted an Imprest Licence No. 0451365 dated 15-6-1981 of a value of Rs. 1,53,80,000/- for import of uncut and unset diamonds with corresponding export obligations.

Respondent claimed that upon the due fulfilment by it of its export- obligations it became entitled to revalidation and endorsement for import of OGL items of the imprest. Accordingly, on 3-9-1983 the said Export-House applied under paragraph 185(4) of AM-83 policy, for such revalidation and endorsement of its imprest licence. Appellant No. 3 by his decision dated 21-9-1983, rejected this claim of the respondent. Aggrieved by this rejection, respondent filed in the High Court under Article 226 of the Constitution a writ petition assailing the legality of the order dated 21-9-1983 and seeking a mandamus to the appellants to endorse the Imprest-Licence. Learned single Judge of the High Court by his order dated 5-9-1985 allowed the writ petition and issued the direction prayed for. This order was carried up in appeal before the Division Bench of the High Court in appeal No. 179 of 1987. The appeal came to be dismissed on 17-2-1987.

4. M/s. Nutan Gems, respondent in SLP 2560 of 1987 is a recognised Export-House which had, similarly, been granted an Emprest Licence dated 24-2-1983 for the import of uncut and unset diamonds with certain export obligations attached to it and that after the due discharge of the export obligations, respondent became entitled to a revalidation and endorsement of the Imprest-licence for import of OGL items. The application dated 19-1-1984 made in this behalf by the respondent was rejected by appellant No. 3 by his order dated 10-3-1984. M/s. Nutan Gems filed writ petition No. 1813 of 1985 in the High Court for issue of an appropriate writ quashing the said order of rejection and directing appellants to revalidate and endorse the Imprest Licence. On 19-9-1985, learned Single Judge allowed the writ petition. This order was affirmed in appeal No. 149 of 1985 by the Division Bench on 17-2-1987.

5. These appellate-judgments of the High Court are assailed in these appeals. Though a number of contentions are raised in the Memorandum of Special Leave Petition, the points, however, pressed at the hearing admit of being formulated thus:

(a) that in the Import-Export Policy, 1982-83 the entitlement of Registered Export Houses to the facility of revalidation and endorsement of OGL items under paragraph 185(4) is subject to and conditioned upon the express limitation in clause(7) of paragraph 185 of the Policy and that the High Court was in error in directing revalidation and endorsement without reference to the mandatory pres