1. Malhotra and Sons and four others firms which are engaged in the business of exporting walnuts in kernel as well as in shell form from the State of Jammu and Kashmir to different countries have filed this writ petition under Section 103 of the Constitution of Jammu and Kashmir read with Article 226 of the Constitution of India seeking quashing of letter No. 12(4)/73-EAC dated 27-9-1973 of the Ministry of Commerce, New Delhi, whereby the respondents to the petition have withdrawn the cash assistance scheme issued by the Government of India on 2nd Feb, 1973. The petitioners also seek a writ of mandamus for a direction to the respondents to implement the representations held out by the Government of India in their cash assistance scheme dated 2nd Feb. 1973.

2. The facts as given out in the writ petition are: That the Union of India, in Feb 1973 formulated a scheme for providing incentives to registered exporters in walnut, kernel as well as in shell, with a view to increase export and to augment the foreign exchange earnings for the country. According to the Scheme the regd. exporters of the aforesaid commodities were to be given cash assistance against exports of walnut, kelnel as well as shell, at the rate of 5% of the f.o.b. value on exports made during the period from 1-10-1972 to 30th September, 1975 in addition to the above 5% cash assistance an additional cash assistance of 2½% of the f.o.b. value was also to be allowed to the individual registered exporter on exports made during the period from 1-10-1972 to 30th September, 1973, provided the f.o.b. value of the exports during the aforesaid period exceeded by atleast 10% the f.o.b. value of the exports during the immediately preceding 12 months period i.e. 1-10-1972 to 30-9-1972. This additional 2½% cash assistance of the f.o.b. value was also similarly to be given for the period from 1-10-1973 to 30-9-1974 provided the f.o.b. value of exports during that period exceeded by at least 10% the f.o.b. value of the exports during the immediately preceding twelve months period. On the same basis the same additional assistance of 2½% was admissible during the period from 1-10-1974 to 30-9-1975, provided the exports during that period exceeded by atleast 10% the f.o.b. value of their exports during the 12 months immediately preceding, 1-10-1974. The petitioners have maintained that the petitioner firms had legitimate basis to benefit from the aforesaid scheme and relying upon the scheme and representations contained therein about the cash assistance they invested considerable sum of money and expanded their domestic business so that they could improve their performance and qualify for the cash assistance promised in the scheme. According to the petitioners the cash assistance scheme and the representation contained therein had considerable influence on the local market calculations which showed a upward trend of price of commodities aforesaid. The petitioners state that because of the incentive contained in the scheme they improved their exports between 1-10-1972 to 30-9-1973 and qualified themselves for cash assistance under the scheme and which assistance they actually received. The petitioners have given details of various amounts which have been received by them by way of cash assistance for the period ending 30-9-73, claiming that the petitioners firms had a reasonable basis to conclude that the incentive of cash assistance as envisaged in the aforesaid scheme would continue for the entire period mentioned in the scheme and that the respondents would fulfill their part of the promises upto the end of September 1975. The grievance of the petitioner is that after the petitioners altered their position, the respondents have unilaterally withdrawn the cash assistance scheme in relation to exports of walnut kernel and in shell and the petitioners, who had all along acted on the scheme have been gravely prejudiced. The petitioners have challenged the withdrawal of the cash a

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