COMMISSION DURING THOSE PERIODS , THE COMMISSION WAS JUSTIFIED IN DISREGARDING ITS PRODUCTIVE CAPACITY .
24 SINCE THE SECOND SUBMISSION ALSO CANNOT BE UPHELD , THE APPLICATION IN CASE 303/81 AS A WHOLE MUST BE DISMISSED .
THE APPLICATION AGAINST THE DECISION OF 28 OCTOBER 1981 FINING THE APPLICANT FOR EXCEEDING THE QUOTA LIMITS ( CASE 312/81 )
25 IN SUPPORT OF ITS SECOND APPLICATION , THE APPLICANT PUTS FORWARD A NUMBER OF SUBMISSIONS WHICH MAY BE SUMMARIZED AS FOLLOWS :
1 . ILLEGALITY OF GENERAL DECISION 2794/80 , WHICH IS THE LEGAL BASIS FOR THE INDIVIDUAL DECISION IN DISPUTE ;
2.ILLEGALITY OF THE INDIVIDUAL DECISION OF 19 OCTOBER 1981 REFUSING TO INCREASE THE QUOTAS UNDER ARTICLE 14 OF DECISION 2794/80 , WHICH IS THE LOGICAL PREMISE OF THE INDIVIDUAL DECISION IN DISPUTE ;
3.BREACH OF A PROMISE GIVEN TO THE UNDERTAKING BY THE COMMISSION ' S REPRESENTATIVE , NAMELY TO WAIVE ANY PECUNIARY SANCTION FOR EXCEEDING THE RELEVANT QUOTA LIMITS ;
4.EXISTENCE OF AN EMERGENCY SITUATION JUSTIFYING THE OVER-PRODUCTION AND PRECLUDING ITS PENALIZATION BY WAY OF A FINE .
SUBMISSIONS ALLEGING THAT DECISION 2794/80 AND THE INDIVIDUAL DECISION OF 19 OCTOBER 1981 ARE ILLEGAL
26 DURING THE ORAL PROCEDURE , IN VIEW OF THE FACT THAT THE ABOVE-MENTIONED JUDGMENT OF 7 JULY 1982 HAD UPHELD THE LEGALITY OF DECISION 2794/80 BY REJECTING ALL OF KLOCKNER ' S SUBMISSIONS IN THAT CONNECTION IN CASE 119/81 , THE APPLICANT DECLARED THAT IT WOULD DESIST FROM RAISING THE QUESTION AGAIN . THERE IS THEREFORE NO FURTHER REASON FOR THE COURT TO EXAMINE IT .
27 THE SECOND ARGUMENT HAS LIKEWISE BECOME DEVOID OF PURPOSE ON THE GROUND THAT THE ACTION BROUGHT AGAINST THE INDIVIDUAL DECISION OF 19 OCTOBER 1981 HAS BEEN DISMISSED AS UNFOUNDED .
SUBMISSION ALLEGING BREACH OF THE PROMISE NOT TO IMPOSE THE FINE
28 THE APPLICANT POINTS OUT THAT IN MARCH 1981 , BY WHICH TIME IT WAS ALREADY CLEAR THAT KLOCKNER WOULD EXCEED THE QUOTAS GRANTED TO IT FOR THE FIRST QUARTER OF 1981 , THE COMMISSION PROMOTED THE NEGOTIATIONS KNOWN AS EUROFER II , WHICH SOUGHT TO OBTAIN AGREEMENT FROM THE LARGER EUROPEAN STEEL-WORKS ON VOLUNTARY RESTRICTIONS OF PRODUCTION , IN ORDER TO AVOID EXTENDING THE QUOTA SYSTEM . IN THAT CONNECTION , TALKS WERE HELD BETWEEN THE COMMISSION AND KLOCKNER , BECAUSE THE APPLICANT HAD NO INTENTION OF TAKING PART IN THE NEGOTIATIONS AND THE COMMISSION WAS ENDEAVOURING TO OVERCOME ITS RESISTANCE .
29 IN THAT CONNECTION IT IS ALLEGED THAT MR DEFRAIGNE , THE CHEF DE CABINET OF THE VICE-PRESIDENT OF THE COMMISSION , MR DAVIGNON , ACTING FOR AND ON BEHALF OF THE LATTER , MADE A PROMISE TO MR GIENOW , THE CHAIRMAN OF KLOCKNER ' S EXECUTIVE BOARD , DURING A TELEPHONE CONVERSATION ON 19 MARCH 1981 , NAMELY THAT IF KLOCKNER UNDERTOOK TO PARTICIPATE IN THE NEGOTIATIONS , THE COMMISSION WOULD ' ' SOLVE THE PROBLEM ' ' ARISING FROM THE FACT THAT BY THE END OF THE FIRST QUARTER OF