2022 (11) TMI 1329 - HC - Customs

Seeking grant of Registration Certificates for export of wheat to Bangladesh - out of 18 representations made by the petitioners, 17 were found to be valid while only one was rejected on the ground that the Letter of Credit has expired - HELD THAT - The petitioners have been kept waiting since May, 2022 for grant of Registration Certificates. The petitioners have followed the procedure outlined in Trade Notices and Memoranda. The validity of the 18 Registration Certificates is due to expire on 31 st December, 2022. The petitioners, according to learned counsel, would also require a minimum of 45 days for facilitating the export of wheat to Bangladesh. Counsel has also submitted that the petitioners have already faced claims for damages from the Bangladesh importers. Apart from the unexplained delay on the part of the expert Committee, it is also significant that 4 of the 22 applications of the petitioners have already been granted whereas 18 have been kept in the pipeline for the last six months from May to November, 2022. Given the urgency of the situation, the Expert Committee is hence directed to communicate its decision to the petitioners on the 17 1 applications, as indicated in the Report within seven days from the date of communication of this order but not beyond 7 th December, 2022. It is also to be noted that contrary to the position taken on behalf of the respondents, all the Letters of Credit for the 18 applications are valid as on date. Application disposed off.

Summary

Issues: Delay in grant of Registration Certificates for export of wheat to Bangladesh

Analysis:
The judgment addresses the delay in the grant of Registration Certificates for export of wheat to Bangladesh. The petitioners had applied for the certificates between May 23 to May 30, 2022, following the procedure outlined in Trade Notices and Memoranda. The Report filed by the Director General of Foreign Trade (DGFT) revealed that out of 18 representations made by the petitioners, 17 were found valid, while one was rejected due to an expired Letter of Credit. Despite the applications being submitted in May, the decision on the applications was still pending as of November 2022, causing significant delays for the petitioners.

The judgment highlights the urgency of the situation, noting that the validity of the Registration Certificates is set to expire on December 31, 2022, and the petitioners would require a minimum of 45 days for facilitating the export of wheat to Bangladesh. The petitioners have also faced claims for damages from the Bangladesh importers due to the delays. The court directed the Expert Committee to communicate its decision on the 17+1 applications within seven days from the date of the order, not beyond December 7, 2022. It was emphasized that all Letters of Credit for the 18 applications were valid at the time of the judgment, contrary to the position taken by the respondents.

The judgment highlights the unexplained delay on the part of the Expert Committee in processing the applications and the disparity in the processing of applications, with 4 out of 22 applications already being granted while 18 remained pending for several months. The court's directive aimed to expedite the decision-making process and ensure that the petitioners receive timely responses regarding the grant of Registration Certificates, considering the impending expiration of the certificates and the potential financial implications for the petitioners.