2010 (3) TMI 373 - HC - Customs

Ban on export of rice- the common issue involved is relating to export of rice. Submission of petitioner that said petitions related to ban on export and here challenge was against retrospective application of executive directions introducing new modalities as regard export. Revenue not able to dispute distinction. Rice- Export restrictions- petitioner allowed export of Non-Basmati Rice to South Africa against tripartite agreement between authorized agency, importer and the petitioner exporter but shipments held in abeyance and new guidelines issued stating that authorized agency to procure rice only through PSUs and there will be no associate exporters. Guideline not provide as to manner in which contract which are half way through, be dealt with. No material brought on record to support action of withholding of exports. Contracts which has been already acted upon cannot be done away otherwise that in course of law. New policy always effective prospectively. No executive decision capable of being applied retrospectively. Directions for withholding exports without authority of law.

Summary

Issues:
1. Postponement of hearing and transfer of Writ Petition to Supreme Court.
2. Challenge against the indirect retrospective application of executive directions on export modalities.
3. Scrutiny of limited question regarding the dispute on export modalities.
4. Examination of the legality of holding back contracts for export.
5. Authority of law in directing to withhold contracts and take back rice.
6. Application of new policy prospectively and prohibition of retrospective application.
7. Consequential reliefs and costs.

Issue 1: Postponement of hearing and transfer of Writ Petition to Supreme Court
The respondent sought postponement of the hearing and transfer of the Writ Petition to the Supreme Court. The petitioner opposed this, emphasizing financial repercussions. The Court found no grounds to stay the proceedings, as the respondents failed to apply for transfer within the given time. Thus, the Court rejected the oral prayer for a stay and proceeded with the hearing for final disposal.

Issue 2: Challenge against the indirect retrospective application of executive directions on export modalities
The petitioner challenged the indirect retrospective application of executive directions on export modalities. The respondent highlighted the distinction between previous cases and the present petition. The Court noted the lack of dispute on opposing export but focused on scrutinizing a limited question regarding the modalities of export. The Court acknowledged the unique nature of the challenge in the present case, differentiating it from cases challenging bans on export.

Issue 3: Scrutiny of limited question regarding the dispute on export modalities
The Court examined the limited question of dispute concerning export modalities. The background of the petition outlined the events leading to the dispute, including the issuance of guidelines by the respondent. The Court observed that the respondents failed to provide legal support for withholding exports that were in the process of shipment. The Court emphasized the need for actions to be supported by legal authority and highlighted the lack of clarity in dealing with contracts halfway through the process.

Issue 4: Examination of the legality of holding back contracts for export
The Court analyzed the legality of holding back contracts for export. It found that while temporarily holding back contracts might be prudent, it cannot be done indefinitely or arbitrarily. The Court criticized the lack of legal authority for directing the withholding of contracts or taking back rice without proper legal support or adherence to changed policies.

Issue 5: Authority of law in directing to withhold contracts and take back rice
The Court questioned the authority of law in directing the withholding of contracts and taking back rice. It highlighted that the respondent, acting as an agency of the Central Government, cannot act arbitrarily without legal backing. The Court emphasized that any executive decision should have legal authority and cannot be applied retrospectively without proper legal sanction.

Issue 6: Application of new policy prospectively and prohibition of retrospective application
The Court emphasized the prospective application of new policies and the prohibition of retrospective application. It noted that without legal authority, executive decisions cannot have retrospective effect. The Court underscored that any new policy should only affect future actions and contracts, not those already in progress.

Issue 7: Consequential reliefs and costs
The Court granted the petitioner's request for consequential reliefs and directed the parties to bear their own costs. The judgment made the Rule absolute in terms of specific prayer clauses, acknowledging the petitioner's success in the case.

This detailed analysis of the judgment from the Bombay High Court covers the various issues involved and the Court's findings on each aspect of the case, preserving the legal terminology and significant details from the original text.