The Hindu : National : Pulses export cannot be banned retrospectively

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Thursday, Nov 16, 2006
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Pulses export cannot be banned retrospectively

Legal Correspondent

Apex court slaps exemplary costs on Government

Exporters have to honour commitments By reason of policy, vested right cannot be taken away

New Delhi: The Supreme Court has held that the ban on export of pulses imposed in June cannot have retrospective effect. The commitments made by exporters before it came into force must be honoured, said a Bench consisting of Justices S.B. Sinha and Markandey Katju.

"By reason of policy, a vested or accrued right cannot be taken away. Such a right cannot therefore a fortiori be taken away by an amendment thereof."

Also export of consignments which were already booked by exporters prior to the ban and cleared by the Customs could not be prohibited. The Centre, by a June 27 notification, imposed the ban under the Foreign Trade (Development and Regulation) Act, 1992 to tide over pulses shortage. Following this order, Kandla port authorities did not allow Asian Food Industries to load 87 containers of pulses for export to the Middle East, for which orders were received prior to the imposition of the ban.

The company submitted before the Gujarat High Court that it had received the orders for supply of 20,331 tonnes between April 22 and May 2. By June 24, twenty containers were already shipped and the remaining 87 containers were cleared for shipment between June 23 and 26. For this, customs authorities issued the Bill of Loading on June 26.

But the consignment was stopped on media reports that the Government had taken a decision on June 22 to impose the ban, though the notification was issued only on June 27, the company said.

The High Court held that the company was entitled to export the remaining 87 containers. The Union of India filed an appeal against this order.

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