HC refuses to consider news reports on ban, allows export of pulse

New Delhi, Aug 20 (UNI) Refusing to consider news reports on ban of export of pulses as government notification, the Delhi High Court has allowed Mumbai-based Agri Trade India Services Pvt Ltd to export 30,000 metric tonnes of chick pea pulses to Pakistan.

A division bench of Justices Mukul Mudgal and S Muralidhar held that the news item on TV channels could not be taken for granted as the notification of the government rules and regulations.

While rejecting the Centre's plea that the ban would be effective from the date it was reported in the media on June 22, the Court held that such change would be given effect only when it was officially notified in accordance with the Foreign Trade (Development and Regulation) Act, 1992.

The TV channels reported the ban on export of pulses by the Government on June 22 due to soaring price of pulses in India. The government notified the ban under the Act on June 27 in the official gazette.

''...there is no manner of doubt that the only acceptable mode of bringing about the change in policy is by a notification in the Official Gazette,'' the judges stated in the 56-page order.

The court observed that an element of public interest was also involved in getting our citizens to honour commitments in the course of international trade. ''What is at stake is not merely the money involved in the trans-border transactions but the reputation of our traders that they will be able to deliver as assured.'' Even though the power to amend the policy existed with the Centre, it could not restrict or prohibit the export of goods retrospectively as it would adversely affect already accrued contractual and property rights and obligations, the court said.

Agri Trade India, a subsidiary of Singapore-based Agrocorp International Pte Ltd, had entered into a contract with the Trading Corporation of Pakistan (TCP) for supply of two 30,000 MT of chick pea pulse at 650 dollars per MT.

The company had furnished performance guarantee equivalent to five per cent of the value of the contracted quantity through a bank in Singapore and TCP had opened two irrevocable letters of credit (LCs) in favour of Agri Trade on June 24.

UNI PAT AD VP1145