Facts of the Case

K.N.Resources Private Limited filed a writ petition before the Andhra Pradesh High Court challenging Notification No.31/2015-2020 dated 08.09.2022, by which the Union of India banned/prohibited export of broken rice under HS Code 1006 40 00, and a further action of the Director General of Foreign Trade restricting the petitioner's export quantity to 27,362 metric tonnes under an Approval Letter dated 07.11.2022, instead of the contracted 31,500 MT.

The petitioner sought to be permitted to export the balance 4,140 MT of Indian White Rice under a Purchase Contract with ADM Rice, Inc., New York, backed by an Irrevocable Letter of Credit obtained for the transaction.

This is a similar and connected export-ban matter to the Manasa Quality Enterprises case decided the same day by the same Bench (see the related writ petition arising from the same notification).

The matter was heard and disposed of by a Single Judge on 21.09.2023.

Issues Involved

  1. Whether the export ban and the restricted export quota should be set aside so as to permit the petitioner to export the balance quantity of broken rice contracted for.

Petitioner's Arguments

  • The petitioner initially sought to set aside the export ban notification and the restricted approval letter as arbitrary and violative of natural justice and its contractual and constitutional rights, seeking permission to export the balance 4,140 MT.

Respondent's Arguments

  • No substantive contest on the merits is recorded, as the matter was closed at the petitioner's own instance.

Court Order / Findings

  • At the hearing, the petitioner's senior counsel submitted that there remained nothing for adjudication in the writ petition.
  • Taking this submission into consideration, the Court closed the writ petition without any order as to costs, and closed pending miscellaneous applications.

Important Clarification

As with the connected Manasa Quality Enterprises matter, this order records only that the petitioner considered the dispute to have become infructuous; the Court did not decide the legality of the export ban or the restricted export approval. It is a Foreign Trade Policy matter and has no connection to GST law.

Sections Involved

  • Foreign Trade (Development and Regulation) Act, 1992 – DGFT's power to restrict/prohibit exports by notification
  • Constitution of India, 1950 – Article 226

Decision – In Favour of

The writ petition was closed as infructuous at the petitioner's own submission, without costs and without any adjudication in favour of either side.

Case Details

  • Court: High Court of Andhra Pradesh at Amaravati
  • Case No.: WP No. 636 of 2023
  • Coram: Justice Ravi Cheemalapati
  • Date: 21.09.2023

Link to Download the Order

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