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2019 Supreme(Bom) 1088

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
S.C. DHARMADHIKARI, G.S. PATEL, JJ.
Chailbihari Trading Private Limited and Ors - Appellant
Versus
Union of India Through Ministry of Finance, (Department of Revenue) and Ors - Respondent
Civil Writ Petition No. 7469 of 2019, Civil Application No. 1690 of 2019
Decided On : 28-08-2019

Advocates:
Advocate Appeared:
For the Appellant : Mr. S.P. Bharati, i/b Yadav P.R.
For the Respondent: Mr. Dhanesh Ramanlal Shah, Mr. H.S. Venegaonkar
For the Applicant : Mr. Kevic Setalvad, Senior Counsel, a/w Rajesh Datar, Prahlad Paranjape, Sneha Prabhu, Manish Kelkar and Akshay Kandarkar

Headnote:

Narcotic Drugs & Psychotropic Substances Act, 1985 - Section 2(xiv), 2(xvii) and 2(xviii) - illegal recreational drugs – Poppy seeds - Papaver somniferous, commonly known as opium poppy or bread seed poppy, is a species of flowering plant in family Papaverine - From it are derived opium and poppy seeds - Plant can be grown domestically in a garden, but is said to be historically native to eastern Mediterranean - It is cultivated on a large-scale for three primary purposes - First is to produce poppy seed for human consumption, chiefly in bread and pastry - In kitchens in India, court know it as khas-khas - Second is to produce opium for pharmaceutical use - Third is to produce other alkaloids, mainly Baine and oripavine - These are processed by pharmaceutical industry into drugs such as hydrocodone and oxycodone - Opium (“poppy tears”; Lachryma papaveris) is dried latex obtained from Papaver somniferum - Approximately 12% of opium latex is made up of the analgesic alkaloid morphine - This is processed chemically to produce heroin and other synthetic opioids - Petitioners decry guidelines issued by 2nd Respondent, the Central Bureau of Narcotics (“CBN”) to regulate the import into India of poppy seeds - Proposed import in question is from Turkey - According to the Petitioners, these guidelines are an unconstitutional restriction on their right to trade and carry on business - That poppy seed import into India is regulated by CBN is undisputed - Petitioners are registered importers - They have the necessary licenses - They agree, further, that there is annual cap or quota on poppy seed import from various points of origin - There is a cap on quantity that may be imported for each foreign exporter country - Until recently, import permissions were by sale of lots - Whether in their original form or cut, crushed or powered and whether or not any juices has been extracted therefrom – Held, it is in pursuance of that policy that the conditions of Notification require a certificate that the poppy seeds originate in a country where opium poppy is grown legally - Import Policy is a statutory document enacted in pursuance of Import and Export Control Act, 1947 - Then there is a reference to the National Policy on Narcotic Drugs and Psychotropic Substances - Once, therefore, court see that presently impugned Guidelines are but a step towards implementing a policy that has not only been in place in some form for many years previously, but is in furtherance of a policy to promote larger public interest, then narrow commercial interests of Petitioners must yield – One also cites the decision of a learned single Judge of Karnataka High Court in Om Traders v Union of India, Decided but to what purpose court are unable to discern - Decision seems very much against him - There, the learned single Judge had before him a group of petitions challenging policy - Both Traders were cited - Petitioners in the Karnataka High Court alleged that the authorities had no jurisdiction to issue a Notification limiting quantities or prescribing conditions, including registration - Learned single Judge dismissed the writ petitions - Writ petition is entirely without merit - It is dismissed - Civil Application is disposed of.

JUDGMENT :

G.S. PATEL, J.

1. Papaver somniferum, commonly known as the opium poppy or bread seed poppy, is a species of flowering plant in the family Papaveraceae. From it are derived opium and poppy seeds. The plant can be grown domestically in a garden, but is said to be historically native to the eastern Mediterranean. It is cultivated on a large-scale for three primary purposes. The first is to produce poppy seed for human consumption, chiefly in bread and pastry. In kitchens in India, we know it as khas-khas. The second is to produce opium for pharmaceutical use. The third is to produce other alkaloids, mainly the baine and oripavine. These are processed by the pharmaceutical industry into drugs such as hydrocodone and oxycodone. Opium (“poppy tears”; Lachryma papaveris) is the dried latex obtained from Papaver somniferum. Approximately 12% of the opium latex is made up of the analgesic alkaloid morphine. This is processed chemically to produce heroin and other synthetic opioids. Opium was prohibited in many countries during the early 20th century, leading to the modern pattern of opium production as a precursor for illegal recreational drugs or tightly regulated legal prescription drugs. The sale of poppy seeds from Papaver somniferum is banned in several jurisdictions for this morphine content and heroin potential: Singapore, Taiwan, China, and Saudi Arabia among other countries have complete or partial restrictions.

2. The Petitioners decry guidelines dated 25th June 2019 issued by the 2nd Respondent, the Central Bureau of Narcotics (“CBN”) to regulate the import into India of poppy seeds. The proposed import in question is from Turkey. According to the Petitioners, these guidelines are an unconstitutional restriction on their right to trade and carry on business.

3. We disagree.

4. That poppy seed import into India is regulated by the CBN is undisputed. The Petitioners are registered importers. They have the necessary licenses. They agree, further, that there is annual cap or quota on poppy seed import from various points of origin. There is a cap on the quantity that may be imported for each foreign exporter country. Until recently, import permissions were by sale of lots.

5. On 25th June 2019, the 2nd Respondent issued the impugned public notice No. 9/2019, notifying guidelines for registration of sales contract in regard to poppy seed imports from Turkey. A copy of these guidelines is at Exhibit “E” to the Petition, from page 32 onwards. We go to those directly.

6. The guidelines are specific to poppy seed imports from Turkey. They speak, in clause I, of a determination of a country cap. This cap is to be approved by the Department of Revenue, based on a recommendation by the Narcotics Commissioner, a representative of the Directorate General of Foreign Trade, and a representative of the Department of Revenue. The clause clearly says that the country cap will be based on stock and production of poppy seeds as communicated by the Turkish Grain Board (TMO) or the Turkish Embassy in India. Clearly, therefore, this cap is not ad hoc or without basis. Then Clause II says the Turkish exporter is to be registered with the TMO. Once that is done, an Indian importer may approach the Narcotics Commissioner for registration of the sales contract. Certain conditions are prescribed for such registration. One of these is that each importer can register the quantity applied for or 25 containers (450 MT), whichever is less, during a particular crop year, which runs from 1st July to 30th June. A maximum of six applications are allowed from July to March of the next year. For 2018-2019, no registration application will be entertained after 15th July 2019 and any such contract is valid for shipment from Turkey only until 31st July 2019. Then there are detailed provisions for procedure, validity, surrender and penalty.

7. What the Petitioners say is that this process of registration will create a monopoly in the hands of big players, and that

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