IN THE HIGH COURT OF DELHI AT NEW DELHI
Prathiba M.Singh, J.
M/s. Amrut Impex - Appellant
Versus
Union Of India & Anr. - Respondents
Writ Petition (Civil) No. 8668 of 2020, 9625 of 2020, 8676 of 2020, 8671 of 2020, 8670 of 2020, 8669 of 2020
Decided On : 11-01-2021
poppy seeds - Import Extension - Guidelines dated 25.09.2019, Indian Oil Corporation v Shashi Prabha Shukla (2018) 12 SCC 85 - The court discussed the impugned order dated 21st October, 2020, passed by the Director, Department of Revenue, Ministry of Finance, Government of India, rejecting the extension for completing the imports of poppy seeds. The court highlighted the guidelines for the registration of sales contracts for import of poppy seeds from China, the validity of sales contracts, and the impact of the COVID-19 pandemic on import deadlines. The court emphasized the duty of public authorities to be fair, objective, non-arbitrary, transparent, and non-discriminatory, and the need for rational and logical decision-making, especially during the pandemic.
Fact of the Case:
The Petitioners sought extension to complete the import of poppy seeds due to the COVID-19 pandemic, but their representations were rejected by the Government. The Petitioners had paid substantial advances to the Chinese exporter and faced financial repercussions if the extension was not granted.
Finding of the Court:
The impugned order rejecting the extension was not rational or logical, and it ignored the harsh realities of the commercial world, especially during the pandemic. The court directed the Petitioners to import the permitted and licensed quantity of poppy seeds by 31st March, 2021, and validated the registration certificates for the imports.
Issues: The main issue was the refusal of the extension for completing the imports of poppy seeds due to the COVID-19 pandemic and the financial repercussions faced by the Petitioners.
Ratio Decidendi: The court emphasized the duty of public authorities to make fair, objective, and non-arbitrary decisions, especially during the pandemic, and highlighted the impact of the COVID-19 pandemic on import deadlines and commercial transactions.
Final Decision: The court directed the Petitioners to import the permitted and licensed quantity of poppy seeds by 31st March, 2021, and validated the registration certificates for the imports.
JUDGMENT
Prathiba M. Singh, J. - This hearing has been done through video conferencing.
2. The Petitioners have approached this Court seeking grant of extension of two months to enable them to complete the import of "poppy seeds", for which registration certificates have been issued by the Central Bureau of Narcotics (hereinafter, 'CBN'). The Petitioners also pray for quashing and setting aside the impugned order dated 21st October, 2020, passed by the Director, Department of Revenue, Ministry of Finance, Government of India, by which the representation of the Petitioners seeking an extension for completing the imports was also rejected.
3. The brief background in these cases is that the Petitioners are importers of "poppy seeds". The Petitioners in W.P.(C) 8668/2020, W.P.(C) 8669/2020, W.P.(C) 8670/2020, W.P.(C) 8671/2020 and W.P.(C) 8676/2020 had entered into sales contracts for import of poppy seeds with one M/s Gansu Puankang Pharmaceutical Co. Ltd., - a Chinese exporter. In terms of the contracts, the importers have paid 80% of the consideration in advance in some petitions and 30% advance in some petitions. Some portion of the goods have already been imported. However, the entire quantum is yet to be imported. The details of the sales contracts qua each of the Petitioners is set out in the table below:
| Writ Petition No. | Name of the Company | Type of Poppy Seed | Registration No. | Quantity | Advance paid | Date of Impugned Order |
| 8670/2020 | M/s Wharton Engineer & Developers Pvt. Ltd. | White Poppy Seeds | 240/CBN/PS/2019-20 | 102 MT | 80% | 20.10.2020 |
| 8669/2020 | M/s Astra Build Tech Pvt. Ltd | White Poppy Seeds | 242/CBN/PS/2019-20 | 102 MT | 80% | 20.10.2020 |
| 8676/2020 | M/s Nilesh Traders | White Poppy Seeds | 236/CBN/PS/2019-20 | 170 MT | Contract complete | 21.10.2020 |
| Yellow Poppy Seeds | 248/CBN/PS/2019-20 | 85MT | 30% | |||
| 8668/2020 | M/s Amrut Impex | White Poppy Seeds | 231/CBN/PS/2019-20 | 170 MT | Contract complete | 21.10.2020 |
| Yellow Poppy Seeds | 247/CBN/PS/2019-20 | 85MT | 30% | |||
| 8671/2020 | M/s Ajit Exim | White Poppy Seeds | 235/CBN/PS/2019-20 | 170 MT | Contract complete | 21.10.2020 |
| Yellow Poppy Seeds | 246/CBN/PS/2019-20 | 85MT | 30% |
4. The imports, in accordance with the sales contracts and the licenses issued by the Respondents, were to be completed by 17th March, 2020. However, the Chinese exporter informed the Petitioners, vide letters sent around mid-February, that they would be unable to export the consignment, in view of various problems caused due to the outbreak of the COVID-19 pandemic, including transportation issues, non-availability of labour and nonavailability of containers. The Chinese company sought time up till 30th June, 2020, for fulfilling its obligations under the said sales contracts.
5. The Petitioners then wrote letters in the latter half of February, to the Respondents, in view of the Chinese exporter's letters, seeking extension of the validity of the sales contracts, up to 30th June, 2020. The Petitioners are stated to have received no replies to the same. The Petitioners, thereafter wrote further letters in May, June, August and September, however no positive response was forthcoming. During this period, the Chinese exporter also continued to communicate with the Petitioners and repeatedly sought instructions for shipping the consignment. Owing to the complete silence on behalf of the Respondent- Government, the Petitioners had moved writ petitions before this Court which were disposed off vide orders dated 25th September, 28th September, 2020 and 29th September. In the said orders, this Court had directed that the Union of India would give an opportunity of hearing to the Petitioners, and decide their representation in accordance with law. The operative portion of one of the said orders, is set out below:
"2. It is the case of the petitioner
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