Amrut Impex Vs. Union of India (Delhi High Court)
The Petitioners, in all these petitions, are registered importers. The outbreak of the pandemic around early 2020 is a matter of fact which cannot be disputed. The period when the outbreak may have taken place in China, as per the Chinese exporter’s letter, ought not be doubted in the manner in which the impugned order doubts the same. It is a matter of which judicial notice can be taken. The COVID-19 pandemic originated in China, and hence the adverse effects and problems due to the outbreak could have been much earlier in China, than in India. The Chinese exporter has repeatedly contacted the Petitioners and has expressed its willingness to complete the contract and to supply the product. However, despite repeated letters and reminders requesting an extension by the Petitioners, the Government has not responded to the same, leading to the filing of these writ petitions.
These are the second round of writ petitions which have been filed by the Petitioners. The only reasoning which the impugned order provides is that there is no justification for not having completed the supplies prior to March, 2020. This court is of the opinion that this reasoning is not acceptable, as it seeks to completely ignore the fact that the outbreak had begun earlier in China, as compared to India, and COVID-19 related problems were present in China in February, leading to the non-supply of the said consignments.
The sales contracts in these petitions also show that substantial advance amounts have been paid by the Petitioners to the Chinese exporter and the total value of the contracts range between USD 106,250 – USD 273,700. The Petitioners being Indian importers, who have paid huge sums of money to the Chinese company, which is the only recognized company for the import of poppy seeds from China, would be put to severe financial difficulties if the extension is not granted. They may not be able to recover the advances paid. Considering that the pandemic has had a debilitating effect on Indian businesses, including Indian importers and exporters, there seems to be no rationale whatsoever to refuse extension. Moreover, the threat that the Chinese company may not enter into further transactions with the Petitioners, cannot be said to be devoid of merit. Even a reasonable apprehension that the said Company may either refuse to export in future or impose stringent conditions would be sufficient to consider the case for extension.
A perusal of the counter affidavit shows that the main reason for which the non-grant of extension is stated to be justified is that the lock-down in India was imposed from 24th March, 2020. The Government seeks to ignore the fact that the lock-down and the impediments caused due to the outbreak could have been earlier in China and hence in the opinion of this Court, the non-grant of extension is not tenable.
This court is of the opinion that the impugned order is not rational or logical, and also completely ignores the harsh realities of the commercial world, especially during the pandemic.
The submission of the Respondents relating to limited quotas being available for the import of poppy seeds is devoid of any merit inasmuch as no such argument has been raised in the counter affidavit. Moreover, the quantity sought to be imported is already part of the licensed quantities and not beyond that. This is a case where the authorities have been completely oblivious to the difficulties being faced by the importers in India.
Under these circumstances, this Court directs that the Petitioners, in all these petitions, are permitted to import the permitted and licensed quantity of poppy seeds in accordance with the guidelines on or before 31st March, 2021. It is made clear that no further extension shall be granted.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
1. 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 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:
