Court Urges Swift Action on Wheat Export Registrations to Bangladesh, Sets Deadline

The court addressed the delay in granting Registration Certificates for wheat export to Bangladesh, emphasizing urgency due to impending expiration. Out of 18 representations, 17 were valid, one rejected for an expired Letter of Credit. Despite May applications, decisions were pending until November 2022, causing significant delays and damages claims. The court directed the Expert Committee to decide on the applications within seven days, by December 7, 2022. It noted unexplained delays and disparities in processing, aiming to expedite decisions to mitigate financial implications for petitioners.

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Issues: Delay in grant of Registration Certificates for export of wheat to Bangladesh

Analysis:
The judgment addresses the delay in the grant of Registration Certificates for export of wheat to Bangladesh. The petitioners had applied for the certificates between May 23 to May 30, 2022, following the procedure outlined in Trade Notices and Memoranda. The Report filed by the Director General of Foreign Trade (DGFT) revealed that out of 18 representations made by the petitioners, 17 were found valid, while one was rejected due to an expired Letter of Credit. Despite the applications being submitted in May, the decision on the applications was still pending as of November 2022, causing significant delays for the petitioners.

The judgment highlights the urgency of the situation, noting that the validity of the Registration Certificates is set to expire on December 31, 2022, and the petitioners would require a minimum of 45 days for facilitating the export of wheat to Bangladesh. The petitioners have also faced claims for damages from the Bangladesh importers due to the delays. The court directed the Expert Committee to communicate its decision on the 17+1 applications within seven days from the date of the order, not beyond December 7, 2022. It was emphasized that all Letters of Credit for the 18 applications were valid at the time of the judgment, contrary to the position taken by the respondents.

The judgment highlights the unexplained delay on the part of the Expert Committee in processing the applications and the disparity in the processing of applications, with 4 out of 22 applications already being granted while 18 remained pending for several months. The court's directive aimed to expedite the decision-making process and ensure that the petitioners receive timely responses regarding the grant of Registration Certificates, considering the impending expiration of the certificates and the potential financial implications for the petitioners.

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