Export prohibition on non-basmati white rice modified to permit contracted shipments; 18,900 tonnes allowed to satisfy prior contracts.

Notification imposing export prohibition on non-basmati Indian white rice was found to impede performance of contracts concluded before the notification because retrospective restrictions violate the doctrine of legitimate expectation; consequently, interim relief was modified to permit export of 18,900 metric tonnes of non-basmati Indian white rice (HS code 1006 30 80) to discharge prior contractual obligations, and the related writ petition was closed as the petitioner did not press other relief. The modification enables partial enforcement of concluded contracts without addressing constitutional validity of the notification.

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Issues Involved:
The judgment involves the legality of a notification banning the export of non-basmati white rice with immediate effect, the clarification issued, and the subsequent actions preventing the export of rice under existing contracts. The key issues include the arbitrary nature of the ban, violation of natural justice principles, and infringement of fundamental rights guaranteed under the Constitution of India.

Details of the Judgment:

Issue 1 - Legality of Notification Banning Export:
The court granted interim relief directing the respondents to permit the petitioner to export non-basmati white rice stored before the ban date, subject to payment of export duty. The petitioner subsequently filed a modification plea to export rice under specific contracts entered before the ban date, emphasizing the contractual obligations and Letters of Credit issued. The court acknowledged the oversight in the previous order and amended it to allow the export of 18,900 Mts. of non-basmati Indian White Rice in compliance with the concluded contracts.

Issue 2 - Arguments of the Parties:
The petitioner's counsel argued that the retrospective ban on rice export was illegal, illogical, and would result in significant financial losses. In contrast, the Central Government Counsel contended that the notification's restrictions were reasonable and necessary for the welfare of citizens, asserting the government's sovereign powers to impose such measures. The petitioner sought to export rice to fulfill contractual obligations, challenging the restrictions imposed by the notification.

Issue 3 - Modification of Interim Relief:
The court recognized the existence of concluded contracts before the ban and noted that the notification hindered the petitioner from fulfilling these obligations. While the initial interim direction allowed partial export of stored rice, the court emphasized that retrospective restrictions impeding traders from honoring contracts were impermissible. Consequently, the court modified the interim order to permit the export of 18,900 Mts. of non-basmati Indian White Rice under the specific contracts, considering the peculiar circumstances of the case.

Conclusion:
As a result of the modification to the interim relief and the petitioner's decision not to pursue the challenge to the notification's constitutional validity, the writ petition was closed. With no remaining relief for adjudication, the court ordered the closure of the petition without any costs. Any pending miscellaneous petitions were also closed, and any interim orders were vacated as a sequel to the main judgment.

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