Import quota allocation policy upheld where no manifest arbitrariness or lack of rational nexus was shown.

A policy governing registration of sales contracts for importing poppy seeds from Turkey under a first-come-first-served mechanism was challenged under Article 14. The HC held that import regulation is subject to limited judicial review in economic and commercial matters, and a policy will be interfered with only if it is manifestly arbitrary, discriminatory, or lacks a rational nexus with its object. Although first-come-first-served allocation may raise fairness concerns and warrant greater transparency, the materials did not justify striking down the policy. No constitutional invalidity was declared, though the respondents were advised to consider a fairer and more transparent quota-allotment mechanism.

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Issues: Whether the impugned policy for registration of sales contracts for import of poppy seeds from Turkey, which introduced a first-come-first-served mechanism, was liable to be struck down as arbitrary and violative of Article 14 of the Constitution of India.

Analysis: The challenge was examined in the context of the State's power to regulate import of poppy seeds, the existing policy framework under the NDPS regime and the Foreign Trade law, and the limited scope of judicial review over economic and commercial policy. The Court noted that there is no fundamental right to import poppy seeds without restrictions and that a policy can be interfered with only if it is manifestly arbitrary, ex facie discriminatory, or lacking nexus with the object sought to be achieved. While recognizing that first-come-first-served methods have inherent flaws and may require greater transparency and fairness, the Court found no sufficient basis to invalidate the impugned policy on the materials before it.

Conclusion: The policy was not struck down as unconstitutional and the writ applicant was not granted the substantive relief sought.

Final Conclusion: The petition was disposed of with observations that the respondents should consider framing a fairer, more transparent mechanism for allotment of the import quota, but no declaratory relief was granted.

Ratio Decidendi: A policy regulating import quotas will not be invalidated under Article 14 unless manifest arbitrariness, discrimination, or absence of a rational nexus is established; mere preference for a different allocation method is insufficient to strike it down.

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