Summary
| Category | Data |
|---|---|
| Court | Supreme Court of India |
| Case Number | C.A. No.-000438-000438 – 2026 |
| Diary Number | 2376/2019 |
| Judge Name | HON’BLE MR. JUSTICE ALOK ARADHE |
| Bench |
HON’BLE MR. JUSTICE PAMIDIGHANTAM SRI NARASIMHA HON’BLE MR. JUSTICE ALOK ARADHE |
| Precedent Value | Binding on all courts and authorities dealing with delegated legislation |
| Overrules / Affirms | Affirms Supreme Court precedents on publication; overrules Delhi High Court’s decision |
| Type of Law | Administrative law; delegated legislation; foreign trade regulation |
| Questions of Law |
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| Ratio Decidendi |
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| Judgments Relied Upon |
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| Logic / Jurisprudence / Authorities Relied Upon by the Court |
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| Facts as Summarised by the Court |
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Practical Impact
| Category | Impact |
|---|---|
| Binding On | All subordinate courts, tribunals and executive authorities |
| Persuasive For | High Courts and administrative bodies in interpreting delegated legislation promulgation requirements |
| Overrules | Delhi High Court’s Common Order dated 21.12.2018 in batch of writ petitions challenging DGFT Notification No. 38/2015-20 |
| Follows | Supreme Court precedents on publication of delegated legislation (e.g., B.K. Srinivasan, Gulf Goans Hotels) |
What’s New / What Lawyers Should Note
- Gazette publication is a non-negotiable condition precedent for enforceability of delegated legislation under the FT(D&R) Act.
- Online upload of a Notification does not confer legal force or start statutory timelines.
- Transitional protection under FTP para 1.05(b) applies to letters of credit opened before the Gazette publication date.
- This ruling can be cited to challenge any DGFT Notification or similar subordinate legislation enforced prior to Gazette notification.
- Reinforces strict adherence to legislative-mandated modes of promulgation to uphold legal certainty.
Summary of Legal Reasoning
- Statutory Mandate: Section 3 FT(D&R) Act requires orders regulating imports/exports to be “published in the Official Gazette.”
- Promulgation Principle: Delegated legislation binds only after statutory mode of publication—publication ensures notice and accountability.
- Precedent Survey: Cited Johnson v. Sargant & Sons and Harla (1951) on natural justice/promulgation; B.K. Srinivasan (1987) and Gulf Goans Hotels (2014) on strict compliance.
- Interpretation of “date of this Notification”: Since Gazette publication is the birth of delegated legislation, “date of this Notification” must be 11 Feb 2016.
- Transitional Protection: Para 2 of DGFT Notification incorporates FTP para 1.05(b); L/Cs opened before 11 Feb 2016 qualify for exemption from MIP.
Arguments by the Parties
Petitioner (Importers):
- The Notification acquired force only on Gazette publication (11 Feb 2016).
- “Date of this Notification” must be the publication date; L/Cs opened on 5 Feb 2016 thus fall before the effective date.
- FTP para 1.05(b) protects imports under L/Cs opened prior to effective date.
Respondent (Union of India):
- Notification, once uploaded on DGFT website, should be treated as its operative date (5 Feb 2016).
- The expression “date of Notification” is static at the upload date.
- Even if Gazette date is effective date, para 1.05(b) registration requirement is procedural and does not affect substantive restriction.
- In case of conflict between policy and statute, Notification prevails over FTP.
Factual Background
Private steel importers entered into sale contracts and opened irrevocable letters of credit on 5 Feb 2016 for steel products. On the same day, DGFT uploaded a Notification imposing Minimum Import Price on specified steel items, with an endorsement “to be published in the Gazette.” The Notification appeared in the Official Gazette on 11 Feb 2016. Appellants registered their L/Cs under FTP para 1.05(b) on 8 Feb 2016 and challenged application of MIP to their pre-publication L/Cs before the Delhi High Court.
Statutory Analysis
- FT(D&R) Act, 1992, Section 3: Empowers Central Government to regulate imports/exports by orders published in the Gazette.
- FTP para 1.05(b): Grants transitional protection for freely permitted imports subsequently restricted, provided L/Cs were opened before restriction and registered within 15 days.
- DGFT Notification No. 38/2015-20 (5 Feb 2016): Introduced MIP on steel imports; para 2 exempts imports under L/Cs entered before “date of this Notification” subject to FTP para 1.05(b).
- Key Interpretation: “Date of this Notification” = Gazette publication date (11 Feb 2016); Gazette publication is the trigger for restrictions and transitional protection.
Dissenting / Concurring Opinion Summary
No separate dissenting or concurring opinions; the bench unanimously held Gazette publication as the operative date for delegated legislation under the FT(D&R) Act.
Procedural Innovations
No new procedural guidelines or innovations were issued; the decision reaffirms existing requirements for promulgation of delegated legislation.
Alert Indicators
- ✔ Precedent Followed – Affirms established principles on statutory publication of delegated legislation.