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 |
|
| Precedent Value | Binding |
| Overrules / Affirms | Affirms established principle that delegated legislation takes effect only on Gazette publication |
| Type of Law | Delegated legislation / Administrative law / Foreign trade regulation |
| Questions of Law |
|
| Ratio Decidendi |
The FT(D&R) Act mandates that any order regulating imports must be published in the Official Gazette to acquire the force of law. Delegated legislation binds only upon such publication; an upload or announcement does not suffice. Consequently, the expression “date of this Notification” in para 2 must mean the date it appeared in the Gazette. This preserves commercial certainty and the rule of law. |
| Judgments Relied Upon |
|
| Logic / Jurisprudence / Authorities Relied Upon by the Court |
The constitutional and statutory requirement that delegated legislation be promulgated by Official Gazette publication; the Rule of Law principle that laws must be accessible and knowable; strict compliance with parent-statute publication modes. |
| Facts as Summarised by the Court |
Importers opened irrevocable letters of credit on 05 Feb 2016. DGFT uploaded MIP Notification on 05 Feb 2016, but it appeared in the Gazette only on 11 Feb 2016. High Court held upload sufficed to bind importers; petitioners challenged applicability to pre-Gazette LCs under FTP para 1.05(b). |
Practical Impact
| Category | Impact |
|---|---|
| Binding On | All subordinate courts |
| Persuasive For | Other High Courts, tribunals |
| Follows |
|
What’s New / What Lawyers Should Note
- Delegated trade Notifications under Section 3 FT(D&R) Act bind only from the date of Official Gazette publication, not from administrative uploads or announcements.
- “Date of this Notification” in para 2 refers exclusively to the Gazette date, ensuring transitional import benefits apply to LCs opened before that date.
- Confirms that para 1.05(b) FTP transitional protection is integral to Notification para 2 and cannot be denied on upload-date theories.
- Reinforces the necessity of checking Gazette publication dates when advising on time-sensitive import restrictions.
Summary of Legal Reasoning
- Statutory Mandate: Section 3 FT(D&R) Act requires that import/export regulations be made by order published in the Official Gazette.
- Precedents on Promulgation: Decisions (Johnson v Sargant; Harla v State; B.K. Srinivasan; Gulf Goans; Chatha Rice Mills) establish that delegated legislation is effective only upon its prescribed mode of publication.
- Nature of Delegated Legislation: Publication in Gazette ensures accessibility, notice, solemnity, and accountability—conditions precedent to enforceability.
- Fact-Specific Analysis: The MIP Notification uploaded on 05 Feb 2016 but only gazetted on 11 Feb 2016; upload alone could not bind stakeholders.
- Interpretation of Para 2: “Date of this Notification” must mean the Gazette date; hence LCs opened before 11 Feb 2016 qualify for FTP para 1.05(b) protection.
- Outcome: High Court order reversed; transitional exemption applies; MIP cannot be imposed on pre-Gazette LCs.
Arguments by the Parties
Petitioner (Importers)
- Notification published on 11 Feb 2016, so pre-publication LCs (05 Feb 2016) fall under FTP para 1.05(b) transitional protection.
- “Date of this Notification” must be Gazette date; administrative upload is not enforceable law.
Respondent (Union of India & DGFT)
- Notification takes effect on 11 Feb 2016, but para 2 benefit is restricted to LCs entered before 05 Feb 2016, the static “date of Notification.”
- Executive practice allows different efficacy dates; FTP registration condition is procedural and does not conflict.
Factual Background
Private companies importing specified steel products contracted with foreign exporters and opened irrevocable letters of credit on 05 Feb 2016. On the same day DGFT uploaded a Notification imposing Minimum Import Prices, which was published in the Official Gazette on 11 Feb 2016. The importers challenged the application of MIP to their pre-publication LCs, relying on the transitional protection in FTP para 1.05(b). The Delhi High Court upheld the Notification as binding from the upload date; appellants appealed.
Statutory Analysis
- Section 3, FT(D&R) Act: Empowers Central Government to regulate imports/exports by order published in the Official Gazette.
- Notification No.38/2015–20 (05 Feb 2016):
- Introduced MIP on steel items, valid six months from date of notification “or until further orders.”
- Para 2: exempts imports under LCs entered before “date of this Notification,” subject to FTP para 1.05(b).
- FTP para 1.05(b): Grants transitional protection to freely permitted imports if LCs were opened before the imposition date and registered within 15 days with Regional Authority.
Alert Indicators
- ✔ Precedent Followed