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Legal Case Shots

Court judgements broken down into the case type, how the decision played out, and the lesson worth remembering, with the full judgement available as a PDF.

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Legal Case Shots is a searchable database of Supreme Court of India judgments, each broken down into the case type, the court's key holding, and a practical lesson learnt, with the full judgment available as a PDF for citation or deeper reading.

Tax & Customs LawSupreme Court of India

Union of India & Ors. v. Agricas LLP & Ors. (Pulses Import Restriction)

Transfer Petition (Civil) · 2020 INSC 508Decided 26 Aug 2020
Transfer Petition (Civil) Nos. 496-509 of 2020
Justice A.M. Khanwilkar · Justice Dinesh Maheshwari · Justice Sanjiv Khanna

Background

In March 2019, the Central Government issued notifications restricting the import of certain pulses, including peas and moong, and the Directorate General of Foreign Trade issued a related trade notice, citing concerns for domestic farmers' interests. A number of importers challenged these restrictions before different High Courts, arguing the government had exceeded its powers and acted contrary to the Foreign Trade Act's scheme, particularly its provision for "quantitative restrictions." To avoid conflicting rulings from different High Courts, the Union of India sought to have all these cases transferred to and consolidated before the Supreme Court, which agreed in June 2020 to hear and decide the common question itself.

Decision Breakdown

The Supreme Court examined the interplay between Section 3(2) of the FTDR Act (the Central Government's general power to regulate imports) and Section 9A (a narrower, specific power to impose "quantitative restrictions" in defined circumstances), and held that Section 9A does not curtail or exhaust the government's broader power under Section 3(2): the two provisions operate independently. On that basis, the Court held the 2019 notifications and trade notice restricting pulse imports were validly issued under the government's general Section 3(2) power. It rejected importers' argument that reliance on earlier interim court orders protected their imports, noting most High Courts had already ruled against them and they had knowingly taken a commercial risk; any imports made relying on such interim orders would be treated as contrary to law and dealt with under the Customs Act. The Court expressly left open importers' separate statutory appeals against suspension/termination of their import-export codes, and dismissed the writ petitions underlying the transfer petitions, upholding the government's restrictions.

Lesson Learnt

The government retains broad, independent power to restrict imports for policy reasons (such as protecting domestic farmers), and a narrower statutory provision for one kind of restriction does not automatically limit the government's wider general powers; businesses that import goods relying only on interim court orders, rather than a final favourable ruling, do so at their own risk.

Union of India & Ors. v. Agricas LLP & Ors. (Pulses Import Restriction) – Legal Case Shots | LegalAware