HC refuses to stay Centre's MIP notification, seeks response

The Delhi High Court today refused to stay the Centre's February 5 notification providing minimum import price (MIP) on specified iron and steel products "for now", saying the issue needs consideration.
"It is a matter which needs consideration. We cannot stay the government MIP notification for now," a bench of Chief Justice G Rohini and Justice Jayant Nath said.
The bench, however, issued notice to Ministry of Commerce and Industry, Ministry of Finance and Directorate General of Foreign Trade (DGFT) seeking their response within two weeks on the petition filed by Steel Wire Manufacturers Association of India.
"Notice. Response within two weeks. Whatever steps taken in pursuance to the notification will be subject to further order of this court. Call on April 6," the bench said.

The association has sought to declare the notification of February 5, 2016, imposing MIP for various steel products by the government as "illegal, arbitrary and unconstitutional" and a direction to restrain government from implementing it.
The association, established in 1968, is an apex body of steel wire and steel rope manufacturers in India and is recognised by the Government.

In its petition, it said that the Centre, through Ministry of Steel, had issued a notification on December 15 last year in which prohibition regarding manufacture, storage, sale, distribution etc were imposed on specific steel products which did not conform with the specific standards and did not have the BIS mark on it.

It alleged that later, the government, through Ministry of Commerce and Industry, issued a notification on February 5 providing MIP on specified iron and steel products.
The petition claimed that the February 5 notification was "arbitrary and contrary to the provisions of the Foreign Trade (Development and Regulation) Act 1992."
The association claimed that the "imposition of MIP on
the iron and steel product will cause irretrievable damages as the members of petitioner' association will now be forced to purchase/import steel products at price more than or equal to the MIP prescribed vide notification dated February 5, despite having an agreed contracted price with the seller which may be less than the MIP imposed by the respondents."

"Article 19(1)(g) of the Constitution provides freedom of trade and profession. Any provision restraining any trade is violation of Article 14. Imposition of MIP amounts to restrain by which importers/users, manufacturers can not carry of business/trade in India in terms of the ordinary economic principles," it added.
The plea further alleged that the government has failed to demonstrate as to how the MIP is in the interest of general public.