Minimum import price notification is in public interest: HC

Delhi High Court today said that the Centre's February 5 notification providing minimum import price (MIP) on specified iron and steel products for a period of six months is in public interest to "stabilise the domestic market".
"We are prima facie satisfied that the notification is nothing but a policy decision taken by the Government of India in the interest of public and to stabilise the domestic market of steel," a bench of Chief Justice G Rohini and Justice Jayant Nath said.
"Hence, we find force in the submissions of respondents (Ministry of Commerce and Industry, Ministry of Finance and Directorate General of Foreign Trade (DGFT)) that staying the notification pending the writ petition would be against public interest," it added.

The court's observation came on pleas filed by Steel Wire Manufacturers Association of India and other firms seeking to declare the notification of February 5, 2016, imposing MIP for various steel products by government as "illegal, arbitrary and unconstitutional" and a direction to restrain government from implementing it.
The court, however, in its interim order said, "In facts and circumstances of the case, we consider it appropriate to direct the goods shipped by the foreign suppliers shall be cleared by the port authorities subject to the condition of the petitioners depositing with the Commissioner of Customs (Import) of concerned port the difference of the price between MIP and the agreed contractual price. Such deposit shall be subject to the outcome of the writ petition."

The bench has now listed the matter for further hearing on July 27.

The association, established in 1968, is an apex body of steel wire and steel rope manufacturers in India and is recognised by the Government.
The association has alleged that later, the government,
through Ministry of Commerce and Industry, had issued a notification on February 5 providing MIP on specified iron and steel products.
It has claimed that the February 5 notification was "arbitrary and contrary to the provisions of the Foreign Trade (Development and Regulation) Act 1992."
"Being aggrieved by the issuance of notification dated February 5, 2016 which aim to restrict the fair trade practice and adversely affect the downstream steel industry being against the government of India policy 'Make in India', the petitioner is filing the present writ petition," it said.

The association has 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 has added.

The plea has further alleged that the government has failed to demonstrate as to how the MIP is in the interest of general public.