Professional Documents
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Wa0007.
Wa0007.
BEFORE
THE HON’BLE SUPREME COURT OF TIQUAR
IN THE MATTER OF
V.
TABLE OF CONTENTS
SUMMARY OF FACTS............................................................................................................. IX
ISSUES ......................................................................................................................................... XI
ARGUMENTS ADVANCED....................................................................................................... 1
1.2.1. The Actions of the Respondents Violate the Principle of Natural Justice ................ 4
1.2.2. Statutory Relief under SEZ is not an efficacious and adequate remedy ................... 5
1.3 PETITIONER’S RIGHT TO EQUALITY UNDER ARTICLE 14 HAS BEEN VIOLATED. ................... 6
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3.4 SUN’S SEZ UNIT PRODUCTION VIS-À-VIS PRINCIPLE OF SUSTAINABLE DEVELOPMENT ...... 16
PRAYER ...................................................................................................................................... 17
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LIST OF ABBREVIATIONS
1. § Section/sections
2. ¶ Paragraph
4. Anr. Another
5. Co. Company
7. DC Development Comissioner
8. Del Delhi
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INDEX OF AUTHORITIES
I. CASES
1. A.K. Kraipak v. India .......................................................................................................... 4
2. A.R. Antulay v. R.S. Nayak ................................................................................................ 3
3. Abhimanyu Sharda Son Of Narayan vs The State Of Rajasthan ...................................... 11
4. Ajay Hasia Etc vs Khalid Mujib Sehravardi & Ors .......................................................... 14
5. Chiranjeet Lal Chowdhury vs. Union of India.................................................................... 2
6. Citizen, consumer and Civic Action Group v. Union of India ......................................... 16
7. Deepak Sibal v. Punjab University ................................................................................... 10
8. Dr. N. Surender Kumar, And Another vs The Union Of India ......................................... 14
9. E.P Royappa v. State of Tamil Nadu ................................................................................ 11
10. Fateh Singh v State of Rajasthan AIR ................................................................................ 5
11. Gauri Shanker v. Union of India ......................................................................................... 9
12. Harbans Lal v Commissioner.............................................................................................. 5
13. Jaila Singh v. State of Rajasthan ......................................................................................... 9
14. K.K.Kochunni vs. State of Madras, .................................................................................... 2
15. Kanu Sanyal v. Distt. Magistrate, ....................................................................................... 2
16. Kharak Singh vs. State of U.P ............................................................................................ 2
17. Kinkri Devi And Anr. vs State Of Himachal Pradesh And Ors........................................ 16
18. Lala Shri Bhagwan v. Ram Chand ...................................................................................... 4
19. Laxmi Khandsari v. State of Uttar Pradesh ........................................................................ 8
20. LIC v. Escorts Ltd ............................................................................................................... 2
21. M. Nagaraj v. Union of India, ........................................................................................... 11
22. Maneka Gandhi v Union of India ....................................................................................... 5
23. Mohd. Shujat Ali v. Union of India, ................................................................................. 10
24. Mohinder Singh Gill vs. Chief Election Commissioner ..................................................... 5
25. National Co-operative Bank v. Ajay Kumar....................................................................... 5
26. National Legal Ser.Auth vs Union Of India & Ors ............................................................ 9
27. People's Union for Civil Liberties v. Union of India .......................................................... 3
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I. STATUES
1. Foreign Trade (Development and Regulation) Act, 1992
2. Special Economic Zones Act, 2005
II. RULES
1. The Special Economic Zones Rules, 2006
III. POLICY
1. Foreign Trade Policy 2015-20
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V. BOOKS
1. Vol. 1, M. P. Jain, Indian Constitutional Law (Lexis Nexus 2018)
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STATEMENT OF JURISDICTION
The Petitioner has approached this Hon’ble Supreme Court under Article 32 of the Constitution of
Tiquar. 1 It is humbly submitted by the respondents to the jurisdiction of Supreme Court of Tiquar
under Article 32 of the Constitution of Tiquar.
1
32. Remedies for enforcement of rights conferred by this Part\
(1) The right to move the Supreme Court by appropriate proceedings for the enforcement of the rights conferred by
this Part is guaranteed
(2) The Supreme Court shall have power to issue directions or orders or writs, including writs in the nature of habeas
corpus, mandamus, prohibition, quo warranto and certiorari, whichever may be appropriate, for the enforcement of
any of the rights conferred by this Part
(3) Without prejudice to the powers conferred on the Supreme Court by clause ( 1 ) and ( 2 ), Parliament may by law
empower any other court to exercise within the local limits of its jurisdiction all or any of the powers exercisable by
the Supreme Court under clause ( 2 )
(4) The right guaranteed by this article shall not be suspended except as otherwise provided for by this Constitution
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SUMMARY OF FACTS
PARTIES
1. In the present case the petitioner is Sun Carbon Ltd. (hereafter referred to as “Sun”). Sun
is a company with offices in Jaquar, Union of Tiquar and manufactures Calcined
Petroleum Coke (hereafter referred to as “CPC”) which is a critical raw material for the
Aluminium industry.
2. The respondents are Union of Tiquar, Director General of Foreign Trade (hereafter
referred to as “DGFT”) appointed by the Central government under Section 6 of Foreign
Trade (Development and Regulation) Act, 1992 (hereafter referred to as “FT(D&R) Act”)
and Development Commissioner, SEZ (hereafter referred to as “DC, SEZ”).
BACKGROUND
4. On 26.07.2018 based on the said report of the EPCA, Union of Tiquar, banned the import
of pet coke (both RPC and CPC) in Tiquar. This was a blanket ban on such imports.
6. On 27.01.2020, via an amended notification, the Union of Tiquar permitted the calciners
to import Petcoke for feedstock but with an upper limit restriction of 1.4 MMT per
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annum of Petcoke as the total allowable import limit. DGFT was directed to allocate a
Petcoke quota to eligible calciners under the limit of 1.4 MMT per annum on an annual
basis, based on their proportionate plant capacity. This was based on EPCA's concerns
over the notification dated 9.10.2018 that permitted import of Petcoke for calciners which
can reportedly be classified as a highly polluting industry.
ISSUES INVOLVED
7. In 2021 Sun also constructed a new calcining plant in a Special Economic Zone. When
Sun applied to the DGFT for the allocation of Petcoke, the DGFT denied allocation on
the ground that Sun’s Special Economic Zone (SEZ) Plant was not in operation on date
of the notification dated 27.01.2020.
8. Sun applied to the DC, SEZ seeking permission to import the raw materials i.e., RPC and
CPC to Sun’s SEZ Unit for manufacture, blending and re-export of the finished product
i.e., CPC [Toll Manufacturing/Job Work], per the SEZ Act, 2005, and SEZ Rules, 2006.
The DC, SEZ rejected the plea citing a notification dated 27.01.2020 wherein Union of
Tiquar permitted the calciners to import Petcoke for use as feedstock but with an upper
limit restriction of 1.4 MMT per annum of Petcoke as the total allowable import limit,
and allowing Sun’s SEZ Unit to import additional quantum, will be a breach of such
limits
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ISSUES
ISSUE 1
ISSUE 2
ISSUE 3
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SUMMARY OF ARGUMENTS
The petitioner, Sun, being a company, is entitled to claim the violation of Article 14 and seek relief
under Article 32 of the Constitution, which is a fundamental right. As a sentinel on the qui vive
and a guarantor of fundamental rights, the Supreme Court should maintain this petition. The mere
existence of alternative remedies is not a bar to approach the Court, as it is a fundamental right of
the petitioner to do so. Moreover, the relief provided under the SEZ Act is not an efficacious and
adequate alternative remedy, and there has been a violation of the principle of natural justice.
Therefore, the Court should maintain this writ and provide appropriate relief to the petitioner.
The imposition of quantitative restrictions on the import of petcoke only on the calciner industry
and not on other industries violates Article 14 of the petitioner and other calciners. The
government, with the objective of curbing sulphur emissions caused by petcoke utilizing
industries, imposed restrictions only on calciners and not on other industries. However, the issue
lies is that EPCA only states that the calcining industry is highly polluting, and there was no
rational nexus between the objective and the imposition of restrictions only on calciners.
Furthermore, the quantitative limit was calculated on the basis of existing production capacity of
the calciners, so while the pollution level may not increase, it won't abate either.
The third issue pertains to the unjustified refusal of DGFT to allocate petcoke to Sun's SEZ unit.
There are two grounds on which this argument is based. Firstly, the rationale for enforcing the
quantitative restriction was to curb sulphur emissions in the country, and Sun's unit in the SEZ
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would be importing petcoke to re-export the finished product, which wouldn't cause any pollution
in the country. Hence, the refusal to allocate petcoke to Sun's unit doesn't pass the test of reasonable
classification as the intelligible differentia doesn't have a nexus with the rational objective. It is
arbitrary and violates Article 14 of the Constitution. The second ground is that the refusal to
allocate petcoke to Sun's unit is arbitrary on the face of it. The reason given by DGFT for the
refusal was that this unit was not in operation when the notification for the restriction came out.
However, this reason doesn't completely justify the refusal because Sun was deprived of its returns
on investment.
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MEMORIAL FOR PETITIONERS
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ARGUMENTS ADVANCED
It is humbly submitted that this petition is maintainable on three grounds. Firstly, this
petition should be maintained under Article 32 of Constitution of Tiquar as it is a
fundamental right {1.1}, Secondly, the mere existence of alternative remedy is no bar to
approach this Hon’ble Court under Article 32 {1.2}. Thirdly, Petitoner’s right to equality
enshrined under Article 14 of the Constitution of Tiquar has been violated by the
Respondent’s actions.
1. It is humbly submitted the State cannot make laws that take away or abridges the
Fundamental Rights, and a law contravening a Fundamental Right is, to the extent of
the contravention, void.2 It is pertinent to mention that Notifications also come under
the gambit of laws under this provision.3 The judiciary has been given the power to
declare unconstitutional and void, any law which comes in conflict with a Fundamental
Right. The Supreme Court has figuratively characterized this role of the courts as that
of a sentinel on the qui vive.4
2. In this case, the notification unfairly discriminated between calciners and other
industries for the imposition of quantitative restrictions on import. This discrimination
violates Article 14 of the Indian Constitution, which guarantees equality before the law
and the equal protection of laws to all persons. 5 The discrimination in the notification
is arbitrary and not based on any intelligible differentia, making it violative of Article
14.6 Therefore, the notification imposing quantitative restrictions on import of petcoke
by calciners is in violation of Article 14 and should be declared unconstitutional and
void by the Supreme Court.
3. It is humbly submitted that the Supreme Court has the power to provide appropriate
remedies for the enforcement of fundamental rights.7 The Court has wide discretion in
2
INDIA CONST. art 13 cl. 2.
3
INDIA CONST. art. 13 cl. 3.
4
State of Madras vs. V.G.Row, AIR 1952 SC 196
5
INDIA CONST. art. 14
6
State of W.B. v. Anwar Ali Sarkar, AIR 1952 SC 75
7
INDIA CONST. art. 32.
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the matter of framing writs to suit the exigencies of particular cases. 8 In the present
case, the petitioner seeks to vindicate a fundamental right that has been allegedly
violated by the imposition of quantitative restrictions on import that unfairly
discriminate between calciners and other industries. It is the responsibility of the Court
to decide on the appropriate remedy to be given to the petitioner for the enforcement of
this fundamental right.9
4. Article 32 provides an expeditious and the protection of fundamental rights from
legislative and executive interference.10 As the Supreme Court is constituted as the
protector and guarantor of fundamental rights, it cannot refuse to entertain applications
seeking protection against infringement of such rights. 11 Therefore, it is imperative that
the Court takes cognizance of the present matter and provides an appropriate remedy to
the petitioner for the violation of their fundamental rights.
5. It is humbly submitted that the Supreme Court held that a corporation is a natural person
and has its own existence.12 Therefore, it possesses locus standi and can claim violation
of fundamental rights, including Article 14 which mentions "person".13 As Sun is a
company,14 it can claim violation of its fundamental right under Article 14. This has
been upheld in various cases15. Thus, Sun has the legal right to approach the court for
the violation of its fundamental right under Article 14.
6. The concept of a corporation being a "person" in the eyes of the law has been
established through various judicial pronouncements.16 This Hon’ble has held that a
corporation has a legal entity of its own and is equal to a natural person in the eyes of
the law.17 The petitioner company in this case is entitled to maintain the present writ
petition challenging the denial of allocation of petcoke by the DGFT. This is supported
by the decision of the Bombay High Court in R.M.D. Chamarbaugwalla v. Union of
India,18 where the court held that when the nature of a right is such that it cannot be
confined to natural persons alone.
8
Chiranjeet Lal Chowdhury vs. Union of India, AIR 1951 SC 41,53.
9
Kanu Sanyal v. Distt. Magistrate, (1973) 2 SCC 674.
10
Supra Note 4; K.K.Kochunni vs. State of Madras, AIR 1959 SC 725; Kharak Singh vs. State of U.P., AIR 1963
SC 1295.
11
Romesh Thappar v. State of Madras, 1950 SCC 436
12
Tata Engineering and Locomotive Co. Ltd. v. State of Bihar, (1964) 6 SCR 885
13
Supra Note 5
14
Moot Proposition ¶ 1
15
LIC v. Escorts Ltd., (1986) 1 SCC 264; LIC v. D.J. Bahadur, (1981) 1 SCC 315
16
Supra Note 8.
17
TELCO Ltd. v. State of Bihar, (1964) 6 SCR 885
18
R.M.D. Chamarbaugwalla v. Union of India 1957 AIR 628.
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8. It is humbly submitted that this Hon’ble Court has consistently held that the existence
of an alternative remedy is not a bar to the exercise of jurisdiction under Article 32.22
In A.R. Antulay v. R.S. Nayak,23 it was upheld that "the existence of an alternative
remedy is not an absolute bar to the exercise of the jurisdiction under Article 32 of the
Constitution where the violation of fundamental rights of a citizen is alleged."
9. The Supreme Court has also held that where a fundamental right is violated, it is the
duty of the court to provide a remedy, even if the petitioner has not exhausted all other
24
remedies available to him. Therefore, the petitioner in this case can approach the
Supreme Court directly under Article 32 for the enforcement of their fundamental right,
even if alternative remedies are available.25 The Supreme Court has the duty to provide
an appropriate remedy to the petitioner if their fundamental right is found to have been
violated.
10. It is humbly submitted that based on the precedent set by the Supreme Court, the mere
existence of an alternative legal remedy is not sufficient to bar a petition under Article
32 of the Constitution. As stated in Romesh Thappar v. State of Madras26 and K.K.
Kochunni v. State of Madras,27 the Supreme Court is the protector and guarantor of
fundamental rights, and it cannot refuse to entertain applications seeking the protection
19
Shree Sidhbali Steels Ltd. v. State of U. P., (2011) 3 SCC 217.
20
Supra Note 5.
21
Vol. 1, M. P. Jain, Indian Constitutional Law 1309 (Lexis Nexus 2018)
22
Vol. 1, M. P. Jain, Indian Constitutional Law 1310 (Lexis Nexus 2018)
23
A.R. Antulay v. R.S. Nayak 1988 AIR 1531.
24
People's Union for Civil Liberties v. Union of India AIR 1997 SC 568.
25
Id.
26
Supra Note 11.
27
K.K. Kochunni v. State of Madras 1960 AIR 1080
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of these rights, even if such applications are made to the Court in the first instance
without resort to a High Court having concurrent jurisdiction in the matter.
11. Moreover, the mere existence of an alternative legal remedy cannot be a sufficient
ground for dismissing a petition under Article 32 if the existence of a fundamental right
and a breach, actual or threatened, of such right is alleged and prima facie established
on the petition.28 While the existence of an adequate legal remedy is a factor that may
be taken into consideration in the matter of granting writs, the powers given to the
Supreme Court under Article 32 are much wider and are not confined to issuing
prerogative writs only.29
12. In light of these principles, it is clear that the petitioner's claim should not be dismissed
solely on the basis that they have an equitable remedy available to them. The fact that
the petitioner is seeking protection of their fundamental rights under Part III of the
Constitution through appropriate proceedings is itself a guaranteed right, and the
Supreme Court has a duty to protect and enforce these rights.30
28
Id.
29
Rashid Ahmed v. Municipal Board, Kairana : 1950 SCR 566 (Para 8)
30
Smt Chand Garg Bai v. State of UP
31
Satwati Deswal v. State of Haryana, (2010) 1 SCC 126
32
A.K. Kraipak v. India 1969 2 S.C.R. 807.
33
Lala Shri Bhagwan v. Ram Chand 1965 AIR 1767
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REMEDY
17. It is humbly submitted that it’s recognised that alternative remedy needs to be an
efficacious and adequate one for it to be a ground to dismiss the petition.40 While it is
true that Section 23 of the SEZ Act, 200541 provides for a statutory remedy for civil or
34
Mohinder Singh Gill vs. Chief Election Commissioner 1978 AIR 851
35
Moot prop ¶ 9.
36
Harbans Lal v Commissioner AIR 1993 SC 2487, National Co-operative Bank v. Ajay Kumar AIR 1994 SC 39
; Fateh Singh v State of Rajasthan AIR 1995 Raj 15
37
Supra Note 35.
38
Maneka Gandhi v Union of India AIR 1978 SC 597.
39
Smt Ujjam Bai vs State Of U.P 1962 AIR 1621.
40
Rakhaldas Mukherjee v. S P Ghose AIR 1952 Cal 171
41
Special Economic Zone Act, 2005, § 23, Acts of Parliament, 2005 (India)
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criminal matters arising from a unit in an SEZ, this remedy is not adequate or
efficacious in the present case. The present case involves not only the refusal of
allocation of petcoke to our unit in the SEZ,42 but also the imposition of a discriminatory
quantitative restriction on the import of petcoke, which affects all calciners, not just our
unit.
18. Moreover, the issue of quantitative restriction on import of petcoke is not specific to
the SEZ Act, but rather arises from a notification issued by the Ministry of
Environment, Forest and Climate Change.43 The SEZ Act does not provide for a
statutory remedy in relation to such matters. Therefore, the present case falls outside
the ambit of Section 23 of the SEZ Act.
19. In light of these considerations, we submit that the statutory remedy under Section 23
of the SEZ Act is not an adequate or efficacious alternate remedy in the present case,
and we are entitled to approach the Supreme Court for relief.
20. It is contended that Sun’s fundamental right to equality has been violated on various
accounts. Firstly, the government's decision to impose quantitative restrictions on the
import of petcoke only on the calciner industry and not on other industries44 is arbitrary
and discriminatory, thus violating the right to equality under Article 14 of the
Constitution. Secondly, there is discrimination between calciners that import petcoke
and those that use domestic petcoke as no quantitative restriction was imposed on the
latter. This differential treatment between two similarly situated groups violates the
right to equality under Article 14.45 Lastly, the fact that Sun's SEZ unit was denied
allocation of petcoke, despite conforming to the rationale of the government, amounts
to arbitrary and discriminatory treatment, thus violating the right to equality under
Article 14.46 All of aforementioned arguments are going to be substantiated in
arguments advanced for Issue II & Issue III.
42
Moot Proposition ¶ 10.
43
Ministry of Environment, Forest and Climate Change, Guidelines for regulation and monitoring of imported
Petcoke in India (Issued on September 10, 2018).
44
Moot Proposition ¶ 6.
45
V.K. Vanaja v. Union of India, 2019 SCC OnLine Mad 7788.
46
Moot Proposition ¶ 9 r/w ¶ 6.
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21. In essence, the argument is that the government's actions have resulted in unfair and
discriminatory treatment towards the calciner industry, and specifically towards Sun,
which is in violation of their constitutional right to equality.
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47
Vol. 1, M. P. Jain, Indian Constitutional Law 977 (Lexis Nexus 2018)
48
Union of India v. International Trading Co., (2003) 5 SCC 437
49
Rajasthan State Road Transport Corpn. v. Bal Mukund Bairwa (2009) 4 SCC 299, 317
50
Laxmi Khandsari v. State of Uttar Pradesh, (1981) 2 SCC 600
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51
Moot Proposition ¶ 5.
52
Supra Note 44.
53
Jaila Singh v. State of Rajasthan, AIR 1975 SC 1436 : (1976) 1 SCC 682
54
Supra Note 44.
55
Id.
56
Gauri Shanker v. Union of India AIR 1995 SC 55
57
National Legal Ser.Auth vs Union Of India & Ors AIR 2014 SC 1863
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58
Union of India v. M.V. Valliappan, AIR 1999 SC 2526.
59
Deepak Sibal v. Punjab University 1989 AIR 903
60
Supra Note 44.
61
Id.
62
Environment Pollution (Prevention and Control) Authority for NCR (EPCA), Report 91 (October 6, 2018)
63
Mohd. Shujat Ali v. Union of India, AIR 1974 SC 1631.
64
Rain CII Carbon (Vizag) Ltd. v. Union of India, 2019 SCC OnLine Del 7301
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65
Vol. 1, M. P. Jain, Indian Constitutional Law (Lexis Nexus 2018)
66
E.P Royappa v. State of Tamil Nadu 1974 AIR 555 ; Supra Note 38. ; R.D Shetty v. International Airport
Authority 1979 AIR 1628.
67
Abhimanyu Sharda Son Of Narayan vs The State Of Rajasthan 1971 (3) SCC 153.
68
Tata Cellular v. Union of India 1996 AIR 11
69
Shayaro bano vs Union of India 2017) 9 SCC 1
70
Supra Note 66.
71
Supra Note 44.
72
M. Nagaraj v. Union of India, (2006) 8 SCC 212
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It is humbly submitted that DGFT’s refusal for petcoke allocation to Sun’s unit in SEZ
is unjustified on three major grounds. Firstly, DGFT’s refusal for petcoke allocation
violated Article 14 as it fails the test of reasonable classification and is arbitrary{3.1.}.
Secondly, the Foreign Trade Policy (FTP) is not applicable to Sun’s Unit. {3.2.}
Thirdly, Sun’s unit location in SEZ should be taken in consideration by the DGFT for
allocation of petcoke. {3.3.} Lastly, Sun’s SEZ unit is in line with principle of
sustainable development the government strives for {3.4}.
73
Foreign Trade Policy 2015-20, ¶ 2.57, Acts of Parliament (India)
74
Vol. 1, M. P. Jain, Indian Constitutional Law (Lexis Nexus 2018)
75
Supra Note 44.
76
Moot Proposition ¶ 2 r/w ¶ 7.
77
Supra Note 35.
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38. Moreover, the EPCA report on which the government relied to impose the quantitative
restrictions does not specifically state that calciner industry is more polluting than other
industries. Therefore, the differential treatment meted out to calciners cannot be
justified as there is no intelligible differentia or rational nexus between the object sought
and the restrictions imposed.
39. In light of the above, the government's decision to impose quantitative restrictions on
the import of petcoke by calciners must be struck down as unconstitutional, and the
petitioner's SEZ unit should be allowed to import petcoke without any restrictions.
40. It is humbly submitted that government's decision to impose a quantitative restriction
on the import of pet coke by calciners is not constitutional as the figure of 1.4 MMT
was calculated on the basis of the production capacity of eligible calciners.78 This
decision is discriminatory towards the petitioners, who are a part of the calciner industry
but are environmentally friendly and have a scrubbing efficiency of more than 98% for
sulfur dioxide. 79
41. Furthermore, the SEZ unit of the petitioners is planning to re-export the final product,
which means there will not be any pollution caused by the aluminum industry in the
country.80 By denying the allocation of pet coke to the SEZ unit, DGFT has acted
arbitrarily and has deprived the petitioners of their legitimate right to conduct their
business. Therefore, it is argued that the decision of the government and DGFT is not
reasonable or rational.
42. The refusal by the DGFT to allocate petcoke to the petitioner's unit in the SEZ, solely
on the ground that the unit was not in operation when the notification for the restriction
came out,81 is arbitrary and violative of Article 14 of the Constitution because there is
no rational nexus with the object sought to be achieved. Abirtary nature of DGFT’s
refusal
43. It is humbly submitted that this Hon’ble court has struck down rules that were held to
be unreasonable and arbitrary.82It has been observed that "absence of arbitrary power
is the first essential of the rule of law." Similarly, in E.P. Royappa v. State of T.N., it
was observed that "equality and arbitrariness are sworn enemies" and that "where an
78
Supra Note 44.
79
Moot Proposition ¶ 2.
80
Supra Note 35.
81
Id.
82
S.G. Jaisinghani v. Union of India 1967 AIR 1427.
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act is arbitrary, it is implicit in it that it is unequal both according to political logic and
constitutional law and is therefore violative of Article 14."83
44. The arbitrary nature of DGFT's refusal to allocate petcoke to Sun's unit is evident in
their reasoning that the unit was not in operation when the notification first came out.84
This is insufficient and arbitrary grounds to refuse allocation, especially given the fact
that the government placed the ban to curb sulphur emissions in the country. 85 As the
Sun's unit will be exporting the calcined petcoke, there would be no sulphur emissions
caused by the industry.86
45. The concept of reasonableness and non-arbitrariness pervades the entire constitutional
scheme and is a golden thread that runs through the whole fabric of the Constitution.
87
Therefore, arbitrariness in legislation is a facet of unreasonableness in Articles 19(2)-
(6), as laid down in several judgments of the Supreme Court. Thus, there is no reason
why arbitrariness cannot be used in the same sense to strike down legislation under
Article 14 as well. 88 DGFT's refusal to allocate petcoke to Sun's unit on such arbitrary
grounds violates Article 14 of the Constitution.
3.2 THE FOREIGN TRADE POLICY IS NOT APPLICABLE TO SUN’S UNIT IN SEZ
46. It is humbly submitted that as per Section 5 of the Foreign Trade (Development and
Regulation) Act (FTDR),89 the Central Government has the power to formulate and
announce the foreign trade policy and also to amend it from time to time. However, the
proviso to Section 5 states that the foreign trade policy may apply to SEZs with such
exceptions, modifications, and adaptations as may be specified by the Central
Government through a notification in the Official Gazette.90
47. In this case, the notification amending the FTP did not mention the applicability of the
policy to SEZ units, so the petitioner's unit is not subject to the policy. Paragraph 2.04
of the FTP91 empowers the DGFT to specify the procedures to be followed by
importers, exporters, or any other authorities for implementing the provisions of the
83
Supra Note 66.
84
Moot proposition ¶ 8.
85
Moot Proposition ¶ 4.
86
Supra Note 84.
87
Ajay Hasia Etc vs Khalid Mujib Sehravardi & Ors. 1981 AIR 48.
88
Dr. N. Surender Kumar, And Another vs The Union Of India.
89
Foreign Trade (Development and Regulation) Act, 1992. § 5, No. 22, Acts of Parliament, 1992 (India).
90
Id.
91
Foreign Trade Policy 2015-20, ¶ 2.04, Acts of Parliament (India).
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VIth NOVICE INTRA MOOT COURT COMPETITION 2023
Act, rules, orders made thereunder, and the FTP. However, it the notification amending
the FTP did not mention the applicability of the policy to SEZ units.92
48. In conclusion, while the petitioner argue that their unit located in the SEZ will not be
subject to FTP or any notification passed in furthernace of the same, as there was no
exceptions, modifications, and adaptations specified by the Central Government in the
notification. Hence this refusal of allocation was done unjustly by the DGFT as he is
only allowed to interpret the FTP but in this case the FTP is not applicable to the
petitioner’s unit.
92
Moot Proposition ¶ 5 r/w ¶ 6.
93
Vol. 1, M. P. Jain, Indian Constitutional Law (Lexis Nexus 2018).
94
INTRODUCTION; SPECIAL ECONOMIC ZONES IN INDIA http://sezindia.nic.in/cms/introduction.php (last
visited Mar 9, 2023).
95
Id.
96
Foreign Trade Policy 2015-20, ¶ 1.07.
97
Moot Proposition ¶ 8.
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VIth NOVICE INTRA MOOT COURT COMPETITION 2023
the policy framework and objectives of the SEZ Act, 2005, which aims to foster exports
and attract FDI inflows into India.98 Hence, the refusal to allocate petcoke to the
petitioner's unit in the SEZ is arbitrary, unjustified and violative of Article 14 of the
Constitution
52. It should be taken into account the fact that the unit that was in SEZ was treated alike
the unit and no exception moreover it should be taken into account the fact the petitioner
was not able to claim returns on their investment
DEVELOPMENT
53. It is humbly submitted that the petitioner's unit is environmentally friendly and has a
flue gas desulphurization system with a scrubbing efficiency of over 98 percent for
sulphur dioxide emissions.99 This highlights the petitioner's commitment towards
sustainable development, which is a balancing concept between environment and
development.
54. It has been upheld that sustainable development is the answer and a just balance must
be struck between development and environment by proper tapping of natural
resources.100 Failure to do so would result in a violation of Articles 14, 21, 48-A, and
51A (g) of the Constitution.101 Therefore, it is imperative that the government takes into
account the petitioner's commitment towards sustainable development and weighs it
against the need to curb petcoke usage.
55. Furthermore, this Hon’ble Court has emphasized the need for a proper balance between
protection of the environment and development activities essential for progress.
102
Hence, it is essential that the government takes into account the environmental
performance of the petitioner's unit and the fact that it has a flue gas desulphurization
system with a scrubbing efficiency of over 98 percent for sulphur dioxide emissions.
The government should, therefore, consider allowing the petitioner to use petcoke as a
fuel as long as it can be done in an environmentally sustainable manner.
98
Special Economic Zone Act, 2005, Acts of Parliament, 2005 (India).
99
Moot Proposition ¶ 2.
100
Kinkri Devi And Anr. vs State Of Himachal Pradesh And Ors. AIR 1988 HP 4.
101
Supra Note 83.
102
Citizen, consumer and Civic Action Group v. Union of India (1994) 1 MLJ 481.
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VIth NOVICE INTRA MOOT COURT COMPETITION 2023
PRAYER
The Petitoner humbly requests the Hon’ble Supreme Court of Tiquar, based on prior and
foregoing written submissions to DECLARE that:
1) Respondents' action of imposing the said ban on the import of petcoke by way of an
executive order without any basis and without following the due process of law is
violative of petitioner's fundamental rights
2) Government's imposition of quantitative restrictions on the import of petcoke only on
the calciner industry and not on other industries is discriminatory is unconstitutional.
3) The DGFT's refusal to allocate petcoke to the petitioner's unit in the SEZ is arbitrary
and violative of the petitioner's fundamental rights, and direct the respondents to
allocate the required quantity of petcoke to the petitioner's unit in the SEZ.
Or any other order and/or declaration that the High Court may deem fit in the
light of justice,equity and good conscience.
____________________________________________
Sd/-
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