REGENT COMPUTRONICS PVT. LTD.

Akshay N.Patel Appellant

V/S

RESERVE BANK OF INDIA Respondents

Referred Judgements :-

JUDGEMENT

(1.) This judgment has been divided into sections to facilitate analysis. They are:

(2.) The appellant is the managing director of a firm that manufactures and trades in pharmaceuticals; herbal and skincare products; and personnel protection equipment products such as masks, gloves, sanitisers, PPE overalls, and ventilators (Collectively, they are being referred to as "PPE products "). The genesis of the case lies in an international MTT contract which the appellant obtained to serve as an intermediary between the sale of PPE products by a supplier in China to a buyer in the United States. In accordance with the 2020 MTT Guidelines, the appellant wrote to his authorised bank on 1 May 2020 requesting documents (such as a letter of credit) that were required to execute the MTT contract. The bank informed the appellant on 4 May 2020 that RBI had denied permission for his MTT contract, on the basis of Clause 2(iii) of the 2020 MTT Guidelines. Clause 2(iii) is reproduced below:

(3.) Upon receiving the communication from his bank, the appellant wrote an email to the Ministry of Commerce and DGFT on 12 May 2020, stating that under his MTT contract, there was no actual export of PPE products from India. The appellant claimed that he was only serving as an intermediary in a trade between two other nations. Hence, he requested the Ministry of Commerce and DGFT to issue a notification/clarification/circular exempting MTT contracts in relation to PPE products from the requirements of Clause 2(iii). However, the appellant received no response. The appellant then filed a writ petition (Writ Petition No 7902/2020) under Article 226 before the Madhya Pradesh High Court. The writ petition set up a case that Clause 2(iii) of the 2020 MTT Guidelines is unconstitutional since it violates the appellant 's right to carry on business under Article 19(1)(g) and the right to life and livelihood under Article 21 of the Constitution.

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AKSHAY N.PATEL Vs. RESERVE BANK OF INDIA

Referred Judgements :-

JUDGEMENT

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