TEHZEEB KATARI Vs. GOVERNMENT OF INDIA

JUDGEMENT

(1.) The export of readymade garments from.India to various parts of the world is on the basis of the demand in the other countries, and on the basis of a peculiar quota system. Some of the foreign countries, importing rcadymadc garments from India imposed restrictions of the import of both textiles, and garments from other parts of the world including India. Some of these countries, called "quota countries" entered into bilateral agreements with the Government of India from time to time fixing the quota of imports permitted from India. There are other countries called "non-quota countries" which do not place any such restrictions, but apparently exports to these non-quota countries are not very attractive in terms of profits. The quota countries like U.S.A., Canada, Norway and the European Union permit India to export textiles and garments up to a maximum ceiling limit per annum. This ceiling limit is taken as the quota, which is in turn distributed among the individual exporters on the basis of the policy of the Government taking note of the interest of the country, the economic growth and the preservation of foreign exchange, etc.

(2.) We arc concerned in these writ petitions with the export entitlement policy for the period from 1994-19% which contained the procedure for submission of applications for allotment of entitlements for exporting garments to the European Union countries, U.S.A., Canada. The system adopted and the percentage of the quota for each system is indicated in the following tabular statement:

(3.) Though no reservation was made under the category of FCFS, it was made clear that quantities available from unforeseen circumstances shall be allocated on FCFS basis and PPE basis in the ratio of 30: 70. The writ petitions with which we are concerned are by persons who were getting entitlement quota in the category of MEE system and NOE system.