Legal principle

Where a statutory appeal under Section 15 of the FTDR Act, 1992 provides an efficacious alternative remedy, the High Court will decline writ interference—particularly where the challenge to the authority's jurisdiction was never raised before it in reply to the show cause notice—and such jurisdictional questions fall for decision by the appellate authority, which must decide objectively by a reasoned, speaking order uninfluenced by earlier proceedings.

Court decision

The Division Bench (Justices Subodh Abhyankar and Alok Awasthi) dismissed the writ appeal as devoid of merits, upholding the writ court's rejection of the petition on the ground of the availability of the efficacious alternative statutory remedy of appeal under Section 15 of the Act of 1992, with liberty reserved to the appellant as reflected in the writ court's order.

Facts

Paper Trade Links, a registered proprietorship holding a valid Importer Exporter Code (IEC) under the Foreign Trade (Development and Regulation) Act, 1992, imported Volga Brand Book Bulky Reels from M/s Indo Global Commercial FZE, Sharjah (UAE) against a purchase order dated 04.03.2023 and paid USD 101,522.96, but later found quality defects and sought compensation, raising a debit note of Rs.62,35,643.07. It withheld payment of a subsequent invoice dated 10.02.2024 for USD 24,789.60, seeking to adjust it against its earlier claims. The UAE supplier complained to the Committee on Quality Complaints and Trade Disputes before the Joint Director General of Foreign Trade, who, after notice and a show cause notice dated 17.02.2026 invoking Sections 8, 13 and 11 of the FTDR Act and Rule 7 of the Foreign Trade (Regulation) Rules, 1993, passed an order dated 01.07.2026 directing payment of USD 24,789.60 within 60 days, failing which the appellant's IEC would be placed on the denied entity list. The writ petition against this order (W.P. No.31402 of 2026) was dismissed on 06.08.2026 on the ground of the alternative remedy of appeal under Section 15 of the Act of 1992, leading to the present writ appeal.

Key provisions

• Section 15, The Foreign Trade (Development and Regulation) Act, 1992 — Appeal.