The Hindu Business Line : HC allows export of 2,000 tonnes maize

Chennai, July 11 The Karnataka High Court on Friday allowed the export of 78 containers (2,000 tonnes) of maize (corn) by Mysore Mercantile Company Ltd, pending a final order on a writ filed by the firm seeking permission to export three maize consignments. The firm had opened irrevocable letters of credit for shipping the consignments before the Centre banned maize export on July 3.

Mr Justice N. Kumar, in his order, said since a letter of credit had been opened and the Bangalore-based firm had entered into a contract, it could face problems if it was prevented for executing its contract. Therefore, he said, export of maize from Mumbai/Nhava Sheva port should be allowed.

The judge said the permission given for export of the maize would also be subject to the final order of the writ filed by the Mysore Mercantile Company.

Even as the case came up for hearing, the Assistant Solicitor General, Mr Aravind Kumar, opposed any interim order, seeking time for the Centre to file a counter.

The Bangalore-based firm said its consignment had been examined and it was allowed to be stuffed in containers at BPT Grain Depot, Mumbai. The permission had been given for five days, ending July 7. After obtaining permission, the company stuffed 22 containers and shipped them. For the remaining part of the consignment in 78 containers, the shipping bill had been obtained and stuffing permission granted.

But in view of the ban, the containers were not allowed inside the port, leading to delay and exposing the stocks to decay and destruction. Being stored in open, the consignment was also prone to attacks by weevils. Besides, the rains in Mumbai were also likely to make the grains moist.

The firm said there were genuine fears of the maize either germinating or getting damaged due to rain.

Mr Justice Kumar said delay in shipping the consignments would be prejudicial to the interest of the Bangalore-based firm and there was a likelihood of it being of no use to anyone.

He said from materials on record, there was no blanket prohibition to export and the ban referred to only some ports in the country. Therefore, he said the firm should be allowed to export the detained 78 containers.

Another petition filed by Tuticorin-based Vaas Exports to permit about 4,200 tonnes of maize, for which shipping bills had been issued and which have been partly loaded, is pending in the Madurai bench of the Madras High Court. The bench has reserved its orders.

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