Karnataka High Court dismisses petition against quality control order on Polyethylene import

The Karnataka High Court recently rejected a petition challenging certain restrictions imposed by the Central government on import of polyethylene in India [All India HDPE/PP Woven Fabric Manufacturers Association v. The Secretary Government of India & Others]..Justice M Nagaprasanna said the notification passed by the government only seeks to achieve a seal of the Bureau of Indian Standard (BIS) seal on every raw material (polyethylene) brought in to manufacture the final product (plastic).The Court would be “loathe to” interfere with such a policy decision of the government, particularly of economic and quality standards, the single-judge said.The BIS is a national standards body which permits the development, standardisation and quality certification of goods and the certification will be through BIS standard mark, it explained.“This Court does [not] sit over the decision of Government of India, to assess the quality and direct that such steps should not be taken,” Justice Nagaprasanna reasoned..The Court was hearing a petition filed by All India HDPE/PP Woven Fabric Manufacturers Association, a union of manufacturers and suppliers of high density polyethylene, low density polyethylene and other allied products.The petitioner had challenged the Central government’s 2021 notification stating that polyethylene should conform to the Indian standards.It was argued that imposition of such a clause will restrict free movement of raw material. In particular, it was alleged that the move was aimed to help Reliance Industries which manufactures linear low density polyethylene..Considering the submissions, the Court called the Association’s argument “preposterous” that the decision taken by the Centre has no nexus with the production of plastic.It reasoned that if the raw material lacks the quality, the finished product also would be below par.“Therefore, the said submission is sans countenance, as it is fundamentally flawed,” the Court said..The Court also rejected the argument that the notification would lead to monopolisation by the dominant manufacturer Reliance and called it “farther from truth”. “Though this Court would not consider the said submission unless there is adequate evidence of such cartelization, which is not placed before the Court by the petitioner, the learned Deputy Solicitor General of India has placed a chart of 50 manufacturers in the same industry, which includes manufacturers in India and abroad and 12 manufacturers of raw material. Reliance, is not the only but, five among the 12,” it said..The Court also dismissed the reliance placed on a communication of the Plastics Export Promotion Council which had said the decision of imposition of BIS standard on import of polymers would have serious ramifications.It is not an opinion of the Government of India but a narration of two factors - the grievance projected by the association and the opinion of the council, the Court opined..The Court further observed that it cannot assume the role of a supreme adviser to the administration on policies. .The Court concluded that every raw material now that is sought to be brought under BIS is only to make it a quality final plastic product that would not become hazardous to the environment.If the product under the programme “Make in India” is sought to be exported under the tag “Made in India”, quality insistence from the threshold would ensure that the final product would meet all the necessary global standards, it added. Finding no merit in the petition, the Court rejected it..Advocate N Raghavendra Rao represented the petitioner.Deputy Solicitor General of India H Shanthi Bhushan and advocate Sadhana Desai represented the Central government.[Read Judgment]