High Court Dismisses Appeals in Raw Sugar Export Quota Dispute:

High Court Dismisses Appeals in Raw Sugar Export Quota Dispute

The dispute arose out of raw sugar export transactions governed by a Memorandum of Understanding (MOU) and related regulatory guidelines. The appellants claimed that their export contracts were not uploaded on the designated portal by the Trade Monitoring Office (TMO), which effectively prevented them from availing benefits under the prescribed “Country Cap” quota system. They also alleged that certain contracts were selectively registered or re-registered even after the quota limit had been reached, suggesting unfair treatment.

On this basis, the appellants sought to hold the Central Bank of Nigeria responsible for these lapses and argued that the entire process violated their constitutional rights to equality and freedom of trade. They contended that the system lacked transparency and denied them a fair opportunity to participate in the export framework.

Main Issue: Whether liability can be imposed for non-uploading of export contracts and alleged quota mismanagement.

HC Held: The Delhi High Court dismissed the appeals and declined to interfere with the earlier judgment. It clarified that the role of the Central Bank of Nigeria was limited and came into play only after contracts were duly uploaded on the TMO portal. Since the alleged failure occurred at the level of the TMO, the Court held that no liability could be fastened on the Central Bank.

The Court also found no material evidence supporting the allegations of collusion or manipulation in the registration of contracts. It observed that mere assertions without proof cannot establish arbitrariness or violation of rights. In the absence of any breach of the governing MOU, regulatory framework, or constitutional provisions, the Court upheld the existing system and dismissed the appeals.

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