Supreme Court to Hear Steel Ministry Plea Against Stay on BIS Rule for Imports

Supreme Court to Hear Steel Ministry Plea Against Stay on BIS Rule for Imports
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It is the Ministry's submission that BIS standards for intermediate products are to ensure that finished products are as per quality requirement and it would not lead to a substandard final product.

The Steel Ministry has approached the Supreme Court against a Madras High Court stay on its June 2025 notification mandating BIS certification for imported raw materials like stainless steel slabs, HR coils, and CR coils.

Solicitor General Tushar Mehta mentioned the petition before a CJI Gavai led bench on Monday, seeking urgent hearing. CJI Gavai agreed to list the same for hearing on July 30.

An SLP has been filed by the Ministry of Steel against a Madras High Court order dated July 18, 2025 which is stated by the Ministry of Steel to have been passed, without consideration of factors for granting an interim relief i.e. of balance of convenience, irreparable injury and public interest.

"It is further submitted that, as per the test for constitutionality of subordinate legislation and that for consideration of interim relief in such matters, the ground regarding conformity of the delegated legislation within the scope of the parent legislation can only be considered at the stage of final adjudication, and not while deciding upon prayers for grant of interim relief. Thus, the impugned order whereby the consideration was limited to the plea for grant of interim relief, uses legally impermissible grounds to adjudicate upon the same", the Ministry has submitted.

As per the Ministry, the impugned notification was issued in order to bring parity between domestic producers of steel and importers of finished steel products.

It has further been submitted that the notification was issued as there is a high possibility of cheap steel getting pushed into Indian market unless adequate measures are put in place for import of quality steel.

"A bare perusal of the impugned order manifests that, passing of a stay order on a government order, virtually amounts to stay of the delegated legislation and as such is unsustainable in the eyes of law.", the SLP adds. Court has further been told that the High Court also failed to appreciate that there is always a presumption of constitutionality and therefore no stay ought to be granted to operation of a statute.

"It is further submitted that the impugned notification issued by the Ministry of Steel did not violate Article 14 of the Petitioner as the same is being done to bring parity with domestic producers, as presently the import of finished steel products did not require the BIS standard compliance for intermediate materials, whereas for domestic manufacturers it is required, which has placed them at comparative disadvantage with the imported products", the petition submits.

It is the Ministry's submission that BIS standards for intermediate products are required to ensure that finished products are as per quality requirement by BIS Standards and if this would not be done, then it leads to a substandard final product.

"Furthermore, in view of the excess capacity and declining consumption of steel in certain countries, there is a huge possibility of dumping of substandard steel. As India being the fastest growing economy in the world, there is a high possibility of cheap steel getting pushed into Indian market unless adequate measures are put in place for import of quality steel", the SLP states.

The Ministry has also filed a Transfer Petition seeking the transfer the petition titled Shree Ramdev Metalex LLP v. Union of India, wherein the impugned order was passed, pending before the Madras High Court, and another two similar petitions pending before the High Court of Karnataka at Bengaluru titled Non-Ferrous Metal Association of Karnataka vs. Union of India and Minox Metal Pvt Limited vs Union of India.

"Due to multiple litigations pending before the various Hon’ble High Courts, it is imperative that the same is transferred to this Hon’ble court to avoid any divergence of opinions or multiplicity of proceedings", the transfer plea states.

Case Title: Union of India vs. Shree Ramdev Metalex LLP & Ors.

Hearing Date: July 28, 2025

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