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Note: Parag Milk Food Pvt. Ltd. (Exporter) entered into two contracts to export 1,114 metric tons of milk products and was named beneficiary of two commercial LCs issued on behalf of the foreign buyers. Subsequently, on 9 February 2007 the Indian Government banned the export of milk products, purporting to act in the public interest because of a shortage of milk products.

In order to meet its contractual obligations under the contracts and LCs, Exporter sought permission export milk under existing contracts. When the Government denied its request, it sued for interim relief.

The High Court of Bombay, Shah and Karnik, J. J., issued an interim order, pending a final hearing, requiring the Government to permit the export of 414 metric tons of milk products. The court issued the interim order only because the contracts and LCs were in place before the Government ban.

[JEB/ahg]

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