Bombay High Court Dismisses Petition Challenging Applicability of Biological Diversity Rules to Indian Entities. Rule 17 of Biological Diversity Rules, 2004 and Benefit Sharing Regulations Apply to All Entities, Not Just Foreign Entities.

High Court: Bombay High Court Bench: NAGPUR
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Case Note & Summary

The petitioners, comprising an association of Ayurvedic drug manufacturers and individual companies, filed a writ petition under Article 226 of the Constitution of India challenging the applicability of Rule 17 of the Biological Diversity Rules, 2004 and the Guidelines on Access to Biological Resources and Associated Knowledge and Benefits Sharing Regulations, 2014 to Indian entities. They sought a declaration that these provisions apply only to non-Indian entities, or alternatively, that they are ultra vires the Biological Diversity Act, 2002. The respondents, including the State of Maharashtra, Maharashtra State Biodiversity Board, Union of India, and National Biodiversity Authority, raised a preliminary objection that the petition was not maintainable due to the availability of an alternative remedy under the Act. The court, after hearing arguments, dismissed the preliminary objection, holding that the petition raises substantial questions of law regarding the vires of subordinate legislation, making it maintainable. On the merits, the court examined the provisions of the Biological Diversity Act, 2002 and the rules framed thereunder. It noted that the Act does not distinguish between Indian and foreign entities for the purpose of access to biological resources. The court held that Rule 17 of the Biological Diversity Rules, 2004 applies to all entities, including Indian entities, as it is consistent with the objectives of the Act. Similarly, the Guidelines on Access to Biological Resources and Associated Knowledge and Benefits Sharing Regulations, 2014 were held to apply to Indian entities. The court found no merit in the petitioners' arguments and dismissed the writ petition, upholding the applicability of the impugned provisions to Indian entities.

Headnote

A) Constitutional Law - Preliminary Objection - Maintainability of Writ Petition - The court considered a preliminary objection regarding the maintainability of the writ petition under Article 226 of the Constitution of India. The objection was based on the availability of an alternative remedy under the Biological Diversity Act, 2002. The court held that since the petition raises substantial questions of law regarding the vires of subordinate legislation, the writ petition is maintainable. (Paras 1-10)

B) Biological Diversity - Access to Biological Resources - Applicability of Rules to Indian Entities - The court examined whether Rule 17 of the Biological Diversity Rules, 2004 applies to Indian entities. The petitioners argued that the rule should apply only to foreign entities. The court held that the Biological Diversity Act, 2002 does not make any distinction between Indian and foreign entities for the purpose of access to biological resources, and Rule 17 applies to all entities. (Paras 11-20)

C) Biological Diversity - Benefit Sharing - Guidelines on Access and Benefit Sharing Regulations, 2014 - The court considered the applicability of the Guidelines on Access to Biological Resources and Associated Knowledge and Benefits Sharing Regulations, 2014 to Indian entities. The court held that the regulations apply to Indian entities as they are consistent with the Act and do not exceed the rule-making power. (Paras 21-30)

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Issue of Consideration

Whether Rule 17 of the Biological Diversity Rules, 2004 and the Guidelines on Access to Biological Resources and Associated Knowledge and Benefits Sharing Regulations, 2014 apply to Indian entities or only to non-Indian entities.

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Final Decision

The preliminary objection regarding maintainability is dismissed. The writ petition is dismissed. Rule 17 of the Biological Diversity Rules, 2004 and the Guidelines on Access to Biological Resources and Associated Knowledge and Benefits Sharing Regulations, 2014 apply to Indian entities.

Law Points

  • Rule 17 of Biological Diversity Rules
  • 2004 applies to Indian entities
  • Biological Diversity Act
  • 2002 does not discriminate between Indian and foreign entities
  • Guidelines on Access to Biological Resources and Associated Knowledge and Benefits Sharing Regulations
  • 2014 apply to Indian entities
  • Article 226 jurisdiction
  • preliminary objection dismissed
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Case Details

2016 LawText (BOM) (09) 123

Writ Petition No. 6360/2015

2016-09-28

B.P. Dharmadhikari, A.S. Chandurkar

S.V. Manohar, Senior Advocate with Akshay Naik for Petitioners; S.M. Bahirwar for Respondent Nos.1 & 2; Aditya Sondhi, Senior Advocate with Mrs. Anjali Joshi for Respondent Nos.3 & 4

Central India AYUSH Drugs Manufacturers Association & Ors.

State of Maharashtra & Ors.

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Nature of Litigation

Writ petition under Article 226 of the Constitution of India challenging the applicability of Rule 17 of the Biological Diversity Rules, 2004 and the Guidelines on Access to Biological Resources and Associated Knowledge and Benefits Sharing Regulations, 2014 to Indian entities.

Remedy Sought

Declaration that Rule 17 of the Biological Diversity Rules, 2004 does not apply to Indian entities, or alternatively, that it is ultra vires the Biological Diversity Act, 2002; declaration that the Guidelines on Access to Biological Resources and Associated Knowledge and Benefits Sharing Regulations, 2014 apply only to non-Indian entities.

Filing Reason

Petitioners, being Indian manufacturers of Ayurvedic drugs, sought to avoid compliance with benefit-sharing provisions under the Biological Diversity Act, 2002, arguing that they should apply only to foreign entities.

Issues

Whether Rule 17 of the Biological Diversity Rules, 2004 applies to Indian entities? Whether the Guidelines on Access to Biological Resources and Associated Knowledge and Benefits Sharing Regulations, 2014 apply to Indian entities? Whether the writ petition is maintainable despite availability of alternative remedy?

Submissions/Arguments

Petitioners argued that Rule 17 and the Regulations apply only to non-Indian entities, and that applying them to Indian entities is ultra vires the Act. Respondents argued that the Act does not distinguish between Indian and foreign entities, and the petition is not maintainable due to alternative remedy.

Ratio Decidendi

The Biological Diversity Act, 2002 does not make any distinction between Indian and foreign entities for the purpose of access to biological resources. Rule 17 of the Biological Diversity Rules, 2004 and the Guidelines on Access to Biological Resources and Associated Knowledge and Benefits Sharing Regulations, 2014 apply to all entities, including Indian entities, as they are consistent with the Act and its objectives.

Judgment Excerpts

By this writ petition, filed under Article 226 of the Constitution of India, the petitioners seek a declaration that Rule 17 of the Biological Diversity Rules, 2004 does not apply to the Indian entities or body corporates. In the alternate, it is prayed that to the extent the said Rule envisages equitable sharing of benefits by the Indian entities, it should be declared ultra vires to the provisions of the Biological Diversity Act, 2002 and, therefore, unconstitutional.

Procedural History

The writ petition was filed in 2015. A preliminary objection regarding maintainability was raised by the respondents. The court heard arguments on the preliminary objection and the merits together, and pronounced judgment on 28.09.2016.

Acts & Sections

  • Biological Diversity Act, 2002:
  • Biological Diversity Rules, 2004: Rule 17
  • Guidelines on Access to Biological Resources and Associated Knowledge and Benefits Sharing Regulations, 2014:
  • Constitution of India: Article 226
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High Court Bombay High Court Dismisses Petition Challenging Applicability of Biological Diversity Rules to Indian Entities. Rule 17 of Biological Diversity Rules, 2004 and Benefit Sharing Regulations Apply to All Entities, Not Just Foreign Entities.
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