In an order dated June 8, 2026, a division bench comprising Chief Justice Sunita Agarwal and Justice D.N. Ray allowed a Letters Patent Appeal filed by the Union of India against the April 6, 2026, interim order in Orilon Tectex Private Limited vs Union of India. The bench observed that the earlier order did not contain any reasoning for staying the government’s policy decision and effectively granted the final relief sought in the petition.
The Gujarat High Court has set aside an interim order that had stayed the Union government’s withdrawal of polyester yarn Quality Control Orders (QCOs).
The ruling may affect BIS-linked import enforcement on polyester yarn products.
The court left the matter open for final adjudication, while industry stakeholders continue to remain divided over QCO-linked import controls.
The court noted that the April 6 order had stayed the operation of the government’s rescission notification dated November 12, 2025, through which the Polyester Continuous Filament Fully Drawn Yarn (Quality Control) Order, 2023 had been withdrawn.
“The blanket stay order passed by the learned Single Judge staying the effect and operation of the policy decision of the Union of India taken through the rescission order dated December 11, 2025, cannot be sustained,” the division bench said while setting aside the earlier order.
The court refrained from commenting on the merits of the government’s decision to rescind the QCOs and directed that the matter be decided by the single judge hearing the main writ petition. It also requested an early hearing, noting that affidavits had already been exchanged between the parties.
The latest order has implications for customs enforcement. As reported earlier, the Office of the Principal Commissioner of Customs, Mundra, had issued an order on May 15, 2026, directing strict enforcement of Bureau of Indian Standards (BIS) and QCO provisions on imports of fully drawn yarn (FDY), partially oriented yarn (POY) and drawn textured yarn (DTY). That customs directive was based on the April 6 interim stay order, which had kept the earlier QCO regime in force.
With the division bench now quashing the April 6 order, industry participants are assessing whether the basis for the customs enforcement directive continues to exist. Legal experts said the practical implications will depend on subsequent directions from customs authorities and the outcome of related proceedings pending before the Gujarat High Court.
The polyester yarn industry remains divided on the issue. Domestic manufacturers have generally supported QCO-linked import controls, arguing that they ensure quality standards and protect local industry. However, downstream sectors such as weaving, knitting and texturising have expressed concerns that mandatory BIS compliance could restrict imports, reduce sourcing flexibility and increase raw material costs.
The division bench clarified that all rights and contentions of the parties remain open and that the main writ petition will now be decided on its merits. The ruling is expected to be closely watched across India’s synthetic textile value chain, as it may influence future policy and trade conditions for polyester yarn imports.
Fibre2Fashion News Desk (KUL)
