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7. There is big money in bullion dealings, more so in the export/import business thanks to wild variations in Indian and inter national prices. Of course, there are also the high hazards of heavy fluctuations and sharp speculations, added to the risks of trans-national adjudications implicit in international trade and private international law. Damani has been in the bullion business, and when silver export came to be canalised from August 1976, trade adjusted Itself to the new realities and a flexible arrangement was evolved whereby the STC enjoyed a monopoly of export business but the bullion sup-lies were fed into the stream by private dealers like Damani. Law is the handmaid of economics and when the economics of Trade suffers a radical change Law helps the process without hampering the flow. The flexible form of the contracts which emerged on canalisation of silver export is relevant for us because the bone of contention between Damani and the STC, apart from the challenge to the vires of the Exports (Control) Fifteenth Amendment Order, 1979 in so far as it prohibits pre-ban commitments (or the exclusion of such contracts from its operation, by way of interpretation), is about the efficacy of an indemnity clause in the contract between the two.

18. Nobody questioned before us the power of parliament to make a law banning or regulating export and import of essential commodities, subject,. of course, to the fundamental rights of citizens. But as earlier stated, the contesting respondent challenged as unreasonable and arbitrary the application of a total ban, all of a sudden, on contracts for export which had become complete and concluded before the ban. In short, it was unreasonable and, therefore invalid vis a vis pre ban commitments otherwise ready for performance. Secondly, Shri Diwan for the respondent argued that the indemnity in the amulliary contract with the STC had become non east from the point of view of performance because the principal contract had become frustrated. He was ready to perform the contract, but the STC was not ready to receive the silver for export since the latter suffered from legal handicap imposed on February 20, 1979. Lastly, Counsel submitted that even without deciding these issues, the Court could still intervene in its equitable jurisdiction and relieve the indigenous supplier from the obligation to indemnily, having regard to the fact that the stand of the Government of India was that the foreign contract was frustrated and the obligation for indemnity in the Indian contract was consequently absolved and the STC was itself a State instrumentality of the Central Government and was subject 10 its statutory directives. More than all, the case of the STC itself has been that the foreign contract is frustrated and, in that view, it is inequitable to keep the indemnity clause in the Indian contract alive, thus holding over his head the Democles sword of an uncertain litigation abroad and its chancy consequences.

21. This takes us to the circumstances which were high lighted by Shri Diwan and countered by Shri Watal. The Central Government was somewhat neutral, once our inclination was made clear that we were not disposes to permit export of silver even regarding pre-ban commitments.

22. The Bombay High Court discussed at great length in its interlocutory order under challenge the permissibility of export of silver in respect of which commitments had been made prior to February 20, 1971. Indeed, this High Court allowed the pre-ban commitments to be honoured because it was not impressed by the argument of reasonable restriction based upon national interests. The Judges observed :

26. Indeed, there is an express indication in the order that this question of equity will be decided at the time of the disposal of the appeal. It is also made clear in the said order that what will be disposed of by this Court will not be the interlocutory matter only but the entire subject matter connected with the silver export pending before the Bombay High Court.

27. Let us recapitulate the facts relevant to the equities of the situation. The High Court had pasted an ad interim order which, if carried out, would have facilitated the expert of large quantities of silver Naturally, the Union of India would have been adversely affected if this relief had not been negated by an interim stay by this Court. In this context, the significance of the direction by our learned brother, Desai J. cannot be missed. As we have indicated earlier, we are inclined to agree tentatively with the larger relief that the Union of India has claimed, namely, a prohibition of the export of silver pursuant even to pre-ban commitments. It must be remembered that even the STC pleaded with the Union of India for permission to export silver in pursuance of contracts concluded prior to the ban. We must also notice that the indigenous supplier Damani, had collected a huge quantity of silver and offered delivery to the STC in full compliance with the contract. The first respondent had done all it could to fulfil the contract. Once the embargo on the export is upheld by us, the consequent financial loss of the first respondent must be considered from an equitable angle. It is iniquitous that on top of that it should be exposed to the risks, perhaps remote yet real, of the foreign buyer involving the STC in a long drawn out ;litigation fought on foreign soil. The would be double injury. (Daughter gone and ducats too) Of course, if the legal consequence resulted in double damage, Oamani would have had to bear it in the normal circumstances. However, in the present case, this Court, while granting leeve and ad interim stay, had put a condition in its order contained in Clause (3) thereof. Justice and equity have been made a component of the final disposal and we cannot forsake that direction