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2004 Supreme(SC) 1054

2004(6) Supreme 668
SUPREME COURT OF INDIA
(From Madhya Pradesh High Court)
Arijit Pasayat & C.K. Thakker, JJ.
Prakash Babu Raghuvanshi -Appellant
versus
State of Madhya Pradesh -Respondent
Criminal Appeal No. 1011 of 2004
(Arising out of SLP (Crl.) No. 1511 of 2004)
Decided on 13-9-2004
Counsel for the Parties :
For the Appellant : S.B. Upadhyay and Ms. Kumud Lata Das, Advocates
For the Respondent : Vishwajit Singh and Ms. Vibha Datta Makhija, Advocates.

IMPORTANT POINT
It is essential for bringing in application of Section 7 of Essential Commodities Act to show that some order made u/s 3 of the Act has been contravened.

Headnote:Essential Commodities Act, 1955-Section 7(1)(a)(ii)-Conviction of appellant by Courts below-Contravention alleged and proved was Madhya Pradesh Sarvajanik Purti Vitran Scheme, 1991-It was necessary for prosecution to place on record the order which was foundation for taking action-Scheme like the one at hand was framed under Article 162 of the Constitution of India-Contention now raised that no order alleged to have been violated was proved was not raised before trial Court or High Court-Matter remitted to High Court and parties permitted to place material in support of their case.

       Held : For bringing an application under Section 7 of the Act, the essential requirement is an order, the violation of which is alleged. Unfortunately, neither before the Trial Court nor the High Court, any effort was made to place on record the order the violation of which was alleged. In Madhya Pradesh Ration Vikreta Sangh Society and Ors. Vs. State of Madhya Pradesh and Anr. (1981(4) SCC 535), it was observed that a Scheme like the one at hand is framed under Article 162 of the Constitution of India, 1950 (in short the Constitution ). That being so, it was necessary for the prosecution to place on record the "order" which, according to it, was the foundation for taking action against the accused-appellant. Section 7 refers to contravention of any order made under Section 3. It is essential for bringing in application of Section 7 to show that some order has been made under Section 3 and the order has been contravened. Section 3 deals with powers to control production, supply, distribution etc. of essential commodities. Exercise of such powers, can be done by "order". According to Section 2(c) "notified order" means an order notified in the official Gazette, and Section 2(cc) provides that "order includes a direction issued thereunder: (Paras 4 and 5)

       

Judgement Key Points

Key Points: - The essential requirement for applying Section 7 is the existence of an order under Section 3 that was allegedly violated (!) (!) . - A Scheme framed under Article 162 of the Constitution can be the basis for action, but the prosecution must place the specific "order" on record; without it, Section 7 cannot be invoked (!) (!) . - Section 3 empowers control over production, supply, distribution of essential commodities, and "notified order" is defined as an order in the Gazette; an "order includes a direction issued thereunder" (!) . - The Court remitted the matter to the High Court to consider which particular "order" was violated, allowing the parties to submit materials (!) . - The bail order remains in effect pending fresh adjudication, without expressing a view on guilt (!) . - The appeal was disposed of with the direction to examine the documentary order in question during fresh proceedings (!) (!) (!) .

What is the necessity of an order under Section 3 of the Essential Commodities Act to invoke Section 7(1)(a)(ii)?

What constitutes a valid "order" or "notified order" under the Essential Commodities Act for contravention proceedings?

What procedureally happens when the prosecution fails to place on record the order alleged to have been violated?


JUDGMENT

Arijit Pasayat, J.-Leave granted.

2. An interesting point has been raised in the appeal, which unfortunately does not appear to have been canvassed before the courts below. The appellant was convicted for allegedly committing offence in terms of Section 3 read with Section 7(1)(a)(ii) of the Essential Commodities Act, 1955 (in short the Act ). He was found guilty by the learned Sessions Judge, Vidisha in Sessions Case No. 11 of 1996. The conviction and the sentence of one years rigorous imprisonment and a fine of Rs. 2,000/- as had been imposed, came to be confirmed by a learned Single Judge of the High Court of Madhya Pradesh, Gwalior Bench by the impugned judgment.

3. Mr. S.B. Upadhyay, learned counsel appearing for the appellant submitted that for attracting Section-7 of the Act, the primary requirement is that there must be violation of an order. What the prosecution seems to have relied upon is Madhya Pradesh Sarvajanik Purti Vitaran Scheme, 1991 (in short the Scheme ). According to him, the Scheme cannot be equated with an order, as required under the Act. Learned counsel for the respondent-State, on the other hand, submitted that such a plea which essentially would need factual adjudication, was not canvassed before either the Trial Court or the High Court.

4. Though there is a substance in the plea raised by learned counsel for the State, yet, for bringing an application under Section 7 of the Act, the essential requirement is an order, the violation of which is alleged. Unfortunately, neither before the Trial Court nor the High Court, any effort was made to place on record the order the violation of which was alleged. In Madhya Pradesh Ration Vikreta Sangh Society and Ors. Vs. State of Madhya Pradesh and Anr. (1981(4) SCC 535), it was observed that a Scheme like the one at hand is framed under Article 162 of the Constitution of India, 1950 (in short the Constitution ). That being so, it was necessary for the prosecution to place on record the "order" which, according to it, was the foundation for taking action against the accused-appellant.

5. Section 7 refers to contravention of any order made under Section 3. It is essential for bringing in application of Section 7 to show that some order has been made under Section 3 and the order has been contravened. Section 3 deals with powers to control production, supply, distribution etc. of essential commodities. Exercise of such powers, can be done by "order". According to Section 2(c) "notified order" means an order notified in the official Gazette, and Section 2(cc) provides that "order includes a direction issued thereunder.

6. In the circumstances, without expressing any opinion on the merits of the case, we remit the matter to the High Court to hear the matter afresh. The parties shall be permitted to place materials in support of their respective stands. It would be incumbent upon the State to file materials to show as to which "order" was violated. If the document in question is placed before the High Court, it goes without saying that the issue shall be examined with reference thereto and necessary adjudication shall be done.

7. We are told that the accused-appellant has been in custody for nearly four months. The order of bail granted by this Court shall continue till the fresh adjudication is done by the High Court.

8. We make it clear that by giving this direction, no opinion about his culpability or otherwise is expressed by us.

9. The appeal is disposed of accordingly.

Appeal disposed of.

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