SUPREME COURT OF INDIA
S. MURTAZA FAZAL ALI, JASWANT SINGH AND P.S. KAILASAM, JJ.
M/s. Atlas Cycle Industries Ltd. and others, Appellants
Versus
State of Haryana, Respondent.
Criminal Appeal No. 24 of 1976, D/- 4-10-1978.
Advocates appeared
Mr. B. Sen Sr. Advocate (For No. 1), Mr. A. K. Sen Sr. Advocate (For No. 2), Mr. J. C. Bhatt Sr. Advocate (For No. 3), Mr. F. S. Nariman Sr. Advocate (for No. 4), Mr. A. B. Diwan, Sr. Advocate (For No. 5), (M/s. I. N. Shroff and H. S. Parihar, Advocates with them), for Appellants Mr. D. Mukherjee, Sr. Advocate (M/s. E. C. Agarwala, R. N. Sachthey Advocates with him), for Respondent.
Essential Commodities Act, 1955 – Sections 3, 7 – Iron and Steel (Control) Order, 1956 – clause 15 – Code of Criminal Procedure 1898 – Sections 251A (11) & 228 – Statutory Price – During the course of on spot check carried out by him of B. P. sheets lying in appellant No. 1s factory at Sonepat, the Development Officer (LME-1) of the Directorate General of Technical Development, New Delhi, discovered from an examination of the said appellants account books that it had, during the period intervening between January 1, 1964 and January 12, 1965, acquired black plain iron sheets of prime quality weighing 60.03 metric tons from various parties at a rate higher than the maximum statutory price fixed for such sheets by the Iron and Steel Controller in exercise of the powers vested in him under clause 15(1) of the Iron and Steel (Control) Order, 1956 – On the basis of this discovery, the appellants were prosecuted in the Court of the Special Magistrate, Ambala Cantt, for an offence under section 120-B of the Indian penal Code read with section 7 of the Essential Commodities Act, 1955 as also for an offence under Section 7 of the Act read with clause 15(3) of the Control Order – After the Special Magistrate had framed the charges and examined sixteen prosecution witnesses, the appellants made an application before him under Sections 251A (11) & 228 (1) of the Code of Criminal Procedure 1898 praying that in view of the submissions made therein, the case against them be not proceeded with and they be acquitted – Held, It inevitably follows that the Legislature never intended that non-compliance with the requirement of laying as envisaged by sub-section (6) of Section 3 of the Act should render the order void. Consequently non-laying of the aforesaid notification fixing the maximum selling prices of various categories of iron and steel including the commodity in question before both Houses of Parliament cannot result in nullification of the notification – Court answer the aforesaid question in the negative – It is not necessary to deal with the other contention raised by the respondent to the effect that the aforesaid notification being of a subsidiary character, it was not necessary to lay it before both Houses of Parliament to make it valid – Appeal Dismissed
Judgment
JASWANT SINGH, J. :- During the course of on spot check carried out by him on December 29, 1964 of B. P. sheets lying in appellant No. 1s factory at Sonepat, the Development Officer (LME-1) of the Directorate General of Technical Development, New Delhi, discovered from an examination of the said appellants account books that it had, during the period intervening between January 1, 1964 and January 12, 1965, acquired black plain iron sheets of prime quality weighing 60.03 metric tons from various parties at a rate higher than the maximum statutory price fixed for such sheets by the Iron and Steel Controller (hereinafter referred to as the Controller) in exercise of the powers vested in him under clause 15(1) of the Iron and Steel (Control) Order, 1956 (hereinafter referred to as the Control Order). On the basis of this discovery, the appellants were prosecuted in the Court of the Special Magistrate, Ambala Cantt, for an offence under section 120-B of the Indian penal Code read with section 7 of the Essential Commodities Act, 1955 (Act No. 10 of 1955) (hereinafter referred to as the Act) as also for an offence under Section 7 of the Act read with clause 15(3) of the Control Order. After the Special Magistrate had framed the charges and examined sixteen prosecution witnesses, the appellants made an application before him on February 12, 1970 under Sections 251A (11) & 228 (1) of the Code of Criminal Procedure 1898 praying that in view of the submissions made therein, the case against them be not proceeded with and they be acquitted. The trial Magistrate dismissed the application vide his order dated June 4, 1970, relevant portion whereof is extracted below for facility of reference :-
"In the light of the above observations, I am prevented from determining the case otherwise than by making an order or acquittal or conviction which I can pass only after recording further evidenc both of prosecution and in defence.
Regarding various objections raised by the learned counsel for the accused on the points that the notifications were not placed before the Parliament and within a reasonable time and also on the points of formation of opinion and delegation of powers I may submit that the prosecution cannot be prevented from evidence (sic) the formation of opinion and laying of the notifications before the Parliament which can be proved by the contemporaneous record. Regarding the non-prosecution of the sellers of the black iron sheets it does not lie in the mouth of the accused to say that such and such person has not been prosecuted. I need not to give my observations on merits on the points regarding subsequent exemption of control, means rea, formation of opinion and delegation of powers in laying notifications before the Parliament and also need not dicuss the citations as I will have to consider all these points at the time of final arguments and any order given now will not be proper.
I dismiss the application of the accused on the short ground that it is not possible for this Court to hold that the cognizance was taken on an invalid report and the order of the Court ordering framing of charge is a nullity on the ground that on record no offence is committed and no cognizance could be taken."
2. Aggrieved by the aforesaid order of the special Magistrate, the appellants moved the High Court of Punjab and Haryana under Articles 226 and 227 of the Constitution and section 516-A of the Code of Criminal Procedure, 1898 challenging their prosecution inter alia on the grounds that the Control Order and the notification which formed the basis of their prosecution did not have the force of law as they had not been laid before the Houses of Parliament within a reasonable time as required under section 3(6) of the Act; that the Control Order and the Notification fixing the maximum selling price of the commodity in question for the contravention of which the appellants had been hauled up were invalid as the same did not appear to be prece
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