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2012 Supreme(SC) 478

Supreme Court of India
B.S. CHAUHAN & SWATANTER KUMAR, JJ.
State of Bihar & Another
Versus
Arvind Kumar & Another
CRIMINAL APPEAL NOS.1075-76 of 2012 (Arising out of SLP(Crl.) Nos(s). 8334-8335/2011)
Decided On : 23-07-2012

IMPORTANT POINT
Judicial propriety.

Headnote:Essential Commodities Act, 1955 - Section 6E - Huge quantity of wheat of PDS seized - No body claimed the wheat - FIR lodged - Respondent filing Crl. Writ for quashing FIR and release of wheat without claiming ownership only on the ground that he was ready to furnish security - High Court allowing the petition - CJM refusing release for want of proof of ownership - High Courts order of release of wheat to stranger defeats the purpose of the Act. (Para 11)

        (1990) 3 SCC 549; (2008) 5 SCC 502; (1997) 10 SCC 264; AIR 2002 SC 629 - Relied upon

       Facts of the case:

        1. Huge quantity of wheat (subsidized food grains of Public Distribution Scheme) was seized from the premises of the respondent under the E.C. Act.

        2. The High Court ordered release of the wheat.

       Finding of the Court:

        Impugned order is untenable.

       Result : Appeal disposed of; matter remitted.

Judgment :

Dr. B.S. CHAUHAN, J.

Leave granted.

1. These appeals have been preferred against the impugned judgments and orders dated 15.3.2011 in Cr.WJC No. 215 of 2011 and dated 29.4.2011 in Crl. Misc. No. 14629 of 2011 of the Patna High Court, by which a huge quantity of wheat seized by the appellant from the premises of the respondents under the provisions of Essential Commodities Act, 1955 (hereinafter referred to as ‘EC Act’) has been released.

2. Facts and circumstances giving rise to these appeals are that:

A. On 15.2.2011, a secret information was received by the department of the appellants in respect of illegal storage of subsidized food grains of Public Distribution Scheme by the respondents which led to the raid upon the premises of M/s Harsh Tejas Nutrition Pvt. Ltd., (Flour Mill of the respondents) situate at Patna, New Bypass Road near Petrol Pump. The Sub-Divisional Officer, Patna City and other officers from the local police raided the premises of the said flour mill and found off loading of wheat from Truck bearing registration No. BHI 1899. The driver and other workers fled away. It was found that the grains bags had the seal of Food Corporation of India, (hereinafter called `FCI’), U.P. Government Food Department, Food and Supply Department, Haryana; and Government of Punjab. The seized material made it apparent that there had been diversion of FCI grains for the purpose of black marketing. Appellants seized 5923 bags filled with more than 2991 quintals wheat.

B. None from the company where the raid was conducted came forward to claim the seized material or to justify the storage of same. Thus, the FIR bearing case No. 15/2011 dated 18.2.2011 was lodged under Sections 7 and 10 of the EC Act in addition to the appropriate Sections 421/424 of the Indian Penal Code, 1860 (hereinafter called ‘IPC’) in respect of the said seizure.

C. The respondents herein preferred Criminal Writ Petition No. 215/2011 for quashing confiscation proceedings and/or release of the confiscated goods.

D. The High Court allowed the said writ petition within a very short span vide order dated 15.3.2011 and subject to certain procedural compliances observed that continuing seizure of the seized articles for a long time may not be justified and therefore the High Court issued direction for release of the said wheat.

E. The respondent approached the Chief Judicial Magistrate, Patna, for releasing the wheat in pursuance of the order passed by the High Court on 15.3.2011 by moving an application. The learned CJM dismissed the application of the respondent on 7.4.2011 on the ground that he could not produce any document which may show their ownership to the said seized material.

F. The respondent again approached the High Court by filing Criminal Miscellaneous No. 14692/2011 which had been allowed vide order dated 29.4.2011.

Hence, these appeals.

3. Mr. Gopal Singh, learned counsel appearing for the State of Bihar has submitted that the orders had been passed by the High Court in a mechanical manner in utter disregard of the statutory provisions of the EC Act, particularly, the provisions of Sections 6-A and 6-E. Therefore, the impugned judgments and orders dated 15.3.2011 and 29.4.2011 are liable to be set aside.

4. On the contrary, Mr. Nagendra Rai, learned senior counsel appearing for the respondents has vehemently opposed the appeals contending that Sections 6-A and 6E apply only where the goods are seized in pursuance of an order issued under Section 3 of the EC Act. In the instant case, no order had ever been issued under Section 3, therefore, the said provisions are not attracted. Respondents were able to show their ownership in respect of the seized materials. The High Court in the impugned judgments made it clear that release of the wheat was only an interim measure subject to the final decision in the case. Therefore, no interference is warranted by the court, the appeals are liable to be dismissed.

5. We have considered the r















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