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2025 Supreme(SC) 1682

SUPREME COURT OF INDIA
J.B. PARDIWALA, R. MAHADEVAN, JJ.
ITC Limited – Appellant
Versus
State Of Karnataka & Anr. – Respondents
Civil Appeal No. 11798 of 2025 (Arising out of SLP (C) No.16830 of 2021) with Civil Appeal No. 11799 of 2025 (Arising out of SLP (C) No. 18336 of 2022)
Decided On : 12-09-2025

Important Points

IMPORTANT POINTS
(1) Search and seizure – As a general rule, every search must be preceded by a warrant and reasons to believe must be recorded.
(2) A rational nexus must exist between articles seized and contemplated violation under applicable provisions.
(3) When law prescribes a particular procedure to be followed while taking action, same must be strictly adhered to.

Subject

Administrative Law - Search and Seizure

Act Referred

Headnote

(A) Legal Metrology Act, 2009 – Section 15 – Legal Metrology (Packaged Commodities) Rules, 2011 – Rules 18(2) and 27 – Criminal Procedure Code, 1973 – Sections 93, 100 and 165 – Search and seizure – Requirement of prior warrant – As a general rule, every search must be preceded by a warrant and reasons to believe must be recorded – Section 165 applies where, due to exigent circumstances, it is not possible to obtain search warrant – General provisions relating to searches contained in Section 100 also apply to searches under Section 165 – Even under Section 165, existence of reasons to believe that an imminent search is necessary, must be recorded, with as much detail as possible – Mandate of Section 100(4) must also be satisfied even in searches under Section 165 – Reference in Section 15(4) of 2009 Act to provisions of Cr.P.C. cannot be read to mean that Section 165 Cr.P.C can be invoked only if an offence has already been registered – In present case, search was conducted without warrant, and no reasons were recorded either for conducting search or inspection, or for seizure of goods – Search and seizure are clearly vitiated by procedural violations – Besides, presence of two respectable independent witnesses from locality was mandatory – Where initial proceedings are vitiated, all subsequent proceedings are unsustainable – Any act in violation of law cannot be brushed aside on the ground that no prejudice was caused – Every violation of law is deemed to cause some prejudice – Respondents not only violated Section 15 of 2009 Act, but also failed to comply with Sections 100(4) and 165 Cr.P.C. – Order of Single Judge quashing notices restored. (Paras 17, 20, 21, 23 and 24)

(B) Legal Metrology Act, 2009 – Section 15 – Criminal Procedure Code, 1973 – Section 93 – Search and seizure – Section 15 of 2009 Act and Section 93 Cr.P.C., both provisions treat “search” and “inspection” as distinct actions – Seizure refers to act of taking material object into custody for the purpose of investigation or enquiry – Detention refers to a situation where owner, though retaining possession of goods, is restrained from using them – There is also subtle difference where search followed by seizure is effected under a special enactment, which contemplates a sequence of mandatory steps – Such proceedings are initiated not merely to charge a person with a violation but also to prevent further violations – In every search conducted under a special enactment without a warrant, requirement of recording reasons to believe is mandatory – Reasons necessitating search must be relevant and must reflect application of mind based on some information – Such reasons cannot rest on mere suspicion or subjective satisfaction; something more substantial is required for a prudent person to conclude that a search and/or seizure is necessary – Similarly, there must be application of mind before seizing goods, materials, or documents during search – A rational nexus must exist between articles seized and contemplated violation under applicable provisions – Authority effecting seizure must record reasons for such seizure, and those reasons must demonstrate due application of mind to materials available – Observance of due process of law and principles of natural justice being intertwined, is a legal necessity to ensure that action of authorities does not result in manifest arbitrariness or abuse and misuse of power – When law prescribes a particular procedure to be followed while taking action, same must be strictly adhered to. (Paras 19, 19.1, 19.2, 19.3 and 20.1)

Facts of the case:

Principal issue that arises for consideration herein is whether inspection and seizure conducted by Respondent No.2 under Section 15 of Legal Metrology Act, 2009, without obtaining a prior warrant, was unlawful and violative of principles of natural justice, thereby justifying invocation of writ jurisdiction under Article 226 of Constitution.

Findings of Court:

Single Judge of the High Court correctly set aside these notices, but the Division Bench erroneously reversed the order. Therefore, the notices/orders issued by the respondents, as well as the judgment and order of the Division Bench of the High Court deserve to be quashed and are quashed. As a consequence, the order of the Single Judge stands restored.

Result : Appeal allowed.

Judgement Key Points

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Legal Category Hierarchy

  • administrative law
    • statutory compliance
  • practice and procedure
    • criminal procedure
      • search and seizure
        • search warrants (Para 15, 17)
        • independent witnesses (Para 21)
  • constitutional law
    • writ jurisdiction
      • article 226
        • maintainability
    • fundamental rights
      • due process
        • principles of natural justice

Advocates appeared:
For the Petitioner(s): M/S. Dua Associates, AOR Dr. A.m. Singhvi, Sr. Adv. Mr. L.k. Bhushan, Adv. Ms. Raashi Beri, Adv. Mr. V. N. Raghupathy, AOR
For the Respondent(s): Mr. Sushil Dutt Salwan, Sr. Adv. Mr. Aditya P Arora, Adv. Mr. Udit Chauhan, Adv. Mr. Namit Saxena, AOR Mr. Aman Panwar, A.A.G. Mr. V. N. Raghupathy, AOR Mr. Shivansh Saxena, Adv. Ms. Mythili S, Adv. Ms. Vrinda Bhandari, AOR

Table of Contents

1. Search and seizure of goods under Section 15, Legal Metrology Act, 2009, for alleged violation of Rule 24, Legal Metrology (Packaged Commodities) Rules, 2011. (Para 2 )

2. Legality of search and seizure without warrant or recorded reasons — applicability of Section 100(4) and 165 Cr.P.C. — maintainability of writ petition despite alternative remedy. (Para 7 , 8 )

3. Search and seizure under Section 15, Legal Metrology Act, 2009, must comply with Cr.P.C. safeguards, including recording reasons to believe and ensuring independent witnesses. (Para 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18 , 19 , 20 , 21 , 22 )

4. Mandatory compliance with Section 15 of the 2009 Act and Cr.P.C. provisions regarding warrants, recorded reasons, and independent witnesses is essential for valid search and seizure. (Para 14 , 16 , 17 , 21 , 23 )

5. Judgment of Division Bench set aside — order of Single Judge restored — seizure and compounding notices quashed. (Para 23 , 24 )

6. Does Section 15 of the Legal Metrology Act, 2009, require the recording of reasons before search and seizure?

Yes. Section 15(1) mandates that the officer must have reason to believe that an offence has been or is likely to be committed. This requirement is a condition precedent for both conducting a search or inspection of premises and effecting a seizure of materials. (Para 11 , 14 )

7. Do the procedural safeguards of the Cr.P.C. apply to searches of open commercial premises under the Legal Metrology Act?

Yes. The definition of premises under Section 2(n) includes warehouses and godowns. Whether a premises is open or closed, the prescribed procedures under the Act and Cr.P.C. must be followed to prevent arbitrary action and uphold due process. (Para 12 , 13 , 16 )

8. Is the presence of independent witnesses mandatory during a search and seizure under the Legal Metrology Act?

Yes. Pursuant to Section 15(4) of the 2009 Act and Section 100(4) of the Cr.P.C., the person conducting the search must call upon two or more independent and respectable inhabitants of the locality to witness the search. (Para 21 )

9. Under what conditions can a search be conducted without a warrant under the Cr.P.C. in the context of special enactments?

Under Section 165 Cr.P.C., a search without a warrant is permissible only in exigent circumstances where the officer records the reasons in writing and specifies, as far as possible, the thing for which the search is to be made. (Para 17 )

10. What is the legal consequence of failing to record reasons or obtain a warrant during a search and seizure?

Such procedural violations vitiate the search and seizure, rendering the entire proceedings illegal and unsustainable. Compliance with statutory safeguards is a legal necessity to ensure that the action of authorities does not result in manifest arbitrariness. (Para 20 , 21 , 23 )

JUDGMENT :

R. Mahadevan, J.

Leave granted in both the SLPs.

2. The appellant, ITC Limited, is engaged in the business of stationery items including Exercise Books / Notebooks, Pens, Pencils, etc. under its brand ‘Classmate’. On 02.07.2020, Respondent No.2 acting under Section 15 of the Legal metrology Act, 20091[For short, “the 2009 Act”], conducted an inspection at the appellant’s premises situated at Survey No.9/4, A, B 9/2, 9/8 Arjunabettahalli Village, Madurai Road, Nelamangala Taluk, Bengaluru, and seized 7600 CFCs / packages of ‘Classmate’ exercise books for the alleged violation of Rule 24(a) of the Legal Metrology (Packaged Commodities) Rules, 20112[For short, “the 2011 Rules”] which is punishable under Section 36(1) of the 2009 Act. Pursuant to the seizure, a seizure notice and a compounding notice both dated 02.07.2020 were issued to the appellant. Alleging that no search warrant was obtained prior to the entry and that the provisions of Sections 100(4) and 165 of the Criminal Procedure Code3[For short, “Cr.P.C”] were not complied with, the appellant preferred Writ Petition No.8954 of 2020 (GM-RES) under Article 226 of the Constitution of India before the High Court of Karnataka4[For short, “the High Court”], seeking to quash the said notices and for a direction to Respondent No.2 to release the seized goods.

3. After hearing both parties, the learned Single Judge of the High Court, by order dated 04.09.2020, allowed the writ petition, quashed the notices issued by Respondent No.2, and directed the release of the seized goods, holding that the search and seizure were conducted without jurisdiction. Aggrieved by the said order, the respondents filed Writ Appeal No.572 of 2020 (GM-RES).

4. Upon consideration, the Division Bench of the High Court allowed the writ appeal and set aside the order of the Single Judge, by judgment dated 15.04.2021. In doing so, it was observed that the requirement of a search warrant does not arise where action is initiated under Section 15 of the 2009 Act and that the Authority is duly empowered to inspect, search, and seize. Hence, there was no illegality or procedural error in the search and seizure undertaken by the Authority. Feeling aggrieved, the appellant filed Special Leave Petition (C) No.16830 of 2021 before this Court.

5. In the meanwhile, the appellant also filed Review Petition No.388 of 2021 in Writ Appeal No.572 of 2020 seeking a review of the Division Bench’s judgment. The said review petition was dismissed, by order dated 10.08.2022, against which, the appellant filed SLP (C) No.18336 of 2022 before this Court.

6. Pursuant to this Court’s order dated 04.11.2022, SLP (C) No.18336 of 2022 was tagged with SLP (C) No.16830 of 2021. This Court, after hearing the submissions made by the parties, now proceeds to dispose of both matters by this common judgment.

7. The learned Senior Counsel appearing for the appellant, at the outset, submitted that there was no violation of Rule 24 of the 2011 Rules that would attract the penalty envisaged under Section 36(1) of the 2009 Act, as the CFCs in question are not “wholesale packages” but are merely meant for the protection and transportation of goods. Nevertheless, as a matter of abundant caution, declarations in terms of Rule 24 were affixed on these CFCs. In this regard, reliance was placed on the judgment in State of Maharashtra and Others v. Raj Marketing and Others, (2011) 15 SCC 525, which draws a distinction between wholesale and secondary packages. It was further submitted that despite raising objections before the respondents and the High Court regarding the inapplicability of the 2009 Act and 2011 Rules, the same were not considered, thereby vitiating the foundation of the seizure.

7.1. The second submission was that Section 15 of the 2009 Act mandates the existence of “reasons to believe” as a condition precedent for conducting inspection or seizure. However, the seizure receipt dated 02.07.2020 does not disclose any such reasons reco

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