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1971 Supreme(AP) 198

Andhra Pradesh High Court
Judges : A.L.VAIDYA, C.V.RAMULU
K.Munivelu - Appellant
Versus
Government of India - Respondent
Decided On : 09-22-71

A provision in an order made under the Essential Commodities Act, 1955, which authorizes the seizure of any article in respect of which the person authorized suspects that any provision of the Order has been, is being or is about to be contravened, is in excess of the power conferred on the Central Government by Section 3 (2) (j) of the Act, which empowers the Central Government to make an order for search and seizure only if the authorized person has reason to believe that a contravention of the order has been or is about to be committed.

Headnote:

ESSENTIAL COMMODITIES ACT - ANDHRA PRADESH COARSE GRAINS (EXPORT CONTROL) ORDER - VALIDITY OF CLAUSE 5 - EXCESS OF POWER - FUNDAMENTAL RIGHT TO HOLD PROPERTY - ARTICLE 19 (1) (F) OF THE CONSTITUTION OF INDIA - INTERPRETATION OF STATUTES ENCROACHING ON RIGHTS OF SUBJECT - STRICT CONSTRUCTION.

Fact of the Case:

The petitioner, a licensed dealer in food grains, purchased 76 bags of millets from producers in a village near Kalahasti and transported them to his godown in Ramagiri village. The lorry with the bags of millets reached Ramagiri village at 3-15 a.m. on 14-9-1969. When the lorry driver was awaiting the opening of the godown for unloading purposes, the second respondent, Inspector of Police, with some other constables approached and seized the goods on suspicion that the goods were ultimately meant for transporting to Madras State.

Finding of the Court:

The court held that Clause 5 of the Andhra Pradesh Coarse Grains (Export Control) Order, 1965, which authorized the seizure of any article in respect of which the person authorized suspects that any provision of the Order has been, is being or is about to be contravened, is in excess of the power conferred on the Central Government by Section 3 (2) (j) of the Essential Commodities Act, 1955, which empowers the Central Government to make an order for search and seizure only if the authorized person has reason to believe that a contravention of the order has been or is about to be committed.

Issues: 1. Whether Clause 5 of the Andhra Pradesh Coarse Grains (Export Control) Order, 1965 is in excess of the power conferred on the Central Government by Section 3 (2) (j) of the Essential Commodities Act, 1955? 2. Whether Clause 5 of the Order violates the fundamental right to hold property guaranteed under Article 19 (1) (f) of the Constitution of India?

Ratio Decidendi: 1. The court held that the use of the word "suspects" in Clause 5 of the Order, as against the words "reason to believe" occurring in Section 3 (2) (j) of the Act, indicates that the Central Government has exceeded its power by giving unbridled and uncontrolled power of seizure and search to several persons, not below the rank of a Head Constable, which power is capable of being exercised in a most arbitrary manner and abused by those persons. 2. The court held that the right to hold and dispose of property is a fundamental right guaranteed to a citizen under Article 19 (1) (f) of the Constitution of India and that the power to search and seize the essential commodities is an encroachment of the fundamental right of a citizen and therefore such provisions must be strictly constructed.

Final Decision: The court allowed the writ petition and held that the order of seizure passed by the second respondent in pursuance of the powers derived by him under clause 5 (iii) of the Order is illegal as Clause 5 (iii) itself is in excess of the power.

SRIRAMULU, J.

( 1 ) THE petitioner is a licensed dealer in food grains. He has his shop and godown in Ramagiri village, which is two miles away from Naguiapuram and 12 miles away from Madras State border. From the producers in a village near Kalahasti, the petitioner purchased 76 age of millets and transported them in a lorry to his godown at Ramagiri village. The lorry with the bags of millets reached Ramagiri village at 3-15 a. m. on 14-9-1969. When the lorry driver was awaiting the opening of the godown for unloading purposes, the second respondent. Inspector of Police, with some other constables approached and seized and goods on suspicion that the goods were ultimately meant for transporting to Madras State.

( 2 ) IN this Writ Petition the petitioner challenges the legality of the seizure of 76 bags of millets, inter alia on the ground that Cl. 5 of the Andhra Pradesh Coarse Grains (Export Control) Order, 1965 is in excess of the power conferred upon the Central Government by S. 3 of the Essential Commodities Act. 1955. The petitioner also contended that the seizure was illegal and accordingly prayed for a direction to the respondents to release the goods and not to take any section against him under clauses 4 and 5 of the said order.

( 3 ) IN their counter the respondents opposed the writ petition. The respondents submitted that clause 5 of the said order was neither vague nor in excess of the delegated power, nor inconsistent with Section 3 (2) (j) of the Essential Commodities Act, 1955. The Act contemplates no proof before search and seizure but only reasonable belief. The order itself has been rescinded and there is no need to go into the question of the validity of clause 5 of the Order, which has been rescinded.

( 4 ) THE short question that arises for our decision in this Writ Petition is, whether Cl. 5 of the Andhra Pradesh Coarse Grains (Export Control) Order, 1965, hereinafter called the Order, is in excess of the power conferred on Government of India by Section 3 (2) (j) of the Essential Commodities Act, 1955.

( 5 ) ALTHOUGH Sri Babulu Reddy, the learned counsel appearing for the petitioner challenged the legality and validity of the seizure of 76 bags of the millets on various grounds in the Writ Petitioner, the only ground on which be pressed his objection was that Cl. 5 (iii) of the Andhra Pradesh Coarse Grains (Export Control) Order, 1965 was in excess of the power conferred on the Central Government by Section 3 (2) (j) of the Essential Commodities Act, 1965 and the impugned Cl. 5 (iii) of the said order is also ultra virus of the Constitution as it violated the fundamental right of the petitioner which is guaranteed under Art. 19 (I) (f) of the Constitution of India.

( 6 ) THE Parliament passed the Essential Commodities Act 1955 (Act 10 of 1955), hereinafter referred to as the Act. Section 3 (2) (j) of the said Act reads as follows:---------------"section 3 (1): If the Central Government is of opinion that it is necessary or expedient so to do for maintaining or increasing supplies of any essential commodity or for securing their equitable distribution and availability at fair prices, it may, by order, provide for regulating or prohibiting the production, supply and distribution thereof and trade and commerce therein. (2) Without prejudice to the generality of the powers conferred by sub-section (1), an Order made thereunder may provide----------------- x x x x x (j) for any incidental and supplementary matters, including in particular the entering and search of premises, vehicles, vessels and aircraft, and the seizure by a person authorised to make such search of any articles in respect of which such person has reason to believe that a contravention of the order has been, is being, or is about to be committed". In exercise of the powers conferred upon it by Section 3 of the Act, the Central Government made the Andhra Pradesh Coarse Grains (Export Control) Order, 1965 by G. O. Ms. No. 53. Food and Agricu





















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