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2014 Supreme(AP) 19

High Court of Andhra Pradesh
THE HONOURABLE MR. JUSTICE A. RAMALINGESWARA RAO, J.
Tolusuri Guravaiah & Others
Versus
The Collector & District Magistrate & Others
W.P.Nos. 17684, 18041, 18074 & 18084 of 2009
Decided on : 03-01-2014

Advocates appeared:
For the Petitioners:P. Kamalakar, Advocate.
For the Respondents: Government Pleader for Civil Supplies.

Headnote:

Essential Commodities Act, 1955 - Section 6-A - Agricultural Production - It is stated by the petitioners that they are all agriculturists having lands in their respective villages - They are raising crops and selling the agricultural produce and thereby eking out their livelihood - They raised red gram crop and realized good yield of red gram - Since the market at that time was not encouraging, they stored their agricultural produce in the godown of Central Ware Housing Corporation with a view to dispose of the same when the market conditions improve - Held, In the instant case also neither the 1st respondent nor the learned Sessions Judge considered this aspect of the matter and examined whether the petitioners have stored the food grains for the purpose of business or only on a solitary instance of storage - When there is no finding that the petitioners are carrying on the business of such produce or sale or storage of the red gram, the seizure of stock and the conviction under the provisions of Essential Commodities Act cannot be upheld - Consequently, the orders in confirming the orders passed by the 1st Respondent are set aside and the writ petitions are allowed - No order as to costs - With regard to the bank guarantees furnished by the petitioners pursuant to the interim orders of this Court the 1st respondent shall release them to the petitioners - Writ Petitions allowed.

Order:

These four petitions are disposed of by a common order in view of the commonality of the facts and law involved in these cases.

It is stated by the petitioners that they are all agriculturists having lands in their respective villages. They are raising crops and selling the agricultural produce and thereby eking out their livelihood. During the year 2008, they raised red gram crop and realized good yield of red gram. Since the market at that time was not encouraging, they stored their agricultural produce in the godown of Central Ware Housing Corporation (CWC) at Throvagunta Village, Ongole Mandal with a view to dispose of the same when the market conditions improve. The particulars of the agricultural produce deposited by them was entered in the registers of the CWC authorities.

While so, the 2nd respondent along with his officers inspected the godown on 28-07-2008 at 6 PM and seized the red gram stock stored in the godown. The 2nd respondent without conducting any enquiry and without verification of records under panchanama booked cases under Section 6-A of the Essential Commodities Act, 1955 ( for short “ the Act”). Thereafter, the petitioners filed a petition before the 1st respondent along with documentary evidence showing the extents of land owned by them and pattadar passbooks in respect of the said lands and requested to release the seized stock of red gram. Subsequently, they also filed apassbooks in respect of the said lands and requested to release the seized stock of red gram. Subsequently, they also filed a petition on 18-08-2008 to summon the Bank Manager to give evidence in support of their contention that they are agriculturists. The 1st respondent heard the arguments of Counsel for the petitioners on 04-02-2009 but without properly appreciating the facts of the case passed an order on 29-05-2009 ordering confiscation of the seized stock. Challenging the said order of the 1st respondent, the petitioners filed appeals in Crl.A.Nos.66, 67, 68 and 69 of 2009 in the Court of Sessions Judge at Ongole. The learned Sessions Judge, on an erroneous view of law and facts dismissed the appeals by order dated 10-08-2009 confirming the order of 1st respondent. These writ petitions were filed challenging the orders of learned Sessions Judge confirming the orders of 1st respondent.

In all these cases neither a counter affidavit was filed on behalf of the respondents nor the learned Government Pleader for the respondents was present on 26-12-2013 when the case was called nor on 27-12-2013 when the case was heard. Heard Sri E.Manohar, learned Senior Counsel for the petitioners.

The only point raised by the learned Senior Counsel is that the Petitioners are not businessmen and a solitary instance of storing foodgrains would not be a violation of Clause 3 (2) & (3) of A.P.Pulses (LS &R) Order, 2007 and the said point is no longer res integra as the issue was covered by ratio laid down in the decisions of Manipur Administration Vs.M.Nila Chandra Singh (AIR 1964 Supreme t 1533)and M/s.Satyanarayan Balkishan Proprietor, Satyanarayana (Deceased by L.R Balkrishnan, Zaheerabad, Medak District Vs.The State of Andhra Pradesh by the Deputy Tahsildar, Civil Supllies, Zaheerabad, Medak District ?(1971 (1) AWR 254).

It appears that the 2nd respondent received information that some traders were illegally storing huge stock of pulses in the names of some farmers of surrounding villages and hence he went to CWC, Throvagunta village, Ongole Mandal on 28-07-2008 and the Manager of CWC produced the Stock Register, Depositors Register and ledger for verification. From the record, he noticed that the farmers stored the red gram stock in the CWC godown. The 2nd respondent appears to have noticed that the stored red gram was more than the yield from their agricultural lands and thus came to the prima facie opinion that they have contravened the provisions of Clause 3 (2) and (3) of A.P.Pulses (Licensing, storage and Regulation) Order, 2007 (Ord


























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