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2020 Supreme(AP) 871
IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATHI
M. Satyanarayana Murthy, J.
Dasari Venkata Srinviasa Rao and anr. - Petitioners
Versus
State of Andhra Pradesh Rep. by its Principal Secretary Department of Consumer Affairs Food and Civil Supplies and others – Respondents
Writ Petition No.19540 of 2019
Decided On : 20-01-2020
Advocate Appeared:
For the Petitioner: M/s. Balaji Medamalli
For the Respondent: Learned Government Pleader for Civil Supplies, Learned Government Pleader for Home
Headnote:(A) Essential Commodities Act, 1955 - Sections 6-A and 3 - Andhra Pradesh State Targeted Public Distribution System (Control) Order, 2018 - Seizure of 150 Quintals of broken rice and vehicle under suspicion of illegal transportation - Court held seizure as not illegal or arbitrary as the Control Order prohibits resale and diversion of Public Distribution System (PDS) rice; all provisions were complied with (Paras 1, 10, 24).
(B) The regulation of essential commodities mandates strict compliance for effective public distribution - The transportation of PDS rice in violation of the Control Order constitutes an offence and justified the seizure initiated by the authorities (Paras 11, 24).
Facts of the case:
Petitioners, engaged in rice trade, challenged the seizure of their lorry and rice as illegal, insisting that they were not violating any laws concerning the movement and stocking of rice (Paras 1, 3).
Findings of Court:
The court found that the seizure of the rice and lorry was valid under the provisions of the Essential Commodities Act, reaffirming the necessity of regulating the movement of PDS rice (Paras 24).
Issues: Whether the seizure of rice was violative of rights under the Essential Commodities Act and Control Order, and whether the petitioners' activities were lawful (Paras 4, 8).
Ratio Decidendi: The court emphasized that the presumption of illegal activity in transporting PDS rice exists unless proven otherwise, aligning with the mandates of the Control Order, and deemed the authorities' actions valid (Paras 14, 24).
Result: Writ petition dismissed.
| Table of Content |
|---|
| 1. legal basis for writ of mandamus (Para 1 , 2) |
| 2. contention regarding essential commodities act exemption (Para 3 , 4) |
| 3. defense regarding alleged illegal seizure (Para 5 , 6) |
| 4. prohibition against resale of pds rice (Para 7 , 10) |
| 5. seizure powers under control order, 2018 (Para 8 , 9) |
| 6. culpable mental state in prosecution under essential commodities act (Para 11 , 12 , 14) |
| 7. definition of essential commodities under the act (Para 13 , 18) |
| 8. right to quash proceedings in light of established facts (Para 15 , 16 , 17) |
| 9. onus of proof in transport-related pds violations (Para 20 , 22 , 23) |
| 10. judgment dismissal and recommendation for future applications (Para 24 , 25 , 26) |
ORDER:
M.SATYANARAYANA MURTHY, J.
1. This writ petition is filed under Article 226 of the Constitution of India, to issue Writ of Mandamus, declaring the action of the respondent authorities in seizing 150 Quintals (50 kgs x 30 bags) of broken rice along with lorry bearing No.AP 16Y 3886, initiating proceedings under Section 6 -A of the Essential Commodities Act, pursuant to the panchanama dated 06.11.2019 and also registering Crime No.282 of 2019 for the offence punishable under Section 420 of INDIAN PENAL CODE (for short ‘I.P.C’) and Sections 7 (1) and 7(A) of the Essential Commodities Act,1955, as highly illegal, arbitrary and violative of provisions of Essential Commodities Act and Andhra Pradesh State Targeted Public Distribution System (Control) Order, 2018 (for short ‘Control Order, 2018’), consequently direct the respondent authorities to release the seized stock under cover of panchanama dated 06.11.2019 and lorry bearing No.AP 16Y 3886 forthwith.
2. The first petitioner herein is a proprietor and trader of rice and the second respondent is the owner-cum-driver of lorry bearing No.AP 16Y 3886. Both the petitioners jointly filed this petition for the relief stated above, alleging that the first petitioner is carrying on rice business for the past seven years and the second petitioner is the owner-cum-driver of lorry bearing No.AP 16Y 3886. The broken rice purchased from various persons was sold in favour of M/s. Maruthi Poultry Farm, Khandavalli, Peravalli Mandal, as the stock of 150 Quintals was sold under a bill dated 05.11.2019 and the entire stock of 300 bags weighing 50 kgs each was loaded in the lorry bearing No.AP 16Y 3886. While the lorry was on its way, the fourth respondent intercepted the vehicle and seized entire stock of broken rice along with the lorry, suspecting that this stock in transit is Public Distribution System (PDS) rice and after the seizure, rice and lorry bearing No.AP 16Y 3886 was handed over to the third respondent. The third respondent initiated proceedings under Section 6 -A of Essential Commodities Act before the second respondent. Aggrieved by the same, the present writ petition is filed before this Court.
3. The main ground urged before this Court is that the rice was taken out of the Essential Commodities Act, 1955, by way of an order passed by the Ministry of Consumer Affairs, Food and Public Distribution, Government of India in G.S.R.104(E) dated 15.02.2002 by exercising powers conferred under Section 3 of Essential Commodities Act, 1955, under Removal of (Licensing Requirements, Stock Limits and Movement Restrictions) on Specified Food Stuffs Order, 2002. The same has been extended from time to time. Therefore, there is no restriction in the movement, stocking of rice, but the fourth respondent has intercepted the vehicle and seized the entire stock and initiated proceedings apart from proceedings under Section 6 -A of the Essential Commodities Act. Therefore, the very seizure of rice or broken rice under the cover of panchanama on the pretext that it is Public Distribution System (PDS) rice and also seizure of lorry bearing No.AP 16Y 3886 is illegal and arbitrary.
4. It is further contended that the lorry bearing No.AP 16Y 3886 is having valid permit and the driver is also having a valid license and
