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2009 Supreme(Bom) 784

High Court of Judicature at Bombay
THE HONOURABLE MR. JUSTICE P.B. MAJMUDAR & THE HONOURABLE MR. JUSTICE R.M. SAVANT
Britannia Industries Limited
Versus
Union of India, The Government Pleader & Others
WRIT PETITION NO.685 OF 2001
Decided on : 03-07-2009

Advocates appeared:
For the Petitioner:F. Pooniwalla a/w Mohit Arora i/by Desai & Diwanji, Advocates. For the Respondents:R1, Y.S Bhate a/w N.R. Prajapati, R2 to R4, S.K.Nair, ‘A’ Panel Counsel, Advocates.

Headnote:Standards of Weights and Measures Act, 1976 - Schedule III - Constitution of India, Article 19(1)(g) - Reasonable restrictions - Such restrictions can be placed by the Government. - Reasonable restrictions can be placed by the Government on the right to do business. Considering the object of the said Act the Legislature in its wisdom has mandated certain commodities to be pre-packed in a standard package. However, as stated herein-above there is not impediment on a manufacturer or distributor to pre-pack the commodity which he intends to give free of cost in a separate package or pack it in a package of a standard quantify, mentioned in the Schedule. The requirement to pack particular commodity in a standard package, in Court’s view, does not, in any manner, violate Article 19(1)(g) of the Constitution of India.

       Standards of Weights and Measures Act, 1976 - Schedule III - Standards of Weights and Measures (Packaged Commodities) Rules, 1977, Rules 23(1), 4 and 5 - Constitution of India, Article 14 - Constitutional validity of Rule 5 - Rule 5 neither arbitrary nor violative of Article 14 - If the said Rules and IIIrd Schedule are not strictly adhered to, it is possible that the consumers may be taken for a ride in terms of the quantity or price at which the commodity is being sold - Provisions of the Act and the rule can be invoked even in respect of the commodity which is given free of cost. - Rule 5 mandates that specified commodities are to be packed and sold only in the standard package and the said standard quantities are specified in relation to a particular commodity in the IIIrd Schedule to the said Act. In so far as biscuits are concerned, Schedule inter alia sets out the standard quantity in which the said biscuits can be packed. Considering the object of the said Act viz. Consumers protection, it is obligatory on the part of the manufacturer/distributor to sell the commodity in the standard package mentioned in the Third Schedule, merely because the manufacturer/distributor wants to give 15% or 20% of the commodity free of costs it would not be open for him to pack it with the standard quantity commodity which is being sold for a price. Since the object of the Act is the consumers protection, the said Rules and the Third Schedule would have to be strictly adhere to. If the said Rules and the Third Schedule are not strictly adhered to, it is possible that in a given case, the consumers may be taken for a ride in terms of the quantity or price at which the commodity is being soled. The contention of the counsel for the petitioner that the provisions of the Act and Rules, cannot be invoked in respect of the commodity which is given free of cost, therefore, cannot be accepted. If the manufacturer or distributor is interested in giving something free of cost, it would be open for such manufacturer or distributor to pack the said quantity in a separate package along with standard package or pack it in a standard quantity package. Court therefore finds merit in the submission of the counsel for the respondents that the Rules would have to be strictly adhered to. Court does not find anything arbitrary in the said Rule 5. The said rule in fact ensures that the consumer stands to get for whatever he has paid for. Rule 5 mandating that the commodities are to be prepacked in standard packages, in Court’s view, has nexus with the object sought to be achieved by the said Act, namely the protection of the interest of the consumer.

       The rule postulates that the commodity in question has to be prepacked in a standard package mentioned in the Third Schedule. It does not prohibit the manufacturer or distributor to pack the commodity which is given free of cost in a separate package or the commodity which is given free of cost along with the commodity of standard quantity results in a package of standard quantity mentioned in the Schedule, and therefore, in Court’s view, it cannot be said that the said rule is arbitrary and violative of Article 14 of the Constitution of India.

Judgment :-

R.M. Savant, J.


1. A short question arises for consideration in the above Petition, namely, whether the commodity, which is given free or extra along with the commodity packed in the standard package, infringes Rule-5 and, Schedule-III of the Standards of Weights & Measures (Packaged Commodities) Rules, 1977.


2. The Petitioner is a company registered under the provisions of the Indian Companies Act, 1913, as then applicable. The Petitioner carries on business inter alia of the manufacture, production, distribution and sale of biscuits and daily products. The Petitioner manufactures biscuits which are popularly known as ‘50-50 Biscuits’. The said biscuits, at the relevant time, were sold in the standard pack size of 75 grams for a Maximum Retail Price of Rs.6.50 in addition to the said standard pack size of 75 grams, the Petitioner was giving free cost to the buyers 20% extra of the said 50-50 biscuits i.e. 15 grams The total weight of the biscuits packed therefore was 90 grams.


3. On or about 21st July 2000, the Inspector of Legal Metrology, Chembur Division, inspected the premises of one M/s.Rajgor Brothers, a dealter of the Petitioner located at 15, Poornima Building, M G Road, Ghatkopar (East), Mumbai-400 077. During the inspection 605 packages of ‘50-50 Britannia Biscuits’ were seized as according to the said Inspector, the packages were not packed as per Schedule III of the Standards of Weights and Measures Act, 1976 read with Rule 23(1), 4 and 5 of Standards of Weights and Measures (Packaged Commodities) Rule 1977 [hereinafter referred to as ‘the said Act and the said Rule’].


4. Similarly on 11th July 2000, the Inspector of Legal Metrology, Chembur Division, inspected the premises of one M/s.Parvati General Stores, a dealer located at Shop No.1, Kamraj Marg, Chembur, Bombay 400 071. During the inspection 4 packages of 50-50 Britannia biscuits were seized as according to the said Inspector, the packages were not packed as per the Third Schedule of the said Rule.


5. Similarly in the case of M/s.Milan Stores, a dealer, located at Khalrew Road, Sakinaka, Bombay 400 072 during the inspection on 10th July 2000 by the Inspector of Legal Metrology `A’ Division, two packages of 50-50 Britannia biscuits were seized on the same ground of violation of Rule 5 read with IIIrd Schedule.


6. A show cause notice was, therefore, issued to the Petitioner by the respective Inspectors in respect of the alleged violation of the said Act and the said Rule. The Petitioner by separate letters dated 20th August 2000, 10th August 2000 and 21st August 2000 replied to the said show cause notices inter alia pointing out that the Petitioner has not contravened any of the provisions as pointed out in the said show cause notice issued by the department. The letters addressed to the 2nd Respondent in respect of all the three show cause notices were in identical terms. It appears that in response to the Petitioner’s reply, the Inspector by his letter dated 4th September 2000, reiterated the stand of the department that the said packages of the Petitioner’s 50-50 biscuits which had been seized, had been packed in contravention of Rule 5 r/w IIIrd Schedule. It was stated on behalf of the department in the said letter that if any additional quantity was to be given free or extra to the consumer, the Petitioner was at liberty to pack the same separately and even free or extra quantities would have to conform to the quantities prescribed under the said Rules and the Schedule. It was contended that by adding the commodity, which was to be given free or extra, the total weight of the package becomes 90 grams which was in clear violation of Rule 5 and the IIIrd Schedule.


7. On receipt of the said letter, the Petitioner’s representative had a meeting with the Deputy Controller, Legal Metrology, Mumbai on 16th September 2000 wherein the Petitioner’s representative reiterated the stand of the Petitioner. The General Manager of the Petitioner, by his l



















































































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