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2009 Supreme(Bom) 1668

In the High Court of Bombay at Nagpur
THE HONOURABLE MR. JUSTICE B.P. DHARMADHIKARI
M/s. J.D. Sons & Others
Versus
The Additional Collector & Others
Writ Petition No.4259 of 2009 with Writ Petition No.4359 of 2009 with Writ Petition No.4362 of 2009 with Writ Petition No.4360 of 2009 with Writ Petition No.4358 of 2009 and Writ Petition No.4361 of 2009
Decided on : 07-12-2009

Advocates appeared:
For the Petitioners:F.T. Mirza, Advocate. For the Respondents: N.S. Khubalkar and A.S. Fulzele, AGPs.

Headnote:Essential Commodities Act, 1955 - Section 6-A - Maharashtra Scheduled Commodities Wholesale Dealer’s Licensing Order, 1998, Schedule, Clause (2)(x) - Discovery of illegal hoarding of rice/gram - Raid conducted by Tahsildar respondent-2 - Order of confiscation passed by Collector under Section 6-A of Act - Petitioner allegedly not possessed any licence for - Challenged - Rice included in Schedule on 29.8.2009 and will remain continue in schedule till 30.9.2010 - Orders of confiscation unsustainable - Even then respondents can issue fresh show-cause notice to petitioner - In view of violation of conditions of licence under Section 3 of E.C. Act, order of confiscation need not to be interfered with - Writ petition partly allowed. - The petitioners in other writ petitions have got licence already issued in their names. The licence issued to them carries a condition that they cannot store schedule commodities except at the place disclosed in the licence.

       It they want to change such place, they have to communicate such changed place within 48 hours of taking its possession and should surrender their licence to licensing authority for its modification. These petitioners have not produced show-cause notices served upon them along with writ petitions. They have tried to contend that it in godown of State warehousing Corporation and did not communicate changed place because of their wrong understanding. Petition No. 4360 of 2009 has stated that he had already communicated to competent authority that he would be storing his schedule commodity in godown of State Warehousing Corporation but then this communication mentions that such storage would be as per his need. It, therefore, does not satisfy the requirement of Clause 2-H of licence. The petitioner in writ Petition No. 4361 of 2009 has stated that some times he is storing his schedule commodity in godown of State Warehousing Corporation. Again this communication does not meet the requirements of Clause 2-B of his licence. This stand of the petitioner and reply filed by them clearly show that they were aware of the nature of action initiated against them and impugned orders dated 22.9.2009, clearly show that the order of confiscation is because of violation of this condition of licence 29 which ultimately is violation of Section 3 of the 1955 Act. With the result, no case is made out warranting any interference in these four writ petitions.

Judgment :

By these writ petitions filed under Articles 226 and 227 of Constitution of India, the respective petitioners are challenging the orders of confiscation under Section 6A of the Essential Commodities Act, 1955, (hereinafter referred to as 1955 Act) passed by Respondent No.1. The raid in which the illegal hoarding of rice/ Gram was discovered has been conducted by Respondent No.2 – Tahsildar, Warora, on 29.08.2009. The petitioners in Writ Petition No. 4259 of 2009 and 4362 of 2009 did not possess any licence according to the respondents while remaining four petitioners violated the terms and conditions thereof. The parties have treated Writ Petition No. 4259 of 2009, in which rice is involved, as lead petition.

2. I have heard Shri Mirza, learned counsel for the petitioners and S/Shri Khubalkar and Fulzele, learned Assistant Government Pleaders respectively for the respondents.

3. Shri Mirza, learned counsel for the petitioners has contended that the action under above mentioned 1955 Act is not legally sustainable as rice is not controlled commodity at all. He has invited attention to provisions of Maharashtra Scheduled Commodities Whole-Sale Dealers’ Licensing Order, 1998, (hereinafter referred to as 1998 Order), to urge that its clause (2)(x) define Schedule Commodity as one specified in schedule and licence under its clause (3) is required only for such commodity included in the schedule. He has invited attention to said schedule to show that it does not include rice at all. In this background he has also invited attention to guidelines dated 09.05.2008 issued by State Government which show that traders who have applied for licence may be permitted to trade if their applications are found containing some errors or lacunae. He contends that the petitioner in Writ Petition No. 4259 of 2009 had applied for licence in accordance with law on 16.04.2008 and accordingly the licence was to be issued to him even for the period in dispute. He points out that he had a licence up to 21.12.2008 for other commodities. He had sought licence also to deal with rice mentioning therein that he would be doing business at his establishment located at main road, Warora, as also the godown of Maharashtra State Warehousing Corporation. He further pointed out that after that application on 14.08.2009, the department inspected his establishment and examined his records, recorded his statement and submitted a report recommending grant of licence. He was asked to deposit licence fee and security deposit. He was also unwell from 16.08.2009 till 31.08.2009 and could not deposit licence fee or security deposit and in that period on 29.08.2009, rice 88 quintals in quantity belonging to him and stored in godown of Maharashtra State Warehousing Corporation (State Godown) was seized. According to him, in view of the guidelines mentioned above, such seizure could not have been effected.

4. He has relied upon the judgment of the Hon’ble Apex Court in the case of Kailash Prasad Yadav vs. State of Jharkhand, reported at AIR 2007 SC 2626, to urge that as Show Cause Notice issued to the petitioner before confiscation on 04.09.2009 did not point out relevant order or its violation, the order of confiscation is unsustainable. For the same purpose, he has placed reliance upon the judgment in the case of Government of A.P. & Ors. vs. V. Ranga Rao & Anr., reported at 2005 (12) SCC 274.

5. To meet the contention of the respondents that the petitioners have got alternate remedy of filing appeal under Section 6C of 1955 Act, he points out that the appellate authority has been pointed out for the first time on 15.09.2009 as alleged but that appointment was never communicated to public till date. In any case, according to him, in view of the judgments mentioned above, the alternate remedy is no bar in exercise of jurisdiction of this Court. He has also invited attention to the fact that words “judicial authority” were added in Section 6C(1) by 1981 Amending Act an

























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