2016 Supreme(Bom) 1418
IN THE HIGH COURT OF JUDICATURE AT BOMBAY BENCH AT AURANGABAD
V.K. JADHAV, J.
Colgate-Palmolive (India) Ltd. & Ors. - Applicant
Versus
State of Maharashtra & Ors. - Respondents
Criminal Application No.290 of 2003
Decided On : 26-10-2016
For the Applicants :Mrs. C.S. Deshmukh, Advocate
For the Respondents: Mr. A R Kale
The main legal point established in the judgment is the interpretation and application of the provisions of the Standards of Weights and Measures Act, Packaged Commodities Rules, and Enforcement Act in the context of the seizure and complaint against the company.
Headnote:
Seizure - Standards of Weights and Measures Act - Section 29, Section 31, Rules 24, 25, 26 of Packaged Commodities Rules, 1977 - The court discussed the provisions of the Standards of Weights and Measures Act, Packaged Commodities Rules, and the Enforcement Act. It highlighted the qualification of declaration of quantity by the words 'when packed' for commodities likely to undergo significant variations in weight or measure due to environmental conditions. The court also emphasized the procedure for examination and determination of quantity and error in packages at the premises of the manufacturer or packer, and the action to be taken on completion of examination of the packages.
Fact of the Case:
The company's goods were seized under the Standards of Weights and Measures Act, leading to a complaint and process issuance. The company argued that the seized goods complied with the relevant rules due to the likelihood of variations in weight or measure on account of environmental conditions.
Finding of the Court:
The court found that the allegations in the complaint were justifiable and based on adequate evidence in line with the mandatory provisions of the Standards Act, Packaged Commodities Rules, and Enforcement Act.
Issues: The issues revolved around the compliance of the seized goods with the Standards Act and Packaged Commodities Rules, the procedure for examination and determination of quantity and error in packages, and the action to be taken on completion of examination of the packages.
Ratio Decidendi: The court's decision was based on the interpretation of the relevant provisions of the Standards Act, Packaged Commodities Rules, and Enforcement Act, and the finding that the allegations in the complaint were prima facie justifiable and supported by adequate evidence.
Final Decision: The Criminal Application was dismissed, and the applicants were ordered to appear before the Trial Court for further proceedings.
1. Being aggrieved by the seizure of goods under receipt dated 8.5.2002, notice dated 11.5.2002, and a complaint dated 18.10.2002 and the order of the Judicial Magistrate First Class, Aurangabad dated 19.10.2002 issuing thereby process against the applicants, the applicants prefers this application under section 482 of the Code of Criminal Procedure for quashing the same.
2. Brief facts, giving rise to the present application are as under :-
(a) The applicant No.1, is a Company registered under the Companies Act having its office at Mumbai. The company has a manufacturing Unit/Factory at Aurangabad and the company is engaged at aforesaid unit, in manufacturing, inter-alia, toilet soaps.
(b) On 8.5.2002 respondent no.2 had inspected the toilet soap stored in the petitioner no.1's premises. It was noticed during the said inspection that the products of the company namely Palmolive Naturals Soap (with milk cream) and Palmolive Naturals Soap (Relaxing) have weighed lesser than the declared net weight. Respondent No.2 in exercise of powers under Section 29 of The Standards of Weights and Measures Act, 1976 (hereinafter referred to as 'Standards Act') and under Section 31 of The Standards of Weights and Measures (Enforcement) Act, 1985, (hereinafter referred to as 'Enforcement Act'), seized the materials referring to the Rules 24, 25 and 26 of The Standards of Weights and Measures (Packaged Commodities) Rules, 1977 (Packaged Commodities Rules, 1977. Respondent No.2 had seized 80 sample of Palmolive Naturals (with milk cream) soap (75 grams net weight, when packed) with10 empty wrappers thereof and 80 sample packages of Palmolive Naturals (Relaxing) soap (100 grams net weight, when packed) and 10 empty wrappers thereof and also 6,30,576 packages of Palmolive Natures (with milk cream) soap and 1,08,864 packages of Palmolive Naturals (Relaxing) soap, aggregate costs of the seized material is Rs.71,67,656/-.
(c) Respondent No.2 had thereafter sent a notice dated 11.5.2002 to the applicant alleging therein that after checking the net weight of the soap, weight of the soap was found to be less and therefore, goods have been seized vide receipt dated 8.5.2002. It has also contended in the said notice that, prima facie the provisions of section 33 of the Standards Act and Rules 24, 25 and 26 of the Packaged Commodities Rules have been contravened. The applicants were called upon to give their explanation.
(d) The applicants under letter dated 28.5.2002 tendered their explanation inter alia contending therein that, the toilet soaps as listed in the Fourth Schedule of Packaged Commodity Rules and as per Rule 11 (4) qualified by words “when packed” and accuracy requirement referred to time of manufacturing/packing. It has also brought to the notice of the respondents that, since the commodities are likely to undergo significant variations in net contents of the packages on account of the environmental and other conditions, the relevant provisions of the Act and rules allowed the declaration of quantity in relation to the commodities sold by weight or volume to be clarified by words “when packed”. It has also brought to the notice of the respondent that as per the record, net weight at the time of manufacture of the soaps showing that net weight of the soaps is in conformity with the Rule 24 of the Packaged Commodities Rules. Accordingly, it was requested to release seized goods and to grant personal hearing in case further clarification or explanation is sought. Even, the applicants constrained to write again to the respondents reiterating the same facts.
(e) The Respondents by letter dated 26.8.2002 informed the applicants that they have violated Section 33 of the Standards Act and they are liable for the prosecution, however, the opportunity was extended to the applicants to compound the offence at the departmental level, if desire