A challan issued by a seller containing all the necessary particulars of a cash memo or bill satisfies the requirement of Clause 4(c) of the Bihar Essential Articles (Display of Prices and Stocks) Order, 1977, and a prosecution for violation of the Order cannot be initiated without obtaining the necessary sanction from the appropriate authority.

Ram Nandan Prasad, J. - The prayer in this application is to quash the order dated 1.3.1984 whereby the learned Special Judge, Sitamarhi has taken cognizance of the offence under section 7 of the Essential Commodities Act (hereinafter referred to as the 'Act') against the petitioners and ordered for issue of summons to them for appearance in court for standing trial. It has also been prayed that the entire criminal proceedings against the petitioners in that case (G.R. Case. No. 611/83 T.R. No. 27/84) be quashed.

2. Petitioner no.1 M/s Mithila Cycle Centre is a Partnership Firm having its place of business at the Main Road, in the town of Sitamarhi and petitioner no. 2 Suresh Kumar Hisaria is a partner of this firm. Petitioner no.3 Sajan Kumar Hisaria is the brother of petitioner no 2. Petitioner no. 4 Hansraj Agrawal is a resident of Janakpur Dham, Nepal and is said to be the proprietor of M/s Mahabir Cycle Stores situated there. The case was instituted on the basis of first information report lodged by one Jamuna Singh S. I. of Police (Food) Bhithamore Check-post, P.S. Sursand District Sitamarhi on 30.9.88 at 4 p.m. The first information report states that at about 12.15 p.m. the S.I. found one Thela on which cycle tyres and tubes and other accessories were loaded going along the Bhithajaleshwar Road and on questioning, the Thelawala Guttar Paswan told him that these articles had been brought from the shop of petitioner no.1 in Sitamarhi and after being unloaded from the same was being carried on Thela to the shop of petitioner no.4 at Janakpur Dham and the same belongs to him. Petitioner no. 4 was also going along with the Thela and he produced the Chalan (which the S.I. has found being a kachcha Chalan) issued by petitioner no.1 in favour of the purchaser petitioner no. 4. The first information report further states that since Hansraj Agrawal petitioner no.4 did not have any valid papers for the articles in question and since it was suspected that these articles were being taken for being sold in black-market, hence they were seized and the case was instituted for necessary action. The police after investigation submitted final form (Annexure-III) stating therein that it was a mistake of fact. The learned Special Judge was, however, of the opinion that an offence had been made out on the facts and accordingly he passed the impugned order.

3. It is not disputed that in respect of cycle and cycle parts, the only order applicable at the relevant time was the Bihar Essential Articles (Display of Prices and Stocks) Order, 1977, (hereinafter referred to as 'the Display Order'). It is also not disputed that the allegations in the present case relate to the application of Clause 4 (c) of the Display Order. The same may be quoted as under:-

"4. Sale of articles - No dealer shall-

(a) - - -

(b) - - -

(c) sell-any article or articles to any person without issuing a cash memo or a bill provided that the total value of such sale is above rupees ten or the value of one of the items included in it is above rupees five".

According to the prosecution case, though petitioner no. 1 had sold the articles in question (details given in the seizure list Annexure-II) the same was not accompanied with a cash memo or a bill and as such there was violation of this clause giving rise to an offence under the Act. It has been admitted in the first information report (Annexure-I) itself that the goods which were carried on the Thela were accompanied by a Chalan. The original of this Chalan is on the record of the L. C. Case. This document termed as a Chalan contains the name and address of the dealer i.e. petitioner no. 1, name and address of the person to whom the goods were sold namely Mahabir Cycle Stores, Janakpur, Nepal and also the full particulars of the different items sold including the rate and quantity of each item and it also contains the signature with date of the seller. It has been urged on behalf of the petitioners that this document th