IN THE HIGH COURT OF JUDICATURE AT PATNA
RAJEEV RANJAN PRASAD, J.
(28.9.2022)
Cr. WJC No. 732 of 2022
M/s Ganpati Traders : Petitioner
Vs.
State of Bihar & Ors. : Respondents
Essential Commodities Act, 1955–Sections 6-A and 7–Constitution of India–Article 226–Seizure of subsidized wheat stored for black-marketing–Confiscation proceeding has been initiated against wheat in question–Sub-Divisional Officer has only acted as a post office–He has not discussed any material or applied his judicious mind before making recommendation to Collector–No opportunity was offered to petitioner to produce papers showing purchase of wheat–It is submitted that wheat has been removed from ambit of Section 3 of E.C. Act by Central Government vide Removal of (Licensing Requirements, Stock Limits and Movement Restrictions) on Specified Foodstuffs Order 2002–Police case has been registered under Section 7 of E.C. Act–It will be a question to be considered by authority passing order under Section 6-A of E.C. Act as to whether present case would be covered under Section 6-A and it has been seized pursuant to an order made under Section 3 of E.C. Act–Confiscation proceeding is in nature of a civil proceeding but it has got a civil consequence and principles of fair play in action embodied under principles of natural justice would be attracted–Fair play in action is fundamental to any action of a public authority/statutory authority–Respondents directed to release foodgrains in favour of petitioner. (Paras 10, 11, 12, 15, 16, 17, 20, 25, 27 and 29)
Sunderbhai Ambalal Desai Vs. State of Gujarat, (2002) 10 SCC 283; Baleshwar Roy Vs. State of Bihar, 2018(4) PLJR 970; Shambhu Dayal Agarwala Vs. State of West Bengal, (1990) 3 SCC 549–Relied.
Md. Jahangir Vs. State of Bihar, CWJC No.4479 of 2020–Distinguished.
RAJEEV RANJAN PRASAD, J.:–This writ application has been preferred seeking the following reliefs:—
“(a) For issuance of writ in the nature of mandamus directing and commanding upon the respondent authorities to release 115 bags of wheat (67.55 quintal) that has been kept in Godown of Petitioner which has been seized by the Block Supply Officer, Rajapakar along with the Officials of Rajapakar Police Station and for which Rajapakar P.S. Case No.192/2022 dated 10.06.2022 has been registered under Section 7 of the Essential Commodities Act.
(b) For issuance of writ in the nature of Mandamus directing and commanding the Respondent authorities to release 115 bagas of wheat (67.55 quintal) that had that has been kept in Godown of Petitioner which has been seized by the Block Supply Officer, Rajapakar along with the Officials of Rajapakar Police Station and for which Rajapakar P.S. Case No.192/2022 dated 10.06.2022 has been registered under Section 7 of the Essential Commodities Act.
(c) For holding that the seized wheat is not government food grains and same has been purchased by the Petitioner from different farmers, Millers/traders in usual course of business for selling to outside state after payment of cost.
(d) For any other writ/writs, order/orders, directions in the teeth of the facts and circumstances of this case.”
Case as per FIR
2. It is stated that on the basis of the written report of the Block Supply Officer, Rajapakar (Vaishali) that in ward no.13, south Rajapakar panchayat of Rajapakar Block subsidized wheat has been stored for black-marketing, a raid was conducted in the premises of the petitioner. It is alleged that in course of said raid 115 bags of subsidized wheat has been found stored in jute bags of Bihar State Food and Civil Supplies Corporation (hereinafter referred to as ‘the Corporation’). It is further alleged that at the time of raid proprietor of the shop was present and on being enquired the proprietor disclosed that the wheat were purchased from farmers in the rural areas. He could not produce any paper in proof of the same despite waiting for about two hours. The informant claims that from these facts it appears that the wheat were the subsidized wheat of the Corporation which were stored for black-marketing purposes. The wheat were seized and the same were given on ‘Jimenama’ to the Assistant Godown Manager of Bihar State Food Corporation. On the basis of the written complaint of the Block Supply Officer, Rajapakar the present case being Rajapakar P.S. Case No.192 of 2022 dated 10.06.2022 has been registered under Section 7 of the Essential Commodities Act, 1955.
Case of the petitioner
3. The petitioner is a proprietorship concern involved in the business of selling and buying rice, wheat and other items. According to him, the wheat in question were purchased from three different farmers namely (i) Kundan Kumar (ii) Raju Kumar and (iii) Ajeet Kumar. Three invoices in this regard have been brought on record as Annexure-P/2 series to the writ application. The petitioner has also brought on record its GST registration certificate as Annexure-P/3 to the writ application claiming that it is registered under the Value Added Tax Act, 2005 and also with the Government of India vide GST registration. From Annexure-P/3 it appears that it has been issued on 02.11.2017
It is submitted that the allegation that the wheat were the subsidized wheat of the Corporation has no basis and the whole allegation is based on surmises and conjectures. Merely because the wheat were packed in the bags of the Corporation, it does not make that those were subsidized wheat. It is common knowledge that those bags are available in the open market and anybody can purchase it.
4. It is submitted that the rice/paddy had been removed from the ambit of Section 3 of the Essential Commodities Act, 1955 (hereinafter referred to as ‘the E.C. Act’) by the Central Government vide Removal of (Licensing Requirements, Stock Limits and Movement Restrictions
An acquittal in criminal trials does not invoke the compensation provisions of the Essential Commodities Act if the statutory pre-conditions for such compensation are unmet.
Confiscation orders under the Essential Commodities Act are invalid if statutory notice and inquiry requirements are not met, violating principles of natural justice.
Confiscation orders under the Essential Commodities Act are invalid if the statutory procedure, including notice and opportunity to be heard, is not followed.
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