IN THE HIGH COURT OF JUDICATURE AT PATNA
MOHIT KUMAR SHAH, J.
Naresh Sah, S/o. Moti Sah - Petitioner
Versus
The State of Bihar & Ors. - Opposite Parties
Criminal Miscellaneous No. 11049 of 2021
Decided On : 19-05-2022
Essential Commodities Act - Quashing of FIR - Section 7 - [15th February 2002, paragraph no. 3] - The court discussed the gazette notification dated 15th February 2002, which stated that rice is no longer a controlled item under the Essential Commodities Act. The court also referred to previous judgments and interpretations of the Act to support the petitioner's claim that the prosecution under section 7 of the Essential Commodities Act was not valid.
Fact of the Case:
The petitioner was accused of storing food grains for black marketing, but claimed innocence based on the purchase of rice and previous court orders. The court found that the petitioner's purchase of rice was genuine and that rice was no longer a controlled item under the Essential Commodities Act. The court also noted that a previous judgment had quashed a similar case.
Finding of the Court:
The court found that the prosecution against the petitioner would be an abuse of the process of the court and quashed the FIR against the petitioner.
Issues: Validity of the prosecution under section 7 of the Essential Commodities Act, genuineness of the petitioner's purchase of rice, and applicability of previous court judgments to the present case.
Ratio Decidendi: The genuineness of the petitioner's purchase of rice, the non-applicability of section 7 of the Essential Commodities Act due to rice no longer being a controlled item, and the applicability of previous court judgments to the present case were the key legal principles considered by the court.
Final Decision: The court quashed the FIR against the petitioner.
JUDGMENT :
The present petition has been filed for quashing FIR bearing Kursaila P.S. Case No. 198 of 2018 dated 04.11.2018 lodged under section 7 of the Essential Commodities Act as also the criminal proceedings emanating therefrom.
2. The case of the prosecution in brief, as per the complaint lodged by the Block Supply Officer, Kursaila, is that in the night of 03.11.2018, information was received that food grains have been stored in the house of the petitioner for the purposes of black marketing, whereafter the said Block Supply Officer, Kursaila had contacted the Block Development Officer, Kursaila and others and had then carried out a raid in the godown situated in the premises belonging to the petitioner. On search, it was found that the petitioner and others were packing rice, whereupon with the help of the police officials, the lock of one of the room situated in the premises of the petitioner was broken and, 439.68 quintal of rice was recovered, apart from recovery of some packaging materials and equipments.
3. The Ld. Counsel for the petitioner submits that the petitioner had filed a writ petition bearing CWJC No. 6034 of 2019 inter alia praying therein for release of 439.68 quintals of rice and other articles and a co-ordinate Bench of this Court vide order dated 17.04.2019 had directed the Collector-cum-District Magistrate, Katihar to release the rice in question, whereafter, the rice in question was released in favour of the petitioner.
4. The learned counsel for the petitioner has referred to a gazette notification dated 15th February 2002, paragraph no. 3 whereof is reproduced herein below:-
“With the coming into effect of this order any dealer may freely buy, stock, sell, transport, distribute, dispose, acquire, use or consume any quantity of wheat, paddy/rice, coarsegrains, sugar, edible oilseeds and edible oils and shall not require a permit or license therefor under any order issued under the Essential Commodities Act, 1955.”
5. It is thus submitted by the learned counsel for the petitioner that since the petitioner is a trader, dealing in sale and purchase of food grains, he cannot be prosecuted for the offence as alleged under section 7 of the Essential Commodities Act, especially in view of the fact that rice is no longer a controlled item. The learned counsel for the petitioner has also relied on Invoices dated 20.10.2018 and 24.10.2018 (Annexure-2 to the present petition) to show that he had purchased 471.50 quintals of rice from Uma Shankar Trader just prior to lodging of the FIR on 04.11.2018. Hence, it is submitted that the rice in question has been purchased in a bona fide manner by the petitioner and moreover, he not being a PDS dealer, there is no question of him engaging in black marketing. The learned counsel for the petitioner has also relied on a judgment dated 26.07.2018, rendered by a co-ordinate Bench of this Court in Cr. W.J.C. No. 2245 of 2017, wherein similar was the facts and circumstances and the learned co-ordinate Bench of this Court, in the said case was pleased to quash the FIR. Learned counsel for the petitioner has further relied upon yet another Judgment, rendered by a Coordinate Bench of this Court in the case of Shriram Rai & Anr. Vs. the State of Bihar and Ors. reported in 2006 (1) PLJR 504 wherein, in similar circumstances, where 300 bags of rice were seized, alleging that those were being brought from Gopalganj and Rohtas for black marketing, the learned Coordinate Bench of this Court, in paragraph nos. 3 & 4 of its Judgment, took note of the judgments of this Court, rendered in the case of Santosh Kumar vs. State of Bihar, [1990 (2) PLJR 520] and Tarapado Ghosh and Ors. vs. State of Bihar, [1990 (2) PLJR 602]. It would be apt to reproduce paragraph nos. 3 & 4 here under for ready reference:-
“3. Mr. Y.V. Giri, Senior Advocate, appearing on behalf of the petitioners contends that no order made under Section 3 of the Essential Commodities Act restricts movement of rice from one pla
Shriram Rai & Anr. Vs. The State of Bihar and Ors.
AI
FIR under Section 7 of the Essential Commodities Act cannot be instituted post removal order of 2002; court quashed the FIR due to lack of evidence and malicious intent.
Unauthorized search and seizure by an unauthorised authority vitiates the institution of criminal proceedings under the Essential Commodities Act.
Interpretation of legal provisions under the Essential Commodities Act, 1955 regarding dealing in foodgrains and the prosecution's burden of proof in cases of alleged black marketing.
Section 7 of the Essential Commodities Act is attracted only when there is a contravention of the provisions of any order issued under Section 3. The prosecution under Section 7 cannot be sustained i....
Prosecution under the Essential Commodities Act cannot lie against a private individual who is not a PDS dealer, as established by legal precedents regarding stock limits and the nature of essential ....
Procedural lapses in FIR registration render subsequent search and seizure invalid, emphasizing the importance of following legal protocol in criminal actions.
Mandatory registration of FIR is required for cognizable offences, and failure to adhere to this process invalidates subsequent legal actions.
The provisions of the Public Distribution System (Control) Order, 2001 prevail over previous orders of State Governments, and unauthorized search and seizure is illegal.
Mandatory registration of FIR is required for cognizable offences, and unlawful seizure of goods without proper procedure contravenes established legal principles.
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