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2025 Supreme(Pat) 378

IN THE HIGH COURT OF JUDICATURE AT PATNA 
CHANDRA SHEKHAR JHA, J. 
Om Prakash @ Om Prakash Yadav Son Of Late Mithilesh Yadav @ Late Barlesh Yadav - Appellant
Versus 
The State of Bihar  - Respondent 
Criminal Miscellaneous No.55721 of 2023 
Decided on : 21-03-2025

Advocates:
Advocate Appeared:
For the Appellant : Mr. NK Agrawal, Sr. Adv. Mr. Ranjan Kumar Jha, Adv. Mr. Vikash Kumar, Adv.
For the Respondent: Mr. Navin kr. Pandey, APP

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 goods.

Headnote:(A) Indian Penal Code, 1860 - Section 379 - Essential Commodities Act, 1955 - Quashing of FIR - The petitioner, owner of a rented godown, was accused in relation to black marketing; valid legal arguments presented included lack of PDS dealer status and removal of restrictions on stock; FIR quashed as it did not disclose a cognizable offence. (Paras 4, 5, 9)

(B) Legal Principles - Prosecution under Essential Commodities Act cannot lie against a private person not being a PDS dealer; relevant precedents establish limitations on the scope of prosecution under the Act. (Paras 8)

Facts of the case:
The FIR was filed alleging illegal storage and black marketing of rice after a raid found a truck loaded with rice at the petitioner’s godown, which was rented out. The owner of the godown was alleged to be involved despite evidence suggesting non-culpability regarding PDS regulations. (Paras 2, 4)

Findings of Court:
The court finds no basis for prosecution under Section 7 of the E.C. Act against the petitioner, as he is not a PDS dealer and the seized rice no longer falls under essential commodities due to government notifications. (Paras 8, 9)

Issues: Whether the FIR can withstand scrutiny considering the petitioner’s non-status as a PDS dealer and the legal interpretations regarding stock limits for essential goods. (Paras 5, 9)

Ratio Decidendi: The court emphasized that for an FIR to hold, there must be a cognizable offence. The petitioner, as a non-PDS dealer, cannot be prosecuted under the E.C. Act, reinforced by precedents indicating that such Acts are aimed at PDS dealers only. (Paras 8, 9)

Result: Petition allowed; FIR against the petitioner quashed.

Table of Content
1. understanding the factual background of the case. (Para 2 , 3)
2. arguments concerning rental and ownership of the goods. (Para 4 , 5)
3. state's opposition to quashing the fir. (Para 6)
4. relevant legal precedents for quashing fir. (Para 7 , 8)
5. legal reasoning leading to the quashing of the fir. (Para 9)
6. final order and conclusion of the court. (Para 10 , 11)

JUDGMENT :

CHANDRA SHEKHAR JHA, J.

Heard Mr. N.K. Agrawal learned senior counsel for the petitioner and Mr. Navin Kr. Pandey learned APP for the State.

2. Present petition for quashing of FIR bearing Chousa P.S. Case No. 80 of 2023 dated 18.03.2023, filed under Section 379 of IPC and Section 7 of E.C. Act.

3. The brief fact of the case as it appears from the version of the informant namely Sanjeev Kumar, Block Supply Inspector, Chausa, that on 18.03.2023 at 01.05 AM over telephone, he received information that at Bhatgama, Arwa, rice is loaded on the truck which is for black marketing. On this information, he himself, B.D.O. Chausa, Revenue Officer and police party Chausa in joint raid, found that one truck bearing registration no. RJ09GD-5340 was loaded with 495 plastic gunny bag Arwa Rice of 50.00 Kg each hand stitched, total weight 247.50 quintal. Truck was standing in the godown premises of godown owner Mr. Om Prakash and on truck its driver Kailash Dangi and khalasi Vikram were present. Driver and khalasi were taken into custody and inspection was made in godown from where 80 gunny bag of rice was found stored, whereafter the godown and food grain was seized. During raid, godown owner fled. After waiting for hours, godown owner did not return nor produced any documents in respect of purchase. Information was given to S.D.O., Udakishunganj who directed to institute FIR. It is further stated that again when he reached to bring the seized rice which was kept in the godown, then he found the lock was broken and whole 80 bags of Arwa rice was missing from the Godown. Thereafter, seized rice was handed over on Jimmenama to the Assistant Godown Manager, S.F.C., Bihariganj.

4. Mr. NK Agrawal, learned senior counsel for the petitioner submitted that petitioner is the owner of the godown in question but it was given on rent to one Shailendra Kumar, son of Harilal Pandit, R/o Village + P.O. Madhurapur, Narayanpur, P.S. Bhawanipur (Bihpur), district Bhagalpur on 01.02.2022, against monthly rent of Rs. 6100/- for three years w.e.f. 01.02.2022 to 31.01.2025. The petitioner duly entered into the rent agreement with Shailendra Kumar, in terms of Annexure -2. It is further submitted by Mr. Agarwal that Shailendra Kumar was running a firm under name and style of M/s Jay Mahadev Traders, Madhurapur, Narayanpur, district Bhagapur for which the rice in issue was purchased from Adarsh Food Product, Industrial Area, Deonah, Tilrath, Begusarai, and in support of this fact a bill dated 16.03.2023 appears annexed with petition as Annexure-3. Mr. Agrawal further submitted that M/s Jay Mahadev Traders is duly registered with GST Department, Government of India since 10.08.2017. It is pointed out that petitioner is not a PDS dealer and also the said Shailendra Kumar who was given premises on rent was also not a PDS dealer and considering all such issues the seized rice was released in favor of said Shailendra Kumar owner of M/s Jay Mahadev Traders by learned court below. It is submitted that as petitioner is not a PDS dealer, therefore, no case under E.C. Act appears made out against him. It is further submitted that the truck which was found involved in carrying of alleged seized rice i.e., bearing registration no. RJ-09-GD5340 was also released in favor of rightful order by the learned court below. It is further submitted that in view of all aforesaid factual submission, this FIR is fit to be quashed/set aside.

5. In aforesaid context, it is further submitted by Mr. Agrawal, learned senior counsel that from the perusal of various notifications as issued by the State Governmen

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