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1977 Supreme(Del) 145

High Court Of Delhi
MUNICIPAL CORPORATION OF DELHI - Appellant
Versus
J.B.BOTTLING COMPANY PRIVATE LIMITED - Respondent
CRIMINAL APPEAL 33 of 1970
Decided On : 11/09/1977

Advocates Appeared:
B.G.SINGH, L.B.DAYAL, R.K.MEHTA, RAJENDRA KUMAR

The term "any financial interest" in the proviso to Section 9(1) of the Prevention of Food Adulteration Act, 1954, should be interpreted literally and includes any financial interest, however indirect or insignificant, in the manufacture, import, or sale of food items.

Headnote:

PREVENTION OF FOOD ADULTERATION ACT, 1954 - SECTION 9(1) - INTERPRETATION OF "ANY FINANCIAL INTEREST" - WHETHER HOLDING SHARES IN A COOPERATIVE SOCIETY OR COMPANY ENGAGED IN FOOD MANUFACTURE, IMPORT, OR SALE CONSTITUTES "FINANCIAL INTEREST" - FULL BENCH REFERENCE.

Fact of the Case:

The reference to the full bench arose from a criminal appeal where the appellant challenged the validity of the appointment of a Food Inspector who took a sample of food, alleging that he had a financial interest in the manufacture, import, or sale of food items due to his shareholding in a cooperative store. The appellant argued that the term "any financial interest" in the proviso to Section 9(1) of the Prevention of Food Adulteration Act, 1954, should be interpreted as "substantial direct financial interest" and not include indirect or insignificant financial interest.

Finding of the Court:

The full bench held that the expression "any financial interest" in the proviso to Section 9(1) of the Act is precise, unambiguous, and should be interpreted literally. The court found that the primary rule of literal construction, as well as the rule of interpretation based on the scope and object of the statute, supported this interpretation.

Issues: 1. Whether the term "any financial interest" in the proviso to Section 9(1) of the Prevention of Food Adulteration Act, 1954, includes indirect or insignificant financial interest, such as shareholding in a cooperative society or company engaged in food manufacture, import, or sale. 2. Whether the appointment of a Food Inspector with such an indirect financial interest is valid.

Ratio Decidendi: 1. The court applied the primary rule of literal construction and found that the expression "any financial interest" is clear and unambiguous and should be understood in its natural and ordinary sense. 2. The court also considered the rule of interpretation based on the scope and object of the statute and found that the purpose of the proviso is to exclude persons with financial bias from being appointed as Food Inspectors. The court held that even a slight financial interest can create bias and, therefore, disqualifies a person from being appointed as a Food Inspector.

Final Decision: The full bench answered the reference in the affirmative, holding that holding one or more shares in a cooperative society or company engaged in the manufacture, import, or sale of food items amounts to having a financial interest for the purposes of the proviso to Section 9(1) of the Prevention of Food Adulteration Act, 1954.

YOGESHWAR DAYAL

( 1 ) THE following question has beenreferred TO by the learned Judges of the Division Bench (Jagjit Singh andm. S. Joshi, JJ) by their order of reference dated August II. 1975. for decision of the full Bench :

"whether holding one or more shares in the Municipal Corporation Cooperative Stores Limited or in any other cooperativesociety or company, engaged in the manufacture, importor sale of any article of food, amounts to having financialinterest in the manufacture, import or sale of articles offood for purposes of the proviso to sub-section (1) ofsection 9 of the Prevention of Food Adulteration Act,1954".

( 2 ) LALA Bishambar Dayal, learned counsel for the appellant inthe criminal appeal out of which the present reference has arisen,raised a preliminary objection that the reference itself is incompetentas this question does not arise on the facts of this case. It wassubmitted by the learned counsel that the question, whether the Foodinspector who took the sample in the present case was duly appointedor not, was not raised in the courts below and, therefore, it cannot beraised in the present appeal and even if the appointment of the Foodinspector is invalid within the meaning of section 9 (1) of the prevention of Food Adulteration Act, 1954, it cannot be raised during thehearing of the criminal appeal. It was also submitted that on the factsof this case, it would have no effect and, therefore, the full Benchshould decline to answer the question.

( 3 ) WHETHER the respondents can raise these questions or witherthese questions will arise in the criminal appeal are matters for decision of the Division Bench who hears the appeal. We would be enlargingthe scope of reference if we go into the preliminary objections raised bythe learned counsel which, we are afraid, we are neither competent togo into nor are we inclined to go into at this stage. These are all matterswhich the appellant would be free to urge before the Division Benchwhich hears the appeal and our answer to the reference would in noway prevent the learned counsel to make his submissions before thedivision Bench after the reference has been answered.

( 4 ) IT appears that the reference has been made by the learned Judges of the Division Bench in view of the conflict in the observationsof this Court (Rangarajan and Prakash Narain, JJ) in Municipal Corporation of Delhi v. Takhat Ram (1974 Prevention of Food Adulteration Cases 232) (1) and the decision of the Chief Justice Falshawand Mehar Singh, J. in an unreported decision in Municipal Corporation of Delhi v. Rajev and another : (Criminal Appeal No. 169-D of1962 decided on 11-2-1965) (2 ). Whereas the decision of the learnedjudges of this Court in the aforesaid case of Takhat Ram related tothe interpretation of proviso to sub-section (1) of Section 9 in relationto the appointment of Food Inspector, the decision of the learnedjudges of the Division Bench of the Cricuit Bench of the Punjab Highcourt related to the interpretation of an identical proviso to Section8 in relation to the appointment of a public analyst.

( 5 ) THE relevant provisions of Sections 8 and 9 of the Prevention of Food Adulteration Act, 1954 (hereinafter REFERRED TO to as "the Act")may be reproduced for facility of understanding and determining thescope of relevant provisos :

"8. Public Analysts :-The Central Government or the Stategovernment may, by notification in the Official Gazette,appoint such persons as it thinks fit, having the prescribedqualifications to be public analysts for such local areasas may be assigned to them by the Central Governmentor the State Government, as the case may be :

PROVIDED that no person who has any financial interest in themanirfacture, import or sale of any article of food shallbe appointed to be a public analyst under this section :

PROVIDED further that different public analysts may be appointedfor different articles of food.

( 6 ) FOOD inspectors :- (1) The Central Government or thestate Government may
































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