IN THE HIGH COURT OF DELHI AT NEW DELHI
YOGESH KHANNA, J.
Matrix Cellular (International) Services Limited – Appellant
Versus
State (NCT Of Delhi) - Respondent
W.P.(CRL) 975 of 2021
Decided on : 27-05-2021
Criminal Procedure Code, 1973 - Sections 451 or 457 - Constitution of India, 1950 - Article 226 - Epidemic Diseases Act - Section 2, 2A and 3 - Essential Commodities Act - Section 3 & 7 - Indian Penal Code, 1860 - Section 420/188/ 120B/34 - Drugs and Cosmetics Act - Section 3(b)(iv) - Search and Seizure - Offence of cheating - Covid-19 - Treatment equipment were seized is illegal - Products/stock seized - Raid conducted by SHO of police station while patrolling in area on restaurant - On search of aforesaid premises, 32 boxes of Oxygen Concentrators of 09 and 05 liters capacity; one box of thermal scanner and KN-95 Masks were recovered - allegations are in the year 2020 due to global pandemic work of petitioner company was affected and they started dealing in Covid-19 related items and imported oximeter, KN-95 mask and also procured rest of articles locally and sold them to dealers and corporate - Allegations are they are selling oxygen concentrators to needy person with profit/margin of Rs.40,000/- to Rs.42,000/- per piece - Whether the act of respondent in seizing articles is legal?
Finding of the court: No illegality in act of respondent especially when State was reeling in acute shortage of drugs, cylinders, concentrators and attendants of patients were running pillar to post, ready to part with their life savings for its purchase - Seized oxygen concentrators were allegedly sold at a huge profit margins in contravention of laws, rules and executive orders pointed out above. The facts show petitioner was engaged in selling untested oxygen concentrators to people desparate for these devices and at exorbitant prices through false representations, especially, when the State and whole country saw a unprecedented surge of covid-19 infections and sever lack of oxygen cylinders and/or concentrators - Hence, investigation being at initial stage, reliefs sought for in this petition cannot be granted by this Court except concentrators so seized be put an identification mark(s) and its coloured photographs be kept for future reference, by respondent.
Result: Petition is dismissed.
JUDGMENT :
YOGESH KHANNA, J.
(Through Video Conferencing)
1. This writ petition is filed by the petitioner for direction to the respondent to immediately release the products/stock seized by it from the petitioner’s Collection Centre at Lodhi Colony and the petitioner’s office premises at Mehrauli. Further, it is also prayed to restrain the respondent from seizing any further products of the petitioner pursuant to the FIR, besides other reliefs or even otherwise. This prayer (b) has since been withdrawn.
2. The gamut of the arguments raised by the learned senior counsel for the petitioner is a raid conducted on 05.05.2021 by the SHO of police station Lodhi Colony while patrolling in the area on the restaurant in the name and style of Nege Ju in the Central Market, Lodhi Colony, New Delhi. On search of aforesaid premises, 32 boxes of Oxygen Concentrators of 09 and 05 liters capacity; one box of thermal scanner and KN-95 Masks were recovered. In this regard, the FIR No.116/2021 dated 05.05.2021 under Section 3/7 of the Essential Commodities Act, under Section 3 of the Epidemic Diseases Act and Section 420/188/120B/34 IPC was registered at police station Lodhi Colony. Four accused persons were also arrested therein.
3. During the course of investigation, at the instance of accused persons, 387 oxygen concentrators; 112 boxes containing KN-95 marks, 95 Oximeter were recovered from Matrix Cellular International Services Private Limited, 7, Khullar Farm House, Mandi Road, Fatehpur Beri, New Delhi. During the investigation the accused persons allegedly disclosed regarding black marketing of oxygen concentrators and other Covid-19 treatment related equipment from various sources and supply/sold to the highest payer and needy person.
4. On 06.05.2021, one day police custody remand was taken of two accused persons and at their instances further recovery from Town Hall Restaurant, Khan Market, New Delhi was effected. On 07.05.2021, 96 oxygen concentrators were also recovered from Khan Chacha Restaurant, Khan Market, New Delhi and further invoices in the name of Dayal Opticals for selling of 250 oxygen concentrators were recovered at the instance of accused Hitesh.
5. The allegations are in the year 2020 due to global pandemic the work of the petitioner company was affected and they started dealing in Covid-19 related items and imported oximeter, KN-95 mask and also procured rest of the articles locally and sold them to the dealers and corporates. The allegations are they are selling the oxygen concentrators to the needy person with profit/margin of Rs.40,000/- to Rs.42,000/- per piece.
6. The arguments of the learned senior counsel for the petitioner is despite the FIR being registered on 05.05.2021, the entire seized material was sent to the Deputy Commissioner and not to a local Magistrate hence they have no remedy under Section 451 or 457 Cr.P.C. to move an appropriate application before learned Magistrate and since the seizure is illegal, the remedy is only to file a Writ under Article 226 of the Constitution.
7. It is argued the petitioner is dealing in oxygen concentrators and not oxygen cylinders and the equipments which are seized from the petitioner are sold over the counters and is not a regulated/controlled item. These items are being sold by Amazon and other online portals and the acts of petitioner have been carved out separately is a mischief of the concerned Investigating Officer.
8. Reference is made to various invoices filed on record stating interalia they have got these equipments imported for sale and the market prices are controlled by demand and supply and as there is no order of the Government controlling its prices, hence no case is made out against the petitioner.
9. It is alleged even the Division Bench of this Court has not given any direction qua concentrator. Reference is made to an order dated 06.05.2021 passed by the Division Bench of this Court in W.P.(C) No.3031/2020, which interalia notes:-
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