IN THE HIGH COURT OF DELHI AT NEW DELHI
Amit Bansal, J.
H&m Hennes & Mauritz Retail Pvt. Ltd. – Appellant
Versus
Legal Metrology Department Govt. of NCT of Delhi – Respondent
Crl.M.C. 3348 of 2018 and Crl.M.A. 12127 of 2018 (stay)
Decided On : 24-07-2023
Legal Metrology - Quashing of Criminal Complaint - Legal Metrology Act, 2009, Rule 13(3)(b) of the Legal Metrology (Packaged Commodities) Rules, 2011 - The court held that the goods of the petitioner company are sold in a loose form and would not fall into the category of the 'pre-packaged commodity'. The impugned summoning order failed to appreciate that the goods of the petitioner company are sold as loose articles and the customers are free to try or inspect the same, thus not falling within the ambit of the 2011 Rules. The continuation of the present proceedings would be an abuse of the process of law and the complaint deserves to be quashed in the interest of justice.
Fact of the Case:
An inspection was carried out at the retail store of the petitioner, alleging violation of Rule 13(3)(b) of the Legal Metrology (Packaged Commodities) Rules, 2011. A complaint was filed and summoning order issued against the petitioner.
Finding of the Court:
The court found that the goods of the petitioner company are sold in a loose form and would not fall into the category of the 'pre-packaged commodity'. The impugned summoning order failed to appreciate this fact.
Issues: Violation of Rule 13(3)(b) of the Legal Metrology (Packaged Commodities) Rules, 2011, applicability of the rules to loose garments sold by the petitioner company.
Ratio Decidendi: The goods of the petitioner company are sold in a loose form and would not fall into the category of the 'pre-packaged commodity'. The impugned summoning order failed to appreciate this fact.
Final Decision: The petition is allowed, the summoning order dated 2nd May, 2016, is set aside and the Criminal Complaint No. 32/1W/16 and the proceedings arising therefrom are hereby quashed.
JUDGMENT
Amit Bansal, J. (Oral)--By way of the present petition, the petitioner seeks quashing of:
(i) Criminal Complaint No. 32/1W/16 and the proceedings emanating therefrom and,
(ii) setting aside the summoning order dated 2nd May, 2016.
2. Brief facts leading to the filing of the present petition are as under:
i. An inspection was carried out at the retail store of the petitioner situated at Select Citywalk, District Centre, Saket by an Inspector of the Legal Metrology Department. As per the inspection report, the size of a cardigan was not converted into meters and therefore it is alleged that the petitioner company committed an offence under Rule 13(3)(b) of the Legal Metrology (Packaged Commodities) Rules, 2011 (hereinafter 2011 Rules).
ii. Based on the inspection, an undated notice was sent to the petitioner on 31st January, 2016, alleging violation of Rule 13(3)(b) of the 2011 Rules and the petitioner was directed to pay a penalty as well as fees of Rs.2000/-in terms of Section 32 of the Legal Metrology Act, 2009.
iii. On 24th February, 2016, the petitioner made a representation to the Secretary, Consumer Affairs, seeking clarification that the aforesaid 2011 Rules are not applicable to the products sold by the petitioner, which are sold in open condition.
iv. On 2nd May, 2016, a complaint was filed by the respondent, on the basis of which the summons against the petitioner were issued on 2nd May, 2016.
3. Reply to the present petition as well as the rejoinder thereto have been filed.
4. Senior counsel appearing on behalf of the petitioner submits that the products of the petitioner company are not `pre-packaged commodities' and therefore, the 2011 Rules are not applicable.
5. He further places reliance on an advisory dated 31st March, 2017, issued by the Ministry of Consumer Affairs, Legal Metrology Division, wherein it has been stated that loose garments which are sold would not constitute a `pre-packaged commodity' in terms of the Legal Metrology Act, 2009.
6. I have heard the counsels for the parties and perused the material on record.
7. At the outset, reference may be made to the definition of `prepackaged commodity' as provided in the Legal Metrology Act, 2009:
"2. Definitions.-In this Act, unless the context otherwise requires,-
(l) "pre-packaged commodity" means a commodity which without the purchaser being present is placed in a package of whatever nature, whether sealed or not, so that the product contained therein has a pre-determined quantity;"
8. A reference may also be made to Rule 13(3)(b) of the 2011 Rules, which is set out below:
"13. Statement of units of weight, measure or number.
...
(3) When expressing a quantity of equal to or more than-
...
(b) one metre, the unit of length shall be the metre and any fraction of a metre shall be expressed in terms of decimal of sub-multiples of the metre or in terms of centimetre;"
9. A reading of the Rules would also make it evident that the aforesaid Rules are only applicable in respect of `pre-packaged commodities'.
10. In paragraph 7 of the reply filed on behalf of the respondent, it has specifically been admitted that the mandatory labelling requirement for `pre packaged commodities' is not applicable to garments sold in loose form. Paragraph 7 of the reply is set out below:
"That in response to para J-K of the petition it is submitted that the mandatory labelling required for pre-packaged commodities are not applicable to garments sold in loose forms however it must contains, (i) Name/Description of the product, (ii) Size Internationally recognizable size indicators S, M.L. XL etc. along with details in metric notation in terms of cm or m as the case may be, (iii) MRP & (iv) Name, full address and Customer Care of the manufacturer."
11. Even in the advisory issued on 31st March, 2017, by Legal Metrology Division, Ministry of Consumer Affairs, it has been stated as under:
"(i) A loose garments which is sold after consumer sees them for Style/Design, tries them fo
The legal principle established is that the applicability of the Legal Metrology (Packaged Commodities) Rules, 2011 to loose garments sold by a company depends on whether the goods are sold in a loos....
Directors of a logistics company cannot be prosecuted under the Legal Metrology Act without the company being made an accused, as they are not involved in manufacturing or labeling.
Allegations do not satisfy requirement of Sub-Rule 1 of Rule 18, hence question of raising same as a defense would not at all arise.
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