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ANDHRA PRADESH HIGH COURT
V.V.S. Rao, J.
EUREKA FORBES LTD.—Petitioner
versus
UNION OF INDIA—Respondent
Writ Petition No. 6547 of 1997—Decided on 7.2.2003

Advocates:
Counsels for the Parties :
For the Petitioner:Mr. M.S. Srinivasa Iyengar, Advocate.
For the Respondent:Mr. S.R. Murthy, Advocate.

Headnote:

Standards of Weights and Measures Act - Applicability to Vacuum Cleaners - Section 39, Section 2(b), Rule 2(I), Rule 2(c) - The court held that the vacuum cleaners manufactured and marketed by the petitioner-Company are not covered by the Standards of Weights and Measures Act, 1976, and the Standards of Weights and Measures (Packaged Commodities) Rules, 1977. The Act and the Rules apply to commodities in packaged form and the commodities which are not sold in packaged form, but not all products which are sold in non-packaged form are covered by the Act and the Rules. The Act and the Rules have no application unless the manufacturer, packer, or retailer intends to sell commodity in a packaged form as a pre-packed commodity or commodity in packaged form. The court emphasized that the Act and the Rules do not apply to all commodities and that the vacuum cleaner, being a single piece sold without packaging, does not fall under the Act and the Rules.

Fact of the Case:

The petitioner, a Company, sought a writ of mandamus declaring that the provisions of the Standards of Weights and Measures Act, 1976, and the Standards of Weights and Measures (Packaged Commodities) Rules, 1977, are not applicable to vacuum cleaners manufactured/marketed by the Company. The petitioner's vacuum cleaners were seized by the authorities, alleging contravention of the Act and the Rules.

Finding of the Court:

The court found that the vacuum cleaners manufactured and marketed by the petitioner-Company are not covered by the Standards of Weights and Measures Act, 1976, and the Standards of Weights and Measures (Packaged Commodities) Rules, 1977. The Act and the Rules apply to commodities in packaged form and the commodities which are not sold in packaged form, but not all products which are sold in non-packaged form are covered by the Act and the Rules.

Issues: The main issue was whether vacuum cleaners manufactured and marketed by the petitioner-Company are covered by the Standards of Weights and Measures Act, 1976, and the Standards of Weights and Measures (Packaged Commodities) Rules, 1977.

Ratio Decidendi: The Act and the Rules do not apply to all commodities, and the vacuum cleaner, being a single piece sold without packaging, does not fall under the Act and the Rules. The Act and the Rules have no application unless the manufacturer, packer, or retailer intends to sell commodity in a packaged form as a pre-packed commodity or commodity in packaged form.

Final Decision: The writ petition was allowed, and the vacuum cleaners manufactured and marketed by the petitioner-Company were held not to be covered by the Standards of Weights and Measures Act, 1976, and the Standards of Weights and Measures (Packaged Commodities) Rules, 1977.

JUDGMENT

V.V.S. Rao, J.—The petitioner is a Company incorporated under the Indian Companies Act, 1913. It has its Registered Office at Calcutta and Branch Offices all over the country. It is engaged in manufacture and marketing of vacuum cleaners and electrical consumer goods. The Company represented by its Branch Manager at Hyderabad filed the writ petition seeking a writ of mandamus declaring that the provisions of Standards of Weights and Measures Act, 1976 (Central Act No. 60 of 1976) (hereinafter called, the Act), and the Standards of Weights and Measures (Packaged Commodities) Rules, 1977 (hereinafter called, the Rules) are not applicable to vacuum cleaners manufactured/marketed by the Company.

2. The circumstances leading to filing of the writ petition may be briefly noticed. The direct sales division of the petitioner deal in vacuum cleaners under trade mark ‘Euroclean 2000’. The main unit and the accessories are purchased by the petitioner from various other manufacturers and they are placed in cartons and warehouses. The salesmen visit the prospective customers at their houses to market the product. A demonstration of the product is given to the customers who themselves handle the product so as to test the performance. It is upto the customer to purchase the product with standard accessories and with or without optional accessories. If the customer is satisfied after demonstration the vacuum cleaner is sold by single piece and not by number. The vacuum cleaner being a consumer durable and electrical equipment cannot be sold in packaged form. So as to protect the product during transportation, handling and storage, the product is put in a cardboard box or a carton. The outer case box or carton is not a “package” as defined in the Act and the Rules. The package is not sealed and it is not intended to be a sealed package. Customer is entitled to remove the product from the cardboard box, inspect and handle, and then test the performance before buying the same. Even if the customer decides to purchase vacuum cleaner, it is upto him to take the product along with cardboard box or take the product he tested in the office of the Company. In the bill/invoice the main unit price and the price of standard accessories are shown separately from the optional accessories. Therefore, vacuum cleaner delivered in carton or box for protective purpose, is not “commodity in packaged form”. They are not sold by weight, measure, or number at all and they are only sold as single piece.

3. The fourth respondent, namely Senior Inspector, Legal Metrology in the Department of Weights and Measures, Government of Andhra Pradesh visited the petitioner on 9.10.1996 and seized five boxes containing five Euroclean Vacuum Cleaners alleging that the petitioner has contravened the provisions of Section 39 of the Act read with Rules 23(6) and 23(7) of the Rules. The petitioner received notice on 31.1.1997 informing that prosecution would be launched if the offence is not compounded under Section 73 of the Act. The petitioner sent a reply explaining that the Act and the Rules have no application to vacuum cleaners and requested for personal hearing. The respondents indicated that they are not accepting the stand of the petitioner and informed that charge-sheet would be filed in criminal case against the petitioner. The Branch Manager was requested to furnish the names of the Directors of the petitioner-Company to prosecute them under the provisions of the Act read with various Rules. Therefore, the writ petition is filed seeking declaration as noticed hereinabove.

4. The Deputy Controller (Headquarters), Department of Legal Metrology filed a counter-affidavit on behalf of respondents to the following effect. The fourth respondent seized five packages of vacuum cleaners from the premises of the petitioner on 28.1.1997 which were intended to be sold. The packages sealed are ‘packaged commodity’ within the meaning of the Rules and it is not necessary that the p
























































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