Gujarat High Court
Judgename :S.D.Shah, S.M.SONI
BACHHRAJI BIHARILAL PITALIYA - Appellant
Versus
DISTRICT MAGISTRATE,surat - Respondent
S.CRI.A.947 of 1993
Decided On : 11/11/1993
Prevention of Black marketing and Maintenance of Supplies of Essential Commodities Act, 1980 - Sections 3 (2) and 8 (1) - Licence - Detention - Activity of obtaining licence to deal in essential commodities and/or obtaining authorisation to run a fair price shop for supply of essential commodities, and thereafter illegally and unauthorisedly transferring for handsome considerations such licence or authorisation to unauthorised merchants or traders who would in their turn try to earn still higher profits-of course, at the cost and miseries of common men consumers - Held, However, in the facts and circumstances it is not necessary to make reference to the larger bench as in all cases before us not only the authority was alive to the provisions of Sec. 12 (AA) of the Essential commodities Act but the authority was also alive to the fact that launching of prosecution against such detenus may not prevent them from acting in any manner prejudicial to the maintenance and supply of essential commodities, and therefore, on the facts of this case also no interference of this Court is called for - In the facts of the case before us and more particularly after going through the grounds of detention we are more than satisfied to hold that the detaining authority was absolutely alive to the provisions of Sec. 12 (AA) of the Essential Commodities Act, and was also alive to the fact that launching of criminal prosecution was not sufficient to prevent the detenus from carrying on their prejudicial activities - Court does not find that necessary recitals contained in the grounds of detention in each case is a mere mechanical recital of statutorily sanctified phrases but we hold that it is a real satisfaction reached by the detaining authority which was more alive to its duties and which wanted to curb the nefarious activities of the detenus - Petitions dismissed
( 1 ) A public spirited social worker acting as anonymous informer to the Dist. Magistrate, Surat was instrumental in unearthing a systematic and well-organised activity of obtaining licence to deal in essential commodities and/or obtaining authorisation to run a fair price shop for supply of essential commodities, and thereafter illegally and unauthorisedly transferring for handsome considerations such licence or authorisation to unauthorised merchants or traders who would in their turn try to earn still higher profits-of course, at the cost and miseries of common menconsumers. The master-mind working behind this dubious devices is that of one Mr. Jayantilal Shah who was successful in obtaining number of licences and/or authorisation in diverse names to receive and sell kerosene at subsidised rates. Having obtained such licences and/or authorisation he had transferred for handsome consideration the rights flowing therefrom to other persons who in their turn are found to be making profit by selling such essential and scarce commodity at very high prices to unauthorised persons (persons other than card-holders ). It is also found that said Jayantilal shah was retaining partial control so as to usurp or share the profits resulting from blackmarketing of essential commodity like kerosene.
( 2 ) AFORESAID information supplied by the informant led to immediate investigation by a term of Supply Inspectors of the Office of District Supply officer at various places of business of said Jayantilal Shah and shocking revelations as aforesaid came to light. The persons in charge of the business, in absence of any licence or authorisation in their name, made confessional statements fully involving said Jayantilal Shah and themselves. Said Jayantilal Shah, however, escaped and avoided investigation and inquiry and was even successful in avoiding arrest for a long period pursuant to order of detention. The unauthorised transferees of such licences and authorisation are also detained by orders of detention passed on 21/05/1993 by the District Magistrate, Surat under Sec. 3 (2) of Prevention of blackmarketing and Maintenance of Supplies of Essential Commodities Act, 1980. Along with said order of detention the grounds of detention duly formulated under Sec. 8 (1) of the said Act are supplied to detenu. Since the detenus of present four petitions are served with such orders of detention, and since common questions of law and facts arise in these petitions, they are heard together and are being disposed of by this common judgment.
( 3 ) BLACKMARKETING has at its base a shortening of supplies because blackmarket flourishes best when the availability of commodities is rendered difficult. It has a definite tendency to disrupt supplies when scarcity exists or scarcity is created artificially by hoarding to attain illegitimate profits. Indulging in blackmarketing is a conduct which is prejudicial to the maintenance of supplies (vide Rameshwar Lal v. State of Bihar, AIR 1968 sc 1303 ).
( 4 ) IT is with a view to seeing that the essential commodities are available to all at market price and no scarcity of such commodities is created that various licensing and regulating orders are issued by the appropriate Government under Sec. 3 of the Essential Commodities Act, 1955. Consistent with this very objective and objective of making available the essential commodities at fair price to the weaker section of the society that the State of Gujarat has started the scheme of fair price shop with a view to seeing that the public distribution system is introduced and is effectively administered so that weaker section of the society get the essential commodities at fixed price from fair price shops which are (on paper) being run by the holders of authorisation. The aim of public distribution system is to provide essential commodities like foodgrains, kerosene, sugar, edible oil etc. to weaker section of the society at concessional rates. The Govt. of India i
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