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2000 Supreme(Guj) 596
Gujarat High Court
Judgename :D.M.Dharmadhikari, J.M.Panchal
Bhavansinh Ranjitsinh Parmar - Appellant
Versus
STATE - Respondent
S.C.A.5373 of 2000
Decided On : 08/01/2000
Headnote:(a) Constitution of India, 1950 - Art. 226 - Constitutionality of Sec. 3 of Prevention of Black-marketing and Maintenance of Supplies of Essential Commodities Act, 1980 (Central Act 7 of 1980) - Challenged - Whether Parliament is competent to legislate on Entry III of List III of VIIth Schedule while exercising power under Essential Commodities Act, 1955 and pass detention order under Sec. 3 - Held, yes - Whether Motor Diesel (Regulation of Supply and Distribution and Prevention of Mal Practices) Order, 1998 is out of scope of Sec. 3 of Essential Commodities Act, 1955 - Held, no - Writ fails - Validity of provision challenged upheld.
As the act of adulteration is prejudicial to the maintenance of supplies of essential commodities, the Parliament has legislative authority under Entry 3 of List III of the VIIth Schedule to the Constitution to enact Prevention of Black-marketing and Maintenance of Supplies of Essential Commodities Act, 1980 and Sec. 3 empowering a competent authority to pass detention order in case of adulteration of essential commodities is not beyond legislative competence. In view of the authoritative pronouncement of the Supreme Court in Bankatlal, AIR 1975 SC 522 it is futile to contend that the Parliament is not empowered to enact law providing for preventive detention in case of discrepancy in the quality of essential commodity.
[Para 12]
It cannot be said that the Central Government has no power to make an order under Sec. 3 (1) of the Essential Commodities Act, 1955 prescribing standards of quality of essential commodity. Therefore, neither Sec. 3 of the Prevention of Black-marketing and Maintenance of Supplies of Essential Commodities Act, 1980 nor provisions of the Motor Spirit and High Speed Diesel (Regulation of Supply and Distribution and Prevention of Malpractices) Order, 1998 can be said to be beyond the legislative competence. Therefore, validity of those provisions will have to be upheld.
[Para 13]
As Court has upheld the validity of those provisions, these petitions are ordered to be listed before the Court taking up such matters for disposal on merits and in accordance with law.
[Para 15]
(b) Essential Commodities Act, 1955 (Central Act 10 of 1955) - Sec. 3 - Whether sale of adulterated petroleum product would amount to dealing in essential commodities and attract detention - Held, yes.
Sale of adulterated petroleum or petroleum product would amount to committing an offence under the Essential Commodities Act, 1955 and would also amount to dealing in any commodity which is essential commodity with a view to making gain in any manner which may directly or indirectly defeat or tend to defeat the provisions of the said Act and, therefore, on reaching the requisite satisfaction, detention order can be passed against a person with a view to preventing him from acting in any manner prejudicial to the maintenance of supplies of commodity essential to the commodity.
[Para 9]
(c) Essential Commodities Act, 1955 (Central Act 10 of 1955) - Sec. 3 - Whether Central Government is authorised to regulate quality of essential commodities under the Essential Commodities Act, 1955 - Held, yes.
When Sec. 3(1) of the Essential Commodities Act authorises the Central Government to regulate qualitative and quantitative production of essential commodities, Court is of the considered opinion that it is idle to contend that an Order under Sec. 3(1) of the Essential Commodities Act cannot be made by the Central Government laying down standards and quality of an essential commodity.
[Para 11]
Supply in the context of Sec. 3 of the Act means supply of essential commodity in wholesome form. It does not mean supply of its adulterated substitute. There can be no doubt that engagement in the process of adulteration of essential commodities meant for sale is an activity highly prejudicial to the maintenance of supplies and services essential to the community, more so, when it is done in an organised manner and on a large scale.
[Para 12]
( 1 ) BY means of filing these petitions under Art. 226 of the Constitution, the petitioners have prayed to declare that Sec. 3 of the Prevention of Black Marketing and Maintenance of Supplies of Essential Commodities Act, 1980 is unconstitutional, ultra vires and beyond the legislative power of the Parliament under Entry 3 of list III of viith Schedule to the Constitution of India. The petitioners have further prayed to declare that the Central Government has no jurisdiction, competence, authority or power to provide for and prescribe the parameters governing the quality of essential commodity while exercising powers under the provisions of the Essential Commodities Act, 1955. The petitioners have also prayed to declare that Motor Diesel (Regulation of Supply and distribution and Prevention of Mal Practices) Order, 1998 is beyond the scope and purview of Sec. 3 of the Essential Commodities Act, 1955 and hence, beyond the power of the Central Government. Lastly, the petitioners have prayed to quash and set aside the order dated May 29, 2000 passed by the District Magistrate, Surendrangar detaining each petitioner under the provisions of the Prevention of Black Marketing and Maintenance of supplies of Essential Commodities Act, 1980 (the Act for short ).
( 2 ) ON April 28, 2000, the police authorities of Rajkot District intercepted four tankers containing liquid solvent. The solvent was brought for being delivered to retail outlets for mixing with petrol. The police authorities carried out a series of raids at each retail outlet selling petroleum products. The petitioner in SCA No. 5373 of 2000 is the Manager of the firm known as Madhur Raiji Petroleum which is authorised to sell petroleum products i. e. motor spirit, high speed diesel etc. The petitioners in SCA No. 5374 of 2000 is the manager of Mandavraiji Filling Station which is also authorised to deal in petroleum products. The retail outlets wherein the petitioners are working as Managers were also checked by the authorities of Civil Supplies Department on April 28, 2000. Checking was made by the authorities in exercise of powers conferred by the Essential Commodities act, 1955 read with provisions of Motor Diesel (Regulation of Supply and Distribution and Prevention of Mal Practices) Order, 1998 (the Order for short ). After the search of retail outlet, the petroleum product was seized which action is challenged by the respective petitioner in SCA No. 4406 of 2000 and SCA No. 4476 of 2000. At the time of search of retail outlets, samples of petroleum were drawn by the authorities and were set to the approved Laboratory for analysis. On the basis of the report of analysis, the District magistrate, Surendranagar was satisfied that petitioners were selling adulterated motor spirit and it was necessary to prevent the petitioners from acting in any manner prejudicial the maintenance of supplies of petroleum which is essential to the commodity. Therefore, he has made order directing the petitioners to be detained under the Act. According to the petitioners, maintenance of quality and standard of essential commodity is not within the purview of the Essential Commodities Act as the said Act is intended to provide for control of maintenance, supply and distribution of and trade and commerce in essential commodities. The petitioners have claimed that Essential Commodities Act does not deal with the quality of an essential commodity and as the legislature has enacted laws for the purpose of governing quality of essential commodities, no offence under the Essential commodities Act can be said to have taken place merely on the basis of discrepancy in the quality of petroleum product. The case of the petitioners is that as the Essential commodities Act does not deal with the question of quality of essential commodity, the central Government has no jurisdiction, authority or power to lay down parameters of petroleum products by way of making Order of 1998 and the Ord
