IN THE HIGH COURT OF GAUHATI, ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH
RUMI KUMARI PHUKAN, J.
Dharampal Satyapal Ltd. - Petitioner
Versus
The State of Maharashtra, Through Director General of Police, Police Headquarters & Ors. - Respondents
W.P.(Crl.) No. 12 of 2022
Decided On : 16-06-2022
Company Act, 1956 - Constitution of India, - Article 226 - Criminal Procedure Code, 1973 - Section 91 and 102 - Food Safety Standards Act, 2006 - Section 41 and 42 - Food Safety and Standard Regulation - Regulation No.2.11.5 - Manufacturing and selling pan-masala - Seizure memo - Quash of – Impugned seizure, made by respondent No.2, contending that same has been made out without authority of law and quite illegal – Challenged - Petitioner herein is a company incorporated under provisions of Act, 1956, petitioner company has been granted license by competent authority under Act, 2006 to manufacture pan-masala, which is classified as a food product and it is a product standardized under Regulation No.2.11.5 of Regulation - Impugned seizure list prepared by the respondent no.2 is hereby quashed and set aside with a direction to release all seized article to petitioner forthwith, if not released yet. The Bank Guarantee is to be revoked immediately. (Para 23)
Finding of the court :
Provision of Section 41 and 42 of FSS Act, make special provision as regard how investigation needs to be carried out whenever there is a reasonable doubt about commission of offence relating to food item by authority - It can be held that investigation so far carried by I/O particularly, so far as regard present petitioner is beyond jurisdiction under law - Petitioner without there being any criminal culpability has been thrown to utter hardship and inconvenience by seizure of building as well as article valued more than crores of rupees thereby petitioner has been compelled to run a legal battle consuming time, energy and heavy cost while continuing such litigation before High Court - Although, initially petitioner was allowed interim relief at time of filing of this petition, but being not satisfied with order, petitioner carried matter to appellate court wherein appellate court allowed petitioner to take possession of manufactured goods subject to giving bank guarantee of rupees one crore - Fundamental rights of petitioner to carry out lawful business has been hampered for such illegal conduct on part of investigating officer - All points formulated above answered accordingly. Impugned seizure list prepared by respondent no.2 is hereby quashed and set aside with a direction to release all seized article to petitioner forthwith, if not released yet.
Result : Petition is allowed
JUDGMENT :
Heard Dr. A. Saraf, learned senior counsel appearing for the petitioner. Mr. R.K.D. Choudhury, learned counsel appearing for the respondent No.2 and Mr. M. Phukan, learned P.P., Assam, appearing for the respondent Nos.3 & 4.
2. By way of this application under Article 226 of the Constitution of India, the petitioner has challenged the impugned seizure, made by the respondent No.2, contending that the same has been made out without the authority of law and quite illegal and prayer has been made to quash and set aside the seizure memo dated 09.03.2022, in connection with the MIDC P.S. Solapur Case No.802/21.
3. The petitioner herein is a company incorporated under the provisions of Company Act, 1956, by name Dharampal Satyapal Ltd., having its registered office at New Delhi and manufacturing unit at Bamunimaida Industrial Estate, Guwahati. The petitioner company has been granted license by the competent authority under the Food Safety Standards Act, 2006 (hereinafter referred to as ‘the FSS Act’), to manufacture pan-masala, which is classified as a food product and it is a product standardized under the Regulation No.2.11.5 of Food Safety and Standard Regulation. The Rajanigandha pan-masala is a premium product of the petitioner company, manufactured in the factory situated at Bamunimaidam and they are manufacturing and selling pan-masala in accordance with the provisions of the FSS Act.
4. An FIR dated 06.12.2021 was registered as FIR No.802/21, at the MIDC Police Station, Solapur in Maharashtra against one Md. Imran Mohammed Hanif under Section 188/272/273/328 IPC, read with Section 26(2)(i)—(iv)(e) and Section 59 of the FSS Act, for possession of Rajanigandha pan-masala and Scented Tobacco and Baba Nabaratan pan-masala, etc. which are prohibited items of food, in view of the notification issued by the Commissioner of FSS and Drug Administration, Maharashtra, dated 20.07.2019.
5. In course of investigation, the stock of pan-masala, tobacco, recovered from the FIR named accused Md. Imran Mohammed Hanif was seized and he was arrested, subsequent to the FIR. Various notice was served upon the petitioner Company at New Delhi, for production of certain documents under Section 91 of the CrPC and the petitioner immediately responded to the same by detail reply along with the documents. Suddenly on 09.03.2022, respondent No.2, who is the investigating officer of the said case, visited the factory of the petitioner at Bamunimaidam and entered into the premises along with police officials of Chandmari P.S., without any document/search warrant from the Court of Law and the respondent No.2 forcibly seized the entire machinery and articles from the factory of the petitioner and prepared the seizure list (panchnama) and also sealed the gate of the petitioner company’s factory. The seized/finished pan-masala was worth more than one crore and was lying in the production hall, to be sent for packaging. Such pan-masala contains highly hygroscopic substance like katha, which attract moisture and exposure to such moisture has caused huge loss to the articles.
6. Challenging the aforesaid search and seizure made by the respondent No.2, present writ petition has been preferred contending that Maharashtra Police has no jurisdiction and power to seize the factory, fix plant and machinery and other articles, whereas petitioner has not contravened any law in Solapur, Maharashtra and whereas the petitioner has due license to produce pan-masala given by the appropriate authority and the company is also not an FIR named accused. It is accordingly contended that seizure of the factory and machinery of the petitioner company defies logic and is illegal and whimsical, without sanction of law.
7. Learned senior counsel for the petitioner Dr. A. Saraf has vehemently urged before this Court that such search and seizure has been made in utter disregard to the prescribed procedure under Section 102 CrPC and police authority has no power to seize such property
Provision of Section 4(2) of CrPC, all offences under any other law shall be dealt with in accordance with enactment regulating manner of investigation and trial etc. and as such FSS being a complete....
Point of law : Interfering with the sealing/closing of the Petitioners’ factory premises would not effect or hamper the investigation so carried out.
The main legal point established in the judgment is that the provisions of the Food Safety and Standard Act, 2006 have an overriding effect over the Indian Penal Code, and the procedure for launching....
Prosecution under the Food Safety and Standards Act does not require a prior complaint for FIR; misbranding entails legal liability under both the IPC and Food Safety Act.
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