Point of Law : Section 6A of Act deals with confiscation of essential commodities by District Collector in pursuance of an order of seizure.

JUDGMENT :

The writ petition is filed challenging Ext.P10 order passed by the District Collector imposing a fine of Rs.10,000/- on the petitioner in exercise of the powers under Section 7 of the Essential Commodities Act, 1955 (for short, 'the Act').

2. The petitioner is a distributor of Liquefied Petroleum Gas (for short, 'LPG') of Indian Oil Corporation. Based on Ext.P6 complaint regarding leakage of the LPG cylinder filed by the 3rd respondent, a customer, the District Collector passed Ext.P10 order finding the petitioner guilty under the LPG (Regulation of Supply and Distribution) Order, 2000 (for short, 'the Order, 2000') and imposing a fine of Rs.10,000/- under Section 7 of the Act.

3. According to the petitioner, the 1st respondent has no authority to impose fine under Section 7 of the Act or under the Order, 2000. Apart from the question of jurisdiction of the District Collector to impose fine, the petitioner has also challenged the order on merits as well as on the ground of violation of the principles of natural justice.

4. A Statement is placed on record on behalf of the District Collector wherein it is stated inter alia that the offences relating to the supply and distribution of LPG are very numerous and it is the practice to summarily hear the accused and impose fines and penalties as per Section 7 of the Act and the same saves the State and the party from the long drawn out process of prosecution and trial.

5. Heard Sri. A. Rajasimhan, the learned counsel for the petitioner, Sri. Jacob E. Simon, the learned Government Pleader for the 1st respondent, Smt. Ramola Nayanpally, the learned counsel for the 2nd respondent and Sri. Saju J. Vallyara, the learned counsel for the 3rd respondent.

6. The impugned order of the District Collector reads as under:-

“ORDER

Having found that M/s.Super Gas Agency, Indian Oil Corporation Dealer, has failed in their responsibility pertaining to an authorized agency as per LPG (Regulation of Supply and Distribution) Order, 2000, a fine of Rs.10,000/- (Rupees Ten Thousand Only) is imposed upon the agency. The City Rationing Officer, Ernakulam shall ensure remittance and report. This order is passed by virtue of the powers conferred upon me by Section 7 of Essential Commodities Act, 1955.

Sd/- District Collector”

(emphasis supplied).

7. Section 7 of the Essential Commodities Act, 1955 reads as follows:-

“7.Penalties.— [(1) If any person contravenes any order made under section 3,-

(a) he shall be punishable,-

(i) in the case of an order made with reference to clause (h) or clause (i) of sub-section (2) of that section, with imprisonment for a term which may extend to one year and shall also be liable to fine, and

(ii) in the case of any other order, with imprisonment for a term which shall not be less than three months but which may extend to seven years and shall also be liable to fine:

[Provided that the court may, for any adequate and special reasons to be mentioned in the judgment, impose a sentence of imprisonment for a term of less than three months;]

(b) any property in respect of which the order has been contravened shall be forfeited to the Government;

(c) any package, covering or receptacle in which the property is found and any animal, vehicle, vessel or other conveyance used in carrying the commodity shall, if the court so orders, be forfeited to the Government.]

[(2) If any person to whom a direction is given under clause (b) of subsection (4) of section 3 fails to comply with the direction, he shall be punishable with imprisonment for a term which shall not be less than three months but which may extend to seven years and shall also be liable to fine:

[Provided that the court may, for any adequate and special reasons to be mentioned in the judgment, impose a sentence of imprisonment for a term of less than three months.]

(2A) If any person convicted of an offence under sub-clause (ii) of clause (a) of sub-section (1) or under sub-section (2) is again convicted of an offence under the same prov