Point of Law: Section 7 of Act, power to impose penalty is upon Court and not on District Collector.

JUDGMENT :

MURALI PURUSHOTHAMAN, J.

1. The petitioner is the distributor of Liquefied Petroleum Gas (for short ‘LPG’). Attributing certain irregularities in the storage of LPG cylinders, Ext.P2 show cause notice was issued to the petitioner by the District Collector. The petitioner submitted Ext.P4 explanation stating that there is no irregularity or illegality in the stock of LPG cylinders. Later, the petitioner was issued with Ext.P5 notice of hearing and she appeared before the respondent and reiterated her contentions in Ext.P4. However, the respondent passed Ext.P6 order imposing a fine of Rs. 5,000/- under Sections 3, 6 and 7 of the Essential Commodities Act, 1955 (for short ‘the Act’) and Sections 8 and 10 of the Liquefied Petroleum Gas (Regulation of Supply and Distribution) Order, 2000 (for short ‘the Order, 2000’). Ext. P6 is challenged inter-alia on the ground that the District Collector has no authority to convict or impose fine on the petitioner under Sections 3, 6 and 7 of the Act and Sections 8 and 10 of the Order, 2000.

2. A counter affidavit is filed on behalf of the respondent wherein it is stated that the District Collector is competent to take prosecution steps under the Act and taking a lenient view, the District Collector has imposed only a minor penalty.

3. Heard Sri. A. Rajasimhan, the learned counsel for the petitioner and Sri. Jacob E. Simon, the learned Government Pleader for the respondent.

4. 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.

(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 sub-section (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 provision, he shall be punishable with imprisonment for the second and for every subsequent offence for a term which shall not be less than six 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 six months.”

(Emphasis supplied)

Under Section 7 of the Act, the power to impose penalty is upon the Court and not on the District Collector. Section 10A of the Act provides that every offence punishable under the Act shall be cognizable. Section 11 provides that no Court shall take cognizance of any offence punishable under the Act except on a report in writing of the facts constituting such offence made by a person who is a public servant or any person aggrieved or any recognised consumer association. Se