The compounding fee for violations under the Legal Metrology Act must not exceed the maximum fines prescribed for such offences, as established in Section 48(3).

Order :

1. The present writ petition has been filed challenging the order dated 19.11.2024, passed by the Senior Inspector, Legal Metrology (Weights and Measures), Lucknow, whereby the petitioner was directed to deposit the compounding fee of Rs.1,05,000/-, which was decided by the Assistant Controller, Legal Metrology, Lucknow Division to pay within a period of seven days of the receipt of such information.

2. The contention of learned counsel for the petitioner is that the proceeding were initiated against the petitioner for violation of Section 11/29 and 18(1)/36(1) of the Legal Metrology Act, 2009 read with Rule 6(1) & (10) of the Legal Metrology (Packaged Commodities) Rules, 2011.

3. In response to the show cause notice, the petitioner moved an application under Section 48 of the Legal Meteorology Act, 2009 before the competent authority (Assistant Controller, Legal Metrology, Lucknow Division) and the Assistant Controller, Legal Metrology, Lucknow Division passed an order and determined the amount of Rs.1,05,000/-.

4. The only argument of learned counsel for the petitioner is that as per Section 48(3) of the Act, which requires that any determination of compounding fee shall not exceed the maximum fine amount prescribed for the offence. According to him for violation of Section 11, the maximum fine amount prescribed for the first time offender is Rs.50,000/- and for violation of section 18 of the Act, maximum punishment prescribed under Section 36 is Rs.25,000/-. However, the determination of Rs.1,05,000/- was arrived contrary to the proviso. Therefore, he is before this Court.

5. Looking at the proviso to Section 48(3) of the Act it creates an embargo on fixation of compounding fee. The embargo stipulates that it shall not exceed from the maximum fine amount prescribed for the violation. Admittedly for maximum amount for the first time offender for the Section 29 of the Act is 50,000/- and maximum amount for violation under Section 18 of the Act is prescribed under Section 36 is Rs.25,000/-. If, both the amounts are calculated together, it comes to Rs.75,000/-. However, the compounding fee was fixed by the authority as Rs.1,05,000/-, which is contrary to the provisions.

6. Issue notice to the respondents, returnable within a period of four weeks.

7. The respondents-authorities are directed to allow the composition subject to payment of maximum prescribed i.e. 75,000/- instead of Rs.1,05,000/-.

8. Post the matter on 11.03.2025.