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2022 Supreme(Jhk) 513

IN THE HIGH COURT OF JHARKHAND AT RANCHI
Sanjay Kumar Dwivedi, J.
Hari Shankar Agarwal, Son of Late Banwari Lal Kanodia - Petitioner
Versus
The State of Jharkhand - Respondent
W.P. (Cr.) No. 611 of 2015, W.P. (Cr.) No. 614 of 2015, W.P. (Cr.) No. 615 of 2015, W.P. (Cr.) No. 617 of 2015
Decided On : 25-08-2022

Advocates Appeared:
For the Petitioner: Mr. Nilesh Kumar.
For the Respondent: Mr. Gaurang Jajodia, Mr. Binit Chandra.

Non-compliance with statutory provisions, such as the requirement of prior concurrence of the Central Government and publication of notifications in the official Gazette, can vitiate criminal proceedings.

Headnote:

Essential Commodities Act - Storage Limit - Section 7 of the Essential Commodities Act - Clause 18 of the Bihar Trade Articles (Licences Unification) Order, 1984 - [Section 7 of the Essential Commodities Act, Clause 18 of the Bihar Trade Articles (Licences Unification) Order, 1984] - The court interpreted Clause 18 of the Bihar Trade Articles (Licences Unification) Order, 1984, which specifies the fixation of storage limit by the State Government with the prior concurrence of the Central Government by issuing a notification in the official Gazette. The court found that the State Government had not fulfilled the primary requirement of complying with Clause 18, as there was no prior concurrence of the Central Government and publication of the notification in the official Gazette. The court referred to previous cases to support its decision, emphasizing that the prosecution becomes invalid if no licence fee has been prescribed for dealing in pulses. The court concluded that the entire criminal proceedings against the petitioners were vitiated due to non-compliance with statutory provisions and quashed the criminal proceedings.

Fact of the Case:

The petitioners sought to quash criminal proceedings, including First Information Reports, related to storing pulses beyond the storage limit fixed by the State Government under Section 7 of the Essential Commodities Act.

Finding of the Court:

The court found that the State Government had not complied with the statutory requirement of prior concurrence of the Central Government and publication of the notification in the official Gazette, leading to the conclusion that the criminal proceedings against the petitioners were invalid.

Issues: The primary issue was whether the storage limit fixed by the State Government complied with the statutory provisions, and whether the criminal proceedings against the petitioners were valid.

Ratio Decidendi: The court held that non-compliance with Clause 18 of the Bihar Trade Articles (Licences Unification) Order, 1984, rendered the criminal proceedings invalid, citing previous cases to support its decision.

Final Decision: The court quashed the entire criminal proceedings, including the First Information Reports, against the petitioners.

JUDGMENT :

1. Heard Mr. Nilesh Kumar, learned counsel for the petitioners and Mr. Gaurang Jajodia and Mr. Binit Chandra, learned counsel for the State.

2. The common question of facts and laws are involved in these petitions and that is why, all these petitions have been heard together with the consent of the parties.

3. In W.P. (Cr.) No.611 of 2015, the prayer is made for quashing the entire criminal proceeding including the First Information Report i.e. Namkum P.S. Case No.194/15, corresponding to G.R. Case No.5148/15, pending in the court of the learned Sub Divisional Judicial Magistrate, Ranchi, in W.P. (Cr.) No.614 of 2015, the prayer is made for quashing the entire criminal proceeding including the First Information Report i.e. Ratu P.S. Case No.146/15, corresponding to G.R. Case No.5139/15, pending in the court of the learned Sub Divisional Judicial Magistrate, Ranchi, in W.P. (Cr.) No.615 of 2015, the prayer is made for quashing the entire criminal proceeding including the First Information Report i.e. Ratu P.S. Case No.738/15, corresponding to G.R. Case No.5163/15, pending in the court of the learned Sub Divisional Judicial Magistrate, Ranchi and in W.P. (Cr.) No.617 of 2015, the prayer is made for quashing the entire criminal proceeding including the First Information Report i.e. Ratu P.S. Case No.146/15, corresponding to G.R. Case No.5139/15, pending in the court of the learned Sub Divisional Judicial Magistrate, Ranchi.

4. All these cases have been registered under Section 7 of the Essential Commodities Act. In all the cases, it has been alleged that the petitioners have stored the pulses more than the storage limit fixed by the State Government and on these grounds, the cases have been registered against the petitioners.

5. Mr. Nilesh Kumar, learned counsel for the petitioners submits that the only allegation against the petitioners is of keeping pulses not within the storage limit fixed by the Government but the storage limit said to have been fixed is contrary to the provisions of Clause 18 of the Bihar Trade Articles (Licences Unification) Order, 1984. He further submits that nowhere in the notification dated 09.03.2015, it has been disclosed as to whether prior concurrence of the State Government had been taken before issuance of the said notification and whether the same was published in the Gazette, as such, institution of the FIR was bad in law and subsequent proceeding is also not in accordance with law and, therefore, in absence of compliance of the statutory provisions in terms of Clause 18 of the Unification Order, it would be presumed that there was no storage limit of pulses as on the date of the seizure. He further submits that no licence fee has been prescribed for dealing in pulses and any confiscation or prosecution becomes invalid in absence of fixation of any licence fee for dealing in pulses. He further elaborates his arguments by way of submitting that the First Information Report which has been instituted under Section 7 of the Essential Commodities Act does not disclose as to which order as prescribed under Section 3 of the Act has been violated. He also submits that since there are serious flaws in the prosecution case which is fatal to the prosecution, the entire criminal proceedings as against the petitioners deserve to be quashed by this Court. He further submits that the counter affidavits have been filed on behalf of the respondent-State and these facts have not been denied by the respondent-State.

6. Per contra, Mr. Gaurang Jajodia, learned counsel for the State appearing in W.P. (Cr.) Nos.611 of 2015, 614 of 2015 and 617/2015 and Mr. Binit Chandra, learned counsel for the State appearing in W.P. (Cr.) No.615 of 2015 submit that the Department of Food Public Distribution and Consumer Affairs, Government of Jharkhand had issued a notification dated 09.03.2015 fixing the storage limit of pulses of 500 quintal and the period of operation of the notification was extended from time to time. They

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