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1991 Supreme(Mad) 598

High Court of Judicature at Madras
THE HONOURABLE MR. JUSTICE PRATAP SINGH
State By Inspector of Police, Madras - Appellant
Versus
K. Gnanasekaran - Respondents
Crl. O.P. No. 3252 of 1991
Decided On : 23 August 1991

Appearing Advocates:C. Kumaravel, P. Chidambara Subramanian, Advocates.

Section 6(E) of the Essential Commodities Act, 1955 bars courts from making orders regarding the possession, delivery, disposal, release, or distribution of seized essential commodities during the pendency of confiscation proceedings under Section 6(A) of the Act.

Headnote:

ESSENTIAL COMMODITIES ACT, 1955 - SECTION 6(E), 7(1)(B) - SEIZURE OF ESSENTIAL COMMODITY - RETURN OF SEIZED COMMODITY - BAR OF JURISDICTION - CONFISCATION PROCEEDINGS - COURT'S JURISDICTION TO ORDER RELEASE OR RETURN OF SEIZED COMMODITY DURING PENDENCY OF CONFISCATION PROCEEDINGS.

Fact of the Case:

The respondent filed a petition under Section 457 of the Criminal Procedure Code for the return of seized barrels of palm oil and cotton seed oil, claiming that he was not an accused in the case and that the oil was seized from his brother and father, who were accused, and not from his shop. The Special Judge allowed the petition in part, ordering the return of the palm oil but not the cotton seed oil. The respondent challenged this order in a petition under Section 482 of the Criminal Procedure Code.

Finding of the Court:

The court held that Section 6(E) of the Essential Commodities Act, 1955 bars courts from making orders regarding the possession, delivery, disposal, release, or distribution of seized essential commodities during the pendency of confiscation proceedings under Section 6(A) of the Act. The court also held that the confiscation proceedings initiated against the seized oil barred the return of the oil to the respondent.

Issues: 1. Whether the court has jurisdiction to order the release or return of seized essential commodities during the pendency of confiscation proceedings under Section 6(A) of the Essential Commodities Act, 1955? 2. Whether the respondent is entitled to the return of the seized oil, considering the confiscation proceedings initiated against it.

Ratio Decidendi: 1. Section 6(E) of the Essential Commodities Act, 1955 bars courts from making orders regarding the possession, delivery, disposal, release, or distribution of seized essential commodities during the pendency of confiscation proceedings under Section 6(A) of the Act. 2. The confiscation proceedings initiated against the seized oil barred the return of the oil to the respondent, as returning the oil would render Section 7(1)(b) of the Act nugatory.

Final Decision: The court allowed the petition, setting aside the order of the Special Judge that had allowed the return of the palm oil to the respondent.

Judgment :-

The respondent in Crl. M.P. 68 of 1991 on the file of Special Judge (E.C. Act), Madras has filed this petition u/S. 482 Criminal Procedure Code praying to set aside the order in the above Crl. M.P. 68/91.

2. The respondent herein has filed petition in Crl. M.P. 68/91 u/S. 457 Criminal Procedure Code for return of 4 barrels of Palmail, each weighting 200 kilograms and 2 barrels of cotton seed oil, each weighing 200 kilograms on the allegations that he is running a retail oil sales shop at No. 380/1, Konnar High Road, Ottery, Madras, under calid licence No. 37/89-90 issued by the Assistant Commissioner (Civil Supplies) Parambur Zone, Madras and that the above barrels were seized by the respondent police. They were purchased by the petitioner under valid purchase bill. The petitioner was not an accused in Cr. No. 37/91 in which the above barrels were seized and kept in the custody of the respondent. This claim was resisted by the respondent on the ground that the above barrels were seized from the brother and father of the petitioner who are accused in this case, from the premises bearing Door No. 382, Konnur High Road, Otteri, Madras 12, as the premises had no licence and that the oil contained in the barrels was suspected to be adulterated and meant for illegal sale. The barrels were not seized from the shop of the petitioner at Door No. 380/1, Konnur High Road, Otteri, Madras, as alleged. Samples of oil were taken and sent to Public Analyst. King Institute, Guindy and the result is awaited. During the pendency of the petition, before the learned Special Judge the Special Public Prosecutor had filed same submitting that Analyst report had been received on 12-3-91 wherein it was found that the sample of Palmoil was not adulterated whereas sample of cotton seed oil was adulterated. On a consideration of the materials placed before him, the learned Special Judge (E.C. Act) Madras has allowed the petition in part holding that petitioner is entitled to return of four barrels of Palmoil from the respondent and dismissed the petition with regard to the claim for return of two barrels of cotton seed oil. Aggrieved by the said order, the respondent has come forward with this petition u/S. 482 Criminal Procedure Code.

3. The learned Government Advocate would contend that there is bar u/S. 6(E) of the Essential Commodities Act, 1955 (which I shall hereinafter call as "the Act") for the court to make orders with regard to the release of the Essential Commodity in the sense of returning it to the owner or the person from whom it was seized even before the termination of the prosecution. For centre, Mr. P. Chidambara Subramaniam, the learned counsel appearing for the respondent, would contend that petitioner was not an accused in the case and that there is a difference between the words "release" and "return" and there is no bar in any of the provisions of the Essential Commodity Act, 1955 for returning the articles to a third party.

4. Certain facts need be stated; The petitioner herein who is the respondent before the Court below claims to have seized four barrels of palmoil from the premises bearing Door No. 382, Kannur High Road, Otteri on the ground that the accused Kasi Chettiar and Loganathan who were initially arrayed as accused 1 and 2 in the First Information Report do not possess any lisence to store the same in that premises and that the above quantities of palm oil and cotton seed oil appear to be adulterated. Case was registered in Cr. No. 37/91 under Rule 19(1) Tamil Nadu Essential Trade Articles (Regulation of Trade) Order, 1984 and under Rules 3 and 4 of Tamil Nadu Scheduled Articles (Presecription of Standard) Order, 1977 with 7(1)(a)(ii) of Essential Commodities Act, 1955. The petitioner who is son of the First accused Kasi Chettiar and brother of the second accused Loganathan had filed petition in the court below claiming that those barrels of Palmoil and cotton seed oil were seized only from the premises of his












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