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HIGH COURT OF ORISSA
G. K. Misra, J.
MURARILAL GARG - Appellant
Versus
STATE - Respondent
Criminal Revn. 44 Of 1965
Decided On : NOVEMBER 02, 1965
ESSENTIAL COMMODITIES ACT - SECTION 3, 7 - ORISSA FOODGRAINS DEALERS' LICENSING ORDER, 1964 - RULE 4(2) - Failure to maintain daily accounts as per license - Intentionality of contravention - Negligence as intentional contravention - Sentence modification.
Fact of the Case:
The petitioner, a storing agent with food grains licenses, was convicted under Section 7(1)(a) of the Essential Commodities Act, 1955, for failing to maintain a register of daily accounts for each food grain showing correctly the opening and closing stock of each day, as required by his license. He challenged the conviction, arguing absence of mens rea.
Finding of the Court:
The court found that the petitioner intentionally contravened the conditions prescribed in the license issued under the Orissa Foodgrains Dealers' Licensing Order, 1964. The court held that negligence on the part of the petitioner in maintaining the accounts constituted intentional contravention in light of the clear mandatory provision of law.
Issues: 1. Whether the petitioner intentionally contravened the conditions prescribed in the license issued under the Orissa Foodgrains Dealers' Licensing Order, 1964. 2. Whether the sentence imposed on the petitioner was appropriate.
Ratio Decidendi: 1. The court held that the language in paragraph 3 of the license was plain and clear, and no licensee could have any doubt that there must be an entry in the register every day for the opening and closing stock. 2. The court held that negligence on the part of the petitioner in maintaining the accounts constituted intentional contravention in light of the clear mandatory provision of law. 3. The court held that the petitioner failed to establish reasonable cause which prevented him from completing his accounts for each day on the day to which they relate, as required by paragraph 3(ii) of the license.
Final Decision: The court modified the sentence imposed on the petitioner, reducing the fine from Rs. 2,000 to Rs. 50, and in default, to undergo Rule I for two weeks instead of one year. The revision was otherwise dismissed.
G. K. MISRA, J.
( 1 ) THE petitioner is a storing agent at three places, Deogarh, Barkote and Gagua. He had procured food grains licenses. Prosecution case is that though under the licence the petitioner was to maintain a register of daily accounts for each of the food-grains showing correctly the opening and the closing stock of each day, he failed to do so. Though the petitioner did not plead guilty, in his examination under Section 342, Cr. P. C. he did not deny the fact that he did not maintain the accounts at Barkote in accordance with the license. The petitioner was summarily tried under Section 12-A of the Essential Commodities Act. 1955 (hereinafter referred to as the Act), and was convicted under Section 7 (1) (a) of the Act and sentenced to pay a fine of Rs. 2,000, in default to undergo Rule I. for one year. The Revision has been filed against the order of conviction and sentence.
( 2 ) MR. Das docs not dispute the finding of the fact that the petitioner did not maintain accounts in accordance with the directions given in the license. The only point urged by him is that there is absence of mens rea, and that unless the prosecution establishes the mens rea, the conviction is not well founded. For proper appreciation of this contention the relevant law on the point may be examined.
( 3 ) SECTION 3 (1) of the Act prescribes--"if the Central Government is of opinion that it is necessary or expedient so to do for maintaining or increasing supply of any essential commodity or for securing their equitable distribution and availability at fair prices, it may, by order, provide for regulating or prohibiting the production, supply and distribution thereof and trade and commerce therein. The relevant portions of Section 3 (2) prescribes :
"without prejudice to the generality of the powers conferred by Sub section (1) an order made thereunder may provide-X X X X (i) for requiring persons engaged in the production, supply or distribution of, or trade and commerce in, any essential commodity to maintain and produce for inspection such books, accounts and records relating to their business and to furnish such information relating thereto. as may be specified in the order. "
The relevant portions of Section 7 (a) prescribes :
"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 x x X X provided that if the Court is of opinion that a sentence of fine only will meet the ends of justice, it may for reasons to be recorded, refrain from imposing a sentence of imprisonment. "
In exercise of the powers conferred by Section 3 of the Act read with the notification of the Government of India and with prior concurrence of the Central government, the Stale Government made the Orissa Foodgrains Dealers' Licencing order, 1964 (hereinafter referred to as the Order ). Rule 4 (2) of the Order prescribes that every licence issued or renewed under this Order shall be in Form b Para 3 of the License, as is relevant for the purpose of this case, is as follows :
"paragraph 3 (i) The licensee shall, except when specially exempted by the State Government or by the licensing authority in this behalf, maintain a register of daily accounts for each of the foodgrains mentioned in paragraph 1, showing correctly- (a) the opening stock on each day, x X X X (d) the closing stock on each day, (ii) The licensee shall complete his accounts for each day on the day on which they relate, unless prevented by reasonable cause the burden of proving which, shall be upon him. "
It would thus appear that the licensee for purchase, sale or storage for sale of foodgrains is to maintain a register of daily accounts for each of the foodgrains showing correctly the opening and the closing stock in each day. The licensee shall complete his acco
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