2012 Supreme(Ori) 90
2012 (1) OLR 989
ORISSA HIGH COURT (CUTTACK)
INDRAJIT MAHANTY
Sri G.Nageswar Patra …… Petitioner
-Versus-
Additional Secretary to Government in the Food Supplies & Consumer Welfare Department, Orissa and another …… Opp. Parties.
O.J.C. No.4739 of 1994
Decided On : 03.03.2012
For Petitioner: M/s. N.Patra & A.K.Patra.
For Opposite Parties :Addl. Govt. Advocate.
Non-compliance with statutory requirements can invalidate confiscation orders and appeal dismissals.
Headnote:
Confiscation - Essential Commodities Act, 1955 - Section 6-A - Summary
Fact of the Case:
The petitioner, a partner of a registered firm, challenged the confiscation of goods by the Collector, Ganjam, and the dismissal of the appeal by the Additional Secretary to Government of Orissa in the Food Supplies and Consumer Welfare Department. The petitioner's firm had applied for renewal of a license to trade in pulses and edible oil seeds, but the renewal was pending. The goods were seized from a new godown, and the authorities alleged contravention of the Control Order.
Finding of the Court:
The court found that the petitioner's firm had a valid license till 1988 and had duly intimated the authorities about the new godown. The court held that the confiscation order and the dismissal of the appeal were invalid due to non-compliance with the requirements of Section 6-A of the Essential Commodities Act, 1955.
Issues: Validity of confiscation order, Alleged contravention of the Control Order, Compliance with Section 6-A of the Essential Commodities Act, 1955
Ratio Decidendi: The court held that the petitioner's firm had a valid license and had intimated the authorities about the new godown, thus absolving the petitioner from the alleged contravention. The court also found non-compliance with the requirements of Section 6-A of the Essential Commodities Act, 1955, rendering the confiscation order and the dismissal of the appeal invalid.
Final Decision: The court quashed the confiscation order and the dismissal of the appeal, directing the appropriate authority to grant consequential relief to the petitioner.
JUDGMENT
I. Mahanty, J. This writ application has been filed by the petitioner-Sri G.Nageswar Patra, partner of M/s. Shyam Sundar Traders, Berhampur, Dist. Ganjam seeking to challenge the order of confiscation dated 12.10.1990 passed by the Collector, Ganjam under Annexure-9 as well as the order dated 18.6.1994 passed by the Additional Secretary to Government of Orissa in the Food Supplies and Consumer Welfare Department in Appeal Case No.43 of 1990 under Annexure-10 dismissing the same and thereby confirming the order of confiscation passed by the Collector, Ganjam.
2. The facts of the present case in brief is that the petitioner-G.Nageswar Patra is one of the partners of a registered firm in the name and style “M/s.Shyam Sundar Traders”, Berhampur in the district of Ganjam. The said partnership is found under Section 185 of the Income Tax Act and has been duly assessed from time to time. It is also averred that the firm M/s.Shyam Sundar Traders has been doing business on the strength of the licence bearing No.108/78 granted under the Orissa Pulses, Edible Oil Seeds and Edible Oils Dealers (Licencing) Order, 1977 (in short ‘the Control Order’) and the said licence was being renewed from time to time. The petitioner had applied for renewal of licence in the year 1988-89 and after such application was made at the appropriate time, the licence was not renewed nor any order of rejection was communicated to the petitioner. Accordingly, for the years, 1989-90 and 1990-91, the petitioner duly made applications for renewal like in the previous years and continued his business of pulses and edible oil seeds on the bona fide understanding that the petitioner was legally entitled since the applications of renewal made earlier have not been rejected by the licencing authority.
3. It appears that the petitioner-firm took another house on rent on 10.4.1990 from Sri Sheo-Bhagawan Ram Gopal Mundra at Aska Road to store the goods and accordingly informed the Collector, Ganjam on 10.4.1990 of the said factum. This letter addressed to the Collector, Ganjam was received by the Berhampur Civil Supply Office on the same day. Copy of the said letter was also posted to the Collector on the same day with a request to effect necessary changes in the licence for storing the commodities in the new godown and to add such address in the licence, copy of which is annexed as Annexure-3.
4. Learned counsel for the petitioner further stated that on 14.4.1990, the petitioner moved 162 quintals of Black gram and 32 quintals of peas from their original godown at Aska Road, Berhampur and stored the same in their new godown. On the same day, i.e on 14.4.1990, it is stated that the petitioner also received further 111 bags of mustard seeds weighing 99.9 quintals from one M/s. Mahesh Trading Company, Kesinga at about 6.00 P.M. It is stated that while the said mustard seeds were being unloaded from the truck on the petitioner’s new godown, the Inspector of Supplies along with the Supervisor of Supplies, Berhampur seized 162 quintals of Blackgram, 32 quintals of peas and 99.9 quintals of Mustard seeds from the new godown at Aska Road. As a result of the seizure effected by the Inspector of Supplies, final orders directing confiscation of the seized articles under Section 6-A of the Essential Commodities Act, 1955 came to be passed by the Collector, Ganjam vide order dated 12th October, 1990 finding that the petitioner had indulged in trading and business without a valid licence and storing pulses, oilseeds exceeding 10 quintals is in contravention of Clause-3 of the Orissa Pulses, Edible Oilseeds, Edible Oil Dealers (Licensing) Order, 1977.
5. The petitioner against the order of the Collector preferred an appeal before the Secretary to the Government of Orissa in the Department of Food and Civil Supplies under Section 6-C of the Essential Commodities Act, 1955 which came to be registered as Appeal Case No.43 of 1990. This appeal came to be rejected by the lower appella