JUDGMENT

C.R. Dash, J. - This writ petition is directed against the order of confiscation dated 07.12.2002 passed by the Collector & District Magistrate, Sundargarh under Section 6(A) of the Essential Commodities Act, 1956 (for short ‘the Act’) vide Annexure-9, in Misc. Case No.40 of 2001, directing confiscation of the value of the seized commodities, i.e. by encashings Bank Guarantee furnished by petitioner no.1 to the tune of Rs.3,00,000/-(three lakhs) while taking interim release of the seized stock of ‘Dalda’ and calling upon petitioner no.1 to deposit the differential amount of Rs.88,876/-(eighty-eight thousand eight hundred and seventy-six) and the truck bearing Registration No. OSU-3915.

2. The brief fact of the case relevant for disposal of this writ petition is as follows:

Petitioner no.1 is a company having one of its depots at Mahanadi Clearing House, Gopalpur, NH-5, Cuttack. It is engaged in manufacturing and distribution of consumer goods and food articles like Vanaspati, Jam, Jelly and other products. Petitioner no.1 – company never does any retail business and it used to supply goods from its Cuttack depot to the dealers / distributors all-over Odisha. By two invoices dated 16.08.2001 (Annexure-1) the petitioner dispatched 485 cases or 87 quintals 900 grams of Vanaspati Dalda, Mixed Fruit Jam in 24 cases and Tomato Sauce in 25 cases to M/s. Santosh Traders, Vedavyas. The consignee M/s. Santosh Traders at Vedavyas had paid for the aforesaid consignment through Cheque No.548627, dated 16.08.2001. The aforesaid goods were entrusted to the Transporters and the transportation was effected in Truck No. OSU-3915 on 16.08.2001.

At about 5.30 P.M. on 17.08.2001 the Marketing Inspector, Enforcement Squad, Panposh intercepted the aforesaid truck in Vedavyas Chowk in front of Bhagabati Weigh Bridge and seized the aforementioned articles and the truck vide Seizure List dated 17.08.2001 on the ground that the said Marketing Inspector had reason to believe that there has been contravention of Orissa Pulses and Edible Oil Dealers’ Licensing Order, 1977 (‘Licensing Order’ for short). The Marketing Inspector also seized the Way Bill, Chalan-cum-Consignment Note, two invoices (copies of which have been filed as Annexure-1) and other documents vide Seizure List (Annexure-2). On 18.08.2001 the Marketing Inspector submitted report before the Collector, Sundargarh (opp. party) and made a prayer for confiscation and interim disposal of the seized commodities. Learned Collector (opp. party) passed order for issuance of notice to the driver of the vehicle to show cause. He also directed the Marketing Inspector to release the Jam and Sauce in favour of the persons from whom seized, as those articles were not essential commodities. Petitioner no.1 however appeared suo motu before the Collector (opp. party) for release of the seized goods in favour of petitioner no.1 pending enquiry in the proceeding under Section 6(A) of the Act. In lieu of the release of the seized commodities and the truck in favour of petitioner no.1, the Bank Guarantee of Rs.3,00,000/-(three lakhs) was given after intervention of this Court in O.J.C. No.15613 of 2001 filed by the petitioner challenging the order of interim release passed by the Collector (opp. party) directing furnishing of security of Rs.3,00,000/-(three lakhs) in the shape of TDR in a nationalized Bank pledged in favour of the Collector, Sundargarh. Subsequently on 08.02.2002 petitioner no.1 filed a petition praying therein to drop the confiscation proceeding under Section 6(A) of the Act on various grounds.

Learned Collector, Sundargarh (opp. party) on 07.12.2002 passed the impugned order vide Annexure-9 directing confiscation of the value of the seized commodities, i.e. by encashing the bank guarantee furnished by petitioner no.1 to the tune of Rs.3,00,000/-(three lakhs) and calling upon petitioner no.1 to deposit the differential amount of Rs.88,876/-and the truck bearing No. OSU-3915. The petitioner