SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2024 Supreme(Ori) 282

IN THE HIGH COURT OF ORISSA AT CUTTACK
A.C.BEHERA, J.
State of Orissa and Others – Appellants
Versus
M/s. Jagannath Traders – Respondent
R.S.A. No. 226 of 2003
Decided On : 29-02-2024

Advocates Appeared:
For the Appellant : Subhashis Pattnaik
For the Respondent: Satyabadi Mantry

Acquittal from criminal charges under the Essential Commodities Act entitles the plaintiff to claim compensation for financial losses due to unlawful seizure and state must honor legitimate claims without relying on technicalities.

Headnote:(A) Essential Commodities Act, 1955 - Section 7 - Orissa Rice and Paddy Control Order, 1965 - Money suit for realization of unpaid amount after seizure of goods - Following the acquittal from criminal charges, plaintiff entitled to compensation for losses incurred due to wrongful seizure and inability to renew trade license - State's duty to deal fairly with citizens, not relying on technicalities. (Paras 19, 36, 40)

(B) Civil Procedure Code, 1908 - Order 9 Rule 9 - Suit maintainability - The appeal court must ensure just claims are compensated despite procedural dismissals of earlier suits. (Paras 28-29)

Facts of the case:
This appeal involves a money suit filed by a trader for recovery of Rs.49,449/- against the State following unlawful seizure of his rice bags. The trader had paid Rs.35,435/- for the rice but had only received Rs.19,606/- post-confiscation. The trader's license renewal was denied due to ongoing prosecution, resulting in business loss. (Paras 4, 10)

Findings of Court:
The appellate court confirmed the compensation amount owed to the plaintiff and corrected the interest rate awarded, finding the plaintiff's claims justified based on prior judgments regarding the state's obligations. (Paras 36, 43)

Issues: The court addressed the maintainability of the suit, the legality of the seizure, and whether the appellate court appropriately reversed the trial court's dismissal based on limitation and merits. (Paras 12, 19)

Ratio Decidendi: The court determined that the wrongful seizure of property leads to liability for the state, which could not dismiss just claims based on procedural grounds. Acquittal in criminal case confirmed the legality of the plaintiff's trade, mandating compensation. (Paras 36-41)

Result: The appeal is partly allowed; the interest rate on awarded compensation is reduced from 12% to 9%, while the original compensation order is upheld. (Paras 42-45)

Table of Content
1. factual basis of the lawsuit. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10)
2. defendants’ contestation of the plaintiff’s claims. (Para 11 , 12 , 13 , 14)
3. court's analysis of the case and claims. (Para 15 , 16 , 17 , 18 , 19 , 20 , 21 , 22 , 23 , 24 , 25 , 26)
4. defendants can’t avoid payment on technicalities. (Para 34 , 35 , 36)
5. final ruling and adjustments to interest. (Para 39 , 40 , 41 , 42 , 43 , 44 , 45)

JUDGMENT :

A.C. BEHERA, J.

1. This 2nd appeal has been preferred against the reversing judgment.

2. The appellants of this 2nd appeal, i.e. State of Orissa and its officers were the defendants before the trial court in the suit vide M.S. No.05 of 1997 and they were the respondents before the 1st appellate court in the first appeal vide M.A. No. 02 of 2000.

3. The respondent of this 2nd appeal was the sole plaintiff before the trial court in the suit vide M.S. No.05 of 1997 and he was the appellant before the 1st appellate court in the 1st appeal vide M.A. No.02 of 2000.

4. The suit of the plaintiff (respondent in this 2nd appeal) before the trial court vide M.S. No.05 of 1997 was a money suit against the defendants for realization of sum of Rs.49,449/- with pendente lite and future interest at the rate of 12% per annum along with additional claim at the rate of Rs.500/- per month with interest thereon since October, 1994 till the realization of the same from the defendants.

5. The case of the plaintiff against the defendants as per the averments made in his plaint was that, he (plaintiff) being the sole proprietor of M/s. Jagannath Traders, he was doing the business of grocery items. On 25.11.1988, the plaintiff purchased 100 bags of rice from Sri Gayatri Traders at Berhampur on payment of Rs.32,700/- through proper bills/receipts and dispatched the same to Nuagaon in the district of Phulbani by a truck bearing Registration number ORL-1232 for unloading of the same at Nuagaon in his business godown. As the plaintiff had some works at Berhampur, for which, he (plaintiff) handed over the way-bills to the driver of that truck. During the course of transportation, the plaintiff paid sales tax at Bhanjanagar through the driver of the truck to the tune of Rs.1308/- as per receipt No.11 dated 26.11.1988. On the way, the officers of Regulated Marketing Cooperative Society, Tikabali also collected a sum of Rs.327/- as per receipt No.42 dated 26.11.1988 from the driver of that truck. The loaded truck carrying 100 bags of rice reached at Nuagaon on 26.11.1988. While there was unloading of the rice bags in presence of the driver of the truck, during that time, surprisingly the Assistant Civil Supply Officer, Balliguda(defendant no.3) along with its staffs seized the said truck and 100 bags of rice of the plaintiff and locked to the godown of the plaintiff and also sealed the same. On 18.12.1988, the defendant no.3, i.e., Assistant Civil Supply Officer, Balliguda prepared a seizure list and handed over the seized rice bags in the zima of one Balarama Panigrahi and subsequent thereto submitted a prosecution report under Section 7 of the Essential Commodities Act, 1955 against him(plaintiff) alleging contravention of clause-2(b)(g), clause-3(1), clause-6(a), (b) and (d) and also clause-8 of ORISSA RICE AND PADDY CONTROL ORDER , 1965. In addition to the above criminal case under Section 7 of the Essential Commodities Act, 1955 against the plaintiff an another proceeding under clause-6(a) of the Essential Commodities Act, 1955 was also initiated before the District Magistrate-cum-Collector, Kandhamal vide Confiscation Proceeding No.02 of 1989 for confiscation of the seized rice bags. As per the final order of the collector, Kandhamal in Confiscation Proceeding No.02 of 1989, the seized rice bags were sold through public auction by fixing upset price thereof as Rs.200/- per quintal. Accordingly, sale proceeds of the seized rice bags, i.e., Rs.19,606/- were kept under the deposit of Government Treasury.

6. The final order

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
Judicial Analysis

AI

SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top