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1991 Supreme(All) 472

IN THE HIGH COURT OF ALLAHABAD
S. R. BHARGAVA
GOPAL PRASAD - Appellant
Versus
STATE OF UTTAR PRADESH - Respondents
CRIMINAL REVISION 1975 Of 1990
Decided On : 05/06/1991

Advocates Appeared:
V.K.Chaturvedi

The bar of jurisdiction under Section 6-E of the Essential Commodities Act applies only when an essential commodity is seized in pursuance of an order made under Section 3 of the Act.

Headnote:

ESSENTIAL COMMODITIES ACT - SEIZURE OF ESSENTIAL COMMODITIES - JURISDICTION OF COURTS - BAR OF JURISDICTION UNDER SECTION 6-E - APPLICABILITY - CONDITIONS - INTERPRETATION OF DEFINITIONS OF GUR AND SUGAR - RELEASE OF SEIZED COMMODITIES - POWERS OF COLLECTOR AND GOVERNMENT.

Fact of the Case:

Revision against order refusing release of seized property under the Essential Commodities Act, 1955. Revisionist's perchune shop was raided and 10 quintals of boora, 9 quintals of sugar, and 46 bags of salt were seized. The seizure was alleged to be in contravention of the U.P. Sugar and Gur Dealers Licensing Orders, 1962. The Special Judge (E.C. Act) refused to release the seized property, relying on the bar of jurisdiction under Section 6-E of the Act.

Finding of the Court:

The court held that the bar of jurisdiction under Section 6-E of the Essential Commodities Act applies only when an essential commodity is seized in pursuance of an order made under Section 3 of the Act. In the instant case, there was no order under Section 3 for salt, hence the bar of Section 6-E did not apply to salt. The court also held that the definitions of gur and sugar in the U.P. Sugar and Gur Dealers Licensing Orders, 1962 were very wide and it could not be said at that stage that the boora and sugar were not covered by any order issued under Section 3 of the Act.

Issues: 1. Whether the bar of jurisdiction under Section 6-E of the Essential Commodities Act applies to the seizure of salt, which was not covered by any order under Section 3 of the Act? 2. Whether the definitions of gur and sugar in the U.P. Sugar and Gur Dealers Licensing Orders, 1962 are wide enough to cover boora and sugar seized from the revisionist's shop?

Ratio Decidendi: 1. The court held that the bar of jurisdiction under Section 6-E of the Essential Commodities Act applies only when an essential commodity is seized in pursuance of an order made under Section 3 of the Act. In the instant case, there was no order under Section 3 for salt, hence the bar of Section 6-E did not apply to salt. 2. The court held that the definitions of gur and sugar in the U.P. Sugar and Gur Dealers Licensing Orders, 1962 were very wide and it could not be said at that stage that the boora and sugar were not covered by any order issued under Section 3 of the Act.

Final Decision: The revision was partly allowed. The Special Judge was directed to release the salt in favor of the revisionist on such terms and conditions as it thought fit under Section 457, Cr.P.C. As far as boora and sugar were concerned, the revisionist was allowed to apply for release to the Collector or the Government under Section 6-A or 6-C of the Act.

S. R. BHARGAVA, J.

( 1 ) THIS Criminal revision is directed against order dated 14/11/1990, passed by Special Judge (E. C. Act) Mathura, refusing release of seized property on ground of bar of jurisdiction contained in S. 6-E of the Essential Commodities Act which runs as under : -"6-E. Bar of jurisdiction in certain cases : -Whenever any essential commodity is seized in pursuance of an order made under S. 3 in relation thereto, or any package, covering or receptacle in which such essential commodity is found, or any animal, vehicle, vessel or other conveyance used in carrying such essential commodity is seized pending confiscation under S. 6a, the Collector, or, as the case may be, the State Government concerned under S. 6-C shall have, and notwithstanding anything to the contrary contained in any other law for the time being in force, any court, tribunal or other authority shall not have, jurisdiction to make orders with regard to the possession, delivery, disposal, release or distribution of such essential commodity, package, covering. receptacle, animal, vehicle vessel or other conveyance. "

( 2 ) BEFORE proceeding further it would be useful to say that gur and sugar are essential commodities. U. P. Sugar end gur Dealers Licensing Orders, 1962 were passed under S. 3 of the Essential Commodities Act. In sub-clause (a) Gur has been defined as it means the article commonly known as gur, gul, jaggery, shakkar and rab, and includes raw sugar and uncrystallized sugar in any other form comprising of original and convertible molasses and other impurities inherent or foreign, prepared by boiling cane or palmyra juice.

( 3 ) IN sub-clause (f) of clause 2 of the Order sugar has been defined as it means any form of sugar including khandsari sugar containing more than 90% sucrose.

( 4 ) IN sub-clause (3) of clause 2 of the order dealer has been stated as it means a person engaged in the business of purchase, sale, or storage for sale, of vacuum pan factory sugar or open pan khandsari sugar or gur, in quantities (exceeding 10 quintals) at any one time, and includes every such bulk consumer manufacturing biscuits, confectionery or sweetmeats, or engaged in fruit canning, fruit preservation or similar other establishment/undertaking, utilising sugar in his produce and storing sugar in any quantity (exceeding 10 quintals) at any one time, but does not include an industrial undertaking which is engaged in the manufacture or production of vacuum pan factory sugar or open pan khandsari sugar or gur, and which is registered or licensed under the industries (Development and Regulation) Act, 1951.

( 5 ) CLAUSE 3 (1) of these orders prohibit any person from carrying on business as dealer except under and in accordance with terms and conditions of licence issued in this behalf by the licensing authority. Sub-clause (3) of clause 3 gives rebuttable presumption that any person who stores vacuum pan factory sugar or open pan khandsari sugar or gur in any quantity (exceeding 10 quitals) at any one time shall unless the contrary is proved, be deemed to store the sugar for the purpose of carrying on the business of purchase or sale or storage for sale, of sugar.

( 6 ) FACTS as they emerge in this revision are that revisionist Gopal Prasad has a perchune shop within the territorial limits of Police station Raya, Distt. Mathura. The First Information Report lodged against him shows that on 5/05/1990 at about 1. 30 p. m. the S. D. M. raided his shop. During inspection he found ten quintals boora, 9 quintals Chini and 46 bags of salt stored in the shop. They were seized under the Essential Commodities Act. It was specifically alleged in the First Information Report that the storage was in contravention of the U. P. Sugar and Gur Dealers Licensing Orders, 1962.

( 7 ) UNDER Section 457, Cr. P. C. revisionist apporached the Special Judge (E. C. Act) for release of the seized commodities. The learned Special Judge relied upon S. 6-E of the Essential Commodities





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