1991 Supreme(All) 639
IN THE HIGH COURT OF ALLAHABAD
V. K. KHANNA, G. D. DUBEY
HAR GOVIND - Appellant
Versus
ADDITIONAL DISTRICT MAGISTRATE - Respondents
C. M. W. P. 20918 Of 1991
Decided On : 08/23/1991
P.K.Keshri
The power under Section 6-A(2) of the Essential Commodities Act can be exercised without providing an opportunity of hearing to the concerned person, and the essential commodities seized can be auctioned if they are subject to speedy and natural decay or it is otherwise expedient in the public interest to do so.
Headnote:
ESSENTIAL COMMODITIES ACT - SECTION 6-A(2) - SEIZURE OF FOODGRAINS - ORDER FOR AUCTION - VALIDITY - OPPORTUNITY OF HEARING - NOT REQUIRED - COMMODITY SUBJECT TO SPEEDY AND NATURAL DECAY - PUBLIC INTEREST - RELEASE OF SEIZED COMMODITY - SECTION 6-E - NO BAR TO EXERCISE OF POWERS UNDER SECTION 6-A(2).
Fact of the Case:
Petitioner, a tenureholder, had sown crops on his land and rented a house to facilitate the sale of agricultural produce. On 29-7-1991, a first information report was lodged against him, and foodgrains belonging to him were seized. The Additional District Magistrate ordered the auction of the seized foodgrains under Section 6-A(2) of the Essential Commodities Act (the Act).
Finding of the Court:
The court held that the order under Section 6-A(2) of the Act was valid and that the petitioner was not entitled to any opportunity before the passing of the impugned order. The court also held that the essential commodities seized were subject to speedy and natural decay and that it was in the public interest to auction them.
Issues: 1. Whether the order under Section 6-A(2) of the Act was valid without providing an opportunity of hearing to the petitioner? 2. Whether the essential commodities seized were subject to speedy and natural decay? 3. Whether it was in the public interest to auction the seized essential commodities?
Ratio Decidendi: 1. The court held that the Legislature intentionally did not place the authority under a mandate to pass an order only after affording an opportunity to the concerned person. The reason was that the power could be exercised only in two circumstances: (i) the essential commodity was subject to speedy and natural decay, or (ii) it was otherwise expedient in the public interest to do so. 2. The court held that the essential commodities seized were subject to speedy and natural decay, as there was a possibility of deterioration if they were not kept with care. The court also held that it was in the public interest to auction the seized essential commodities so that they could become available to the general public for consumption. 3. The court held that Section 6-E of the Act only creates a bar on jurisdiction in certain cases and does not confer power of release either on the Collector independently of Section 6-A or on the State Government independently of Section 6-C of the Act.
Final Decision: The court dismissed the writ petition.
( 1 ) ACCORDING to the petitioner, he is a tenureholder and had sown crops of ground nut, Jwar, Jau, Wheat Grain and maize over his land. In order to facilitate the sale of agricutural produce the petitioner has taken on rent House No. 580 Main Road, Babina Cantt. district Jhansi. On 29-7-1991 a first information report was lodged by the respondent No. 2 and according to the petitioner foodgrains belonging to him were seized. In respect of the seized foodgrains the Additional District Magistrate, Jhansi has passed an order dated 12-8-1991 which is contained in Annexure "8" to the writ petition. The seized commodities have been ordered to be auctioned on 12-8-1991 under Section 6-A (2) of the Essential Commodities Act (hereinafter described as the "act" ). It is this order passed under Section 6-A (2) of the Act which has been challenged in this writ petition.
( 2 ) LEARNED counsel for the petitioner has first urged that the entire seizure proceedings are bad inasmuch as the petitioner has not committed any contravention of any order issued under Section 3 / 7 of the Act. We are, however, of the opinion that at the time of the passing of the order under Section 6-A (2) of the Act, the Competent Authority has not to go into the question regarding the validity of the criminal proceedings which have been launched against the petitioner. The only limited purpose for the exercise of the power under Section 6-A (2) of the Act is to pass appropriate orders in case the seized commodity is subject to speedy and natural decay or it is otherwise expedient in the public interest so to do. The argument raised, therefore, has no force.
( 3 ) IT has then been urged that the order under Section 6-A (2) of the Act has been passed without any opportunity to the petitioner. So far as this Court is concerned this precise question came up for consideration before a Division Bench of this Court in the case of Jai Jagdamba Trading Company v. State of U. P. , 1986 EFR 461 where it has been held that in a case under Section 6-A (2) the Legislature has not povided any right to any person for being heard and the opportunity of hearing was expressly excluded.
( 4 ) LOOKING to the nature of the power and the circumstances under which the power under Section 6-A (2) of the Act can be exercised, we are also of the opinion of the Legislature intentionally did not place the authority under a mandate to pass an order only after affording opportunity to the concerned person. The reason was obvious. The power could be exercised only in two circumstances. The first circumstance being that the essential commodity was subject to speedy and natural decay. In case the essential commodity is of such a nature that it would lose its existence for the purposes of consumption in case it was not disposed of at an early date, the authority was rightly directed to get the essential commodity auctioned or sold through a fair price shop in case there was a controlled price fixed by the Central or the State Government. So far as the seized commodity in question is concerned, there cannot be any doubt that the essential commodities are not meant for hoarding but are meant for sale to the general public for consumption either at a price which is prevailing in the open market or in case there is a controlled price then at that price through the fair price shops. Ample safeguards have been provided to see that the price of the essential commodity is realized and the commodity is not allowed to deteriorate in its quality. In the case of bona fide exercise of this power, which we are bound to presume unless shown otherwise, the auction of the seized property in case it is subject to speedy and natural dacay would serve the purpose of the owner inasmuch as by no stretch of imagination it could fetch better price after deterioration. The best price which could be fetched for such an essential commodity which has been seized would be at a stage when it had not deteriorat