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

1969 Supreme(All) 47

Allahbad High Court
SATISHCHANDRA
Babu Ram Jagannath - Appellant
Versus
The District Magistrate, Meerut - Respondent
Decided On : 04/09/1969

Advocates:
S.C. Khare, for Petitioner; Standing Counsel, for Opposite Party.

Sections 6-A and 6-B of the Essential Commodities Act do not confer any arbitrary discretion on the authorities to prosecute or not to prosecute defaulting dealers and do not violate Article 14 of the Constitution.

Headnote:

ESSENTIAL COMMODITIES ACT - SECTIONS 6-A, 6-B, 6-C, 6-D, 7 - CONSTITUTIONALITY - CONFISCATION OF FOODGRAINS - CONDITIONS FOR - DISCRETION OF AUTHORITIES TO PROSECUTE OR NOT TO PROSECUTE - WHETHER ARBITRARY - WHETHER VIOLATIVE OF ARTICLE 14 OF THE CONSTITUTION.

Fact of the Case:

The petitioner, a partnership firm dealing in foodgrains, was found to have transferred a truckload of Matar Dal to another wholesaler in Ghaziabad, in contravention of the conditions of its license. The Collector ordered confiscation of the seized goods under Section 6-A of the Essential Commodities Act, which was upheld by the Commissioner on appeal. The petitioner challenged the order of confiscation and the constitutional validity of Sections 6-A and 6-B of the Act.

Finding of the Court:

The court held that the petitioner had contravened the conditions of its license and that the order of confiscation was justified under Section 6-A of the Act. The court also upheld the constitutional validity of Sections 6-A and 6-B, holding that they did not confer any arbitrary discretion on the authorities to prosecute or not to prosecute defaulting dealers and that the scheme of the Act did not contemplate any discrimination between such dealers.

Issues: 1. Whether the petitioner had contravened the conditions of its license. 2. Whether the order of confiscation was justified under Section 6-A of the Essential Commodities Act. 3. Whether Sections 6-A and 6-B of the Act were unconstitutional.

Ratio Decidendi: 1. The court found that the petitioner had admitted that the truckload of Matar Dal was being transported to Ghaziabad, that there was a false number plate beneath the driver's seat, and that certain papers found at the time of seizure indicated that the consignment was required to be delivered to a wholesale dealer in Ghaziabad. The court held that these facts, coupled with the petitioner's failure to offer any adequate explanation, were sufficient to establish that the goods were being transported in pursuance of a transaction of transfer, in contravention of the conditions of the petitioner's license. 2. The court held that Section 6-A of the Act empowered the Collector to order confiscation of seized foodgrains if he was satisfied that there had been a contravention of an order under Section 3 of the Act. The court found that the Collector had been so satisfied in the present case and that the order of confiscation was therefore justified. 3. The court held that Sections 6-A and 6-B of the Act did not confer any arbitrary discretion on the authorities to prosecute or not to prosecute defaulting dealers. The court noted that Section 7 of the Act provided for punishment of any person who contravened an order under Section 3, and that the obvious intention of the legislature was that each and every such person would be prosecuted and punished. The court also noted that Section 6-A was intended to provide a speedy and effective means of controlling and disposing of perishable commodities that had been seized, and that it was not intended to be a substitute for prosecution under Section 7. The court therefore held that the scheme of the Act did not contemplate any discrimination between dealers who had contravened an order under Section 3, and that Sections 6-A and 6-B were therefore not unconstitutional.

Final Decision: The petition was dismissed with costs.

ORDER :- The petitioner is a partnership firm. It carries on the business of

purchase and sale of foodgrains under licences granted to it under the U. P. Foodgrains Dealers Licensing Order, 964. In the evening of 12th August, 1967, the Senior Marketing Inspector, Hapur, raided the petitioner's business premises and seized a truck-load of Matar Dal (100 bags), on the belief that this commodity was being transferred to M/s. Prayag Das Ved Prakash of Ghaziabad. On 25th August, 1967, the Collector, Meerut, issued a notice requiring the petitioner to show cause why the seized goods be not confiscated under S. 6-A, Essential Commodities Act, for contravention of conditions 9 and 9-A of the aforesaid Licensing Order. The petitioner filed a representation, and contended that the goods were not being transferred as a result of any sale to any other wholesaler. So, there was no contravention of the provisions of conditions 9 or 9-A. The District Magistrate did not accept the petitioner's contention, and, by an order dated 16th October, 1967, directed that 98 quintals 40 klgs. and 700 grams of matar dal which was seized as aforesaid, be confiscated to the State. He came to the finding that the petitioner had entered into a transaction of transfer with a firm at Ghaziabad, and the said quantity of the matar dal was being transported in pursuance thereof. Aggrieved, the petitioner filed an appeal under Section 6-C of the Essential Commodities Act. The Commissioner affirmed the findings and dismissed the appeal on 28-12-1967.

2. The order of confiscation is challenged in the present writ petition on two grounds. It was submitted that the petitioner did not contravene condition 9 of the aforesaid licensing Order. Under that condition, a licensee is prohibited from selling foodgrains to a wholesaler in another Mandi or town either directly or through a licensee in form 'F'. It was urged that there was no evidence of any such sale. The finding was, therefore, without any evidence. I am not impressed by this submission. The Collector as well as the Commissioner have relied upon admitted facts and circumstances of the case. They have held that it was admitted that the truck, which was loaded with the seized commodity was going to Ghaziabad. There was a false number plate beneath the driver's seat. Certain papers were found at the time of seizure which indicated that the consignment was required to be delivered to a firm at Ghaziabad. That firm was a wholesale dealer. The petitioner did not offer any adequate explanation. From all these facts, the authorities could legitimately feel satisfied that the goods were being transported in pursuance of a transaction of transfer. On that finding, the order of confiscation was within the purview of Section 6-A of the Essential Commodities Act.

3. The learned counsel for the petitioner then challenged the constitutional validity of Sections 6-A and 6-B of the Essential Commodities Act. Sections 6-A and 6-B were added to the Essential Commodities Act by the Essential Commodities (Amendment) Act No. XXV of 1966. Section 6-A provides that where any food-grains etc., are seized in pursuance of an order made under Section 3 in relation thereto, they may be produced, without any reasonable delay, before the Collector of the District. The Collector, on being satisfied that there has been a contravention of an order under Section 3, may order confiscation of the foodgrains etc. Section 6-B requires that a notice to show cause must be given to the owner of the seized article and he must be given a reasonable opportunity of being heard, before the order of confiscation is passed. Then under Section 6-C, an appeal lies against the order passed under Sec. 6-A. Section 6-D provides that the award of confiscation under this Act by the Collector shall not prevent the infliction of any punishment to which the person affected is liable under this Act.

4. Under Section 7 of the Act, a person, who contravenes any order made un






Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
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