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1993 Supreme(MP) 663

1995 (0) MPLJ 692
P.P. Naolekar, J.
State Of Madhya Pradesh
vs
Deena Nath Kedarnath
DECIDED ON : 27 October, 1993

The authority to make payment of the price and interest on the price of the essential commodity in case of acquittal of the person or in case of order of confiscation being set aside lies with the Collector, and not with the Judicial Magistrate.

Headnote:

ESSENTIAL COMMODITIES ACT, 1955 - SECTION 6C - SECTION 3/7 - SECTION 6A - SECTION 2(IA) - SECTION 3(1) - SECTION 3(3-B) - SECTION 3(3-C) - SECTION 3(3) - INTEREST ON SEIZED GOODS - JURISDICTION OF JUDICIAL MAGISTRATE - PAYMENT OF PRICE AND INTEREST - AUTHORITY TO MAKE PAYMENT - DUTY OF COLLECTOR - APPLICATION FOR REFUND - MAINTAINABILITY.

Fact of the Case:

The non-applicant was prosecuted under Section 3(1) read with Section 3/7 of the Essential Commodities Act, 1955 for transporting wheat without a license. He was convicted and sentenced to imprisonment till the rising of the court. The appellate court acquitted him from the sentence but upheld the order of confiscation of 100 bags of wheat passed by the Collector under Section 6A of the Act. The non-applicant was given the price of the wheat on 28-11-1985. He later claimed interest on the amount from 30-12-1973 to 4-12-1985. The Judicial Magistrate dismissed his application, but the revisional court remanded the matter back for consideration of the question of payment of interest.

Finding of the Court:

The Judicial Magistrate does not have the jurisdiction to direct the payment of interest on the price of the essential commodity seized under Section 6C of the Essential Commodities Act, 1955. The authority to make such payment lies with the Collector, who is responsible for the seizure, confiscation, and disposal of essential commodities.

Issues: 1. Whether the Judicial Magistrate has the jurisdiction to award interest under Section 6C of the Essential Commodities Act, 1955. 2. Who has the authority to make payment of the price and interest on the price of the essential commodity in case of acquittal of the person or in case of order of confiscation being set aside.

Ratio Decidendi: 1. The power to punish for contravention of the provisions of the Essential Commodities Act, 1955 vests with the Court, while the power of confiscation of essential commodities vests with the Collector. 2. Under Section 6C(2) of the Act, the person concerned is entitled to be paid the price of the essential commodity seized, with reasonable interest, in case of acquittal or when the order of confiscation is set aside. 3. The duty to make such payment lies with the Collector, who is the authority responsible for the seizure, confiscation, and disposal of essential commodities.

Final Decision: The revision petition is allowed, and the order of the revisional court remanding the matter back for fresh consideration is set aside. Consequently, the application moved by the non-applicant in the Court of the Judicial Magistrate, First Class, Betul for direction to the Collector, Betul to make payment of interest stands dismissed.

ORDER

P.P. Naolekar, J.

1. The non-applicant Deena Nath was prosecuted under Section 3(1) read with Section 3/7 of the Essential Commodities Act, 1955 in the Court of the Judicial Magistrate, First Class, Betul along with the driver. By order dated 3-4-1976 the driver was acquitted and the non-applicant Deena Nath was convicted and sentenced to till rising of the Court. The Court had given direction for return of the truck and the wheat which was seized. Against the order the non-applicant preferred an appeal. The appellate Court acquitted the non-applicant from the sentence of till rising of the Court. So far as return of the seized goods, the appellate Court maintained the order of the trial Court. The State preferred an appeal under Section 377 of the Code of Criminal Procedure for enhancement of the sentence in this Court was registered as Criminal Appeal No. 585 of 1976 against the order of the Judicial Magistrate and this Court on 11-4-1980 dismissed the appeal preferred by the State. In the meanwhile on 1-12-1976 the Collector passed an order under Section 6A of the Essential Commodities Act, 1955 for confiscation of 100 bags of wheat. The non-applicant preferred an appeal against the said order of the Collector and in Criminal Appeal No. 6 of 1977 vide order dated 17-3-1977 the order of confiscation of 100 bags of wheat was maintained by the Sessions Judge. In pursuance of the order passed by the Judicial Magistrate and affirmed in appeal, the truck was returned back and the price of 100 bags of wheat, i.e. Rs. 17,293.10 was given to the non-applicant by the Collector on 28-11-1985. Thereafter, on 4-7-1988 the non-applicant wrote a letter to the Collector claiming interest on the amount of Rs. 17,293.10, which was refunded on 28-11-1985. On 29-5-1990 the non-applicant moved an application under Section 6C(2) of the Essential Commodities Act, 1955 before the Judicial Magistrate for issuing a direction to the Collector for payment of interest at the rate of 12% for the period 30-12-1973 to 4-12-1985 on the amount of Rs. 17,293.10 and the judicial Magistrate by order dated 27-2-1992 dismissed that application on the ground that there was no order passed either by the Judicial Magistrate or in the Criminal Appeal in pursuance of which the price of 100 bags of wheat seized was given for payment of interest. The non-applicant Deena Nath then preferred a revision in the Court of Additional Judge to the Court of Sessions Judge, Betul which was registered as Criminal Revision No. 26 of 1992. The Revisional Court by its order dated 11-11-1992 allowed the revision petition filed by the non-applicant Deena Nath and remanded the matter back to the Judicial Magistrate for consideration of the question of payment of interest to the non-applicant. Aggrieved by the said order, the State has preferred this revision petition.

2. The question involved in this revision is whether the Judicial Magistrate while exercising powers under Section 3/7 of the Essential Commodities Act, 1955 has jurisdiction and authority to award interest under Section 6C. Under Section 3 of the Act the power is vested in the State Government to control and regulate by licence, permits or otherwise the storage, transportation, distribution, disposal, acquisition, use or consumption of any essential commodity for the purpose of maintaining or increasing supplies of or for equitable distribution at fair prices. Section 7 of the Act provides for punishment for contravention of any order made under Section 3 of the Act. Section 7 is comprehensive Code covering the entire field of offences under the Act. The power to punish vests with the Court whereas power of confiscation of essential commodities vests with the Collector. Under Section 6A where any essential commodity is seized in pursuance of an order made under Section 3 in relation thereto, power of confiscation can be exercised by the Collector, after issuing show cause notice and giving opportunity of making a repr







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