MADHYA PRADESH HIGH COURT BENCH AT GWALIOR
S.A. Dharmadhikari, J.
Jagdish Arora - Appellant
Versus
State Of M.P. - Respondent
Cr. R. No. 210 of 2020
Decided On : 03-03-2020
Revision - Criminal Procedure - Code of Criminal Procedure, 1973 - Section 397 (1) r/w section 401 r/w section 389 (1) - M.P. Excise Act, 1915 - Section 34 (A)/42, Section 36/42, Section 37/ 42, Section 39 (B) (C )/ 42 - Rules of 1996 - Rule 12(1), 12(6), 12(7) & 19 (a) - Form FL 21, Form FL 22 - Section 44 of the Act - Section 397 r/w section 401 of Cr.P.C. - Section 395 to section 401 of Cr.P.C. - Section 410 CrPC - Section 374 - Section 482 of the Code
Fact of the Case:
The petitioner was convicted and sentenced under various sections of the M.P. Excise Act, 1915 for illegally transporting whiskey. The petitioner sought a stay on the conviction, arguing that the findings of the lower courts were erroneous and that the conviction could lead to irreparable harm to the company where he was a director.
Finding of the Court:
The court allowed the application for stay of conviction, noting that the petitioner had already undergone the sentence and deposited the fine. The court found that the company may suffer irreparable harm if the conviction is not stayed, and therefore granted the stay during the pendency of the revision.
Issues: The issues revolved around the legality of the conviction under the M.P. Excise Act, 1915, the interpretation of export permits, and the potential harm to the company due to the conviction.
Ratio Decidendi: The court can exercise the power of revision by invoking the power of appellate court. The court has the power to stay the conviction if it results in disqualifications related to the business affairs of the company. The power to stay conviction should be exercised only in exceptional circumstances where failure to stay the conviction would lead to injustice and irreversible consequences.
Final Decision: The effect, operation, and conviction recorded in the criminal case were stayed during the pendency of the revision.
JUDGMENT
1. Heard on the question of admission.
2. Revision seems to be arguable, hence admitted for final hearing.
3. Shri Sanjeev Mishra, learned Public Prosecutor takes notice of this revision on behalf of the State.
4. Also heard on I.A. No. 1611/2020, an application under Section 397 (1) r/w section 401 r/w section 389 (1) of Code of Criminal Procedure, 1973 for staying the effect, operation and conviction recorded in criminal case No. 1070/2006 vide Judgment dated 27/09/2019 as affirmed in Criminal Appeal No. 156/2019 vide judgment dated 23/12/2019. By the said judgment, the petitioner stands convicted and sentenced as under:-
| S.N. | Convicted under section | Sentenced to: |
| 1. | Section 34 (A)/42 of M.P. Excise Act, 1915 | Imprisonment till the court rises with fine of Rs. 2,000/- with default stipulation. |
| 2. | Section 36/42 of M.P. Excise Act, 1915 | Imprisonment till the court rises with fine of Rs. 500/- with default stipulation. |
| 3. | Section 37/ 42 of M.P. Excise Act, 1915 | Imprisonment till the court rises with fine of Rs. 500/- with default stipulation. |
| 4. | Section 39 (B) (C )/ 42 of M.P. Excise Act, 1915 | Fine of Rs. 2,000/- with default stipulation. |
5. It is alleged that a truck bearing registration number BLIGA9550 was illegally transporting 612 cartoons of whiskey (Sunny Malt whiskey) as Form FL 21 was suspended and the new Form FL 22 was brought into force and the said permit was valid from 12/08/1996 till 14/08/1996 and as such Rule 12(1), 12(6), 12(7) & 19 (a) of Foreign Liquor Rules, 1996 (hereinafter referred to as Rules of 1996) have been violated.
6. Learned Senior Counsel Shri Amit Agrawal contended that prima facie findings of the learned Courts below are perverse inasmuch as the transport of the foreign liquor in the truck was covered by the export permit issued under Rule 12 (5) of Rules of 1996. Thus the courts below have committed palpable error in recording the conviction under Section 34 (a) of M.P. Excise Act, 1915 (hereinafter referred to as an 'Act'), only on the ground that export permits were issued on Form FL-21 which was repealed w.e.f . 01/04/1996 by Form FL 22, although the trial court has recorded that export permits were not forged, but for alleged violation of Rule 12 (6) & (7) of Rules of 1996 concluded that in view of breach, the petitioner is being convicted. It is further submitted that import permit is required only for issuance of export permit and the export permit was valid on the date of seizure. The appellate court has affirmed the order passed by the trial court without appreciating the evidence on record. The trial court has convicted the petitioner on the basis of the findings that every offence committed by the 'company', the 'Managing Director' is responsible. According to Section 44 of the Act and the general principle of law that unless complexity and mens-rea qua an offence of the Managing Director is established, no vicarious liability can be fastened in absence of a statutory provisions fastening such liability.
7. Learned senior counsel has further contended that based on the aforesaid conviction, the Excise Commissioner has issued notices vide dated 16/10/2019 (Annexure A/1), dated 04/12/2019 (Annexure A/2) & dated 04/01/2020 (Annexure A/3). Although aforesaid notices have been replied by the petitioner, but the aforesaid conviction may eventually entail in suspension of and/or cancellations of license of M/s. Som Distilleries Private Limited, wherein the petitioner was Director till 27/09/2019. He further submits that if the license is cancelled the ensuing damage done by cancellation cannot be undone in case conviction is eventually set aside. In view of the above, if the conviction is not stayed, the petitioner being the erstwhile Chairman and Ma
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