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2020 Supreme(MP) 875

MADHYA PRADESH HIGH COURT (INDORE BENCH)
Shailendra Shukla, J.
Rakesh Kumar - Appellant
Versus
State Of M.P. - Respondent
Miscellaneous Criminal Case No. 26957 of 2020
Decided On : 05-09-2020

Advocates Appeared:
Prateek Maheshwari, Advocate, Gagan Bajad, Advocate

The main legal point established in the judgment is that the offence under Section 3/7 of the Essential Commodities Act is a bailable offence.

Headnote:

Essential Commodities Act - Anticipatory Bail - Section 3/7 - [SUMMARY OF ACT SECTIONS REFERENCED: Sections 3, 7, 10A of the Essential Commodities Act, 1955] - The court discussed the legislative history of Section 10A of the Essential Commodities Act, its amendments, and the interpretation of the provisions. The court concluded that the offence under Section 3/7 of the Essential Commodities Act is a bailable offence, and granted anticipatory bail due to the likelihood of confusion prevailing in the minds of the investigating agency regarding the correct legal position.

Fact of the Case:

The applicant filed for anticipatory bail under Section 438 of Cr. P.C. apprehending arrest in connection with a case registered under Sections 3/7 of the Essential Commodities Act, 1955. The prosecution alleged that the rice bags stored in the applicant's warehouse belonged to the public distribution system, and a case was registered against the applicant for contravention of the Essential Commodities Act.

Finding of the Court:

The court found that the offence under Section 3/7 of the Essential Commodities Act is a bailable offence and granted anticipatory bail to the applicant due to the likelihood of confusion prevailing in the minds of the investigating agency regarding the correct legal position.

Issues: The main issue was whether the offence under Section 3/7 of the Essential Commodities Act is bailable or non-bailable, and whether the applicant should be granted anticipatory bail.

Ratio Decidendi: The court analyzed the legislative history of Section 10A of the Essential Commodities Act, its amendments, and the interpretation of the provisions to conclude that the offence under Section 3/7 of the Essential Commodities Act is a bailable offence.

Final Decision: The court allowed the application for grant of anticipatory bail, directing that the applicant shall not be arrested subject to certain conditions.

JUDGMENT

Shailendra Shukla, J. - Heard. Case diary perused.

2. This is first application filed under Section 438 of Cr. P.C. for grant of anticipatory bail. Applicant - Rakesh Kumar S/o Gyarasilal Agrawal is apprehending his arrest in connection with Crime No.116/2020 registered at Police Station Baghana, District Neemuch for the offence punishable under Sections 3/7 of the Essential Commodities Act, 1955.

3. As per prosecution story on 17.07.2020, junior food supply officer, Jitendra Nagar along with his bureau members inspected the warehouse of Rakesh Agrawal and prima-facie, on inspection, it was found that the rice bags which were stored in the warehouse belonged to the public distribution system. On demanding legitimate documents from the applicant regarding the rice bags, no such documents were presented by the applicant and the applicant took undue advantage of Janmukhi Yojana. Hence, a case under Section 3/7 of the Essential Commodities Act was registered against the applicant.

4. The grounds which have been mentioned are that applicant is a bonafide purchaser of allegedly seized rice bags and he has filed copy of requisite invoice regarding procurement of alleged seized rice bags as Annexure-B.

5. Learned counsel for the applicant submits that case has been registered against the applicant merely on suspicion and prosecution has failed to prove that the seized rice bags were procured from the public distribution system. He also submits that FIR does not disclose the contravention of any specific order of the central government as per Section 3 of the Essential Commodities Act.

6. During the course of submissions, counsel for the applicant has also referred to number of citations in which offence under Section 3/7 of the Essential Commodities Act has been held to be a bailable offence. However, anticipatory bail in those cases were still granted because of the confusion prevailing as to whether such offence is bailable or not and therefore, risk of arrest looms large. He has further produced a bill and also some photographs which generally show that any grains from public distribution system belonging to the government are stored in sacks which display the fact that the grains inside is for the purpose of public distribution system and it belongs to the government. He has also submitted that no such kinds of sacks were found in the warehouse. As to whether the offence under Section 3/7 of the Essential Commodities Act is bailable or not, number of citations have been submitted and they are,

? a) Santosh Sahare vs. State of Madhya Pradesh, (2015) 3 MPJR 50

? b) Shri Jayanta Kumar Das vs. State of Assam, AB No.1205/2017 (High Court of Gauhati-DB)

? c) Mahendra Singh vs. State of Madhya Pradesh (MCRC No.40511/2019)

? d) Kuldeep Singh vs. State of Madhya Pradesh (MCRC No.32496/2019)

? e) Harendra Singh vs. State of Madhya Pradesh (MCRC No.37312/2019)

? f) Sachin Kumar Oswal vs. State of Madhya Pradesh (MCRC No.17474/2020).

7. In the aforesaid citations, the question as to whether offence under Section 3/7 of the Essential Commodities Act is bailable or non-bailable has been very clearly dealt with. The same is specifically delineated in a citation which has been produced by the counsel which is Shri Jayanta Kumar Das vs. State of Assam, AB No.1205/2017 and following paragraphs of the same are relevant for consideration :-

19. Legislative history of Section 10 A of the EC Act and interpretation:

Before we proceed to discuss the legislative history of Section 10A of the EC Act, it would be useful to briefly note the provisions of Sections 3 and 7 of the said Act.

20. Section 3 of the EC Act deals with the powers to control production, supply, distribution, etc. of essential commodities. Central Government may by order provide for regulating or prohibiting the production, supply and distribution of essential commodities and trade and commerce therein subject to the conditions mentioned in Section 3.

21. Penalty for contraventi

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