THE ESSENTIAL COMMODITIES ACT, 1955

ACT NO. 10 OF 1955

[1st April, 1955.]

An Act to provide, in the interest of the general public, for the control of the production, supply and distribution of, and trade and commerce, in certain commodities. BE it enacted by Parliament in the Sixth Year of the Republic of India as follows:― 1. Extended to Goa, Daman and Diu with modification by Regulation 12 of 1962, section 3 and Schedule, to Dadra and Nagar Haveli by Regulation 6 of 1963, section 3 and Schedule I and to Lakshadweep and Amindivi Islands by Regulation 8 of 1965, section 3 and Schedule, to the State of Sikkim vide S.O. 28(E), dated 7th January, 1976 (w.e.f. 7-1-1976). This Act has been amended in Maharashtra by Maharashtra Act 71 of 1976, in Orissa by Orissa Act, 8 of 1976, in Uttar Pradesh by Uttar Pradesh Acts 9 of 1974, 18 of 1975, 39 of 1975 and 16 of 1978.

Read full Act

S.1 Short title and extent

(1) This Act may be called the Essential Commodities Act, 1955.

(2) It extends to the whole of India2.

2. The words “except the State of Jammu and Kashmir” omitted by Act 25 of 1968, s. 2 and the Schedule (w.e.f. 15-8-1968).

S.2 Definitions

In this Act, unless the context otherwise requires,―

3[(ia) “Collector” includes an Additional Collector and such other officer, not below the rank of Sub-Divisional Officer, as may be authorised by the Collector to perform the functions and exercise the powers of the Collector under this Act;]

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(b) “food-crops” include crops of sugarcane;

5[(cc) “order” includes a direction issued thereunder;]

6[(d) “State Government,” in relation to a Union territory, means the administrator thereof;]

5[(e) “sugar” means―

(i) any form of sugar containing more than ninety per cent, of sucrose, including sugar candy;
(ii) khandsari sugar or bura sugar or crushed sugar or any sugar in crystalline or powdered form; or
(iii) sugar in process in vacuum pan sugar factory or raw sugar produced

S.2A Essential commodities declaration, etc.

1[(1) For the purposes of this Act, “essential commodity” means a commodity specified in the Schedule.

(2) Subject to the provisions of sub-section (4), the Central Government may, if it is satisfied that it is necessary so to do in the public interest and for reasons to be specified in the notification published in the Official Gazette, amend the Schedule so as to―

(a) add a commodity to the said Schedule;
(b) remove any commodity from the said Schedule, in consultation with the State Governments.

(3) Any notification issued under sub-section (2) may also direct that an entry shall be made against such commodity in the said Schedule declaring that such commodity shall be deemed to be an essential commodity for such period not exceeding six months to be specified in the notification:

Provided that the Central Government may, in the public interest and for reasons to be specified, by notification in the Official Gazette, e

S.3 Powers to control production, supply, distribution, etc., of essential commodities

(1) If the Central Government is of opinion that it is necessary or expedient so to do for maintaining or increasing supplies of any essential commodity or for securing their equitable distribution and availability at fair prices, 2[or for securing any essential commodity for the defence of India or the efficient conduct of military operations], it may, by order, provide for regulating or prohibiting the production, supply and distribution thereof and trade and commerce therein.

3* * * * *

(2) Without prejudice to the generality of the powers conferred by sub-section (1), an order made thereunder may provide―

(a) for regulating by licences, permits or otherwise the production or manufacture of any essential commodity;
(b) for bringing under cultivation any waste or arable land, whether appurtenant to a building or not, for the growing thereon of food-crops generally or of specified food-crops, and for otherwise maintaining o

S.4 Imposition of duties on State Governments, etc.

An order made under section 3 may confer powers and impose duties upon the Central Government or the State Government or officers and authorities of Central Government or State Government, and may contain directions to any State Government or to officers and authorities thereof as to the exercise of any such powers or the discharge of any such duties.

S.5 Delegation of powers

The Central Government may, by notified order, direct that 1[the power to make orders or issue notifications under section 3] shall, in relation to such matters and subject to such conditions, if any, as may be specified in the direction, be exercisable also by―

(a) such officer or authority subordinate to the Central Government, or
(b) such State Government or such officer or such authority subordinate to a State Government, as may be specified in the direction.

1. Subs. by Act 66 of 1971, s. 3, for “the power to make orders under section 3” (w.e.f. 23-12-1971).

S.6 Effect of orders inconsistent with other enactments

Any order made under section 3 shall have effect notwithstanding anything inconsistent therewith contained in any enactment other than this Act or any instrument having effect by virtue of any enactment other than this Act.

S.6A Confiscation of essential commodity

1[2[(1)] Where any 3[essential commodity is seized] in pursuance of an order made under section 3 in relation thereto, 4[a report of such seizure shall, without unreasonable delay, be made to] the Collector of the district or the Presidency town in which such 5[essential commodity is seized] and whether or not a prosecution is instituted for the contravention of such order, the Collector 6[may, if he thinks it expedient so to do, direct the essential commodity so seized to be produced for inspection before him, and if he is satisfied] that there has been a contravention of the order 7[may order confiscation of―

(a) the essential commodity so seized;
(b) any package, covering or receptacle in which such essential commodity is found; and
(c) any animal, vehicle, vessel or other conveyance used in carrying such essential commodity:]

Provided that without prejudice

S.6B Issue of show cause notice before confiscation of food grains, etc.

1[(1)] No order confiscating 2[any 3[essential commodity] package, covering, receptacle, animal, vehicle, vessel or other conveyance] shall be made under section 6A unless the owner of such 2[essential commodity] package, covering, receptacle, animal, vehicle, vessel or other conveyance) or the person from whom 4[it is seized]―

(a) is given a notice in writing informing him of the grounds on which it is proposed to confiscate the 3[essential commodity] package, covering, receptacle, animal, vehicle, vessel or other conveyance];
(b) is given an opportunity of making a presentation in wiring within such reasonable time as may be specified in the notice against the ground of confiscation; and
(c) is given a reasonable opportunity of being heard in the matter.

5[(2) Without prejudice to the provisions of sub-section (1), no order confiscating any animal, vehicle, ve

S.6C Appeal

(1) Any person aggrieved by an order of confiscation under section 6A may, within one month from the date of the communication to him of such order, appeal to any judicial authority appointed by the State Government concerned and the judicial authority shall, after giving an opportunity to the appellant to be heard, pass such order as it may think fit, confirming, modifying or annulling the order appealed against.

(2) Where an order under section 6A is modified or annulled by such judicial authority, or where in a prosecution instituted for the contravention of the order in respect of which an order of confiscation has been made under section 6A, the person concerned is acquitted, and in either case it is not possible for any reason to 1[return the essential commodity seized ], 2[such persons shall, except as provided by sub-section (3) of section 6A, be paid] the price therefore 3[as if the essential commodity,] had been sold to the Governme

S.6D Award of confiscation not to interfere with other punishments

The award of any confiscation under this Act by the Collector shall not prevent the infliction of any punishment to which the person affected thereby is liable under this Act.

S.6E Bar of jurisdiction in certain cases

6[Whenever any essential commodity is seized in pursuance of an order made under section 3 in relation thereto, or any package, covering or receptacle in which such essential commodity is found, or any animal, vehicle, vessel or other conveyance used in carrying such essential commodity is seized pending confiscation under section 6A, the Collector, or, as the case may be, the State Government concerned under section 6C shall have, and, notwithstanding anything to the contrary contained in any other law for the time being in force, any court, tribunal or other authority shall not have, jurisdiction to make orders with regard to the possession, delivery, disposal, release or distribution of such essential commodity, package, covering, receptacle, animal, vehicle, vessel or other conveyance.]

6. Subs. by Act 42 of 1986, s. 2, for section 6E (w.e.f. 9-9-1986).

S.7 Penalties

1[(1) If any person contravenes any order made under Section 3,―

(a) he shall be punishable,―
- (i) in the case of an order made with reference to clause (h) or clause (i) of sub-section (2) of that section, with imprisonment for a term which may extend to one year and shall also be liable to fine, and
- (ii) in the case of any other order, with imprisonment for a term which shall not be less than three months but which may extend to seven years and shall also be liable to fine:
Provided that the court may, for any adequate and special reasons to be mentioned in the judgment, impose a sentence of imprisonment for a term of less than three months;
(b) any property in respect of which the order has been contravened shall be forfeited to the Government;
(c) any package, covering or receptacle in which the property is found and any animal, vehicle, vessel or other conveyance used in carrying the prop

S.7A Power of Central Government to recover certain amounts as arrears of land revenue

3[(1) Where any person, liable to―

(a) pay any amount in pursuance of any order made under section 3, or
(b) deposit any amount to the credit of any Account or Fund constituted by or in pursuance of any order made under that section,

makes any default in paying or depositing the whole or any part of such amount, the amount in respect of which such default has been made shall [whether such order was made before or after the commencement of the Essential Commodities (Amendment) Act, 1984 (34 of 1984), and whether the liability of such person to pay or deposit such amount arose before or after such commencement] be recoverable by Government together with simple interest due thereon computed at the rate of 1[fifteen per cent.] per annum from the date of such default to the date of recovery of such amount, as an arrear of land revenue 2[or as a public demand].

(2) The amount recovered under sub-section (1) shall

S.8 Attempts and abetment

Any person who attempts to contravene, or abets a contravention of, any order made under section 3 shall be deemed to have contravened that order.

S.9 False statement

If any person,―

(i) when required by any order made under section 3 to make any statement or furnish any information, makes any statement or furnishes any information which is false in any material particular and which he knows or has reasonable cause to believe to be false, or does not believe to be true, or
(ii) makes any such statement as aforesaid in any book, account, record, declaration, return or other document which he is required by any such order to maintain or furnish,

he shall be punishable with imprisonment for a term which may extend to 3[five years,] or with fine, or with both.

3. Subs. by Act 36 of 1967, s. 8, for “three years” (w.e.f. 30-12-1967).

S.10 Offences by companies

(1) If the person contravening an order made under section 3 is a company, every person who, at the time the contravention was committed, was in charge of, and was responsible to, the company for the conduct of the business of the company as well as the company, shall be deemed to be guilty of the contravention and shall be liable to be proceeded against and punished accordingly:

Provided that nothing contained in this sub-section shall render any such person liable to any punishment if he proves that the contravention took place without his knowledge or that he exercised all due diligence to prevent such contravention.

(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of any director, manager, secretary or other officer of the company, such director, manager, secr

S.10A Offences to be cognizable

1[Notwithstanding anything contained in 2[the Code of Criminal Procedure, 1973 (2 of 1974)] every offence punishable under this Act shall be “cognizable 3***].

1. Ins. by Act 36 of 1967, s. 9 (w.e.f. 30-12-1967).

2. Subs. by Act 30 of 1974, s. 7, for “the Code of Criminal Procedure, 1898 (5 of 1898)” (w.e.f. 22-6-1974).

3. The words “and bailable” omitted by s. 7, ibid. (w.e.f. 22-6-1974).

S.10B Power of court to publish name, place of business, etc., of companies convicted under the Act

4[(1) Where any company is convicted under this Act, it shall be competent for the court convicting the company to cause the name and place of business of the company, nature of the contravention, the fact that the company has been so convicted and such other particulars as the court may consider to be appropriate in the circumstances of the case, to be published at the expense of the company in such newspapers or in such other manner as the court may direct.

(2) No publication under sub-section (1) shall be made until the period for preferring an appeal against the orders of the court has expired without any appeal having been preferred, or such an appeal, having been preferred, has been disposed of.

(3) The expenses of any publication under sub-section (1) shall be recoverable from the company as if it were a fine imposed by the court.

Explanation.―For the purposes of this section, “company” has the meaning assigned to it in clause (a) of the Expla

S.10C Presumption of culpable mental state

(1) In any prosecution for any offence under this Act which requires a culpable mental state on the part of the accused, the court shall presume the existence of such mental state but it shall be a defence for the accused to prove the fact that he had no such mental state with respect to the act charged as an offence in that prosecution.

Explanation.―In this section, “culpable mental state” includes intention, motive, knowledge of a fact and the belief in, or reason to believe, a fact.

(2) For the purposes of this section, a fact is said to be proved only when the court believes it to exist beyond reasonable doubt and not merely when its existence is established by a preponderance of probability.]

S.11 Cognizance of offences

No Court shall take cognizance of any offence punishable under this Act except on a report in writing of the facts constituting such offence made by a person who is a public servant as defined in section 21 of the Indian Penal Code (45 of I860) 5[or any person aggrieved or any recognised consumer association, whether such person is a member of that association or not].

6[Explanation.―For the purposes of this section and section 12AA, “recognised consumer association” means a voluntary consumer association registered under the Companies Act, 1956 (1 of 1956) or any other law for the time being in force.]

STATE AMENDMENT

Uttar Pradesh

Amendment of section 11.—In section 11 of the principal Act, for the words “by person who is a public servant as defined in section 21 of the Indian Penal Code”, the words “by order of, or under authority from the District Magistrate or such other officer as may be empow

S.12 Special provision regarding fine

1[Notwithstanding anything contained in section 29 of the Code of Criminal Procedure, 1973 (2 of 1974), it shall be lawful for any Metropolitan Magistrate, or any Judicial Magistrate of the first class specially empowered by the State Government in this behalf, to pass a sentence of fine exceeding five thousand rupees on any person convicted of contravening any order made under section 3.]

1. Subs. by Act 30 of 1974, s. 9 (w.e.f. 22-6-1974).

S.12A Power to try summarily

2[(1) If the Central Government is of opinion that a situation has arisen where, in the interests of production, supply or distribution of 3[any essential commodity not being an essential commodity referred to in clause (a) of sub-section (2)] or trade or commerce therein and other relevant considerations, it is necessary that the contravention of any order made under section 3 in relation to such essential commodity should be tried summarily, the Central Government may, by notification in the Official Gazette, specify such order to be a special order for purposes of summary trial under this section, and every such notification shall be laid, as soon as may be after it is issued, before both Houses of Parliament:

4[Provided that―

(a) every such notification issued after the commencement of the Essential Commodities (Amendment) Act, 1971, shall, unless sooner rescinded, cease to operate at the expiration of two years after the pub

S.12B Grant of injunction, etc., by civil courts

6[No civil court shall grant an injunction or make any order for any other relief, against the Central Government or any State Government or a Public officer in respect of any Act done or purporting to be done by such Government, or such officer in his official capacity, under this Act or any order made thereunder, until after notice of the application for such injunction or other relief has been given to such Government or officer.]

6. Ins by Act 30 of 1974, s. 11 (w.e.f. 22-6-1974).

S.13 Presumption as to orders

Where an order purports to have been made and signed by an authority in exercise of any power conferred by or under this Act, a court shall presume that such order was so made by that authority within the meaning of the Indian Evidence Act, 1872 (1 of 1872).

S.14 Burden of proof in certain cases

Where a person is prosecuted for contravening any order made under section 3 which prohibits him from doing any act or being in possession of a thing without lawful authority or without a permit, licence or other document, the burden of proving that he has such authority, permit, licence or other document shall be on him.

S.15 Protection of action taken under Act

(1) No suit, prosecution or other legal proceeding shall lie against any person for anything which is in good faith done or intended to be done in pursuance of any order made under section 3.

(2) No suit or other legal proceeding shall lie against the Government for any damage caused or likely to be caused by anything which is in good faith done or intended to be done in pursuance of any order made under section 3.

S.15A Prosecution of public servants

1[Where any person who is a public servant is accused of any offence alleged to have been committed by him while acting or purporting to act in the discharge of his duty in pursuance of an order made under section 3, no court shall take cognizance of such offence except with the previous sanction―

(a) of the Central Government, in the case of a person who is employed or, as the case may be, was at the time of commission of the alleged offence employed, in connection with the affairs of the Union;
(b) of the State Government, in the case of a person who is employed or, as the case may be, was at the time of commission of the alleged offence employed, in connection with the affairs of the State.]

1. Ins. by Act 92 of 1976, s. 8 (w.e.f. 2-9-1976).

S.16 Repeals and savings

(1) The following laws are hereby repealed:―

(a) the Essential Commodities Ordinance, 1955 (1 of 1955);
(b) any other law in force in any State immediately before the commencement of this Act in so far as such law controls or authorises the control of the production, supply and distribution of, and trade and commerce in, any essential commodity.

(2) Notwithstanding such repeal, any order made or deemed to be made by any authority whatsoever, under any law repealed hereby and in force immediately before the commencement of this Act, shall, in so far as such order may be made under this Act, be deemed to be made under this Act and continue in force, and accordingly any appointment made, licence or permit granted or direction issued under any such order and in force immediately before such commencement shall continue in force until and unless it is superseded by any appointment made, licence or permit granted or direction issued under this Act.