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(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. Short
title and extent –
(1) This Act may be called the Essential Commodities Act, 1955.
(2) It extends to the whole of India.
2. Definitions
– In this Act, unless the context otherwise requires, -
*(ia)” “Collector” includes an Additional Collector and such other
officer, not below the rank of Sub-Divisional Officer, as may be authorized
by the Collector to perform the functions and exercise the powers of the
Collector under this Act;]
(a) “essential
commodity” means any of the following classes of commodities: -
(i) cattle
fodder, including oilcakes and other concentrates;
(ii) coal
including coke and other derivatives;
(iii) component
parts and accessories of automobiles;
(iv) cotton
and woolen textiles;
*(iva) drugs;
Explanation, - In this sub-clause,” drugs” has the meaning assigned
to it in clause (b) of section 3 of the Drugs and Cosmetics Act, 1940
(23 of 1940),]
(v) foodstuffs,
including edible oilseeds and oils;
(vi)
iron and steel, including manufactured products of iron and steel;
(vii)
paper, including newsprint, paperboard and straw board;
(viii)
petroleum and petroleum products;
(ix)
raw cotton, whether ginned or unginned, and cotton seed;
(x)
raw jute;
(xi)
any other class of commodity which the Central Government may,
by notified order, declare to be an
essential commodity for the purposes of this Act, being a commodity with
respect to which Parliament has power to make laws by virtue of entry
33 in List III in the Seventh Schedule to the Constitution;
(b) “food-crops”
include crops of sugarcane;
(c)
“notified order” means an order notified in the Official Gazette;
“order” includes a direction issued thereunder,]
[(d) “State Government.”
In relation to a Union territory, means the
administrator thereof;]
(e) “sugar” means-
(i) any
form of sugar containing more than ninety percent, 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
therein.
COMMENTS
(i)
The sharbat in question is an essential commodity within the meaning
of Sec.2 of the Act.(Humdard Dawakhana v. U.O.I., AIR 1956 SC 1167.
(ii)
The work ‘oil’ like
kerosene. (Tulsidas Modi v. State of Orissa 1987 Cr. LJ 664).
3. Powers
to control production, supply, distribution, etc., of essential commodities
– 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 price, [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.
(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 or increasing
the cultivation of food-crops generally, or of specified food-crops.
(c)
for controlling the price at which essential commodity may be bought
or sold;
(d) for
regulating by licences, permits or otherwise the storage, transport, distribution,
disposal, acquisition use or consumption of, any essential commodity;
(e)
for prohibiting the withholding from sale of any essential commodity
ordinarily kept for sale;
[(f) for requiring, any person
holding in stock, or engaged in the production, or in the business of
buying or selling, of any essential commodity, -
(a)
to sell the whole or a specified part of the quantity held in stock
or produced or received by him or,
(b)
in the case of any such commodity which is likely to be produced
or received by him, to sell the whole or a specified part of such commodity
when produced or received by him, to the Central Government or a State
Government or to an office or agent of such Government or to a Corporation
owned or controlled by such Government or to such other person or class
of persons and in such circumstances as may be specified in the order.
Explanation 1 – An order made under this clause in relation
to food-grains, edible oilseeds or edible oils, may, having regard to
the estimated production, in the concerned area, of such foodgrains, edible
oilseeds and edible oils, fix the quantity to be sold by the producers
in such area and may also fix, or provide for the fixation of, such quantity
on a graded basis, having regard to the aggregate of the area held by,
or under the cultivation of, the producers.
Explanation 2 – For the purposes of this clause, “production”
with its grammatical variations and cognate expressions includes manufacture
of edible oils and sugar,]
(g)for regulating or prohibiting any class of commercial or financial
transactions relating to foodstuffs or cotton textiles which, in the opinion
of the authority making the order, are, or, if unregulated, are likely
to be, detrimental to the public interest;
(h) for collecting any information or satisfies with a view to regulating
or prohibiting any of the aforesaid matters;
(i) for requiring persons engaged in the production, supply or distribution
of or trade and commerce in , any essential commodity to maintain and
produce for inspection such books, accounts and records relating to their
business and to furnish such information relating thereto, as may be specified
in the order,
[(ii) for the grant of issue of
licenses, permits or other documents, the charging of fees therefore,
the deposit of such sum, if any, as may be specified in the order as security
for the due performance of the conditions of any such licence, permit
or other document, the forfeiture of the sum so deposited or any part
thereof for contravention of any such conditions, and the adjudication
of such forfeiture by such authority as may be specified in the order,]
[(j) for any incidental and supplementary matters, including, in particular,
the entry, search or examination of premises, aircraft, vessels, vehicles
or other conveyances and animals, and the seizure by a person authorized
to make such entry, search or examination.
(i)
of any articles in respect of which such person has reason to believe
that a contravention of the order has been, is being, or is about to be,
committed and any packages, coverings or receptacles in which such articles
are found;
(ii)
of any aircraft, vessel, vehicle or other conveyance or animal
used in carrying such article, if such person has reason to believe that
such aircraft, vessel, vehicle or other conveyance or animal is liable
to be forfeited under the provisions of this Act;
(iii)
of any books of accounts and documents which in the opinion of
such person, may be useful for, or relevant to any proceeding under this
Act and the person from whose custody such books of accounts or documents
are seized shall be entitled to make copies thereof or to take extracts
therefrom in the presence of an officer having the custody of such books
of accounts or documents.
3.Where
any person sells any essential commodity in compliance with an order made
with reference to clause (f) of sub-section (2), there shall be paid to
him the price therefore as hereinafter provided;
(a) where
the price can, consistently with the controlled price, if any, fixed under
this section, be agreed upon, the agreed price;
(b) where
no such agreement can be reached, the price calculated with reference
to the controlled price, if any;
(c)
where neither clause (a) nor clause (b) applies, the price calculated
at the market rate prevailing in the locality at the date of sale.
[(3A)(i) If the Central Government is of opinion that it is necessary
so to do for controlling the rise in prices or preventing the hoarding,
of any food-stuff in any locality, it may, by notification in the Official
Gazette, direct that notwithstanding anything contained in sub-section
(3), the price at which the food-stuff shall be sold in the locality in
compliance with an order made with reference to clause (f) of sub-section
(2) shall be regulated in accordance with the provisions of this sub-section.
(i) Any
notification issued under this sub-section shall remain in force for such
period not exceeding three months as may be specified in the notification.
(ii) Where,
after the issue of a notification under this sub-section, any person compliance
with an order made with reference to clause (f) of sub-section (20), there
shall be paid to the seller as the price therefore-
(a) Where
the price can, consistently with the controlled price of the foodstuff,
if any, fixed under this section, be agreed upon, the agreed price:
(b) Where
no such agreement can be reached, the price calculated with reference
to the controlled price, if any;
(c) Where
neither clause ((a) nor clause (b) applies, the price calculated with
reference to average market rate prevailing in the locality during the
period of three months immediately proceeding the date of the notification.
(iii)
For the purposes of sub-clause © of clause (iii), the average market
rate prevailing in the locality shall be determined by an officer authorized
by the Central Government in this behalf, with reference to the prevailing
market rates for which published figures are available in respect of that
locality or of a neighbouring locality; and the average market rate so
determined shall be final and shall not be called in question in any court.]
[(3B) Where any person is
required, by an order made with reference to clause (f) of sub-section
(2), to sell to he Central Government or a State Government or to an officer
or agent of such Government or to a Corporation owned or controlled by
such Government, any grade or variety of food grains, edible oilseeds
or edible oils in relation to which no notification has been issued under
sub-section (3A), or such notification having been issued, has ceased
to be-in force , there shall be paid to the person concerned, notwithstanding
anything to the contrary contained in sub-section (3), an amount equal
to the procurement price of such foodgrains, edible oilseeds or edible
oils, as he case may be, specified by the State Government, with the previous
approval of he Central Government having regard to –
(a) the
controlled price, if any, fixed under this section or by or under any
other law for the time being in force for such grade or variety of foodgrains,
edible oilseeds or edible oils;
(b) the
general crop prospects;
(c) the
need for making such grade or variety of foodgrains, edible oilseeds or
edible oils available at reasonable prices to the consumers, particularly
the vulnerable sections of the consumers; and
(d) the
recommendations, if any, of the Agricultural Prices Commission with regard
in the price of the concerned grade or variety of foodgrains, edible oilseeds
or edible oils.]
[(3C) Where any producer is required by an order made with reference to
clause (f) of sub section (2) to sell any kind of sugar (whether to the
Central Government or a State Government or to an officer or agent of
such Government or to any other person or class of persons) and either
no notification in respect of such sugar has been issued under sub-section
(3A) or any such notification, having been issued, has ceased to remain
in force by efflux of time, then, notwithstanding anything contained in
sub-section (3), there shall be paid to that producer an amount therefore
which shall be calculated with reference
to such price of sugar as the Central Government may, by order,
determine, having regard to-
(a) the
minimum price, if any, fixed for sugarcane by Central Government under
this section;
(b) the
manufacturing cost of sugar;
(c) the
duty or tax, if any, paid or payable thereon; and
(d) the
securing of a reasonable return on the capital employed in the business
of manufacturing sugar,and different prices may be determined from time
to time for different areas or for different factories or for different
kinds of sugar.
Explanation, - For the purposes of this sub-section, “ producer”
means a person carrying on the business of manufacturing sugar.]
(4) If the Central Government is of opinion that it is necessary so to
do for maintaining or increasing the production and supply of an essential
commodity, it may, by order, authorize any person (hereinafter referred
to as an authorized controller) to exercise, with respect to the whole
or any part of any such undertaking engaged in the production and supply
of the commodity as may be specified in the order such functions of control
as may be provided therein and so long as such order is in force with
respect to any undertaking or part thereof,-
(a) the
authorized controller shall exercise his functions in accordance with
any instructions given to him by the Central Government, so, however,
that he shall not have any power to give any direction inconsistent with
the provisions of any enactment or any instrument determining the functions
of the persons in-charge of the management of the undertaking, except
in so far as may be specifically provided by the order, and
(b) the
undertaking or part shall be carried on in accordance with any directions
given by the authorized controller under the provisions of the order,
and any person having any functions of management in relation to the undertaking
or part shall comply with any such directions.
5.An order made under this section shall,-
(a) in
the case of an order of a general nature or affecting a class of persons,
be notified in the Official Gazettes; and
(b) in
the case of an order directed to a specified individual be served on such
individual –
(i)
by delivering or tendering it to that individual, or
(ii)
if it cannot be so delivered or tendered, by affixing it on the
outer door or some other conspicuous part of the premises in which that
individual lives, and a written report there of shall be prepared and
witnessed by two persons living in the neighborhood.
(6) Every order made under this section by the Central Government or by
any officer or authority of the Central Government shall be laid before
both Houses of Parliament, as soon as may be, after it is made.
COMMENTS
(i)The
ban imposed on manufacture of skimmed milk powder from skimmed milk during
the season when milk is available in abundance and when there is no ban
on manufacture of ghee, khoya, panner, was held wholly illogical, irrational
and arbitrary on the point that it is not lofical on the face of it and
further more skimmed milk powder can be reconverted to milk unlike the
other by-products such as paneer,khya etc. M/s. Daily Foods v. Union of
India AIR 1993 Delhi 278.
(ii)The
State Government has been given a power to issue notification but such
power should be exercised after prior concurrence of Central Government.
In a case of Dujrga Utpadak Evam Viikareta Sangh Jabalpur v.State of MP
(AIR 1986 MP 9), it was held that a notification issued by State Govt.
which was not as per prior concurrence of Central Government and thus
invalid.
4. Imposition
of duties on State Government, 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.
5.
Delegation of powers,- The Central Government t may, by notified order, direct that
[the power to make orders or issue notifications under section] 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.
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.
[6A. Confiscation of essential commodity,-
[(1) Where any [essential commodity is seized] in pursuance of
an order made under section 3 in relation thereto, [a report of such seizure
shall, without unreasonable delay, be made to] the Collector of the district
or Presidency town in which such [essential commodity is seized] and whether
or not a prosecution is instituted for the contravention of such order,
the Collector [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 [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 to any action which may be taken
under any other provision of this Act, no foodgrains or edible oilseeds
in pursuance of an order made under section 3 in relation thereto from
a producer shall, if the seized foodgrains or edible oilseeds have been
produced by him, be confiscated under this section;
[Provided further that in the case of any animal, vehicle, vessel or other
conveyance used for the carriage of goods or passengers for hire, the
owner of such animal, vehicle, vessel or other conveyance shall be given
an option to pay, in lieu of its confiscation, a fine not exceeding the
market price at the date of seizure of the essential commodity sought
to be carried by such animal, vehicle, vessel or other conveyance.]
[(2) Where the Collector, on receiving a report of seizure or on inspection
of any essential commodity under sub-section (l), is of the opinion that
the essential commodity is subject to speedy and natural decay or it is
otherwise expedient in the public interest so to do, he may –
(i)
order the same to be sold at the controlled price, if any, fixed
for essential commodity under this Act or under any other law for the
time being in force; or
(ii)where no such price is fixed, order the same to be sold by public
auction:
*Provided that in case of foodgrains, the Collector may, for its
equitable distribution and availability at fair prices, order the same
to be sold through fair price shops at the price fixed by the Central
Government or the State Government, as the case may be, for the retail
sale of such foodgrains to the public.
(3) where any essential commodity is sold, as aforesaid, the sale proceeds
thereof, after deduction of the expenses of any such sale or auction or
other incidental expenses relating thereto, shall –
(a)
where no order or confiscation is ultimately passed by the Collector,
(b)
where an order passed on appeal under sub-section (1) of section
6C so requires, or
(c) where
in a prosecution instituted for the contravention of the order in respect
of which an order of confiscation has been made under this section, the
person concerned is acquitted be paid to the owner or the person from
whom it is seized .]
6B. Issue of show cause notice before confiscation of essential commodity
–
[(1) No order confiscating [any
essential commodity] shall be made under section 6A unless the owner of
such] [essential commodity] package, covering, receptacle, animal, vehicle,
vessel or other conveyance] or the person from whom [it is seized –
(a) is
given a notice is writing informing him of the grounds on which it is
proposed to confiscate the [[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.
[(2) Without prejudice to the provisions of sub-section (1), no order
confiscating any animal, vehicle vessel or other conveyance shall be made
under section 6A if the owner of the animal, vehicle vessel or other conveyance
proves to the satisfaction of the Collector that it was used in carrying
the essential commodity without the knowledge or connivance of the owner
himself, his agent, if any, and the person in charge of the animal, vehicle,
vessel or other conveyance and that each of them had taken all reasonable
and necessary precautions against such use.]
[(3) No order confiscating any essential commodity package, covering,
receptacle, animal, vehicle, vessel or other conveyance shall be invalid
merely by reason of any defect or irregularity in the notice, given under
clause(a) of sub-section (1), if, in giving such notice, the provisions
of that clause have been substantially complied with.]
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 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 [return the essential commodity seized],
[such persons shall, except as provided by sub-section (3) of section
6A, be paid] the price therefore [as if the essential commodity, ]had
been sold to the Government with reasonable interest calculated from the
day of the seizure of [the essential commodity] [and such price shall
be determined –
(i) in
the case of foodgrains, edible oilseeds or edible oils, in accordance
with the provisions of sub-section(3B) of section3;
(ii) in the
case of sugar, in accordance with the provisions of sub-section (3C) of
section 3; and
(iii)
in the case of any other essential commodity, in accordance with
the provisions of sub-section (3) of section 3.]
COMMENTS
There
is a difference in orders of confiscation passed by the Collector under
section6. A(1) and section 6A(2) of the Act. Thus, an order passed under
section 6A(2) of he Act does not attract 6C and hence no appeal lies.
Section 6C is clear in its words that an appeal is provided only for orders
issued for confiscation under section 6A(1) of the Act. State of H.P.
v.Ram Avtar Jaiswal, 2983 All. I.J.1197.
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.
[ 6E. Bar of jurisdiction in certain cases – 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.].
7. Penalties –
(1) If any person cont5avenes any order made under section3, -
(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 commodity
shall, if the court so orders, be forfeited to the Government.
(2) If any person to whom a direction is given under clause (b) of sub-section(4)
of section 3 fails to comply with the direction, he shall be punishable
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 motioned in the judgment, impose a sentence of imprisonment for
a term of less than three months.
(2A) If any person convicted of an offence under sub-clause (ii) of clause
(a) of sub-section (1) or under sub-section (2) is again convicted of
an offence under the same provision, he shall be punishable with imprisonment
for the second and for every subsequent offence for a term which shall
not be less than six months b 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 six months.
** *(2B) For the purposes of sub-section (1),(2) and (2A), the
fact that an offence under sub-clause (ii) of clause (a) of sub-section
(1) or under sub-section (2) has caused no substantial harm to the general
public or to any individual, shall be an adequate and special reason for
awarding a sentence of imprisonment for a term of less than three months,
or six months, as the case may be.]
[(3) Whereas person having been convicted of an offence under sub-section
(1) is again convicted of an offence under that sub-section for contravention
of an order in respect of an essential commodity, the Court by which such
person is convicted shall, in addition to any penalty which may be imposed
on him under that sub-section, by order, direct that that person shall
not carry on any business in that essential commodity for such period,
not being less than six months, as may be specified by the Court in the
order.]
COMMENTS
In
case Isher Dass v. State of Haryana, AIR 1992 SC 1595, the penalty was
imposed by the lower court under section 7 of Essential Commodities Act.
The Supreme Court disposed off the appeal and confirmed the conviction
thereby reducing the sentence period under certain circumstances.
[
7A Power of Central Government to recover certain amounts as arrears of
land revenue – (1) Where any person, liable to –
(a) Pay
any amount in pursuance of any order made under section3, 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, and
whether the liability of such person to pay or deposit such amount arose
before or after such commencement be recoverable by Government with simple
interest due thereon commuted at the rate of [fifteen percent] per annum
from the date of such default to the date recovery of such amount, as
an arrears of land revenue [or as a public demand.]
(2) The amount recovered under sub-section (1) shall be dealt with in
accordance with the order under which the liability to pay or deposit
such amount arose.
(3) Notwithstanding anything contained in any other law for the time being
in force or any contract to the contrary, no court, tribunal or other
authority shall grant any injunction or make any order prohibiting or
restraining any Government from recovering any amount as an arrears of
land revenue [or as a public demand] in pursuance of the provisions of
sub-section (1).
(4) If any order, in pursuance of which any amount has been recovered
by Government as an arrears of land revenue [or as a public demand] under
sub-section (1) is declared by a competent court, after giving to the
Government a reasonable opportunity of being heard, to be invalid, the
Government shall refund the amount so recovered by it to the person from
whom it was recovered, together with simple interest due thereon, computed
at the rate of [fifteen per cent.]per annum, from the date of recovery
of such amount to the date on which such refund is made.
Explanation, - For the purposes of this section,”Government”means
the Government by which the concerned order under section 3 was made or
where such order was made by an officer or authority subordinate to any
Government, that Government].
*8. Attempts and abetment – Any person who attempts to contravene,
or abets a contravention of any order made under section3 shall be deemed
to have contravened that order.
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 [five years,]or with fine, or with both.
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, secretary or other officer
also be deemed to be guilty of that offence and shall be liable to be
proceeded against and punished accordingly.
Explanation –For the purposes of this section, -
(a) “company”
means any body corporate, and includes a firm or other association of
individuals; and
(b) “director”
in relation to a firm means a partner in the firm.
[10A.Offences
to be cognizable and bailable – Notwithstanding anything contained
in [the Code of Criminal Procedure, 1973 (2 of 1974)] every offence punishable
under this Act shall be cognizable [***]
[10B.
Power of court to publish name, place of business, etc.,of companies convicted
under the Act – (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 order 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 explanation of section
10.
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 the 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 an act 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.]
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 (45of 1860) [or any person aggrieved or any
recognized consumer association, whether such person is a number of that
association or not.]
[Explanation, - For the purposes of this section and section 12AA.
“ recognized 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.]
[12. Special provision regarding fine – 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 under section 3.]
[12A. Power to try summarily – (1) If the Central Government is
of opinion that a situation has arisen where , in the interest of production,
supply or distribution of [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 Office Gazete, 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.
[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 publication of such
notification in the Official Gazette;
(b)
Every such notification in force immediately before such commencement
shall, unless sooner rescinded, cease to operate at the expiration of
two years after such commencement:
Provided further that nothing in the foregoing proviso shall affect
any case relating to the contravention of a special order specified in
any such notification if proceedings by way of summary trial have commenced
before that notification is rescinded or ceases to operate and the provisions
of this section shall continue to apply to that case as if that notification
had not been rescinded or had not ceased to operate.]
*[(2) Notwithstanding anything contained in the Code of Criminal Procedure,
1973(2 of 1974) all, offences relating to –
(a) the
contravention of an order made under section 3 with respect to
(i) cotton
or woolen textiles; or
(ii) foodstuffs,
including edible oilseeds and oil; or
(iii) drugs;
and
(b) where
any notification issued under sub-section (1) in relation to a special
order is in force, the contravention of such special order, shall be tried
in a summary way by a Judicial Magistrate of the First Class specially
empowered in this behalf by the State Government or by a Metropolitan
Magistrate and the provisions of sections 262 to 265 (both inclusive )
of the said Code shall, as far as may be, apply to such trial;
Provided that, in the case of any conviction in a summary trial
under this section, it shall be lawful for the Magistrate to pass a sentence
of imprisonment for a term not exceeding one year:
Provided further that when at the commencement of, or in the course
of, a summary trial under this section, it appears to the Magistrate that
the nature of the case is such that a sentence of imprisonment for a term
exceeding one year may have to be passed or that it is, for any other
reason, undesirable to try the case summarily, the Magistrate shall, after
hearing the parties, record an order to that effect and thereafter recall
any witnesses who may have been examined and proceed to hear or re-hear
the case in the manner provided by the said Code].
(3) Notwithstanding anything to the contrary contained in [the Code of
Criminal Procedure 1973 (2 of 1974),] there shall be no appeal by a convicted
person in any case tried summarily under this section in which the Magistrate
passes a sentence of imprisonment not exceeding one month, [and of fine
not exceeding two thousand rupees] whether or not any order of forfeiture
of property or an order under [section 452] of the said Code is made in
addition to such sentences, but an appeal shall lie where any sentence’’’in
excess of the aforesaid limits is passed by the Magistrate.
(4) All cases relating to the contravention of an order referred
to in clause (a) of sub-section (2), not being a special order, and pending
before a Magistrate immediately before the commencement of the Essential
Commodities (Amendment) Act, 1974, and, where any notification is issued
under sub-section (1) in relation to a special order, all cases relating
to the contravention of such special order and pending before a Magistrate
immediately before the date of the issue of such notification, shall,
if no witnesses have been examined before such commencement or the said
date, as the case may be, be tried in a summary way under this section,
and if any such case is pending before a Magistrate who is not competent
to try the same in a summary way under this section, it shall be forwarded
to a Magistrate so competent.].
[12B.
Grant of injunction, etc., by civil courts – No civil court shall
grant 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 there under,
until after notice of the application for such injunction or other relief
has been given to such Government or officer.]
13. Presumption as to order – 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).
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 the has such authority, permit, licence or other document shall be
on him.
15. Protection of action taken under Act –
(1) No suit, prosecution or other legal proceeding shall lie against any
person for any thing 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 any thing which is in
good faith done or intended to be done in pursuance of any order made
under section 3.
[15A. Prosecution of public servants – 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.]
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 authorizes 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 here by 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.
(3) The provision of sub-section (2) shall be without prejudice
to the provision contained in section 6 of the General Clauses Act, 1897
(10 of 1897), which shall also apply to the repeal of the Ordinance or
other law referred to in sub-section (1) as if such Ordinance or other
law had been an enactment. |
