Supreme Court Allows Wholesaler in Food Adulteration Case on Warranty Provision. Cash Memo Statement 'Quality Upto the Mark' Constituted Valid Warranty Under Proviso to Rule 12-A of Prevention of Food Adulteration Rules, 1955.

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Case Note & Summary

The case originated from a complaint against the appellant, a wholesaler holding a license, for storing and selling compounded asafoetida found to be adulterated, thereby violating the Prevention of Food Adulteration Act, 1954. The appellant purchased the asafoetida in enclosed packets from a distributor and produced a cash memo stating 'quality is upto the mark' as his defense, arguing that it constituted a warranty under the proviso to Rule 12-A of the Prevention of Food Adulteration Rules, 1955. The trial court accepted this defense and acquitted the appellant. On appeal by the State, the High Court reversed, holding that the cash memo did not amount to a valid warranty because it did not explicitly state that the food was the same in nature, substance, and quality as demanded by the vendor. The appellant then appealed to the Supreme Court. The core legal issue was whether the phrase 'quality is upto the mark' in a cash memo could satisfy the warranty requirement under the proviso to Rule 12-A. The State contended that the warranty must expressly contain the exact words from the rule, i.e., that the food was the same in nature, substance, and quality as demanded. The Supreme Court rejected this literal approach, emphasizing that the cash memo was a document written in the language of a tradesman. The Court reasoned that any tradesman reading that the quality was up to the mark would understand that the article met the required standard and was not adulterated. The term 'quality' sufficiently encompassed nature and substance because the memo specified the article as compounded asafoetida. The Court held that the proviso to Rule 12-A was intended to protect vendors who acted in good faith on the assurance of their suppliers, and a narrow construction would defeat that purpose. Accordingly, the appeal was allowed, the High Court's judgment was set aside, and the appellant was acquitted. The decision established that a cash memo with an express or implied warranty of quality could serve as a valid defense under the Food Adulteration Rules.

Headnote

A) Food Adulteration - Warranty under Proviso to Rule 12-A - Interpretation of 'quality is upto the mark' - Prevention of Food Adulteration Act, 1954, Section 14; Prevention of Food Adulteration Rules, 1955, Rule 12-A, proviso - The appellant wholesaler was charged with storing and selling adulterated compounded asafoetida. He relied on a cash memo from the distributor stating 'quality is upto the mark' as a warranty. The High Court held the memo insufficient to constitute a warranty, but the Supreme Court reversed, holding that the phrase meant the quality met the statutory standard and the vendee's requirement, and that quality includes nature and substance where the article's name is given. The cash memo, using tradesman's language, assured the appellant that the article was not adulterated. Held that the case fell within the proviso to Rule 12-A, and the conviction was set aside. (Paras Not mentioned)

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Issue of Consideration

Whether a cash memo containing the words 'quality is upto the mark' amounts to a warranty within the meaning of the proviso to Rule 12-A of the Prevention of Food Adulteration Rules, 1955, thereby exonerating the seller from liability.

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Final Decision

The appeal was allowed. The Supreme Court held that the words 'quality is upto the mark' in the cash memo meant that the quality of the article was up to the standard required by the Act and by the vendee, and this constituted a valid warranty under the proviso to Rule 12-A. The conviction was set aside, and the appellant was acquitted.

Law Points

  • The words 'quality is upto the mark' in a cash memo mean that the quality of the article is up to the standard required by the Act and the vendee. Quality includes nature and substance where the name of the article is mentioned. A cash memo using tradesman's language can constitute a warranty under the proviso to Rule 12-A of the Prevention of Food Adulteration Rules
  • 1955
  • if it assures the vendee that the article is not adulterated.
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Case Details

1969 LawText (SC) (08) 5

1969-08-14

S.M. Sikri, G.K. Mitter, P. Jaganmohan Reddy

1970 AIR 520, 1970 SCR (1) 864, 1969 SCC (2) 457

Ranganatha Reddiar

The State of Kerala

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Nature of Litigation

Criminal prosecution for selling adulterated food under the Prevention of Food Adulteration Act, 1954.

Remedy Sought

The appellant sought acquittal on the ground that the cash memo with the words 'quality is upto the mark' constituted a warranty under the proviso to Rule 12-A of the Prevention of Food Adulteration Rules, 1955, exempting him from liability.

Filing Reason

The appellant was charged with storing and selling compounded asafoetida that was found to be adulterated.

Previous Decisions

The trial court upheld the appellant's warranty defense and acquitted him. The High Court, on appeal, reversed the acquittal and convicted the appellant.

Issues

Whether a cash memo containing the words 'quality is upto the mark' amounts to a warranty within the meaning of the proviso to Rule 12-A of the Prevention of Food Adulteration Rules, 1955, thereby exonerating the seller from liability.

Submissions/Arguments

Appellant argued that the cash memo from the distributor stated 'quality is upto the mark', which constituted a warranty that the food was of the required standard under the Act and as demanded by him, thus falling within the proviso to Rule 12-A and absolving him of liability. Respondent contended that the warranty must explicitly state that the food was the same in nature, substance, and quality as demanded by the vendor, and since the cash memo did not use these exact words, the proviso did not apply.

Ratio Decidendi

In a prosecution under the Prevention of Food Adulteration Act, a cash memo issued by a distributor to a vendor stating that the quality of the food article is 'upto the mark' constitutes a warranty under the proviso to Rule 12-A of the Prevention of Food Adulteration Rules, 1955, as it assures the vendor that the article conforms to the statutory standard and the vendee's demands, thereby exempting the vendor from liability.

Judgment Excerpts

The words 'quality is upto the mark' in the cash memo meant that the quality of the article was upto the standard required by the Act and the vendee. The cash memo was the document using the language of a tradesman. Any tradesman who was assured that the quality of the article was upto the mark would readily conclude that he was being assured the article was not adulterated.

Procedural History

The appellant was tried before a magistrate who acquitted him holding that the cash memo constituted a warranty under Rule 12-A. The State appealed to the High Court, which reversed the acquittal and convicted the appellant. The appellant then appealed to the Supreme Court.

Acts & Sections

  • Prevention of Food Adulteration Act, 1954: Section 14
  • Prevention of Food Adulteration Rules, 1955: Rule 12-A, proviso
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Supreme Court Supreme Court Allows Wholesaler in Food Adulteration Case on Warranty Provision. Cash Memo Statement 'Quality Upto the Mark' Constituted Valid Warranty Under Proviso to Rule 12-A of Prevention of Food Adulteration Rules, 1955.
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