Bombay High Court Hears Writ Petition Challenging Stop Sale Order Issued Under Insecticides Act, 1968 Due to Alleged Violation of Natural Justice and Non-Application of Mind. Dealer Claims Protection Under Section 30(3) and Contends That License Permits Sale Beyond District and State, While State Argues Rule 10 Violation and Territorial Restriction.

High Court: Bombay High Court Bench: NAGPUR
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Case Note & Summary

The writ petition arose from a stop sale order dated 21.02.2024 issued by the Insecticide Inspector against the petitioner, a proprietorship concern dealing in sale of insecticides and fertilizers. The petitioner held a license granted under the Insecticides Act, 1968. On 21.02.2024, the Inspector visited the petitioner's commercial premises, inspected, and submitted a report alleging that the petitioner sold insecticides illegally outside the district and state, sold without necessary permission, and violated some license clauses. The Inspector called upon the petitioner to give his say within 7 days but on the same day issued an order directing the petitioner not to dispose of any stock and to stop sale, distribution, or use of the subject insecticides for 21 days. The petitioner submitted explanation on 27.02.2024 requesting revocation of the order, but no action was taken, leading to the writ petition challenging the order as nullity and seeking quashing, stay, and costs. During pendency, the respondents brought to notice that another order was passed stopping the petitioner from selling insecticides and fertilizers till further orders; the petitioner contended this second order was not served. The petitioner argued that the license issued under Section 13 of the Act does not impose territorial restrictions, that as a dealer who acquired insecticides from licensed manufacturers/distributors and was unaware of any contravention, he is protected under Section 30(3) of the Act, and that wrong provisions were applied showing non-application of mind. The petitioner also claimed that no sample was taken and no hearing was given, violating natural justice. The respondents contended that the license restricted sale to the district, that sale beyond the district and state violated license conditions and Rule 10 of the Insecticides Rules, 1971, and that a certificate from the principal manufacturer was absent. The intervenor manufacturer argued it never issued a principal certificate authorizing the petitioner to sell its insecticides. The court heard the rival contentions, noted the license conditions which require compliance with the Act and Rules, and observed that the determinative issues included the scope of territorial restrictions, the applicability of Section 30(3) protection, the procedural validity of the stop sale order, and the extension of the order beyond 30 days. The judgment text provided ends before the court's final analysis and decision, so the final holding and directions are not available. The court reserved judgment on 20 March 2024 and pronounced on 26 March 2024.

Headnote

A) Insecticides Law - Stop Sale Order - Natural Justice - Insecticides Act, 1968, Section 13; Insecticides Rules, 1971, Rule 10 - The petitioner challenged the stop sale order dated 21.02.2024 on grounds that no sample was taken, no opportunity of hearing was given, and wrong provisions were applied, alleging violation of principles of natural justice and non-application of mind. Court considered these submissions but final decision not mentioned in provided text. Held: Not mentioned (Paras 7-12).

B) Licensing - Territorial Restrictions - Insecticides Act, 1968, Section 13 - The petitioner contended that once a license is issued, it permits sale across the State and beyond, and no condition restricts sale outside the district. The respondent contended that the license restricts sale to the district and sale beyond violates license conditions and Rule 10. Court considered the rival contentions; final determination not provided. Held: Not mentioned (Paras 10, 13-14, 18).

C) Statutory Protection - Dealer Protection - Insecticides Act, 1968, Section 30(3) - The petitioner claimed protection as a dealer who acquired insecticides from licensed manufacturers/distributors and was unaware of any contravention, thus not liable. The respondent argued no documents were produced to establish such protection. Court noted the contentions; final ruling not provided. Held: Not mentioned (Paras 7, 16).

D) Procedural Validity - Extension of Stop Sale Order - Insecticides Act, 1968 and Insecticides Rules, 1971 - The respondent submitted that the period of no sale order could be extended beyond 30 days and was properly exercised. The petitioner challenged the orders. Court considered but decision not mentioned. Held: Not mentioned (Paras 16, 6).

E) Intervenor's Role - Manufacturer's Authorization - Insecticides Act, 1968 - The intervenor contended that no principal certificate was issued to the petitioner for sale of its insecticides, so the petitioner was not entitled to store and sale those products. Court allowed the application for intervention but final decision not provided. Held: Not mentioned (Paras 9, 17).

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Issue of Consideration

Whether the stop sale order dated 21.02.2024 passed by the Insecticide Inspector is legal and valid, particularly regarding territorial restrictions on license, applicability of Section 30(3) protection, compliance with natural justice, and correct provisions of the Insecticides Act and Rules.

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Law Points

  • License under Section 13 of Insecticides Act
  • 1968 does not impose territorial restrictions on sale beyond district or state
  • dealer protection under Section 30(3) applies if acquired from licensed source and unaware of contravention
  • stop sale order without hearing violates natural justice
  • wrong provisions applied shows non-application of mind
  • Rule 10 of Insecticides Rules
  • 1971 governs conditions
  • extension of stop sale order beyond 30 days permissible
  • manufacturer's principal certificate prerequisite for sale of its products.
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Case Details

2024 LawText (BOM) (03) 156

WRIT PETITION NO. 1612 OF 2024

2024-03-26

Bharat P. Deshpande, J.

2024:BHC-NAG:3606

Ms. A.P. Gupta, Advocate h/f Mr. J.M. Gandhi, Advocate for the Petitioner; Mr. Alap Palshikar, AGP for Respondent Nos. 1 to 3/State; Mr. A.J. Pathak, Advocate for the Intervenor

M/s Mahesh Enterprises, A Proprietary Concern, Through its Proprietor Somesh Kamalkishor Bajaj

1. State of Maharashtra Through The Ministry of Agriculture Mantralaya, Mumbai; 2. Divisional Joint Director of Agriculture, Amravati Division, Amravati; 3. The Insecticide Inspector, C/o Divisional Joint Director of Agriculture, Amravati Division, Amravati

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Nature of Litigation

Writ petition challenging the stop sale order issued by Insecticide Inspector against a licensed insecticide dealer.

Remedy Sought

Petitioner sought writ of certiorari to quash the order dated 21.02.2024, declaration that the order is nullity, stay of the order, and costs.

Filing Reason

Insecticide Inspector visited petitioner's premises on 21.02.2024, alleged illegal sale of insecticides outside district and state and violation of license conditions, and passed order stopping sale, distribution, and use of insecticides for 21 days.

Previous Decisions

No prior judicial decisions mentioned; respondent issued a second order during pendency stopping sale till further orders.

Issues

Whether the stop sale order dated 21.02.2024 passed by the Insecticide Inspector is legal and valid. Whether the license issued under Section 13 of the Insecticides Act, 1968 imposes territorial restrictions on sale outside the district or state. Whether the petitioner is protected under Section 30(3) of the Insecticides Act, 1968 as a dealer who acquired insecticides from licensed sources. Whether the order violates principles of natural justice due to lack of hearing and sampling. Whether wrong provisions were applied and non-application of mind vitiates the order. Whether the stop sale period could be extended beyond 30 days. Whether the intervenor manufacturer's absence of principal certificate affects the petitioner's right to sell its products.

Submissions/Arguments

Petitioner contended that the license issued under Section 13 contains no territorial restrictions and allows sale throughout the State and beyond; wrong provisions were applied; protection under Section 30(3) applies; no inspection, sample, or hearing was given; natural justice violated. Respondents contended that the license restricted sale to the district, sale beyond district and state violated license conditions and Rule 10; no principal certificate from manufacturer; extension beyond 30 days was proper; no documents produced to claim Section 30(3) protection. Intervenor manufacturer contended that it never issued a principal certificate authorizing the petitioner to sell its insecticides.

Ratio Decidendi

Not mentioned as the provided judgment text does not include the court's final reasoning.

Judgment Excerpts

The respondent No. 3/Inspector alleged that the petitioner though obtained license, selling insecticides illegally out of the District and the State Once the license is issued, the petitioner who is a dealer is entitled to sale the insecticides throughout the State or even outside the State. The petitioner is protected from any prosecution or action under Section 30(3) of the Act of 1968. No insecticide shall be sold or exhibited for sale or distributed or issued for use in commercial pest control operations except in packages approved by the Registration Committee from time to time.

Procedural History

On 21.02.2024, Insecticide Inspector inspected petitioner's premises and issued stop sale order for 21 days. Petitioner submitted explanation on 27.02.2024. No action taken, so petitioner filed writ petition. Rule issued and made returnable forthwith. Heard finally with consent. During pendency, respondents brought to notice another stop sale order; petitioner contended it was not served. Court reserved judgment on 20.03.2024 and pronounced on 26.03.2024.

Acts & Sections

  • Insecticides Act, 1968: Section 13, Section 30(3), Section 12
  • Insecticides Rules, 1971: Rule 10, Rule 10(3)
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