Bombay High Court Acquits Appellant in Licensing Order Breach Case Due to Repeal of Enabling Order. Conviction under Maharashtra Scheduled Oil Seeds and Oils (Dealers and Millers) Licensing Order, 1973 set aside as the Order was repealed in 1977, rendering the license and prosecution void ab initio.

High Court: Bombay High Court Bench: BOMBAY In Favour of Accused
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Case Note & Summary

The appellant, Nilesh Bhaskar Rathod, was convicted by the learned Special Judge (E.C. Act), Thane in Special Criminal Case (E.C. Act) No. 15/1996 for breach of conditions 2(a) and 2(b) of a license issued under the Maharashtra Scheduled Oil Seeds and Oils (Dealers and Millers) Licensing Order, 1973. He was sentenced to simple imprisonment for three months and a fine of Rs. 2000/- with default stipulation. The appellant appealed against this conviction and sentence. The prosecution case was that the appellant was a dealer under the said Order and held license no. BSN 27 at Exhibit-7. However, it was indisputably established that the Order of 1973 was repealed by the Food and Civil Supply Department vide notification dated 14th September, 1977, by the Maharashtra Scheduled Oil Seeds and Oils (Dealers and Millers) (Repealed) Licensing Order. The court considered the legal effect of this repeal. The appellant's counsel argued that since the Order was repealed, the license issued thereunder had no legal existence and the prosecution was void ab initio. The State opposed the appeal. The court analyzed the notification and found that the Order was indeed repealed in 1977. Consequently, the license issued under the repealed Order had no legal validity, and the prosecution for breach of its conditions was unsustainable. The court held that the conviction and sentence were liable to be set aside. The appeal was allowed, the conviction and sentence were quashed, and the appellant was acquitted. The fine, if paid, was directed to be refunded.

Headnote

A) Criminal Law - Essential Commodities Act - Licensing Order - Repeal - Conviction under repealed order - The appellant was convicted for breach of conditions of a license issued under the Maharashtra Scheduled Oil Seeds and Oils (Dealers and Millers) Licensing Order, 1973. The Order was repealed by notification dated 14th September, 1977. The court held that since the Order was repealed, the license issued thereunder had no legal existence and the prosecution was void ab initio. The conviction and sentence were set aside. (Paras 1-8)

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Issue of Consideration

Whether the conviction of the appellant for breach of conditions of a license issued under the Maharashtra Scheduled Oil Seeds and Oils (Dealers and Millers) Licensing Order, 1973 can be sustained when the said Order was repealed in 1977, prior to the alleged offence.

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Final Decision

Appeal allowed. Conviction and sentence set aside. Appellant acquitted. Fine, if paid, to be refunded.

Law Points

  • Repeal of enabling order renders license and prosecution void ab initio
  • Conviction under repealed order unsustainable
  • License issued under repealed order has no legal validity
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Case Details

2021 LawText (BOM) (03) 69

Criminal Appeal No. 579 / 1998

2021-03-10

Sandeep K. Shinde

2021:BHC-AS:3487

Mr. K.H. Parekh for Appellant, Mr. S.R. Agarkar, APP for State/ Respondent

Nilesh Bhaskar Rathod

The State of Maharashtra

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Nature of Litigation

Criminal appeal against conviction for breach of license conditions under the Maharashtra Scheduled Oil Seeds and Oils (Dealers and Millers) Licensing Order, 1973.

Remedy Sought

Appellant sought acquittal by setting aside conviction and sentence.

Filing Reason

Appellant was convicted for breach of conditions 2(a) and 2(b) of a license issued under the Order of 1973.

Previous Decisions

The learned Special Judge (E.C. Act), Thane convicted the appellant in Special Criminal Case (E.C. Act) No. 15/1996, sentencing him to three months simple imprisonment and fine of Rs. 2000/-.

Issues

Whether the conviction under a repealed licensing order can be sustained.

Submissions/Arguments

Appellant argued that the Order of 1973 was repealed in 1977, thus the license had no legal existence and the prosecution was void ab initio. State opposed the appeal.

Ratio Decidendi

A license issued under a repealed order has no legal existence; prosecution for breach of its conditions is void ab initio and cannot sustain a conviction.

Judgment Excerpts

Indisputably, order of 1973 was repealed by the, Food and Civil Supply Department vide notification dated 14th September, 1977 vide Maharashtra Scheduled Oil Seeds and Oils (Dealers and Millers) (Repealed) Licensing Order. Since the order of 1973 was repealed, the license issued thereunder had no legal existence and therefore, the prosecution was void ab initio.

Procedural History

The appellant was convicted by the learned Special Judge (E.C. Act), Thane in Special Criminal Case (E.C. Act) No. 15/1996. He appealed to the High Court of Judicature at Bombay by filing Criminal Appeal No. 579/1998.

Acts & Sections

  • Maharashtra Scheduled Oil Seeds and Oils (Dealers and Millers) Licensing Order, 1973: Clause 2(b), Condition 2(a), Condition 2(b)
  • Maharashtra Scheduled Oil Seeds and Oils (Dealers and Millers) (Repealed) Licensing Order:
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