Case Note & Summary
The petitioner, Shalimar Transport and Carting Contractor, through its proprietor Shaikh Hameed, filed a writ petition before the Bombay High Court at Aurangabad challenging a show cause notice dated 10.9.2014 issued by the Collector, Parbhani (respondent no.3). The notice directed the petitioner to execute a bond for release of essential commodities seized under the Essential Commodities Act, 1955. The petitioner contended that the Collector had no jurisdiction to issue such a notice under Section 6A of the Act after the goods had already been released. The court examined the provisions of Section 6A and noted that the power to confiscate arises only when goods are seized and not released. Since the goods were already released, the Collector lacked jurisdiction. The court quashed the show cause notice and allowed the petition. The judgment was delivered by a division bench comprising B.P. Dharmadhikari and A.M. Badar JJ., with the opinion authored by A.M. Badar J. The court also made the rule absolute and directed the respondents to refund any amount deposited by the petitioner pursuant to the notice.
Headnote
A) Essential Commodities Act - Jurisdiction - Section 6A - Show Cause Notice - The Collector issued a show cause notice under Section 6A of the Essential Commodities Act, 1955 for confiscation of essential commodities. However, the goods had already been released. The court held that the Collector lacked jurisdiction to initiate proceedings under Section 6A after the goods were released, as the power under Section 6A is exercisable only when the goods are seized and not released. The show cause notice was quashed. (Paras 1-5)
Issue of Consideration
Whether the Collector, Parbhani had jurisdiction to issue a show cause notice under Section 6A of the Essential Commodities Act, 1955 for confiscation of essential commodities after the goods had already been released.
Final Decision
The writ petition is allowed. The show cause notice dated 10.9.2014 issued by the Collector, Parbhani is quashed and set aside. Rule is made absolute. Respondents are directed to refund any amount deposited by the petitioner pursuant to the notice.
Law Points
- Jurisdiction of Collector under Section 6A of Essential Commodities Act
- 1955
- Show cause notice without authority
- Quashing of notice for lack of jurisdiction
