Gujarat High Court Allows State's Revision Against Acquittal in Essential Commodities Act Case — Collector's Penalty Order Restored. Sessions Judge Exceeded Jurisdiction by Setting Aside Collector's Order Under Section 6A of Essential Commodities Act, 1955 Without Finding Illegality.

High Court: Gujarat High Court In Favour of Prosecution
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Case Note & Summary

The State of Gujarat filed a criminal revision application against the order dated 07.03.2012 passed by the learned 5th Additional Sessions Judge, Nadiad, in Criminal Appeal No. 23 of 2011. The Sessions Judge had allowed the appeal of the respondent-accused, Bharatsinh Kesubhai Parmar, and set aside the order of the District Collector, Kheda at Nadiad, dated 17.05.2011. The Collector had ordered the accused to pay Rs.33,000/- (15% of the value of seized rice worth Rs.2,20,000/-) and Rs.24,750/- (3% of the value of the seized tempo valued at Rs.8,25,000/-), totaling Rs.57,750/-, as a penalty in lieu of confiscation under Section 6A of the Essential Commodities Act, 1955. The facts reveal that on 25.12.2010, a checking was conducted at the business premises of the accused by the District Supplier Officer, Nadiad-Kheda, in the presence of panchas. It was found that 400 bags of Gujarat New Rice were sold without issuing bills or delivery challans, in breach of Section 8 of the Gujarat Essential Commodities (Control & Regulation of Business) Order, 1977. Consequently, the rice and the tempo used for transportation were seized. A show-cause notice was issued, and after hearing the accused, the Collector passed the order imposing the penalty. The accused appealed to the Sessions Court, which set aside the Collector's order. The State then filed the present revision. The High Court observed that the Sessions Judge had not found any illegality or irregularity in the Collector's order but still set it aside, which was beyond his jurisdiction. The High Court held that the Collector's order was legal and proper, and the appellate court could not interfere without finding perversity. Accordingly, the revision was allowed, the Sessions Judge's order was quashed, and the Collector's order was restored. The accused was directed to deposit the amount within four weeks.

Headnote

A) Essential Commodities Act - Confiscation Proceedings - Section 6A - Power of Collector - The District Collector, after hearing the accused and considering evidence, ordered payment of 15% of value of goods and 3% of value of vehicle as penalty in lieu of confiscation. The Sessions Judge set aside the order without finding any illegality. Held that the appellate court cannot interfere with the collector's discretion unless the order is perverse or illegal. (Paras 1-7)

B) Criminal Revision - Scope of Revision Against Acquittal - Section 397 CrPC - The High Court in revision can examine the legality and propriety of the appellate order. Since the Sessions Judge exceeded his jurisdiction by setting aside a valid collector's order, the revision was allowed and the collector's order was restored. (Paras 5-7)

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Issue of Consideration

Whether the learned Sessions Judge was justified in setting aside the order of the District Collector imposing a monetary penalty in lieu of confiscation under Section 6A of the Essential Commodities Act, 1955, without finding any illegality or irregularity in the collector's order.

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Final Decision

The High Court allowed the revision application, quashed the order of the learned 5th Additional Sessions Judge, Nadiad, dated 07.03.2012, and restored the order of the District Collector, Kheda at Nadiad, dated 17.05.2011. The respondent-accused was directed to deposit the amount of Rs.57,750/- within four weeks from the date of the judgment.

Law Points

  • Confiscation proceedings under Essential Commodities Act are quasi-criminal
  • appellate court cannot set aside collector's order without finding illegality
  • Section 6A of Essential Commodities Act
  • 1955 empowers collector to order confiscation or impose penalty in lieu thereof
  • Gujarat Essential Commodities (Control & Regulation of Business) Order
  • 1977
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Case Details

2026:GUJHC:4404

R/Criminal Revision Application (Against Acquittal) No. 228 of 2012

2026-01-21

P. M. Raval

2026:GUJHC:4404

Mr. Rohan Raval, APP for the Applicant(s) No. 1,2; Mr. Mrugen K Purohit for the Respondent(s) No. 1

State of Gujarat & Anr.

Bharatsinh Kesubhai Parmar

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Nature of Litigation

Criminal revision application against acquittal in a matter under the Essential Commodities Act, 1955.

Remedy Sought

The State sought to set aside the order of the Sessions Judge allowing the accused's appeal and restore the Collector's order imposing a monetary penalty.

Filing Reason

The State was aggrieved by the Sessions Judge's order setting aside the Collector's penalty order without finding any illegality.

Previous Decisions

The District Collector, Kheda at Nadiad, passed an order dated 17.05.2011 imposing a penalty of Rs.57,750/- in lieu of confiscation. The accused appealed, and the learned 5th Additional Sessions Judge, Nadiad, allowed the appeal on 07.03.2012, setting aside the Collector's order.

Issues

Whether the Sessions Judge was justified in setting aside the Collector's order under Section 6A of the Essential Commodities Act without finding any illegality or irregularity. Whether the High Court in revision can interfere with the appellate order and restore the Collector's penalty.

Submissions/Arguments

The State argued that the Collector's order was legal and proper, and the Sessions Judge erred in setting it aside without any valid reason. The respondent-accused argued that the Collector's order was excessive and without jurisdiction.

Ratio Decidendi

The appellate court under the Essential Commodities Act cannot set aside the collector's order imposing a penalty in lieu of confiscation unless it finds the order to be illegal, perverse, or without jurisdiction. The collector's discretion under Section 6A to impose a monetary penalty instead of confiscation is valid and should not be interfered with lightly.

Judgment Excerpts

The learned Sessions Judge has not found any illegality or irregularity in the order passed by the District Collector. The learned Sessions Judge has set aside the order of the District Collector without assigning any valid reason. The order passed by the District Collector is legal and proper and the learned Sessions Judge has committed an error in setting aside the same.

Procedural History

On 25.12.2010, checking was conducted and irregularities found. Show-cause notice issued. District Collector passed order on 17.05.2011 imposing penalty. Accused appealed to Sessions Court. Sessions Judge allowed appeal on 07.03.2012. State filed revision on 21.01.2026, which was allowed.

Acts & Sections

  • Essential Commodities Act, 1955: Section 6A
  • Gujarat Essential Commodities (Control & Regulation of Business) Order, 1977: Section 8
  • Code of Criminal Procedure, 1973 (CrPC): Section 397
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