Gujarat High Court Dismisses State's Revision Against Sessions Court Order Setting Aside Confiscation of Edible Oil Stock. Essential Commodities Act Confiscation Proceedings Quashed as Edible Oil Not Covered Under Gujarat Essential Articles Orders.

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

The State of Gujarat filed two criminal revision applications under Section 397 read with Section 401 of the Code of Criminal Procedure, 1973 (CrPC) challenging the judgment and orders dated 30.09.2008 passed by the learned Additional Sessions Judge, Palanpur, in Appeal Nos. 29 and 30 of 2007. The background of the case is that on 25.05.2007, a loading rickshaw bearing registration No. GJ-8V-1904 was stopped on the Shivdham Rasana Patiya of Deesa Highway while transporting edible oil from Chandisar GIDC to Gandhi Chowk, Deesa. The stock was found without proper bills, and the authorities seized it. The respondent-dealer was issued a show cause notice under Section 6B of the Essential Commodities Act, 1955 (the Act) on 04.07.2007. After considering the respondent's reply, the Collector, Banaskantha, passed an order on 19.09.2007 confiscating 50% of the seized stock. Aggrieved, the respondent filed appeals before the learned Additional Sessions Judge, who allowed the appeals and set aside the Collector's order. The State then filed the present revisions. The main legal issue was whether edible oil falls within the purview of the Gujarat Essential Articles (Licensing, Control and Stock Declaration) Order, 1981, and whether the confiscation order was valid. The learned APP for the State argued that edible oil and seeds are not covered under the said Order, but contended that the respondent had admitted irregularities during inspection. The respondent's counsel supported the Sessions Court's order. The High Court, after hearing both sides, held that edible oil is not covered under the Gujarat Essential Articles (Licensing, Control and Stock Declaration) Order, 1981, and therefore the confiscation proceedings under Section 6A of the Act were without jurisdiction. The court found no illegality or perversity in the Sessions Court's order and dismissed the revision applications, upholding the order setting aside the confiscation.

Headnote

A) Essential Commodities Act - Confiscation of Stock - Edible Oil Not Covered Under State Order - The issue was whether edible oil is an essential article under the Gujarat Essential Articles (Licensing, Control and Stock Declaration) Order, 1981 - The court held that edible oil is not covered under the said Order, and therefore the confiscation proceedings under Section 6A of the Essential Commodities Act, 1955 were without jurisdiction - The Sessions Court's order setting aside the confiscation was upheld (Paras 3-5).

B) Criminal Procedure Code - Revision - Scope of Revisional Jurisdiction - The High Court in revision under Section 397 read with Section 401 CrPC (now Sections 438 and 442 BNSS) can interfere only if there is illegality, irregularity, or incorrectness in the order - The court found no such error in the Sessions Court's order and dismissed the revision (Para 5).

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Issue of Consideration

Whether edible oil falls within the purview of the Gujarat Essential Articles (Licensing, Control and Stock Declaration) Order, 1981 and whether the confiscation order passed by the Collector was valid.

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Final Decision

The High Court dismissed both revision applications, upholding the order of the learned Additional Sessions Judge, Palanpur dated 30.09.2008 which set aside the confiscation order passed by the Collector.

Law Points

  • Edible oil not covered under Gujarat Essential Articles (Licensing
  • Control and Stock Declaration) Order
  • 1981
  • Confiscation order under Section 6A of Essential Commodities Act requires proper show cause notice and opportunity of hearing
  • Appellate court can set aside confiscation if order is without jurisdiction or based on incorrect application of law
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Case Details

2026:GUJHC:20750

R/Criminal Revision Application No. 532 of 2009 with R/Criminal Revision Application No. 533 of 2009

2026-03-18

Hasmukh D. Suthar

2026:GUJHC:20750

Mr. Rohan Raval, APP for the Applicant(s) No. 1,2; Ms. Archana Acharya, Advocate for the Respondent(s) No. 1

State of Gujarat & Anr.

Jaykishan Keshavlal Fulvani C/o Shree Harekrishna Oil Enterp

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Nature of Litigation

Criminal revision application against appellate order setting aside confiscation of edible oil stock under Essential Commodities Act.

Remedy Sought

State sought quashing and setting aside of the Sessions Court's order dated 30.09.2008 which allowed the respondent's appeals and set aside the Collector's confiscation order.

Filing Reason

State aggrieved by the Sessions Court's order allowing the respondent's appeals and setting aside the confiscation order passed by the Collector.

Previous Decisions

Collector, Banaskantha ordered confiscation of 50% of seized stock on 19.09.2007; learned Additional Sessions Judge, Palanpur allowed appeals and set aside the confiscation order on 30.09.2008.

Issues

Whether edible oil falls within the purview of the Gujarat Essential Articles (Licensing, Control and Stock Declaration) Order, 1981? Whether the confiscation order passed by the Collector under Section 6A of the Essential Commodities Act was valid?

Submissions/Arguments

Learned APP for the State submitted that edible oil and seeds are not falling within the purview of the Gujarat Essential Articles (Licensing, Control and Stock Declaration) Order, 1981; that during inspection, the person in charge admitted irregularities mentioned in the show cause notice. Respondent's counsel supported the Sessions Court's order.

Ratio Decidendi

Edible oil is not covered under the Gujarat Essential Articles (Licensing, Control and Stock Declaration) Order, 1981, and therefore the confiscation proceedings under Section 6A of the Essential Commodities Act were without jurisdiction. The Sessions Court's order setting aside the confiscation was correct and no interference was warranted in revision.

Judgment Excerpts

edible oil and seeds are not falling within the purview of the Gujarat Essential Articles (Licensing, Control and Stock Declaration) Order, 1981 the learned Addl. Sessions Judge vide orders dated 30.09.2008 has been pleased to allow the said appeals and set aside the orders passed by the Collector dated 19.09.2007

Procedural History

On 25.05.2007, edible oil stock was seized from a loading rickshaw. Show cause notice under Section 6B of Essential Commodities Act was issued on 04.07.2007. Collector, Banaskantha passed confiscation order on 19.09.2007 confiscating 50% of stock. Respondent filed appeals before Additional Sessions Judge, Palanpur (Appeal Nos. 29 and 30 of 2007) which were allowed on 30.09.2008 setting aside the confiscation order. State filed criminal revision applications (No. 532 and 533 of 2009) before the High Court of Gujarat, which were dismissed on 18.03.2026.

Acts & Sections

  • Code of Criminal Procedure, 1973: Section 397, Section 401
  • Bharatiya Nagarik Suraksha Sanhita, 2023: Section 438, Section 442
  • Essential Commodities Act, 1955: Section 6A, Section 6B
  • Gujarat Essential Articles (Licensing, Control and Stock Declaration) Order, 1981:
  • Gujarat Essential Articles Dealers (Regulation) Order, 1977:
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High Court Gujarat High Court Dismisses State's Revision Against Sessions Court Order Setting Aside Confiscation of Edible Oil Stock. Essential Commodities Act Confiscation Proceedings Quashed as Edible Oil Not Covered Under Gujarat Essential Articles Orders.
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