Bombay High Court Allows Transporter's Vehicle to Be Released on Payment of Fine Instead of Confiscation Under Essential Commodities Act. The Court Corrected the Collector's Order of Confiscation and Directed Release of the Tanker on Payment of Rs. 1,00,000/- Fine, Setting Aside the Appellate Authority's Confirmation.

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

The petitioner, Deepak Kashinath Aher, is a transporter and owner of a truck-tanker bearing registration No. MH-18-AA-4548 used for transporting High Speed Diesel (HSD) from the Manmad Depot of Indian Oil Corporation. On 12-4-2014, the tanker entered the Gangakhed Depot of MSRTC (State Transport Corporation) to deliver diesel. Upon inspection, the officers of MSRTC found that the tanker was carrying HSD without valid documents, leading to a complaint. The Collector, Parbhani, initiated proceedings under the Essential Commodities Act, 1955, and ordered confiscation of the tanker and the diesel. The petitioner appealed to the Appellate Authority, which confirmed the Collector's order. The petitioner then filed a Criminal Writ Petition before the Bombay High Court at Aurangabad under Articles 226 and 227 of the Constitution of India and Section 482 of the Code of Criminal Procedure, 1973. During the hearing, the petitioner's counsel sought to withdraw the petition after the Court expressed that it would not grant relief to the transporter but would correct the orders under the Act. However, the Court refused to allow withdrawal and decided the matter on merits. The Court noted that the Collector had ordered confiscation of the vehicle without considering the option of releasing it on payment of a fine equivalent to the value of the commodity, as permitted under Section 6A of the Act. The Appellate Authority also failed to consider this option. The High Court held that the orders of the Collector and the Appellate Authority were erroneous and set them aside. The Court directed that the tanker be released to the petitioner on payment of a fine of Rs. 1,00,000/- (one lakh rupees), which was the approximate value of the diesel involved. The Court also directed that the diesel be confiscated and sold, with the proceeds to be deposited in the government treasury. The petition was disposed of accordingly.

Headnote

A) Essential Commodities Act - Confiscation of Vehicle - Section 6A - Release on Payment of Fine - The Collector ordered confiscation of a tanker carrying HSD without valid documents, but the High Court held that the vehicle could be released on payment of a fine equivalent to the value of the commodity instead of confiscation, as per the provisions of the Act. (Paras 4-6)

B) Essential Commodities Act - Appellate Authority - Section 6B - Powers - The Appellate Authority confirmed the Collector's order of confiscation without considering the option of releasing the vehicle on payment of fine. The High Court set aside the appellate order and directed release of the vehicle on payment of fine. (Paras 5-6)

C) Criminal Procedure Code - Section 482 - Inherent Powers - The High Court exercised its inherent powers under Section 482 CrPC along with Articles 226 and 227 of the Constitution to correct the orders of the Collector and Appellate Authority, even though the petitioner sought to withdraw the petition. (Para 2)

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Issue of Consideration

Whether the Collector and the Appellate Authority under the Essential Commodities Act, 1955 correctly ordered confiscation of the petitioner's tanker and whether the High Court can modify the order to release the vehicle on payment of fine instead of confiscation.

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Final Decision

The High Court set aside the orders of the Collector and the Appellate Authority. It directed that the tanker be released to the petitioner on payment of a fine of Rs. 1,00,000/-. The diesel was ordered to be confiscated and sold, with proceeds to the government treasury. The petition was disposed of.

Law Points

  • Essential Commodities Act
  • 1955
  • Section 6A
  • Section 6B
  • Section 7
  • Confiscation of essential commodity
  • Release of vehicle on payment of fine
  • Appellate authority powers
  • High Court's writ jurisdiction under Articles 226 and 227 of Constitution of India
  • Section 482 of Code of Criminal Procedure
  • 1973
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Case Details

2017 LawText (BOM) (02) 12

Criminal Writ Petition No.1449 of 2016

2017-02-03

T.V. Nalawade, J.

Shri. V.R. Dhorde (for petitioner), Smt. S.S. Raut (Additional Public Prosecutor for respondent No.1), Shri. A.P. Bhandari (for respondent No.2)

Deepak S/o Kashinath Aher

The State of Maharashtra through Collector, Parbhani; Indian Oil Corporation Limited, Manmad Terminal

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Nature of Litigation

Criminal Writ Petition challenging the orders of confiscation of a tanker under the Essential Commodities Act, 1955.

Remedy Sought

The petitioner sought to set aside the orders of the Collector and Appellate Authority confiscating his tanker and to have the vehicle released.

Filing Reason

The petitioner's tanker carrying HSD was confiscated by the Collector under the Essential Commodities Act for lack of valid documents, and the Appellate Authority confirmed the confiscation.

Previous Decisions

The Collector, Parbhani, ordered confiscation of the tanker and the diesel. The Appellate Authority confirmed the order.

Issues

Whether the Collector's order of confiscation of the tanker was correct under Section 6A of the Essential Commodities Act, 1955? Whether the Appellate Authority erred in confirming the confiscation without considering release on payment of fine? Whether the High Court can modify the orders under its writ and inherent powers?

Submissions/Arguments

The petitioner argued that the vehicle should be released on payment of fine instead of confiscation. The respondents supported the orders of confiscation.

Ratio Decidendi

Under Section 6A of the Essential Commodities Act, 1955, the Collector has the discretion to order confiscation of essential commodities and vehicles used in contravention of the Act, but also has the power to release the vehicle on payment of a fine equivalent to the value of the commodity. The Appellate Authority under Section 6B must consider this option. In this case, both authorities failed to exercise this discretion properly, and the High Court, in exercise of its writ and inherent powers, corrected the orders by directing release of the vehicle on payment of fine.

Judgment Excerpts

This Court can exercise powers not only under the provisions of Articles 226 and 227 of the Constitution of India but also under the provision of Section 482 of the Code of Criminal Procedure, 1973. The Collector ought to have considered the option of releasing the vehicle on payment of fine instead of ordering confiscation. The Appellate Authority also failed to consider this aspect and mechanically confirmed the order of confiscation.

Procedural History

On 12-4-2014, the petitioner's tanker was intercepted at Gangakhed Depot of MSRTC. The Collector, Parbhani, initiated proceedings under the Essential Commodities Act and ordered confiscation of the tanker and diesel. The petitioner appealed to the Appellate Authority, which confirmed the order. The petitioner then filed Criminal Writ Petition No.1449 of 2016 before the Bombay High Court at Aurangabad, which was heard and disposed of on 3-2-2017.

Acts & Sections

  • Essential Commodities Act, 1955: Section 6A, Section 6B, Section 7
  • Code of Criminal Procedure, 1973: Section 482
  • Constitution of India: Article 226, Article 227
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