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)
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.
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




