Case Note & Summary
The petitioners, owners of lorries, challenged an order dated 16.07.2014 passed by the Deputy Commissioner, Kolar District, under Sections 3 & 5 of the Essential Commodities Act, 1955 and Clause 18 of the Karnataka Essential Commodities (Public Distribution System) Control Order, 1992. The Deputy Commissioner ordered forfeiture of 900 bags (450 quintals) of rice and directed that the rice be distributed to cardholders through fair price depots. He also directed release of the lorries after collecting their value as determined by the Regional Transport Officer. The petitioners contended that they were not issued any notice or afforded an opportunity of hearing before the order was passed. The court noted that the order was passed without any notice to the petitioners, which is a clear violation of principles of natural justice. Consequently, the court quashed the order and remanded the matter to the Deputy Commissioner for fresh consideration after issuing notice and affording an opportunity of hearing to the petitioners. The court also directed that the lorries be released to the petitioners on furnishing a bank guarantee for the value determined by the Regional Transport Officer, pending fresh consideration.
Headnote
A) Administrative Law - Natural Justice - Notice and Opportunity of Hearing - Essential Commodities Act, 1955, Sections 3 & 5; Karnataka Essential Commodities (Public Distribution System) Control Order, 1992, Clause 18 - The Deputy Commissioner ordered forfeiture of 900 bags of rice and release of lorries after collecting value without issuing any notice or affording opportunity of hearing to the petitioners. Held that such an order is in violation of principles of natural justice and cannot be sustained. (Paras 1-4) B) Essential Commodities - Forfeiture - Jurisdiction - Essential Commodities Act, 1955, Sections 3 & 5; Karnataka Essential Commodities (Public Distribution System) Control Order, 1992, Clause 18 - The Deputy Commissioner passed the order under Sections 3 & 5 of the Act and Clause 18 of the Control Order. The court found that the order was passed without jurisdiction as no notice was given. Held that the matter be remanded for fresh consideration after affording opportunity of hearing. (Paras 2-4)
Issue of Consideration
Whether the Deputy Commissioner could order forfeiture of rice and release of lorries without issuing notice and affording opportunity of hearing to the petitioners.
Final Decision
The writ petitions are allowed. The impugned order dated 16.07.2014 passed by the Deputy Commissioner, Kolar District is quashed. The matter is remanded to the Deputy Commissioner for fresh consideration after issuing notice and affording an opportunity of hearing to the petitioners. The lorries shall be released to the petitioners on furnishing a bank guarantee for the value determined by the Regional Transport Officer, pending fresh consideration.
Law Points
- Natural justice
- Notice and opportunity of hearing
- Forfeiture under Essential Commodities Act
- Jurisdiction of Deputy Commissioner
- Release of vehicles
