The Essential Commodities Act,
1955
(10 of 1955)
An Act to
provide, in the interests of the general public, for the control of the
production, supply and distribution of, and trade and commerce in, certain
commodities.
Be it enacted by
Parliament in the Sixth Year of the Republic of India as follows:
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LEGISLATIVE
HISTORY 6
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Adaptation of
Laws (No. 3) Order, 1956
Essential
Commodities (Amendment) Act, 1957 (13 of 1957)
Essential
Commodities (Second Amendment) Act, 1957 (28 of 1957)
Essential
Commodities (Amendment) Act, 1961 (17 of 1961)
Essential
Commodities (Amendment) Act, 1964 (47 of 1964)
Essential
Commodities (Amendment) Act, 1966 (25 of 1966)
Essential
Commodities (Amendment) Act, 1967 (14 of 1967)(Provisions of this ceases to
have effect from 31-3-1968)
Essential
Commodities (Second Amendment) Act, 1967 (36 of 1967)
Central Laws
Extension to Jammu and Kashmir) Act, 1968 (25 of 1968)
Essential
Commodities (Amendment) Act, 1971 (66 of 1971)
Essential
Commodities (Amendment) Act, 1974 (30 of 1974)
Essential
Commodities (Amendment) Act, 1976 (92 of 1976)
Essential
Commodities (Special Provisions) Act, 1981 (18 of 1981)
Essential
Commodities (Amendment) Act, 1984 (34 of 1984)
Essential
Commodities (Amendment) Act, 1986 (42 of 1986)
Essential
Commodities (Second Amendment) Act, 1986 (73 of 1986)
Essential
Commodities (Special Provisions) Amendment Act, 1993 (34 of 1993)
Essential
Commodities (Amendment) Act, 2003 (37 of 2003)
Essential Commodities
(Amendment) Act, 2006 (54 of 2006)
Essential
Commodities (Amendment) Act, 2009 (36 of 2009)
Essential
Commodities (Amendment) Act, 2010 (35 of 2010)
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FACT SHEET 6
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(2) It extends to the
whole of India [- - -].
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Object & Reasons6
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Under Article 369 of the Constitution, Parliament had
power during a period of five years from the commencement thereof to make
laws with respect to trade and commerce in, and the production, supply and
distribution of certain essential commodities. The life of the Essential
Supplies (Temporary Powers) Act, 1946 was therefore limited to the 26th
January, 1955. The essential commodities to which that Act applied fell two
broad categories, viz.,
(a) coal, textiles, iron and
steel, paper, etc., which are products of industries under Union control; and
(b) foodstuffs, cattle fodder,
etc., which are not products of such industries.
As public interest required that Centre should continue
to have even after the 26th January, 1955, the same legislative powers as it
had under Art. 369 of the Constitution, a Bill providing for the necessary
amendment of Entry 33 of List 3 in the Seventh Schedule to the Constitution
was passed by both Houses of Parliament in September last year. This
amendment has now become law, having been ratified by the requisite number of
States.
The Constitution (Third Amendment) Act, however, had
not become law when the Essential Supplies (Temporary Powers) Act, 1946,
expired, and therefore an Ordinance was promulgated to take effect on the
26th day of January, 1955, which provided for the regulation of trade and
commerce in and the production, supply and distribution of commodities which
fell within the first category referred to in the preceding paragraph. Under
Entry 42 of the Union List, Parliament has power to regulate inter-State
trade and commerce in all commodities and the Ordinance also provided for
such regulation in Section 4 thereof but the application of that section was
limited in the first instance to wheat, raw cotton and sugarcane.
Pending the passing of a Central law providing for
control in respect of all essential commodities now falling within Entry 33
of the Concurrent List, certain State Governments have promulgated Ordinances
or taken other legal action open to them for continuing controls in respect
of such commodities as could not be included in the Central Ordinance.
The present Bill seeks to replace the Central Ordinance
and at the same time includes within the definition of "essential
commodities" those commodities which had to be left out by reason of
lack of legislative power. To a very large extent, the Bill follows the
provisions contained in the Essential Supplies (Temporary Powers) Act, 1946,
but the penalty clause has been simplified and a few other provisions have
been omitted as unnecessary." - Gaz. of India, 1955, Extra, Pt. II,
Section 3, p. 51.
Amendment Act 66 of 1971.--Clause (j) of section 3(2) of the Essential
Commodities Act, 1955 (hereinafter referred to as the Act) enables the
Central Government, while making an order under section 3 of the Act, to
provide for incidental and supplementary matters including the entry into and
search of, premises and conveyances and the seizure by an authorised person
of articles in respect of which any contravention of such order has taken
place or is about to take place. That clause does not expressly authorise the
seizure of the coverings or receptacles in which the property is found or the
conveyances used in carrying the property, although the Court is empowered to
order their forfeiture to Government after trial. It is, therefore, proposed
to amend that clause to empower the seizure of such coverings and
receptacles, and to authorise the seizure of conveyances or animals used for
the transport of offending goods when the person seizing the goods has reason
to believe that the conveyance or animal is liable to be forfeited.
(2) Sub-section (3-B) of section 3 of the Act lays down
the procedure for fixing prices of foodgrains, edible oilseeds or edible oils
sold in pursuance of an order made under section 3(2)(f) of the Act. Such
price is to be fixed having regard to : (i) the controlled price of
foodgrains, edible oilseeds or edible oils fixed under that section or by or
under any other law; and (ii) the price of the foodgrains, edible oilseeds
and edible oils prevailing or likely to prevail during the post-harvest
period in the area to which the order applies. The question of assessing the
prevailing price or the price likely to prevail during the post-harvest
period will arise only when there is no controlled price. It is, therefore,
proposed to amend sub-section (3-B) suitably to make this clear.
(3) Section 5 of the Act enables the Central Government
to delegate the power to pass orders under section 3 of the Act to State
Government and to other officers or authorities mentioned in that section.
However, as sub-section (3-A) of section 3 of the Act enables the issue of a
notification, a doubt has arisen whether such a power to issue a notification
can also be delegated under section 5. It is proposed to amend that section
to make it clear that the power to issue such a notification can also be
delegated.
(4) The Essential Commodities (Amendment) Act, 1964,
inserted section 12-A in the Act. This section provides that the Central
Government may, in the interests of production, supply or distribution of any
essential commodity and other relevant considerations, by notification in the
Official Gazette, specify any order made under section 3 of the Act to be a
special order and when such a notification is issued, the contravention of
that order may be tried summarily. The 1964 Act also inserted a new section
8-A in the Criminal Law Amendment Act, 1952, empowering the Special Judge,
trying an offence, specified under sub-section (1) of section 6 of the
Criminal Law Amendment Act, 1952, alleged to have been committed by a public
servant in relation to the contravention of any special order notified under
section 12-A of the Essential Commodities Act, 1955 to try such offence in a
summary way. The period of operation of the Essential Commodities (Amendment)
Act, 1964 was originally limited upto the 31st December, 1966, but was
extended upto the 31st December 1971, by subsequent Amending Acts. It is
considered, after consultation with the State Governments and the Ministries
of the Government of India, that section 12-A of the Act and section 8-A of
the Criminal Law Amendment Act, 1952, should continue to operate even after
the 31st December, 1971. Having regard to the fact that shortages of certain
essential commodities are likely to persist for some time to come, it is
considered desirable to place these two provisions permanently on the Statute
Book instead of extending their period of operation from time to time. The
Bill seeks to amend section 12-A to provide that any notification issued
under that section will have operation only for a period of two years, with
suitable saving provisions.
Amendment Act 34 of 1984.--The Essential Commodities Act, 1955,
provides that, for maintaining of increasing supplies of essential
commodities or for securing their equitable distribution and availability at
fair prices, the Central Government (or by a State Government to which such
powers are delegated by the Central Government) may issue orders for
regulating or prohibiting the production, supply and distribution of such
essential commodities and trade and commerce therein. In order to achieve
these objectives, the Government has been vested with plenary powers to issue
orders, e.g., for regulating production, storage, transport and distribution,
for controlling the price, etc. Similarly the Act provides that if any person
contravenes any order made under section 3 of the Act, he shall be punishable
with imprisonment and shall also be liable to fine. There is, however, no
provision in the Act enabling the Government to recover, in case of default,
any amount which is required to be paid or deposited in pursuance of any such
regulatory order. It is, therefore, necessary to amend the Act to include
therein an express provision, enabling recovery of such amounts as arrears of
land revenue, so as to remove the present lacuna.
Amendment Act 42 of 1986.--The Essential Commodities Act, 1955
(hereinafter referred to as the Act), provides that, for maintaining or
increasing supplies of essential commodities or for securing their equitable
distribution and availability at fair prices, the Central Government may issue
orders for regulating or prohibiting the production, supply and distribution
of such essential commodities and trade and commerce therein. In order to
achieve these objectives, Government has been vested with plenary powers
under the Act to issue orders for regulating production, storage, transport
and distribution of such essential commodities for controlling the price,
etc.
(2) Section 6-E was inserted in the Act in 1976 to
provide that the Courts would be debarred from making any order with regard
to the possession, delivery, disposal or distribution of any essential
commodity seized in pursuance of an order made under section 3 of the Act.
For an effective implementation of the provisions of the Act, it is proposed
to enlarge the scope of that section so as to bar the jurisdiction of Courts
also in respect of the release of any package, covering or receptacle in
which any seized essential commodity is found, or any animal, vehicle, vessel
or other conveyance used in carrying such essential commodity seized pending
confiscation thereof under section 6-A of the Act.
(3) A new section 7-A was incorporated in the Act in
1984 to provide for an express provision to enable the Government to recover,
in case of default, any amount which is required to be paid or deposited in
pursuance of a regulatory order issued under section 3 of the Act as arrears
of land revenue. But, in some of the States, Government dues are being
recovered as a public demand. It is, therefore, proposed to suitably amend
the provisions of section 7-A of the Act to enable the recovery of Government
dues as a public demand also.
(4) Section 7-A also provides for simple interest at
six per cent per annum payable by the defaulters from the date of such
default of Government dues up to the date of the recovery thereof. It is
considered necessary to raise the rate of interest from six per cent per
annum to fifteen per cent per annum keeping in view the existing rates of
interest charged by the banks.
(5) Under clause (e) of sub-section (1) of section
12-AA of the Act a Special Court can take cognizance of an offence for
violation of the provisions of the Act only if a report to that effect is
made by the police and not by any other officer of the Government. This has
been causing avoidable delay in taking action under the Act by the officials
of the Food and Civil Supplies Departments of the Government against persons
violating the provisions of the Act. To remove this lacuna, it is proposed to
suitably amend the said section to enable authorised officers of the Central
and State Governments also to make a report to the Special Courts.
Amendment Act 37 of 1986.--The Essential Commodities Act, 1955,
provides, in the interest of general public, for control of production,
supply, distribution, trade and commerce in commodities which have been
declared as essential under the Act. To achieve these objectives, the
Government has been vested with powers under the Act, to issue orders for
regulating production, storage, transport and distribution of such essential
commodities and for controlling the prices, etc. The Act at present does not
confer any right on the aggrieved consumer or recognised consumer
associations to file complaints in Courts.
(2) To promote voluntary consumer movement and to
ensure involvement of consumers as well as recognised consumer associations
in the enforcement of this Act, it is considered desirable to confer specific
rights on the consumer and recognised consumer associations for filing
complaints to be taken cognizance of by Courts. Accordingly, it is proposed
to amend section 11 and clause (e) of sub-section (1) of section 12-AA of the
Essential Commodities Act, 1955, to confer rights on the aggrieved consumers
and recognised consumer associations to file complaints in Courts. It is also
proposed to define a 'recognised consumer association' under the Act so as to
mean a voluntary consumer association registered under Companies Act, 1956 or
under any law for the time being in force.
Amendment Act 37 of 2003.--The Essential Commodities Act, 1955, inter
alia, provides that, for maintaining or increasing supplies of essential
commodities or for securing their equitable distribution and availability at
fair prices, the Central Government may issue orders regulating or
prohibiting the production, supply and distribution of such essential
commodities and trade and commerce therein so as to achieve the objectives of
the Act.
2. The Central Government has been following a policy
of partial control of sugar since 1966 .and requisitioning a portion of sugar
as levy sugar for the Public Distribution System. The Central Government has
adopted a "regulated release" mechanism for release of levy-free
sugar (free sale sugar) by issuing orders under the Sugar (Control) Order,
1966. The said Order was last amended on 14th June, 1999. Clause 4 of the
said Order empowered the Central Government to direct that no producer or
importer shall sell or otherwise dispose of or deliver any kind of sugar or
remove any kind of sugar from the bonded godowns of the factory in which it
was produced or from the warehouses of importers except under and in
accordance with a direction issued, in writing, by the Central Government.
Similarly, clause 5 of the said Order empowered the Central Government to
issue, from time to time, general or special order to producers, importers,
recognised dealers, etc., regulating the production, maintenance of stocks,
storage, sale, marking, weighment, disposal, delivery and distribution of any
kind of sugar.
3. The recent challenge to the "regulated
release" mechanism in the Courts has led to difficulties in its
operation resulting in decline in sugar prices, which, in turn, has affected
the capacity of the producers of sugar to pay cane price to the sugarcane
growers. In order to safeguard the interests of the sugarcane growers,
producers of sugar and the general public, to restablize the market price of
sugar and to overcome the difficulties arising from the said challenge, it
has become necessary to incorporate provisions in the Essential Commodities
Act, 1955, enabling the Central Government to issue orders or directions to
implement "regulated release" mechanism policy of the Government
effectively.
4. Accordingly, it is proposed to suitably incorporate
provisions analogous to clauses 4 and 5 of the Sugar (Control) Order, 1966 in
the Essential Commodities Act, 1955 and to validate any action taken or
anything done under the Sugar (Control) Order, 1966.
Amendment Act 54 of 2006.--The Essential Commodities Act, 1955
provides for the control of the production, supply and distribution of
essential commodities. Section 3 of the said Act empowers the Central
Government to control production, supply and distribution of essential
commodities. It also empowers the Central Government under clause (b) of
section 5 of the said Act to delegate the powers to make orders or issue
notifications tinder section 3 to a State Government or an officer or
authority subordinate to a State Government. Consequently, several control
orders have been issued under the said Act.
2. The need to relax various controls on agricultural
products including controls on inter-State movement of such products was
discussed in the Conference of Chief Ministers held on the 21st May, 2001.
The said Conference recommended for constitution of a Standing Committee
consisting of Central Ministers-in-charge of Agriculture, Commerce and
Industry, Finance, Consumer Affairs, Food and Public Distribution, Rural
Development and Deputy Chairman, Planning Commission as also the Chief
Ministers of the States of Andhra Pradesh, Karnataka, Orissa, Assam, Uttar
Pradesh, Punjab, Madhya Pradesh, Haryana, West Bengal, Kerala and
Maharashtra, inter alin, to review the list of essential commodities and
control orders to ensure free movement of agricultural produce. The said
Standing Committee recommended that the restrictions on movement of all
agricultural commodities should be removed and that the Essential Commodities
Act, 1955 may continue as an umbrella legislation for the Central Government
and the State Governments, and the States may use it when needed, but a
progressive dismantling of controls and restrictions was also required. In
pursuance of the said recommendation, various controls tinder the said Act
pertaining to licensing, stock limits and movement restrictions have already
been dispensed with vide No. G.S.R. 104(E), dated the 15th February, 2002 and
G.S.R. 490(E), dated the 16th June, 2003 issued by the Government of India in
the Ministry of Consumer Affairs, Food and Public Distribution.
3. The list of essential commodities has been reviewed
from time to time which reference to the production and supply of these
commodities and in the light of economic liberalization. On the basis of the
recommendations of the aforesaid Standing Committee and in consultation with
the concerned administrative Ministries, eleven commodities in the year, 2002
and three commodities in the year, 2004 have been deleted from the list of
the essential commodities declared under sub-clause (xi) of clause (a) of
section 2 of the said Act. However, certain commodities which have been
defined in sub-clauses (i) to (x) of clause (a) of section 2 of the said Act
could not be deleted through notification even though the Government consider
necessary to delete those commodities from the list of essential commodities
in the light of the improved demand and supple position. Therefore, the need
has been felt for amending the said Act.
4. The salient features of the proposed amendment Bill
are as follows:-
(1) The essential commodities, namely, (i) cattle
fodder, including oilcakes and other concentrates; (ii) coal, including coke
and other derivatives; (iii) component parts and accessories of automobiles;
(iv) cotton and woollen textiles; (v) drugs; (vi) foodstuffs, including edible
oil-seeds and oils; (vii) iron and steel, including manufactured products of
iron and steel; (viii) paper, including newsprint, paper board and straw
board; (ix) petroleum and petroleum products; (x) raw cotton, whether ginned
or unginned and cotton-seed; (xi) raw jute; defined in section 2(a)(i) to (x)
of the said Act and power under section 2(n)(xi) of the said Act to declare
any other class of commodity which the Central Government may, by notified
order, declare to be an essential commodity for the purposes of this Act,
being a commodity with respect to which Parliament has power to make laws by
virtue of entry 33 in List III in the Seventh Schedule to the Constitution,
are being omitted.
(2) Simultaneously a new section 2-A(1) is proposed to
be inserted which provides that the essential commodities listed in the
proposed Schedule, namely, (i) drugs; (ii) fertilizer, whether inorganic or
organic or mixed; (iii) foodstuffs, including edible oil-seeds and oils; (iv)
hank yarn made wholly from cotton; (v) petroleum and petroleum products; (vi)
raw jute and jute textiles; (vii)(a) seeds of food-crops and seeds of fruits
and vegetables, (b) seeds of cattle fodder, and (c) jute seeks shall be the
essential commodities for the purposes of this Act.
(3) Further the said new section 2-A(2), (3) and (4)
empowers the Central Government to remove any commodity from the Schedule and
also empowers the Central Government to issue notification to add any
commodity in the said Schedule in the public interest when there is a
scarcity of any commodity to which Parliament has power to make laws by
virtue of Entry 33 in List III in the Seventh Schedule to the Constitution.
Such notification shall remain in force for a period of six months unless it
is extended by the Central Government in the public interest and for the
purpose reasons are to be recorded by the Central Government.
(4) It is also proposed to provide for continuance of
the notifications, orders, any appointments made, licence or permit granted
under section 3 of the said Act in respect of essential commodities which are
being retained in the proposed Schedule as essential commodities.
(5) Consequential amendments in section 3 and 12-A of
the said Act are also being carried out.
Amending Act 47 of 1964.- "The question of controlling the
prices of foodstuffs and other essential commodities and ensuring the supply
and distribution in adequate quantities of these commodities has been
engaging the close and constant attention of the Government. There has been
widespread public criticism of the manner in which some sections of the trade
and middlemen were able to get round, and render ineffective, the legal and
administrative measures devised for the maintenance of supplies essential to
the community. It was, therefore, felt that the existing procedure governing
trial of offences relating to the supply and distribution of foodstuffs and
other essential commodities and enforcement of the prices fixed for these
commodities under the law should be amended immediately, in order to make the
trial of these offences quick and effective. As most of the orders regarding
the fixation of prices and maintenance of distribution and supply of
essential commodities had been issued under Section 3 of the Essential
Commodities Act, 1955, and the Criminal Law Amendment Act, 1952, to provide
for summary trial of persons contravening order issued under Section 3 of
Essential Commodities Act in relation to such of these essential commodities
as may be notified from time to time and of public servants charged with
offences of bribery, misconduct, etc., in regard to contravention of the said
orders" - S.O.R. Gazette of India, 1964, Pt. II, Section 2, Ext., p.
831.
Amending Act 23 of 1966.-.......... In order to make the
administration of the Essential Commodities Act more strict it is proposed to
provide for the forfeiture of packages, vehicles, animals etc., involved in
the contravention of orders issued under that Act by amending Section 7 of
that Act. Such power is now available under Rule 125(9)(b) of the Defence of
India Rules, 1962.
It is also proposed to insert new provisions in the
Essential Commodities Act, 1955, for the confiscation, by Collectors of
districts of the foodgrains, edible oilseeds and edible oils which have been
seized for contravention of any order issued under that Act and for appeals
from the orders of the Collectors of the State Governments. Specific
provision is also proposed to be made for the return, if possible, of the
articles seized or for payment of the value thereof if the person aggrieved
by the order of confiscation succeeds in appeal or for payment of the value
therefo if the person aggrieved by the order of confiscation succeeds in
appeal or is acquitted by Court where prosecution is launched for the same contravention.
This follows the pattern of Rule 125(8) of the Defence of India Rules, 1962,
but has been strengthened with a view to ensure the observance of the
principles of natural justice - S.O.R. Gazette of India, 1966, Pt. II,
Section 2, Ext., p. 483.
Amending Act 36 of 1967.- At the conference of the Chief
Ministers in July, 1967, at New Delhi, it was suggested that the penal
provisions under the Essential Commodities Act, 1955, should be made more
stringent and their implementation made more effective. The Government, after
carefully examining the suggestion, considered it necessary to amend the Act
by the Essential Commodities (Amendment) Ordinance, 1967, in certain respects
as indicated below :
(i) The Act as amended by the
Essential Commodities (Amendment) Act, 1966 (25 of 1966), provided for the
confiscation by district authorities of foodgrains, edible oils or edible
oilseeds, whenever they were seized in pursuance of an order made under
Section 3 of the Act. The Government considered that this provision should be
enlarged to cover all essential commodities.
(ii) Offences under the Act were
not cognizable. It was felt that the offences should be made cognizable and
bailable and further that the maximum punishment for certain offences under
the Act should also be increased from imprisonment for three years to
imprisonment for five years.
(iii) The Act did not contain
provision for awarding a minimum punishment to habitual offenders. For the
proper working of the Act, it was considered necessary to provide for the
award of minimum punishment to habitual offenders and also to empower the
Court to direct that any such person shall not carry on any business in the
essential commodity (with respect to which he has been convicted) for such
period, not being less than six months, as may be specified by the Court.
(iv) Persons committing offences
under the Act sometimes escaped punishment for contravention of orders made
thereunder on the plea that the offences were not committed by them
deliberately. It was felt necessary to amend the Act so as to make
contravention of an order made thereunder punishable whether the order was
contravened knowingly, intentionally or otherwise.
(v) The provision for summary
trials under the Act is available only up to the 31st December, 1967. It was
felt necessary to extend the operation of this provision for a further period
of two years, that is to say up to 31st Dec., 1969.
(2) The present control over prices and distribution of
sugar applies to the entire sugar production and stocks with factories, and
is exercised under Section 3 of the Essential , Gktmodities Act, 1955. With a
view to augment sugar production during the year 1967-68, the Central
Government decided on a policy of partial control and to procure sixty per
cent., or such higher percentage, as may be necessary, of the sugar
production of factories in 1967-68 so as to make up the quantity of sugar
procured to a minimum of 13 lakh tonnes. Such procurement will be at a fixed
price for distribution through regulated channels. The balance of production
will be available for sale by factories anywhere in India in the free market,
subject to monthly releases to be sanctioned by the Government. The
Government therefore considered it necessary to amend the Act by the Essential
Commodities (Second Amendment) Ordinance, 1967, providing for the manner of
fixation of the price of sugar whenever sugar is procured as mentioned above.
(3) It is considered necessary to take powers under the
Act to issue orders under Section 3 thereof for securing any essential
commodity for the defence of India or the efficient conduct of military
operations also. For that purpose, it is proposed to amend sub-section (1) of
Section 3 of the Act suitably.
(4) The Bill seeks to replace the two Ordinances
aforesaid and to amend sub-section (1) of Section 3 of the Act for the
purpose mentioned in paragraph 3.-S.O.R., Gaz. of Ind., 1967, Pt. II, Section
2, Ext., p. 1007.
Amending Act 30 of 1974.- The hoarders, black-marketeers are
playing hell with the lives of millions of people in the country by violating
the provisions of the Essential Commodities Act, 1955.
These man-eaters are too cunning and always escape
through the lacunae in the law. Even in case when they are caught red-handed,
they get immediate bail even from the police officer and try to tamper with
evidence and foil the process of investigation. So, the administration of
justice is reduced to a farce.
These undesirable and anti-social elements should be
sternly dealt with.
To achieve, the very object of the Act, to secure
effective administration of justice to ensure a free and fair investigation,
it is necessary that such persons should not be released on bail.
Hence it is necessary to make every offence under this
Act non-bailable.--Gazette of India, 3-5-1974, Pt. II, Section 2, Ext., p.
427.
Amending Act 32 of 1976.- The Essential Commodities Act, 1955,
provides for the regulation of production, supply, distribution and pricing
of essential commodities. Experience gained in the Working of the Act has
indicated the need to make certain amendments in the Act. The amendments
mainly relate to the following matters, namely :
(i) in order to intensify the
drive against hoarders and profiteers, it is proposed to provide that the
powers of the Collector may also be exercised by an Additional Collector and
such other officers, not below the rank of a Sub-Divisional Officer, as may
be authorised by the Collector. A definition of the expression
"Collector" is being inserted in the Act to achieve the said
object;
(ii) Levy orders made under
Section 3(2)(f) have been struck down by the High Court of Orissa on the
ground that orders under that section could only require a person to sell any
essential commodity "held in stock", and consequently, such orders
cannot be based on the quantity of land possessed by the concerned person. In
order to meet the situation, it is proposed to provide that a levy order
issued in relation to foodgrains, edible oilseeds and edible oils may fix, on
a graded basis, the quantity to be sold by the producer, having regard to the
estimated production of the crop in the concerned area and the aggregate area
held by the producer under cultivation. -Gazette of India, 27-5-1981, Pt. II,
S. 2, Ext., p. 960.
Amending Act 18 of 1981.- The Essential Commodities Act, 1955
(hereinafter referred to as the principal Act) provides for regulation of
production, supply and pricing of essential commodities. This Act had been
amended from time to time.
2. In spite of extensive amendments made to the
principal Act in 1976, experience has shown that some of the existing
provisions of that Act have not been adequate and effective for expeditious
disposal of cases as well as for ensuring the availability of essential
commodities at fair prices and for curbing, hoarding and blackmarketing of
and profiteering in, such commodities. There are large number of court cases
pending under the principal Act all over the country and, the price rise has
continued unabated in the years 1979 and 1980. For dealing more effectively
with persons indulging in anti-social activities like hoarding and
black-marketing and the evil of vicious inflationary prices, it is considered
necessary to make the following special provisions by way of amendments to
the principal Act for a temporary period of five years, namely :-
(a) in order to expedite the
process of prosecutions under the principal Act, it is proposed to provide
(i) for the trial, in a summary
way, of all offences under that Act; and
(ii) for the constitution, for
the, purposes of such trial, of Special Courts, consisting of a single Judge
who shall be appoi&ed by a High Court and who shall be a person who is
qualified to be a Judge of a High Court or who is or has been a Sessions
Judge or an Additional Sessions Judge, for not less than one year.
(b) to strengthen the penal
provisions of the principal Act with a view to deterring persons indulging in
hoarding and blackmarketing in essential commodities from contravening the
provisions of the principal Act. It is proposed to provide for-
(i) minimum mandatory
imprisonment for a period of not less than three months for all offences
under the principal Act except an offence of abetment in regard to procuring
of foodstuffs or drugs by them for their own use or for the use of any member
of their family, and not for the purpose of carrying on any business or trade
which is proposed to be punishable with fine only:
(ii) enhancement of the term of
imprisonment awardable in case of conviction in a summary trial from one year
to two years;
(iii) making of all offences
under the principal Act to be non-bailable;
(iv) granting of bail by the
trial court after giving the prosecution an opportunity to oppose the
application and only in the exceptional cases specified in the new Section
12AA proposed to be inserted, to a person accused or suspected of the
commission of an offence under the principal Act if there appear reasonable
grounds for believing that he is guilty of the offence concerned; and
(c) In order to ensure
availability of essential commodities to the consumers provision is being
made-
(i) for sale of all seized
essential commodities, the retail sale prices whereof have been fixed by the
Central Government or the State Government as the case may be, through the
public distribution system by enlarging the scope of Section 6A(2). The
existing provision covers only foodgrains to be sold through fair price
shops; and
(ii) for preferring appeal
against the order of confiscation passed by the Collector of a district to
the State Government instead of to a judicial authority.
3. The Bill seeks to achieve the above objects.-Gaz. of
Ind., 24-2-1981, Pt. II, Section 2, p. 66. a regulatory order issued under
section 3 of the Act as arrears of land revenue. But, in some of the States,
Government dues are being recovered as a public demand. It is, therefore,
proposed to suitably amend the provisions of section 7A of the Act to enable
the recovery of Government dues as a public demand also.
4. Section 7A also provides for simple interest at six
per cent, per annum payable by the defaulters from the date of such default
of Government dues up to the date of the recovery thereof. It is considered
necessary to raise the rate of interest from six per cent, per annum to
fifteen per cent, per annum keeping in view the existing rates of interest
charged by the banks.
5. Under clause (e) of sub-section (1) of section 12AA
of the Act, a Special Court can take cognizance of an offence for violation
of the provisions of the Act, only if a report to that effect is made by the
police and not by any other officer of the Government. This has been causing
avoidable delay in taking action under the Act by+,the officials of the Food
and Civil Supplies Departments of the Government against persons violating
the provisions of the Act. To remove this lacuna, it is proposed to suitably
amend the said section to enable authorised officers of the Central and State
Governments also to make a report to the Special Courts.
6. The Bill seeks to achieve the above objects.- Gaz.
of Ind., 24-7-96. Pt. II, Section 2, Ext., p. 3 (No. 30).
Act 73 of 1986.- The Essential Commodities Act, 1955,
provides, in the interest of general public, for control of production,
supply, distribution, trade and commerce in commodities which have been
declared as essential under the Act. To achieve these objectives, the
Government has been vested with powers under the Act, to issue orders for
regulating production, storage, transport and distribution of such essential
commodities and for controlling the prices etc. The Act at present does not
confer any right on the aggrieved consumer or recognised consumer
associations to file complaints in courts.
2. To promote voluntary consumer movement and to ensure
involvement of consumers as well as recognised consumer associations in the
enforcement of this Act, it is considered desirable to confer specific rights
on the consumer and recognised consumer associations for filing complaints to
be taken cognizance of by courts. Accordingly, it is proposed to amend
section 11 and clause (e) of sub-section (1) of section 12AA of the Essential
Commodities Act, 1955, to confer rights on the aggrieved consumers and
recognised consumer associations to file complaints in courts. It is also
proposed to define a `recognised consumer association' under the Act so as to
mean a voluntary consumer association registered under the Companies Act,
1956 or under any other law for the time being in force.
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[- - -]
[
(ii-a) Collector includes an
Additional Collector and such other officer, not below the rank of
Sub-Divisional Officer, as may be authorised by the Collector to perform the
functions and exercise the powers of the Collector under this Act;]
[- - -]
(b) food-crops include crops of
sugarcane;
(c) notified order means an order
notified in the Official Gazette;
[(cc) order
includes a direction issued thereunder;]
[(d) State
Government, in relation to a Union territory, means the administrator thereof;]
[ (e) sugar
means
(i) any form of sugar containing
more than ninety per cent., of sucrose, including sugar candy;
(ii) khandsari sugar
or bura sugar or crushed sugar or any sugar in crystalline or
powdered form; or
(iii) sugar-in-process in vacuum
pan sugar factory or raw sugar produced therein;]
[- - -]
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STATE
AMENDMENTS 6
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[Himachal Pradesh].In its application to the State of Himachal
Pradesh, after sub-Cl. (vi), insert the following clause, namely:
(vi-a) packing cases made wholly
or partly of wood, card board or straw.H.P. Act 1 of 1992 (w.e.f. 19-2-1992).
[Maharashtra] .In its application to the State of
Maharashtra, in Section 2,
(a) for Cl. (i-a), substitute
the following clause, namely:
(i-a) Collector in any Rationing
Area means the Controller of Rationing designated for that area and includes
the Deputy or Assistant Controller of Rationing, and elsewhere, the Collector
of the District and includes Additional Deputy or Assistant Collector,
sub-Divisional Officer and District Supply Officer within his respective
jurisdiction;
(b) Cl. (a-i) shall be
deleted.Maharashtra Act 6 of 2003, Section 2 (w.e.f. 24-3-2003).
(c) after Cl. (b), insert the following
clauses, namely:
(ba) holder, in relation to any
agricultural land, means the person in actual possession of such land, and
includes a company or other body corporate, firm, association, joint family
or body of individuals in joint possession of such land;
(bb) holding means the aggregate
of all lands in possession of a holder;Maharashtra Act 1 of 1976, Section 2
(w.e.f. 12-11-1975).
[Uttar Pradesh].In its application to the State of Uttar
Pradesh, in Section 2,
(i) Cl. (aa), inserted by U.P. Amendment
Act 18 of 1975, shall stand omitted with effect from September 2, 1976, the
date of commencement of Essential Commodities (Amendment) Act, 1976U.P. Act
16 of 1978, Section 2 (w.e.f. 2-9-1976).
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[2-A.
Essential commodities declaration, etc .(1) For the purposes of this Act, essential
commodity means a commodity specified in the Schedule.
(2) Subject to the provisions of sub-section (4), the
Central Government may, if it is satisfied that it is necessary so to do in the
public interest and for reasons to be specified in the notification published
in the Official Gazette, amend the Schedule so as to
(a) add a commodity to the said
Schedule;
(b) remove any commodity from the
said Schedule, in consultation with the State Governments.
(3) Any notification issued under sub-section (2) may
also direct that an entry shall be made against such commodity in the said
Schedule declaring that such commodity shall be deemed to be an essential
commodity for such period not exceeding six months to be specified in the
notification:
Provided that the Central Government may, in the public
interest and for reasons to be specified, by notification in the Official
Gazette, extend such period beyond the said six months.
(4) The Central Government may exercise its powers under
sub-section (2) in respect of the commodity to which Parliament has power to
make laws by virtue of Entry 33 in List III in the Seventh Schedule to the
Constitution.
(5) Every notification issued under sub-section (2) shall
be laid, as soon as may be after it is issued, before both Houses of
Parliament.]
3. Powers to control
production, supply, distribution, etc., of essential commodities .(1) If the
Central Government is of opinion that it is necessary or expedient so to do for
maintaining or increasing supplies of any essential commodity or for securing
their equitable distribution and availability at fair prices, [or for
securing any essential commodity for the defence of India or the efficient
conduct of military operations], it may, by order,
provide for regulating or prohibiting the production, supply and distribution
thereof and trade and commerce therein.
(2) Without prejudice to
the generality of the powers conferred by sub-section (1), an order made
thereunder may provide,
(a) for regulating by licences,
permits or otherwise the production or manufacture of any essential commodity;
(b) for bringing under cultivation
any waste or arable land, whether appurtenant to a building or not, for the
growing thereon of food-crops generally or of specified food-crops, and for
otherwise maintaining or increasing the cultivation of food-crops generally, or
of specified food-crops;
(c) for controlling the price at
which essential commodity may be bought or sold;
(d) for regulating by licences,
permits or otherwise the storage, transport, distribution, disposal,
acquisition, use or consumption of, any essential commodity;
(e) for prohibiting the
withholding from sale of any essential commodity ordinarily kept for sale;
[(f) for
requiring any person holding in stock, or engaged in the production, or in the
business of buying or selling, of any essential commodity,
(a) to sell the whole or a
specified part of the quantity held in stock or produced or received by him, or
(b) in the case of any such
commodity which is likely to be produced or received by him, to sell the whole
or a specified part of such commodity when produced or received by him, to the
Central Government or a State Government or to an officer or agent of such
Government or to a Corporation owned or controlled by such Government or to
such other person or class of persons and in such circumstances as may be
specified in the order.
Explanation 1. An order made under this clause in relation to
foodgrains, edible oilseeds or edible oils, may, having regard to the estimated
production, in the concerned area, of such foodgrains, edible oilseeds and edible
oils, fix the quantity to be sold by the producers in such area and may also
fix, or provide for the fixation of, such quantity on a graded basis, having
regard to the aggregate of the area held by, or under the cultivation of, the
producers.
Explanation 2. For the purposes of this clause, production
with its grammatical variations and cognate expressions includes manufacture of
edible oils and sugar;]
(g) for regulating or prohibiting
any class of commercial or financial transactions relating to foodstuffs [- - -] which, in the opinion of the
authority making the order, are, or, if unregulated, are likely to be
detrimental to the public interest;
(h) for collecting any information
or statistics with a view to regulating or prohibiting any of the aforesaid
matters;
(i) for requiring persons engaged
in the production, supply or distribution of or trade and commerce in, any
essential commodity to maintain and produce for inspection such books, accounts
and records relating to their business and to furnish such information relating
thereto, as may be specified in the order;
[(ii) for the
grant or issue of licences, permits or other documents, the charging of fees
therefor, the deposit of such sum, if any, as may be specified in the order as
security for the due performance of the conditions of any such licence, permit
or other document, the forfeiture of the sum so deposited or any part thereof
for contravention of any such conditions, and the adjudication of such
forfeiture by such authority as may be specified in the order;]
[(j) for any
incidental and supplementary matters, including, in particular, the entry,
search or examination of premises, aircraft, vessels, vehicles or other
conveyances and animals, and the seizure by a person authorised to make such
entry, search or examination,
(i) of any articles in respect of
which such person has reason to believe that a contravention of the order has
been, is being, or is about to be, committed and any packages, coverings or
receptacles in which such articles are found;
(ii) of any aircraft, vessel,
vehicle or other conveyance or animal used in carrying such articles, if such
person has reason to believe that such aircraft, vessel, vehicle or other
conveyance or animal is liable to be forfeited under the provisions of this
Act;
[(iii) of any books of accounts
and documents which in the opinion of such person, may be useful for, or
relevant to, any proceeding under this Act and the person from whose custody
such books of accounts or documents are seized shall be entitled to make copies
thereof or to take extracts therefrom in the presence of an officer having the
custody of such books of accounts or documents.]
(3) Where any person sells
any essential commodity in compliance with an order made with reference to
clause (f) of sub-section (2), there shall be paid to him the price therefor as
hereinafter provided,
(a) where the price can,
consistently with the controlled price, if any, fixed under this section, be
agreed upon, the agreed price;
(b) where no such agreement can be
reached, the price calculated with reference to the controlled price, if any;
(c) where neither clause (a) nor
clause (b) applies, the price calculated at the market rate prevailing in the
locality at the date of sale.
[(3-A)(i) If the Central
Government is of opinion that it is necessary so to do for controlling the rise
in prices or preventing the hoarding, of any foodstuff in any locality, it may,
by notification in the Official Gazette, direct that notwithstanding anything
contained in sub-section (3), the price at which the foodstuff shall be sold in
the locality in compliance with an order made with reference to clause (f) of
sub-section (2) shall be regulated in accordance with the provisions of this
sub-section.
(ii) Any
notification issued under this sub-section shall remain in force for such
period not exceeding three months as may be specified in the notification.
(iii) Where,
after the issue of a notification under this sub-section, any person sells
foodstuff of the kind specified therein and in the locality so specified in
compliance with an order made with reference to clause (f) of sub-section (2),
there shall be paid to the seller as the price therefor
(a) where the
price can, consistently with the controlled price of the foodstuff, if any,
fixed under this section, be agreed upon, the agreed price;
(b) where no
such agreement can be reached, the price calculated with reference to the
controlled price, if any;
(c) where
neither clause (a) nor clause (b) applies, the price calculated with reference
to the average market rate prevailing in the locality during the period of
three months immediately preceding the date of the notification.
(iv) For the
purposes of sub-clause (c) of clause (iii), the average market rate prevailing
in the locality shall be determined by an officer authorised by the Central
Government in this behalf, with reference to the prevailing market rates for
which published figures are available in respect of that locality or of a
neighbouring locality; and the average market rate so determined shall be final
and shall not be called in question in any Court.]
[(3-B) Where any person
is required, by an order made with reference to clause (f) of sub-section (2),
to sell to the Central Government or a State Government or to an officer or
agent of such Government or to a Corporation owned or controlled by such Government,
any grade or variety of foodgrains, edible oilseeds or edible oils in relation
to which no notification has been issued under sub-section (3-A), or such
notification having been issued, has ceased to be in force, there shall be paid
to the person concerned, notwithstanding anything to the contrary contained in
sub-section (3), an amount equal to the procurement price of such foodgrains,
edible oilseeds or edible oils, as the case may be, specified by the State
Government, with the previous approval of the Central Government having regard
to
(a) the
controlled price, if any, fixed under this section or by or under any other law
for the time being in force for such grade or variety of foodgrains, edible
oilseeds or edible oils;
(b) the general
crop prospects;
(c) the need
for making such grade or variety of foodgrains, edible oilseeds or edible oils
available at reasonable prices to the consumers, particularly the vulnerable
sections of the consumers; and
(d) the
recommendations, if any, of the Agricultural Prices Commission with regard to
the price of the concerned grade or variety of foodgrains, edible oilseeds or
edible oils.]
[(3C) Where any producer
is required by an order made with reference to clause (f) of sub-section (2) to
sell any kind of sugar (whether to the Central Government or to a State
Government or to an officer or agent of such Government or to any other person
or class of persons) whether a notification was issued under sub-section (3.4)
or otherwise, then, notwithstanding anything contained in sub-section (3),
there shall be paid to that producer only such amount as the Central Government
may, by order, determine, having regard to -
(a) the fair
and remunerative price, if any, determined by the Central Government as the
price of sugarcane to be taken into account under this section;
(b) the
manufacturing cost of sugar;
(c) the duty or
tax, if any, paid or payable thereon; and
(d) a
reasonable return on the capital employed in the business of manufacturing of
sugar :
Provided that the
Central Government may determine different prices, from time to time, for
different areas or factories or varieties of sugar :
Provided further that
where any provisional determination of price of levy sugar has been done in
respect of sugar produced up to the sugar season 2008-2009, the final
determination of price may be undertaken in accordance with the provisions of
this sub-section as it stood immediately before the 1st day of October, 2009.
Explanation I.-For the
purposes of this sub-section,-
(a) "fair
and remunerative price" means the price of sugarcane determined by the
Central Government under this section;
(b)
"manufacturing cost of sugar" means the net cost incurred on
conversion of sugarcane into sugar including net cost of transportation of
sugarcane from the purchase centre to the factory gate, to the extent it is
borne by the producer;
(c)
"producer" means a person carrying on the business of manufacturing
sugar;
(d)
"reasonable return on the capital employed" means the return on net
fixed assets plus working capital of a producer in relation to manufacturing of
sugar including procurement of sugarcane at a fair and remunerative price
determined under this section.]
[Explanation II. - For
the removal of doubts, it is hereby declared that the expressions "fair
and remunerative price" referred to in clause (a), "manufacturing
cost of sugar" referred to in clause (b) and "reasonable return on
the capital employed" referred to in clause (d), of this sub-section do
not include the price paid or payable under any order or any enactment of any
State Government and any price agreed to between the producer and the grower or
a sugarcane growers' co-operative society]
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OLD LAW 6
|
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Prior to substitution by Act 36 of 2009 the section 3-C
Read as; [(3-C) Where any producer is
required by an order made with reference to clause (f) of sub-section (2) to
sell any kind of sugar (whether to the Central Government or a State
Government or to an officer or agent of such Government or to any other
person or class of persons) and either no notification in respect of such
sugar has been issued under sub-section (3-A) or any such notification,
having been issued, has ceased to remain in force by efflux of time, then,
notwithstanding anything contained in sub-section (3), there shall be paid to
that producer an amount therefor which shall be calculated with reference to
such price of sugar as the Central Government may, by order, determine,
having regard to
(a) the
minimum price, if any, fixed for sugarcane by the Central Government under
this section;
(b) the
manufacturing cost of sugar;
(c) the duty
or tax, if any, paid or payable thereon; and
(d) the
securing of a reasonable return on the capital employed in the business of
manufacturing sugar, and different prices may be determined from time to time
for different areas or for different factories or for different kinds of
sugar.
[Explanation - I] For the purposes of
this sub-section, producer means a person carrying on the business of
manufacturing sugar.]
[Explanation II-For the removal of doubts, it is hereby
declared that the expressions "minimum price" referred to in clause
(a), "manufacturing cost of sugar" referred to in clause (b) and
"reasonable return on the capital.employed" referred to in clause
(d) exclude the additional price of sugarcane paid or payable under clause 5A
of the Sugarcane (Control) Order, 1966 and any price paid or payable under
any order or enactment of any State Government and any price agreed to
between the producer and the grower of sugarcane or a sugarcane growers'
co-operative society.;]
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[ (3-D) The Central
Government may direct that no producer, importer or exporter shall sell or
otherwise dispose of, or deliver any kind of sugar or remove any kind of sugar
from the bonded godowns of the factory in which it is produced, whether such
godowns are situated within the premises of the factory or outside, or from the
warehouses of the importers or exporters, as the case may be, except under and
in accordance with the direction issued by the Government:
Provided that this
sub-section shall not affect the pledging of such sugar by any producer or
importer in favour of any scheduled bank as defined in clause (e) of section 2
of the Reserve Bank of India Act, 1934 (2 of 1934) or any corresponding new
bank constituted under section 3 of the Banking Companies (Acquisition and
Transfer of Undertaking) Act, 1970 (5 of 1970), so, however, that no such bank
shall sell the sugar pledged to it except under and in accordance with a
direction issued by the Central Government.
(3-E) The Central
Government may, from time to time, by general or special order, direct any
producer or importer or exporter or recognised dealer or any class of producers
or recognised dealers, to take action regarding production, maintenance of
stocks, storage, sale, grading, packing, marking, weighment, disposal, delivery
and distribution of any kind of sugar in the manner specified in the direction.
Explanation. For the
purposes of sub-section (3-D) and this sub-section,
(a) producer
means a person carrying on the business of manufacturing sugar;
(b) recognised
dealer means a person carrying on the business of purchasing, selling or
distributing sugar;
(c) sugar
includes plantation white sugar, raw sugar and refined sugar, whether
indigenously produced or imported.]
(4) If the Central
Government is of opinion that it is necessary so to do for maintaining or
increasing the production and supply of an essential commodity, it may by
order, authorise any person (hereinafter referred to as an authorised
controller) to exercise, with respect to the whole or any part of any such
undertaking engaged in the production and supply of the commodity as may be
specified in the order such functions of control as may be provided therein and
so long as such order is in force with respect to any undertaking or part
thereof,
(a) the
authorised controller shall exercise his functions in accordance with any
instructions given to him by the Central Government, so, however, that he shall
not have any power to give any direction inconsistent with the provisions of
any enactment or any instrument determining the functions of the persons
in-charge of the management of the undertaking, except insofar as may be
specifically provided by the order; and
(b) the
undertaking or part shall be carried on in accordance with any directions given
by the authorised controller under the provisions of the order, and any person
having any functions of management in relation to the undertaking or part shall
comply with any such directions.
(5) An order made under
this section shall,
(a) in the case
of an order of a general nature or affecting a class of persons, be notified in
the Official Gazette; and
(b) in the case
of an order directed to a specified individual be served on such individual
(i) by
delivering or tendering it to that individual, or
(ii) if it
cannot be so delivered or tendered, by affixing it on the outer door or some
other conspicuous part of the premises in which that individual lives, and a
written report thereof shall be prepared and witnessed by two persons living in
the neighbourhood.
(6) Every order made
under this section by the Central Government or by any officer or authority of
the Central Government shall be laid before both Houses of Parliament, as soon
as may be, after it is made.
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STATE
AMENDMENTS 6
|
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[Bihar].In its application to the State of Bihar, in Section
3,
(a) in sub-S. (2), for Cl. (f),
the following clause shall be, and shall be deemed always to have been
substituted, namely:
(f) for requiring any person
holding in stock, or engaged in the manufacture or production of, or in the
business of buying or selling, any essential commodity to sell the whole or a
specified part of the quantity held in stock or manufactured or produced or
caused to be produced or likely to be manufactured or produced or cause to be
produced by him or received or likely to be received by him in the course of
the said business, to the Central Government or a State Government or to such
other person or class of persons and in such circumstances as may be
specified in the order.
Explanation. An order relating to foodgrains made with
reference to this clause
(i) may specify the prices,
fixed by the Central/State Government in this behalf, after taking into
account the recommendations, if any, of the Agricultural Prices Commission
and with the prior concurrence of the Central Government, as the amount which
shall be paid for the foodgrain required to be sold under the order;
(ii) may fix or provide for the
fixation of the quantity to be sold by a producer with reference to the area
under cultivation and the availability of irrigation for production of the
particular foodgrain to which the order relates, and also fix or provide for
the fixation of such quantities on a graded basis having regard to the
aggregate area held by or under the cultivation of different producers;
(b) in sub-S. (3), for Cl. (c),
the following clauses shall be, and shall be deemed always to have been
substituted, namely:
(c) in case of foodgrains, where
neither clause (a) nor clause (b) applies, the price, if any, specified in
the said order;
(d) where neither clause (a),
nor clause (b), nor clause (c) applies, the price calculated at the market
rate prevailing in the locality at the date of sale;
(c) in sub-S. (3-B), after Cl.
(a), the following clause shall be, and shall be deemed always to have been
inserted, namely:
(aa) in the case of foodgrains
where no controlled price is fixed by an order made with reference to clause
(c) of sub-section (2), the amount specified in the said order made with
reference to clause (b) of sub-section (2) for such grade or variety of
foodgrains or;Bihar Act 9 of 1978, Section 3 (w.e.f. 6-9-1978).
[Maharashtra].In its application to the State of Maharashtra, in
Section 3,
(i) in sub-S. (2), for Cl. (f),
the following clause shall be, and shall be deemed always to have been
substituted, namely:
(f) for requiring any person
holding in stock, or likely to hold in stock or, engaged in the manufacture
or production or processing of, in the business of or buying or selling, any
essential commodity, to sell, the whole or a specified part of the quantity
of the essential commodity held in stock or likely to be held in stock by him
or manufactured or produced or processed or likely to be manufactured or
produced or possessed by him or received or likely to be received by him in
his business of buying or selling, to the Central Government or the State
Government or to an officer or agent of any Government or to such other person
or class of persons and in such circumstances as may be specified in the
order.
Explanation. An order made under this clause in respect of
foodgrains may fix or provide for fixation of the quantity to be sold by a
producer with reference to the nature and extent of his holding or the land
revenue payable by him with certain weightages which may be prescribed for
certain crops or land enjoying irrigation or other facilities and also fix or
provide for fixation of the quantity to be sold on a graded basis having
regard to the size of the holdings of different producers.
(ii) in sub-S. (3), for Cl. (c),
the following clause shall be, and shall be deemed always to have been
substituted, namely:
(c) where neither clause (a) nor
clause (b) applies, in the case of foodgrains, the amount, if any, specified
in or calculated in accordance with the order made under clause (f) of
sub-section (2) read with sub-section (3-B) and in the case of any other
essential commodity, the price calculated at the market rate prevailing in
the locality at the date of sale.
(iii) for sub-S. (3-B), the
following sub-section shall be, and shall be deemed always to have been
substituted, namely:
(3-B) Where by an order made with reference to clause
(f) of sub-section (2), any person is required to sell any grade or variety
of foodgrains, edible oilseeds or edible oils to the Central Government or a
State Government or an officer or agent of such Government or a corporation
owned or controlled by such Government or to a person or class of persons
specified in the order, and either no notification in respect of such
foodgrains, edible oilseeds or edible oils has been issued under sub-section
(3-A) or any such notification having been issued, has ceased to remain in
force by efflux of time then, notwithstanding anything contained in
sub-section (3), there shall be paid to the person concerned an amount
determined by the Central Government or the State Government, as the case may
be,
(a) having regard to the
controlled price, if any, fixed under this section or by or under any law for
the time being in force for such grade or variety of foodgrains, edible
oil-seeds or edible oils, or
(b) having regard to the prices
recommended by the Agricultural Prices Commission for the concerned essential
commodity, where no controlled price in relation to such commodity has been
fixed by or under any law for the time being in force.Maharashtra Act 1 of
1976, Section 3 (w.e.f. 12-11-1975).
[Orissa].In its application to the State of Orissa, in Section
3,
(a) in sub-S. (2), for Cl. (f),
the following clause shall be, and shall be deemed always to have been
substituted, namely:
(f) for requiring any person
holding in stock or engaged in the manufacture or production of, or in the
business of buying or selling, any essential commodity to sell the whole or a
specified part of the quantity held in stock or manufactured or produced or
caused to be produced or likely to be manufactured or produced or caused to
be produced by him or received or likely to be received by him in the course
of the said business, to the Central Government or a State Government or to
an officer or agent of such Government or to such other person or class of
persons and in such circumstances as may be specified in the order;
Explanation. An order relating to foodgrains made with
reference to this clause
(i) may specify the prices fixed
by the State Government in this behalf, after taking into account the
recommendations, if any, of the Agricultural Prices Commission and with the
prior concurrence of the Central Government, as the amount which shall be
paid for the foodgrain required to be sold under the order,
(ii) may fix or provide for the
fixation of the quantity to be sold by a producer with reference to the area
under cultivation and the availability of irrigation for production of the
particular foodgrain to which the order relates, and also and fix or provide
for the fixation of such quantities on a graded basis having regard to the
aggregate area held by or under the cultivation of different producers.
(b) in sub-S. (3), for Cl. (c),
the following clauses shall be, and shall be deemed always to have been
substituted, namely:
(c) in the case of foodgrains,
where neither clause (a) nor clause (b) applies, the price, if any, specified
in the said order;
(d) where neither clause (a) nor
(b) nor (c) applies, the price calculated at the market rate prevailing in
the locality at the date of sale.
(c) in sub-S. (3-B), after Cl.
(i), the following clause shall be, and shall be deemed always to have been
inserted, namely:
(i-a) in the case of foodgrains,
where no controlled price is fixed by an order made with reference to clause
(c) of sub-section (2), the amount specified in the said Order made with
reference to clause (f) of sub-section (2) for such grade or variety of
foodgrains; or.Orissa Act 8 of 1976, Section 2 (w.e.f. 29-3-1976).
[Uttar Pradesh].In its application to the State of Uttar
Pradesh, in Section 3,
(i) in sub-S. (2), Cl. (f), as
substituted by U.P. Amendment Act 18 of 1975, Section 3(a) shall be omitted
and deemed to have been omitted with effect from the date of commencement of
the Central AmendmentU.P. Act 16 of 1978, Section 3(1).
(ii) in sub-S. (2), in Cl. (f),
as substituted by the Central Amendment after Explanation 1, the following Explanation
shall be inserted, namely:
Explanation 1. An order made under this clause in
relation to rice, having regard to the milling capacity of a rice mill, fix
the quantity to be sold by the licensed miller and may also fix or provide
for the fixation of such quantity on a graded basis.U.P. Act 16 of 1978,
Section 3(2).
(iii) in sub-S. (2), after Cl.
(f), the following clause shall be inserted, namely:
(ff) for preventing the hoarding
of any essential commodity.U.P. Act 9 of 1974, Section 2.
(iv) in sub-S. (3), for Cl. (c),
the following clauses shall be substituted, and be deemed always to have been
substituted, namely:
(c) in the case of foodgrains,
where neither clause (a) nor clause (b) applies, the amount, if any,
specified in the said order made with reference to clause (f) of sub-section
(2);
(d) where neither clause (a),
nor clause (b), nor clause (c) applies, the price calculated, at the market
rate prevailing in the locality at the date of sale.U.P. Act 18 of 1975,
Section 3(b).
(v) sub-S. (3-B), as amended by
U.P. Amendment Act 18 of 1975, shall be omitted and deemed to have been
omitted with effect from the date of commencement of the Central
Amendment.U.P. Act 16 of 1978, Section 3(3).
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4. Imposition of duties
on State Governments, etc .An order made under
section 3 may confer powers and impose duties upon the Central Government or
the State Government or officers and authorities of the Central Government or
State Government, and may contain directions to any State Government or to
officers and authorities thereof as to the exercise of any such powers or the
discharge of any such duties.
5. Delegation of powers.The Central
Government may, by notified order, direct that [the power to
make orders or issue notifications under section 3] shall, in
relation to such matters and subject to such conditions, if any, as may be
specified in the direction, be exercisable also by
(a) such
officer or authority subordinate to the Central Government; or
(b) such State
Government or such officer or authority subordinate to a State Government, as
may be specified in the direction.
6. Effect of orders
inconsistent with other enactments .Any order
made under section 3 shall have effect notwithstanding anything inconsistent
therewith contained in any enactment other than this Act or any instrument
having effect by virtue of any enactment other than this Act.
[6-A.
Confiscation of essential commodity.[(1)] Where
any [essential commodity is seized] in
pursuance of an order made under section 3 in relation thereto, [a report
of such seizure shall, without unreasonable delay, be made to] the
Collector of the district or the Presidency town in which such [essential
commodity is seized] and whether or not a prosecution is
instituted for the contravention of such order, the Collector [may, if he
thinks it expedient so to do, direct the essential commodity so seized to be
produced for inspection before him, and if he is satisfied] that there has
been a contravention of the order [may order confiscation
of
(a) the
essential commodity so seized;
(b) any
package, covering or receptacle in which such essential commodity is found; and
(c) any animal,
vehicle, vessel or other conveyance used in carrying such essential commodity:]
Provided that without
prejudice to any action which may be taken under any other provision of this
Act, no foodgrains or edible oilseeds in pursuance of an order made under
section 3 in relation thereto from a producer shall, if the seized foodgrains
or edible oilseeds have been produced by him, be confiscated under this
section:
[Provided further that
in the case of any animal, vehicle, vessel or other conveyance used for the
carriage of goods or passengers for hire, the owner of such animal, vehicle,
vessel or other conveyance shall be given an option to pay, in lieu of its
confiscation, a fine not exceeding the market price at the date of seizure of
the essential commodity sought to be carried by such animal, vehicle, vessel or
other conveyance.]
[(2) Where the
Collector, on receiving a report of seizure or on inspection of any essential
commodity under sub-section (1), is of the opinion that the essential commodity
is subject to speedy and natural decay or it is otherwise expedient in the
public interest so to do, he may
(i) order the
same to be sold at the controlled price, if any, fixed for such essential
commodity under this Act or under any other law for the time being in force; or
(ii) where no
such price is fixed, order the same to be sold by public auction:
[- - -]
(3) Where any essential
commodity is sold as aforesaid, the sale proceeds thereof, after deduction of
the expenses of any such sale, or auction or other incidental expenses relating
thereto, shall
(a) where no
order of confiscation is ultimately passed by the Collector,
(b) where an
order passed on appeal under sub-section (1) of section 6-C so requires, or
(c) where in a
prosecution instituted for the contravention of the order in respect of which
an order of confiscation has been made under this section, the person concerned
is acquitted, be paid to the owner or the person from whom it is seized.]
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STATE
AMENDMENTS 6
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[Bihar].In its application to the State of Bihar, for Section
6-A, substitute the following section, namely:
6-A. Confiscation of foodgrains, edible oilseeds,
edible oils, etc.(1) Where any essential commodity is seized in pursuance of
an order made under section 3 in relation thereto it shall be reported
without any unreasonable delay to the Collector of the district in which such
essential commodity is seized and the Collector may, if he thinks it
expedient so to do, inspect or cause to be inspected such essential
commodity, whether or not the prosecution is instituted for the contravention
of such order and the Collector, if satisfied that there has been a
contravention of the order, may order confiscation of
(a) the essential commodities so
seized;
(b) any package, covering or
receptacle in which such essential commodity is found; and
(c) any animal, vehicle, vessel,
or other conveyance used in carrying such essential commodity:
Provided that, without prejudice to any action which
may be taken under any other provision of this Act, no foodgrains or edible
oilseeds seized in pursuance of an order made under section 3 in relation
thereto from producer shall, if the seized foodgrains or edible oilseeds have
been produced by him, be confiscated under this section.
(2) Where the Collector, on receiving a report of
seizure or in inspection of any essential commodity under sub-section (1) is
of the opinion that such essential commodity is subject to speedy and natural
decay or that it is otherwise expedient in the public interest so to do, he
may order the same to be sold at the controlled price, if any, fixed under
any law for the time being in force.
(3) In the case of foodgrains, where there is no
controlled price, the Collector if he thinks fit, may order the foodgrains
seized under sub-section (1) to be sold through fair price shops at the price
fixed by the Central Government or the State Government, as the case may be,
for the sale of such foodgrains to the public through these shops or may
order such foodgrains to be sold by public auction.
(4) The Collector shall whenever it is practicable so
to do having regard to the nature of the essential commodity take and reserve
sample of the same in the prescribed manner before its sale or distribution.
(5) Where any essential commodity is sold as aforesaid
the sale proceeds thereof, after deduction of all expenses of the sale or
auction, as the case may be, shall
(a) where no order of
confiscation is ultimately passed by the Collector; or
(b) where an order passed on
appeal under sub-clause (1) of section 6-C so requires; or
(c) in the case of prosecution
being instituted for the contravention of the order in respect of which an
order of confiscation has been made under this section and where the person
concerned is acquitted, be paid to the owner thereof or the person from whom
it is seized:
Provided that in the case of foodgrains sold through
fair price shops in accordance with sub-sections (2) and (3) the owner shall
be paid for the foodgrains so sold, the price fixed by the State Government,
for retail sale of such foodgrains through such shops less all expenses of
sale or auction under sub-sections (2) and (3).
(6) Notwithstanding anything to the contrary contained
in the Code of Criminal Procedure, 1973 (2 of 1974) when Collector or the
appellate authority is seized with the matter under this section no Court
shall entertain any application in respect of essential commodities, any
package, covering, receptacle, any animal, vehicle or other conveyance used in
carrying such commodities as far as its release, distribution, etc., is
concerned and the jurisdiction of Collector or the appellate authority with
regard to the disposal of the same shall be exclusive.
(7) The State Government may, by notification in the Official
Gazette, authorise any officer not below the rank of Sub-divisional
Magistrate, to discharge all or any of the functions of a Collector under
this section.
(8) The Collector shall for the purposes of this Act
have the same powers as are vested in a Court under the Code of Civil
Procedure, 1908 (5 of 1908), when making enquiries under this section in
respect of the following matters, namely:
(a) receiving evidence on
affidavits;
(b) summoning and enforcing the
attendance of any person and examining him on oath; and
(c) compelling the production of
documents.
(9) All enquiries and proceedings under this section
before the Collector and the appellate authority shall be deemed to be
judicial proceeding and while discharging functions under this section the
Collector and the appellate authority shall be deemed to be a Court.
Explanation. For the purposes of this section the Collector
shall include Additional Collector and any officer specially authorised under
sub-section (7).Bihar Act 9 of 1978, Section 4 (w.e.f. 6-9-1978).
[Maharashtra].In its application to the State of Maharashtra, for
Section 6-A, substitute the following section, namely:
6-A. Confiscation of seized commodities.(1) Where
the essential commodity is seized in pursuance of an order made under section
3 in relation thereto, a report to that effect shall, without any
unreasonable delay be sent to the Collector within whose jurisdiction the
seizure is made, and the Collector may, if he thinks it expedient so to do,
inspect or cause to be inspected such essential commodity, and whether or not
a prosecution is instituted for the contravention of such order, the
Collector, if satisfied that there has been contravention of the order, may
order confiscation of
(a) the essential commodity so
seized;
(b) any package, covering or
receptacle in which such essential commodity is found; and
(c) any animal, vehicle, vessel
or other conveyance used in carrying such essential commodity:
Provided that, without prejudice to any action that may
be taken under any other provision of this Act, no foodgrains or edible
oilseeds seized in pursuance of an order made under section 3 in relation
thereto from a producer shall, if the seized foodgrains or edible oilseeds
have been produced by him, be confiscated under this section:
Provided further that where any animal, vehicle, vessel
or other conveyance is used for the carriage of goods or passengers for hire,
the owner of such animal, vehicle, vessel or other conveyance shall be given
an option to pay in lieu of its confiscation a fine not exceeding the market
price at the date of seizure of the essential commodity sought to be carried.
(2) Where the Collector on receiving a report of
seizure or on inspection of any essential commodity under sub-section (1) is
of the opinion that such essential commodity is subject to speedy and natural
decay or that it is otherwise expedient in the public interest so to do, he
may order the same to be sold at the controlled price if any, fixed under any
law for the time being in force; or where no such price is fixed by auction:
Provided that, in the case of foodgrains where there is
no controlled price, the Collector may order the foodgrains seized to be sold
through fair price shops at the price fixed by the Central Government or the State
Government as the case may be for the sale of such foodgrains to the public
through these shops:
Provided further that, whenever it is practicable so to
do, having regard to the nature of the essential commodity, he shall take and
preserve sample of the same before its sale or auction.
(3) Where any essential commodity is sold as aforesaid,
the sale proceeds thereof after deduction of the expenses of the sale or
auction, as the case may be, shall
(a) where no order of
confiscation is ultimately passed by the Collector; or
(b) where an order passed on
appeal, under sub-clause (1) of section 6-C so requires; or
(c) in the case of a prosecution
being instituted for the contravention of the order in respect of which an
order of confiscation has been made under be paid to the owner thereof or the
person from whom it is seized:
Provided that, in the case of foodgrains sold through
fair price shops in accordance with the first proviso to sub-section (2), the
owner shall be paid for the food grains so sold the price fixed by the State
Government, for retail sale of such foodgrains through such shops, less all
expenses of sale of auction under sub-section (2).Maharashtra Act 1 of 1976,
Section 4 (w.e.f. 12-11-1975).
[Uttar Pradesh] .In its application to the State of Uttar
Pradesh, Section 6-A, as amended or substituted by the U.P. Amendment Act 18
of 1975Section 6-A, as amended or substituted by the Central Amendment shall
be and be deemed, with effect from the date of commencement of the Central
Amendment, to have been substituted.U.P. Act 16 of 1978, Section
4. See also Section 8 of U.P. Act 18 of 1975.
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6-B. Issue of
show cause notice before confiscation of essential commodity.[(1)] No
order confiscating [any [essential commodity, package, covering
or receptacle, animal, vehicle, vessel or other conveyance] shall be made
under section 6-A unless the owner of such [essential commodity, package,
covering, receptacle, animal, vehicle, vessel or other conveyance] or the
person from whom [it is seized]
(a) is given a
notice in writing informing him of the grounds on which it is proposed to
confiscate the [[essential commodity, package, covering or receptacle,
animal, vehicle, vessel or other conveyance];
(b) is given an
opportunity of making a representation in writing within such reasonable time
as may be specified in the notice against the grounds of confiscation; and
(c) is given a
reasonable opportunity of being heard in the matter.
[(2) Without prejudice
to the provisions of sub-section (1), no order confiscating any animal,
vehicle, vessel or other conveyance shall be made under section 6-A if the
owner of the animal, vehicle, vessel or other conveyance proves to the
satisfaction of the Collector that it was used in carrying the essential
commodity without the knowledge or connivance of the owner himself, his agent,
if any, and the person in charge of the animal, vehicle, vessel or other
conveyance and that each of them had taken all reasonable and necessary
precautions against such use.]
[ (3) No order confiscating
any essential commodity package, covering, receptacle, animal, vehicle, vessel
or other conveyance shall be invalid merely by reason of any defect or
irregularity in the notice, given under clause (a) of sub-section (1), if, in
giving such notice, the provisions of that clause have been substantially
complied with.]
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STATE
AMENDMENTS 6
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[Uttar Pradesh].In its application to State of
Uttar Pradesh, after Section 6-B, insert the following section, namely:
6-BB. Review.(1) Where the Collector is satisfied that
an order of confiscation or an order refusing confiscation made under section
6-A suffers from a mistake apparent on the face of the record (including any
mistake of law), he may, within one month of such order, issue notice to the
owner of the essential commodity, package, covering, receptacle, animal,
vehicle, vessel or other conveyance, or, as the case may be, the person from
whom it was seized, to show cause why that order shall not be reviewed, and
after giving him a reasonable opportunity of being heard, pass such order on
review as he thinks fit.
(2) The provision of sections 6-C and 6-D shall apply
in relation to an order passed on such review as they apply in relation to an
order passed originally under section 6-A.U.P. Act 18 of 1975, Section 6.
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6-C.
Appeal .(1) Any person aggrieved by an order of
confiscation under section 6-A may, within one month from the date of the
communication to him of such order, appeal to [any judicial
authority appointed by the State Government concerned and the judicial
authority" shall, after giving an opportunity to the
appellant to be heard, pass such order as it may think fit, confirming,
modifying or annulling the order appealed against.
(2) Where an order under
section 6-A is modified or annulled by [such
judicial authority], or where in a prosecution instituted for the
contravention of the order in respect of which an order of confiscation has
been made under section 6-A, the person concerned is acquitted, and in either
case it is not possible for any reason to[return the essential
commodity seized], [such persons shall,
except as provided by sub-section (3) of section 6-A, be paid] the price
therefor [as if the essential commodity,] had been
sold to the Government with reasonable interest calculated from the day of the
seizure of [the essential commodity]
(i) in the case of foodgrains,
edible oilseeds or edible oils, in accordance with the provisions of
sub-section (3-B) of section 3;
(ii) in the case of sugar, in
accordance with the provisions of sub-section (3-C) of section 3; and
(iii) in the case of any other
essential commodity, in accordance with the provisions of sub-section (3) of
section 3.]
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STATE
AMENDMENTS 6
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[Bihar] .In its application to the State of Bihar, for Section
6-C, substitute the following section, namely:
6-C. Appeal.(1) Any person aggrieved by an order
of confiscation under section 6-A may, within one month from the date of the
communication to him of such order, appeal to any judicial authority
appointed by the State Government concerned and the judicial authority shall,
after giving an opportunity to the appellant to be heard, pass such order as
it may think fit, confirming, modifying or annulling the order appealed
against.
(2) Where an order under section 6-A modified or annulled
by such judicial authority, or where in a prosecution instituted for the
contravention of the order in respect of which an order of confiscation has
been made under section 6-A, the person concerned is acquitted, and in other
case it is not possible for any reason to return the essential commodity
seized, such person shall, save as provided by sub-section (3) of section
6-A, be paid the price therefor as if the essential commodity had been sold
to the Government with reasonable interest calculated from the day of the
seizure of the essential commodity and such price shall be determined
(i) in the case of foodgrains,
edible oilseeds or edible oils, in accordance with the provisions of
sub-section (3-B) of section 3;
(ii) in the case of sugar, in accordance
with the provisions of sub-section (3-C) of section 3; and
(iii) in the case of any other
essential commodity, in accordance with the provision of sub-section (3) of
section 3.Bihar Act 9 of 1978, Section 5 (w.e.f. 6-9-1978).
[Maharashtra].In its application to the State of Maharashtra, in
Section 6-C, sub-S. (2), for the words such person shall be paid, substitute
such person shall, except as provided by sub-section (3) of section 6-A, be
paid.Maharashtra Act 1 of 1976, Section 5 (w.e.f. 12-12-1975).
[Uttar Pradesh].Section 6-C, as amended or substituted by
the U.P. Amendment Act 18 of 1975Section 6-C, as amended or substituted by
the Central Amendment shall be and be deemed, with effect from the date of
commencement of the Central Amendment, to have been substituted.U.P. Act 16
of 1978, Section 4. See also Section 8 of U.P. Act 18 of 1975.
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6-D. Award of
confiscation not to interfere with other punishments.The award of
any confiscation under this Act by the Collector shall not prevent the infliction
of any punishment to which the person affected thereby is liable under this
Act.]
[6-E. Bar of
jurisdiction in certain cases.Whenever any essential commodity is seized in pursuance
of an order made under section 3 in relation thereto, or any package, covering
or receptacle in which such essential commodity is found, or any animal,
vehicle, vessel or other conveyance used in carrying such essential commodity
is seized pending confiscation under section 6-A, the Collector, or, as the
case may be, [the judicial authority appointed under section 6-C] shall
have, and, notwithstanding anything to the contrary contained in any other law
for the time being in force, [any other Court,
Tribunal or authority] shall not have, jurisdiction to make orders
with regard to the possession, delivery, disposal, release or distribution of
such essential commodity, package, covering, receptacle animal, vehicle, vessel
or other conveyance.]
(a) he shall be
punishable,
(i) in the case
of an order made with reference to clause (h) or clause (i) of sub-section (2)
of that section, with imprisonment for a term which may extend to one year and
shall also be liable to fine, and
(ii) in the
case of any other order, with imprisonment for a term which shall not be less
than three months but which may extend to seven years and shall also be liable
to fine:]
[Provided that the Court
may, for any adequate and special reasons to be mentioned in the judgment,
impose a sentence of imprisonment for a term not less than three months;]
(b) any
property in respect of which the order has been contravened shall be forfeited
to the Government;
(c) any
package, covering or receptacle in which the property is found and any animal,
vehicle, vessel or other conveyance used in carrying the commodity shall, if
the Court so orders, be forfeited to the Government.
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Form of Charge 6
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Form of Charge under section 7(1)(a)(ii) read with
section 3(1)
I ,..............(name and office of the
Magistrate, etc.), hereby charge you..............(name of the
accused) as follows:
That you, on or about the...............day
of..............., at..............., being a dealer/or trade/or
shopkeeper/or distributor/or seller/or purchaser/or manufacturer of an
essential commodity (to wit)...............hoarded/or possessed in an
unusually large quantities (to wit)...............the said essential
commodity and contravened the provisions of section 3 of the Essential
Commodities Act and the order...............dated...............passed by the
Central Government regulating/or prohibiting the production/or supply and
distribution of the said essential commodity, and thereby committed an
offence punishable under section 7(1)(a)(ii) read with section 3(1) of the
Essential Commodities Act, 1955, and within my cognizance.
And I hereby direct that you be tried by this Court on
the said charge.
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Form of Charge 6
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Form of Charge under section 7(1)(a)(ii) read with
section 3(2)(a)
I ,..............(name and office of the
Magistrate, etc.), hereby charge you..............(name of the
accused) as follows:
That you, on or about the...............day
of..............., at..............., being a manufacturer or producer of an
essential commodity (to wit)...............manufactured/or produced for
sale/or stored/or sold/or distributed/or held in stock and essential
commodity to wit...............(give name and quantity) without a licence/or
permit/or otherwise as required under the Central Governments
order...............(give reference, etc.) dated...............or contravened
the terms and conditions of the aforesaid licence/or permit and thereby
committed an offence punishable under section 7(1)(a)(ii) read with section
3(2)(a) of the Essential Commodities Act, 1955, and within my cognizance.
And I hereby direct that you be tried by this Court on
the said charge.
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Form of Charge 6
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Form of Charge under section 7(1)(a)(ii) read with
section 3(2)(b)
I ,..............(name and office of the
Magistrate, etc.), hereby charge you..............(name of the
accused) as follows:
That you, on or about the...............day
of..............., at..............., being a cultivator/or producer/or
farmer/or Bhumidhar/or tenure-holder of land (to wit)...............failed to
bring under cultivation of food crops (specify food crops in case such
specification is contained in the order) waste/or arable land consisting of
and measuring...............(give plot number, measurements and its location
and if such land was appurtenant to a building its specification, etc.),
dated...............as required by the Central Governments
order...............(give reference, etc.)...............(give date) and
thereby committed an offence punishable under section 7(1)(a)(ii) read with
section 3(2)(b) of the Essential Commodities Act, 1955, and within my
cognizance.
And I hereby direct that you be tried by this Court on
the said charge.
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Form of Charge 6
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Form of Charge under section 7(1)(a)(ii) read with
section 3(2)(c)
I ,..............(name and office of the
Magistrate, etc.), hereby charge you..............(name of the
accused) as follows:
That you, on or about the...............day
of..............., at..............., being a dealer/or trader/or
shopkeeper/or purchaser/or producer/or manufacturer/or otherwise were buying
from XY/or selling to XY an essential commodity (name commodity) at a price
of...............which was not the controlled price at which such commodity
may be bought/or sold as provided for by the Central Governments
order...............(give reference, etc.), dated...............and thereby
committed an offence punishable under section 7(1)(a)(ii) read with section
3(2)(c) of the Essential Commodities Act, 1955, and within my cognizance.
And I hereby direct that you be tried by this Court on
the said charge.
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Form of Charge 6
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Form of Charge under section 7(1)(a)(ii) read with
section 3(2)(d)
I ,..............(name and office of the
Magistrate, etc.), hereby charge you..............(name of the
accused) as follows:
That you, on or about the...............day
of..............., at..............., stored/or transported (to
wit)............... or distributed/or disposed/or acquired/or used/or
consumed an essential commodity (to wit)...............without/or in
violation of the terms of the licence/or permit/or otherwise, (say what terms
or conditions actually violated) duly issued in that behalf or issued by
authority competent in that behalf as specified in the order, and thereby
committed an offence punishable under section 7(1)(a)(ii) read with section
3(2)(d) of the Essential Commodities Act, 1955, and within my cognizance.
And I hereby direct that you be tried by this Court on
the said charge.
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Form of Charge 6
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Form of Charge under section 7(1)(a)(ii) read with
section 3(2)(e)
I ,..............(name and office of the
Magistrate, etc.), hereby charge you..............(name of the
accused) as follows:
That you, on or about the...............day
of..............., at..............., being a dealer/or producer/or
wholesaler/or distributor/or manufacture/or otherwise withheld from sale/or
prohibited from sale an essential commodity (to wit)...............which was
ordinarily kept for sale in contravention of the Central Governments
order...............(give reference, etc.), dated............... and thereby
committed an offence punishable under section 7(1)(a)(ii) read with section
3(2)(e) of the Essential Commodities Act, 1955, and within my cognizance.
And I hereby direct that you be tried by this Court on
the said charge.
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Form of Charge 6
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Form of Charge under section 7(1)(a)(ii) read with
section 3(2)(f)(a)
I ,..............(name and office of the
Magistrate, etc.), hereby charge you..............(name of the
accused) as follows:
That you, on or about the...............day
of..............., at..............., being a dealer/or wholesaler/or
distributor/or manufacturer/or producer or otherwise as holder of stock/or
engaged in the production/or in the business of buying or selling, contravened
the terms and conditions of the Central Governments order (give reference,
etc.), dated...............promulgated under section 3 of the Essential
Commodities Act requiring you to sell the whole/or a specified part of the
quantity (to wit)...............of an essential commodity (to
wit)...............to the Central Government/or the State Government or to an
officer/or agent of such Government/or to corporations (to
wit).............../or to other person (to wit)...............or class of
persons and in such circumstances as were specified in the order and thereby
committed an offence punishable under section 7(1)(a)(ii) read with section
3(2)(f)(a) of the Essential Commodities Act, 1955, and within my cognizance.
And I hereby direct that you be tried by this Court on
the said charge.
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Form of Charge 6
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Form of Charge under section 7(1)(a)(ii) read with
section 3(2)(f)(b)
Same as under section 7(1)(a)(ii) read with section
3(2)(f)(a) except that add the words when produced/or received by him on a
future date after the words specified in the order................
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Form of Charge 6
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Form of Charge under section 7(1)(a)(ii) read with
section 3(2)(g)
I ,..............(name and office of the
Magistrate, etc.), hereby charge you..............(name of the accused) as
follows:
That you, on or about the...............day
of..............., at..............., indulged or involved yourself/or
transacted in a class of commercial/or financial transactions relating to
foodstuffs or cotton textiles (to wit)...............which were prohibited by
the regulation contained in the Central Governments order...............(give
reference, etc.), dated...............promulgated under section 3 of the
Essential Commodities Act and such transactions in the opinion of the authority
making the said order if unregulated were detrimental to public interest, and
thereby committed an offence punishable under section 7(1)(a)(ii) read with
section 3(2)(g) of the Essential Commodities Act, 1955, and within my
cognizance.
And I hereby direct that you be tried by this Court on
the said charge.
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Form of Charge 6
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Form of Charge under section 7(1)(a)(ii) read with
section 3(2)(h)
I ,..............(name and office of the
Magistrate, etc.), hereby charge you..............(name of the accused) as
follows:
That you, on or about the...............day
of..............., at..............., failed to furnish information/or
statistics to...............(name and office of the concerned of the
authority competent as specified in the order contravened), and thereby
contravened the order..............(give reference, etc.),
dated............... passed by the Central Government for collecting
information/or statistics, with a view to regulating/or prohibiting/or
controlling/or regulating by licence/or permit/or controlling the price/or
requiring the stockholders of the supply, etc., of an essential commodity (to
wit)...............and thereby committed an offence punishable under section
7(1)(a)(ii) read with section 3(2)(h) of the Essential Commodities Act, 1955,
and within my cognizance.
And I hereby direct that you be tried by this Court on
the said charge.
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Form of Charge 6
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Form of Charge under section 7(1)(a)(ii) read with
section 3(2)(i)
I ,..............(name and office of the
Magistrate, etc.), hereby charge you..............(name of the
accused) as follows:
That you, on or about the...............day
of..............., at..............., being a person engaged in production/or
supply/or supply/or distribution of/or trade and commerce in an essential
commodity (to wit)...............contravened an order promulgated under
section 3 of the Essential Commodities Act by the Central Government/or the
State Government (to wit)...............in so far as you filed to maintain
and produce for inspection books/or accounts/or other records relating to
your business and to furnish such information to (to wit)...............as
specified in that order and thereby committed an offence punishable under
section 7(1)(a)(ii) read with section 3(2)(i) of the Essential Commodities
Act, 1955, and within my cognizance.
And I hereby direct that you be tried by this Court on
the said charge.
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(2) If any person to whom
a direction is given under clause (b) of sub-section (4) of section 3 fails to
comply with the direction, he shall be punishable with imprisonment for a term
which shall not be less than three months but which may extend to seven years
and shall also be liable to fine:
[Provided that the Court
may, for any adequate and special reasons to be mentioned in the judgment,
impose a sentence of imprisonment for a term not less than three months.]
(2-A) If any person
convicted of an offence under sub-clause (ii) of clause (a) of sub-section (1)
or under sub-section (2) is again convicted of an offence under the same
provision, he shall be punishable with imprisonment for the second and for
every subsequent offence for a term which shall not be less than six months but
which may extend to seven years and shall also be liable to fine:
[Provided that the Court
may, for any adequate and special reasons to be mentioned in the judgment,
impose a sentence of impri-sonment for a term of less than six months.]
[(2-B) For the purposes
of sub-sections (1), (2) and (2-A), the fact that an offence under sub-clause
(ii) of clause (a) of sub-section (1) or under sub-section (2) has caused no
substantial harm to the general public or to any individual shall be adequate
and special reason for awarding a sentence of imprisonment for a term of less
than three months or six months as the case may be.]
[(3) Where a person
having been convicted of an offence under sub-section (1) is again convicted of
an offence under that sub-section for contravention of an order in respect of
an essential commodity, the Court by which such person is convicted shall, in
addition to any penalty which may be imposed on him under that sub-section, by
order, direct that that person shall not carry on any business in that
essential commodity for such period, not being less than six months, as may be
specified by the Court in the order.]
[7-A. Power
of Central Government to recover certain amounts as arrears of land
revenue .(1)
Where any person, liable to
(a) pay any amount in pursuance of
any order made under section 3, or
(b) deposit any amount to the
credit of any Account or Fund constituted by or in pursuance of any order made
under that section, makes any default in paying or depositing the whole or any
part of such amount, the amount in respect of which such default has been made
shall [whether such order was made before or after the commencement of the
Essential Commodities (Amendment) Act, 1984 (34 of 1984), and whether the
liability of such person to pay or deposit such amount arose before or after
such commencement be recoverable by Government together with simple interest
due thereon computed at the rate of [fifteen per cent.] per annum
from the date of such default to the date of recovery of such amount, as an
arrear of land revenue [or as a public
demand].
(2) The amount recovered
under sub-section (1) shall be dealt with in accordance with the order under
which the liability to pay or deposit such amount arose.
(3) Notwithstanding
anything contained in any other law for the time being in force or any contract
to the contrary, no Court, tribunal or other authority shall grant any
injunction or make any order prohibiting or restraining any Government from
recovering any amount as an arrear of land revenue [or as a
public demand] in pursuance of the provisions of sub-section
(1).
(4) If any order, in pursuance
of which any amount has been recovered by Government as an arrear of land
revenue [or as a public demand] under
sub-section (1) is declared by a competent Court, after giving to the
Government a reasonable opportunity of being heard, to be invalid, the
Government shall refund the amount so recovered by it to the person from whom
it was recovered, together with simple interest due thereon, computed at the
rate of [fifteen per cent.] per
annum, from the date of recovery of such amount to the date on which such
refund is made.
Explanation. For the
purposes of this section, Government means the Government by which the
concerned order under section 3 was made or where such order was made by an
officer or authority subordinate to any Government, that Government.]
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STATE
AMENDMENTS 6
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[Punjab, Haryana and Chandigarh].Insert the following section after Section
7, namely:
7-A. Forfeiture of certain property used in the
commission of the offence.Wherever any offence relating to foodstuffs which
is punishable under section 7 has been committed, the Court shall direct that
all the packages, coverings or receptacles in which any property liable to be
forfeited under the said section is found and all the animals, vehicles,
vessels or other conveyances used in carrying the said property shall be
forfeited to the Government.Punjab Act 34 of 1959 and Central Act 31 of 1966,
Section 88 (w.e.f. 1-11-1966).
[Rajasthan].In its application to the State of Rajasthan, insert
the following section after Section 7, namely:
7-A. Forfeiture of certain property used in the
commission of the offence.Whenever any offence relating to foodstuffs which
is punishable under section 7 has been committed, the Court shall direct that
all the packages, coverings or receptacles in which any property liable to be
forfeited under the said section is found and all the animals, vehicles,
vessels or other conveyances used in carrying the said property shall be
forfeited to the Government:
Provided that if the Court is of opinion that it is not
necessary to direct forfeiture in respect of all such packages, coverings or
receptacles or such animals, vehicles, vessels or other conveyances or any of
them, it may, for reasons to be recorded, refrain from doing so.Rajasthan Act
32 of 1960 (w.e.f. 17-9-1960).
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8. Attempts and abetment.Any person who
attempts to contravene, or abets a contravention of any order made under
section 3 shall be deemed to have contravened that order:
[- - -]
(i) when required by any order
made under section 3 to make any statement or furnish any information, makes
any statement or furnishes any information which is false in any material
particular and which he knows or has reasonable cause to believe to be false,
or does not believe to be true, or
(ii) makes any such statement as
aforesaid in any book, account, record, declaration, return or other document
which he is required by any such order to maintain or furnish, he shall be
punishable with imprisonment for a term which may extend to [five years,] or with fine, or with
both.
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Form of Charge 6
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Form of Charge under section 9(i) or (ii)
I ,..............(name and office of the
Magistrate, etc.), hereby charge you..............(name of the
accused) as follows:
That you, on or about the...............day
of..............., at..............., attempted to/or abetted...............
AB...............to contravene an order promulgated under section 3 of the
Essential Commodities Act by the Central Government/or the State Government
of (to wit)...............and thereby committed an offence under section 8 of
the Essential Commodities Act 1955, and within my cognizance.
That you, on or about the...............day
of..............., at...............being a person required by an order (to
wit)...............made under section 3 of the Essential Commodities Act to
make an statement/or furnish any information (to wit)...............made a
statement or furnished an information which was false in a material
particular and which you knew or had reasonable cause to believe to be false,
or did not believe it to be true or made a statement in a book, or account
record or declaration or return or other document thereby committed an
offence punishable under section 9(i) or (ii) of the Essential Commodities
Act, 1955, and within my cognizance.
And I hereby direct that you be tried by this Court on
the said charge.
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10. Offences by
companies.(1) If the person contravening an order made under
section 3 is a company, every person who, at the time the contravention was
committed, was in charge of, and was responsible to, the company for the
conduct of the business of the company as well as the company, shall be deemed
to be guilty of the contravention and shall be liable to be proceeded against
and punished accordingly:
Provided that nothing
contained in this sub-section shall render any such person liable to any
punishment if he proves that the contravention took place without his knowledge
or that he exercised all due diligence to prevent such contravention.
(2) Notwithstanding
anything contained in sub-section (1), where an offence under this Act has been
committed by a company and it is proved that the offence has been committed
with the consent or connivance of, or is attributable to any neglect on the
part of, any director, manager, secretary or other officer of the company, such
director, manager, secretary or other officer shall also be deemed to be guilty
of that offence and shall be liable to be proceeded against and punished
accordingly.
Explanation. For the
purposes of this section,
(a) company means any body
corporate, and includes a firm or other association of individuals; and
(b) director in relation to a firm
means a partner in the firm.
[10-A.
Offences to be cognizable [- - -] [- - -].Notwithstanding
anything contained in the [Code of Criminal
Procedure, 1973 (2 of 1974)] every offence
punishable under this Act shall be cognizable [- - -] [- - -].
[* * *]
[10-B. Power
of Court to publish name, place of business, etc., of companies convicted under
the Act.(1)
Where any company is convicted under this Act, it shall be competent for the
Court convicting the company to cause the name and place of business of the
company, nature of the contravention, the fact that the company has been so
convicted and such other particulars as the Court may consider to be
appropriate in the circumstances of the case, to be published at the expense of
the company in such newspapers or in such other manner as the Court may direct.
(2) No publication under sub-section (1) shall be made
until the period for preferring an appeal against the orders of the Court has
expired without any appeal having been preferred, or such an appeal, having
been preferred, has been disposed of.
(3) The expenses of any publication under sub-section (1)
shall be recoverable from the company as if it were a fine imposed by the
Court.
Explanation. For the purposes of this section, company has the
meaning assigned to it in clause (a) of the Explanation to section
10.
10-C.
Presumption of culpable mental state.(1) In any prosecution
for any offence under this Act which requires a culpable mental state on the
part of the accused, the Court shall presume the existence of such mental state
but it shall be a defence for the accused to prove the fact that he had no such
mental state with respect to the act charged as an offence in that prosecution.
Explanation. In this
section, culpable mental state includes intention, motive, knowledge of a act
and the belief in, or reason to believe, a fact.
(2) For the purposes of
this section, a fact is said to be proved only when the Court believes it to
exist beyond reasonable doubt and not merely when its existence is established
by a preponderance of probability.]
11. Cognizance
of offences.No Court shall take cognizance of any offence
punishable under this Act except on a report in writing of the facts
constituting such offence made by a person who is a public servant as defined
in section 21 of the Indian Penal Code (45 of 1860) [or any
person aggrieved or any recognised consumer association whether such person is
a member of that association or not.]
[ Explanation.For
the purposes of this section and section 12-AA, recognised consumer association
means a voluntary consumer association registered under the Companies Act, 1956
(1 of 1956) or any other law for the time being in force.]
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STATE
AMENDMENTS 6
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State Amendment
[Uttar Pradesh].In its application to the State
of Uttar Pradesh, in Section 11, for the words by person who is a public
servant as defined in section 21 of the Indian Penal Code, substitute by
order of, or under the authority from the District Magistrate or such other
officer as may be empowered by the State Government by general or special
order in this behalf.U.P. Act 9 of 1974, Section 7 (w.e.f. 24-4-1974).
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[12. Special
provision regarding fine . Notwithstanding anything contained in section 29 of the
Code of Criminal Procedure, 1973 (2 of 1974), it shall be lawful for any
Metropolitan Magistrate, or any Judicial Magistrate of the first class
specially empowered by the State Government in this behalf, to pass a sentence
of fine exceeding five thousand rupees on any person convicted of contravening
any order made under section 3.]
[12-A. Power
to try summarily.(1) If
the Central Government is of opinion that a situation has arisen where, in the
interests of production supply or distribution of[any essential commodity not
being an essential commodity referred to in clause (a) of sub-section (2)] or trade
or commerce therein and other relevant considerations, it is necessary that the
contravention of any order made under section 3 in relation to such essential
commodity should be tried summarily, the Central Government may, by
notification in the Official Gazette, specify such order to be a special order
for purposes of summary trial under this section, and every such notification
shall be laid, as soon as may be after it is issued, before both Houses of
Parliament:
[Provided that
(a) every such
notification issued after the commencement of the Essential Commodities
(Amendment) Act, 1971, shall, unless sooner rescinded, cease to operate at the
expiration of two years after the publication of such notification in the
Official Gazette;
(b) every such
notification in force immediately before such commencement shall, unless sooner
rescinded, cease to operate at the expiration of two years after such
commencement:
Provided further that
nothing in the foregoing proviso shall affect any case relating to the
contravention of a special order specified in any such notification if
proceedings by way of summary trial have commenced before that notification is
rescinded or ceases to operate and the provisions of this section shall
continue to apply to that case as if that notification had not been rescinded
or had not ceased to operate.]
[(2) Notwithstanding
anything contained in the Code of Criminal Procedure, 1973 (2 of 1974) all
offences relating to
(a) the
contravention of an order made under section 3 with respect to
[- - -]
(ii)
foodstuffs, including edible oilseeds and oils; or
(iii) drugs;
and
(b) where any
notification issued under sub-section (1) in relation to a special order is in
force, the contravention of such special order, shall be tried in a summary way
by a Judicial Magistrate of the first class specially empowered in this behalf
by the State Government or by a Metropolitan Magistrate and the provisions of
sections 262 to 265 (both inclusive) of the said Code shall, as far as may be,
apply to such trial:
Provided that, in the
case of any conviction in a summary trial under this section, it shall be
lawful for the Magistrate to pass a sentence of imprisonment for a term not
exceeding one year:
Provided further that
when at the commencement of, or in the course of, a summary trial under this
section, it appears to the Magistrate that the nature of the case is such that
a sentence of imprisonment for a term exceeding one year may have to be passed
or that it is, for any other reason, undesirable to try the case summarily, the
Magistrate shall, after hearing the parties, record an order to that effect and
thereafter recall any witnesses who may have been examined and proceed to hear
or rehear the case in the manner provided by the said Code.]
(3) Notwithstanding
anything to the contrary contained in [the Code of
Criminal Procedure 1973 (2 of 1974),] there shall be no
appeal by a convicted person in any case tried summarily under this section in
which the Magistrate passes a sentence of imprisonment not exceeding one
month, [and of fine not exceeding two thousand rupees] whether
or not any order of forfeiture of property or an order under [section 452] of the
said Code is made in addition to such sentences, but an appeal shall lie where
any sentence [- - -] in excess of the
aforesaid limits is passed by the Magistrate.
[(4) All cases relating
to the contravention of an order referred to in clause (a) of sub-section (2),
not being a special order, and pending before a Magistrate immediately before
the commencement of the Essential Commodities (Amendment) Act, 1974, and, where
any notification is issued under sub-section (1) in relation to a special
order, all cases relating to the contravention of such special order and
pending before a Magistrate immediately before the date of the issue of such
notification, shall, if no witnesses have been examined before such
commencement or the said date, as the case may be, be tried in a summary way
under this section, and if any such case is pending before a Magistrate who is
not competent to try the same in a summary way under this section, it shall be
forwarded to a Magistrate so competent.]
[- - -]
[12-B. Grant
of injunction, etc., by Civil Courts.No Civil Court shall grant injunction or make any order
for any other relief, against the Central Government or any State Government or
a public officer in respect of any act done or purporting to be done by such
Government, or such officer in his official capacity, under this Act or any
order made thereunder, until after notice of the application for such
injunction or other relief has been given to such Government or officer.]
13. Presumption
as to orders.Where an order purports to have been made and
signed by an authority in exercise of any power conferred by or under this Act,
a Court shall presume that such order was so made by that authority within the
meaning of the Indian Evidence Act, 1872 (1 of 1872).
14. Burden of
proof in certain cases.Where a person is
prosecuted for contravening any order made under section 3 which prohibits him
from doing any act or being in possession of a thing without lawful authority
or without a permit, licence or other document, the burden of proving that he
has such authority, permit, licence or other document shall be on him.
15. Protection
of action taken under Act.(1) No suit, prosecution
or other legal proceeding shall lie against any person for anything which is in
good faith done or intended to be done in pursuance of any order made under
section 3.
(2) No suit or other legal
proceeding shall lie against the Government for any damage caused or likely to
be caused by anything which is in good faith done or intended to be done in
pursuance of any order made under section 3.
[15-A.
Prosecution of public servants.Where any person who is a public servant is accused of
any offence alleged to have been committed by him while acting or purporting to
act in the discharge of his duty in pursuance of an order made under section 3,
no Court shall take cognizance of such offence except with the previous
sanction
(a) of the Central Government, in
the case of a person who is employed or, as the case may be, was at the time of
commission of the alleged offence employed, in connection with the affairs of
the Union;
(b) of the State Government, in the
case of a person who is employed or, as the case may be, was at the time of
commission of the alleged offence employed, in connection with the affairs of
the State.]
(a) the Essential Commodities
Ordinance, 1955 (1 of 1955);
(b) any other law in force in any
State immediately before the commencement of this Act insofar as such law
controls or authorizes the control of the production, supply and distribution
of, and trade and commerce in, any essential commodity.
(2) Notwithstanding such
repeal, any order made or deemed to be made by any authority whatsoever, under
any law repealed hereby and in force immediately before the commencement of
this Act shall, insofar as such order may be made under this Act, be deemed to
be made under this Act and continue in force, and accordingly any appointment
made, licence or permit granted or direction issued under any such order and in
force immediately before such commencement shall continue in force until and
unless it is superseded by any appointment made, licence or permit granted or
direction issued under this Act.
(3) The provision of
sub-section (2) shall be without prejudice to the provision contained in
section 6 of the General Clauses Act, 1897 (10 of 1897), which shall also apply
to the repeal of the Ordinance or other law referred to in sub-section (1) as
if such Ordinance or other law had been an enactment.
(See section
2-A)
ESSENTIAL COMMODITIES
(1) drugs.
Explanation. For the purposes of this Schedule, drugs has
the meaning assigned to it in clause (b) of section 3 of the Drugs and
Cosmetics Act, 1940 (23 of 1940);
(2) fertilizer, whether inorganic, organic or mixed;
(3) foodstuffs, including edible oilseeds and oils;
(4) hank yarn made wholly from cotton;
(5) petroleum and petroleum products;
(6) raw jute and jute textiles;
(7)(i) seeds of food-crops and seeds of fruits and
vegetables;
(ii) seeds of cattle fodder; and
(iii) jute seeds.]
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