Madras High Court
M/S.Colorplus Fashions Ltd vs The Controller Of Legal Metrology on 9 July, 2012
Author: C.T.Selvam
Bench: C.T.Selvam
IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED 09.07.2012 CORAM THE HONOURABLE MR.JUSTICE C.T.SELVAM W.P.No.11672 of 2005 and W.P.M.P.No.12734 of 2005 M/s.Colorplus Fashions Ltd. formerly Colorplus Fashions Pvt. Ltd., C-10, Ambattur Industrial Estate Chennai 600 058, represented by its President Mr.Rajendra Mudaliar .. Petitioner Vs. The Controller of Legal Metrology Office of the Controller of Legal Metrology 117-118, 'C' Block, Vikas Bhawan, I.T.O., New Delhi. .. Respondent Writ Petition filed under Article 226 of the Constitution of India praying to issue a Writ of Certiorarified Mandamus calling for the records relating to the impugned order dated 01.03.2005 Ref.No.SWMEA/SA/PCR/GENL/ Distt. South/ILM-04/915-916/2785 and the consequential order dated 01.04.2005 Ref. No. SWME/SA/PCR/GENL/Distt.South/ILM-04/915-916/3451 passed by the respondent authority and quash the same and consequently direct the respondent authority, to permit the petitioner company to continue its sale of packed wallets by displaying the cost of materials in the label permanently affixed to the packing as permitted under Section 39(3) of the Standards of Weight and Measures Act, 1976. For Petitioner : Mr.S.Thanka Sivan For Respondent : Mr.P.Rajalakshmi O R D E R
The petitioner seeks to quash the impugned order dated 01.03.2005 and the consequential order dated 01.04.2005 passed by the respondent authority and consequently, direct the respondent authority, to permit the petitioner company to continue its sale of packed wallets by displaying the cost of materials in the label permanently affixed to the packing as permitted under Section 39(3) of the Standards of Weight and Measures Act, 1976.
2. The petitioner informs of being a manufacturer of premium quality readymade garments and accessories like wallets, belts, etc. under the trade name/mark "Colorplus" and of effecting sale thereof both in and outside India. The petitioner was served with a notice dated 01.03.2005 by the respondent informing that a trader of packs of wallets and other accessories manufactured by the petitioner, was found selling packages bearing 'maximum retail price (inclusive of all taxes)' rate on stickers. This was informed to be in violation of the Standards of Weights and Measures (Packaged Commodities) Rules, 1977 (hereinafter referred to as "Rules"). The petitioner was informed that it was guilty of offence punishable under Section 63 of the Standards of Weights and Measures Act, 1976 (hereinafter referred to as "Act") and that as the same was compoundable under Section 65 of the said Act, the petitioner may call on the respondent at the place, date and time mentioned therein. The petitioner under communication dated 14.03.2005 inter alia informed that the maximum retail price had been clearly mentioned in the label permanently affixed to the package and that such action was in conformity with Section 39(3) of the Act. Informing that there was no violation on their part, the petitioner sought dropping of any further proceedings pursuant to notice dated 01.03.2005. Thereafter, the first respondent issued a further notice on 01.04.2005 referring to the same violation, but informing that the breach committed by the petitioner was one under Section 33 compoundable under Section 51 of the Standards of Weights and Measures (Enforcement) Act. Again, it was informed that the offence was compoundable and hence, the petitioner may call on the respondent at the place, date and time mentioned therein. Challenging the action of the respondent, the petitioner has moved the present petition.
3. Heard learned counsel for the petitioner and learned counsel for the respondent and also perused the papers.
4. Learned counsel for the petitioner submits that Section 39 of the Act, dealing with quantities and origin of commodities in packaged form to be declared as also Section 6(1) of the Rules permitted secured affixture of a label informing the particulars called for by way of declaration. The action of the petitioner in affixing labels which informed requisite particulars including the maximum retail price (inclusive of all taxes) was in order.
5. On perusal of both provisions referred to by learned counsel for the petitioner, this Court finds that indeed the same, in Section 39 of the Act and Section 6(1) of the Rules, do permit the secured affixture of a label informing the particulars called for by way of declaration. The respondent has relied on Rules 6(1-B) and 6(1-C) of the Rules.
6. Rules 6(1-A), 6(1-B) and 6(1-C) as presently in force read as follows:
"(1-A) Every package shall bear the name, address, telephone number, E-mail address, if available, of the person who can be or the office which can be, contacted, in case of consumer complaints.
(1-B) It shall not be permissible to affix individual stickers [labels] on the package for altering or making declaration required under these rules:
Provided that for reducing the Maximum Retail Price (MRP), a sticker with the revised lower MRP (inclusive of all taxes) may be affixed and the same should not cover the MRP declaration made by the manufacturer or the packer, as the case may be, on the label of the package.
(1-C) It shall be permissible to use stickers for making any declarations other than the declaration required to be made under these rules."
7. However, this Court finds that the above rules have come into force only with effect from 13.01.2007. Thus, the application of the said rules cannot be sought to be made in respect of the alleged misconduct of the petitioner which relates to the year 2005.
8. For the aforesaid reasons, this Writ Petition shall succeed and the impugned order dated 01.03.2005 and the consequential order dated 01.04.2005 shall stand quashed. No costs. Consequently, the connected miscellaneous petition is closed.
9. Before parting with the case, this Court may inform that there are certain contradictions between rules 6(1-A), 6(1-B), 6(1-C) and Section 39(1) of the Act and Rule 6(1). This Court has reproduced herein above Rules 6(1-A) to 6(1-C). This Court may reproduce Section 39(1) of the Act and Section 6(1) of the Rules as under:
"39.Quantities and origin of commodities in packaged form to be declared.- (1) No person shall -
(a) make, manufacture, pack, sell, or cause to be packed or sold; or
(b) distribute, deliver, or cause to be distributed or delivered; or
(c) offer, expose or possess for sale, any commodity in packaged form to which this Part applies unless such package bears thereon or on a label securely attached thereto a definite, plain and conspicuous declaration, made in the prescribed manner, of -
(i)the identity of the commodity in the package;
(ii)the net quantity, in terms of the standard unit of weight or measure, of the commodity in the package;
(iii)where the commodity is packaged or sold by number, the accurate number of the commodity contained in the package;
(iv)the unit sale price of the commodity in the package; and
(v)the sale price of the package."
"6. Declarations to be made on every package.- (1) Every package shall bear thereon or on a label securely affixed thereto a definite, plain and conspicuous declaration, made in accordance with the provisions of this Chapter as, to -
[(a) the name and address of the manufacturer, or where the manufacturer is not the packer, the name and address of the manufacturer and packer and for any imported package the name and address of the importer.
Explanation I. - If any name and address of a company is declared on the label without any qualifying words "manufactured by" or "packed by", it shall be presumed that such name and address shall be that of the manufacturer and the liability shall be determined accordingly;
Explanation II. - If the brand name and address of the brand owner appear on the label as a marketer, then the brand owner shall be held responsible for any violation of these rules and action as may be required shall be initiated against the deemed manufacturer and in the event of more than one name and address appearing in the label, prosecution shall be launched against the manufacturer indicated on the label in the first place and not against all of them.
Explanation III. - In respect of packages containing food articles, the provisions of this clause shall not apply and instead the requirement of the Prevention of Food Adulteration Act, 1954 (37 of 1954) and the rules made thereunder shall apply;]
(b) the common or generic names of the commodity contained in the package [and in case of packages with more than one product, the name and number or quantity of each product shall be specified on the package.] Explanation.- Generic name in relation to a commodity means the name of the genus of the commodity, for example, in the case of common salt, sodium chloride is the generic name;
(c)the net quantity, in terms of the standard unit of weight or measure, of the commodity contained in the package or where the commodity is packed or sold by number, the number of the commodity contained in the package;
(d) the month and year in which the commodity is manufactured or pre-packed [or imported]:
Provided that for packages containing food articles, the provisions of the Prevention of Food Adulteration Act, 1954 (37 of 1954) and the rules made thereunder shall apply:
Provided further that nothing in this clause shall apply in case of packages containing seeds which are labelled and certified under the provisions of the Seeds Act, 1966 (54 of 1966) and the rules made thereunder:
Provided also that a manufacturer may indicate the month and year using a rubber stamp without overwriting;
(f) the retail sale price of the package;
(g) where the sizes of the commodity contained in the package are relevant, the dimensions of the commodity contained in the package and if the dimensions of the different pieces are different, the dimensions of each such different piece;
(h) such other matters as are specified in these rules:
Provided that -
(A) no declaration as to the month and year in which the commodity is manufactured or pre-packed shall be required to be made on -
(vi) any package containing bidis or incense sticks;
(vii) any domestic liquefied petroleum gas cylinder of 14.2 kg. or 5 kg., bottled and marketed by a public sector undertaking;
(B) where any packaging material bearing thereon the month in which any commodity was expected to have been pre-packed is not exhausted during that month, such packaging material may be used for pre-packing the concerned commodity produced or manufactured during the next succeeding month and not thereafter, but the Central Government may, if it is satisfied that such packaging material could not be exhausted during the period aforesaid by reason of any circumstance beyond the control of the manufacturer or packer, as the case may be, extend the time during which such packaging material may be used, and, where any such packaging material is exhausted before the expiry of the month indicated thereon, the packaging material intended to be used during the next succeeding month may be used for pre-packing the concerned commodity:
Provided that the said provision shall not apply to the packages containing food products, where the "Best before or Use before" period is ninety days or less from the date of manufacture or packing;
(C) no declaration as to the retail sale price shall be required to be made on -
The commodities mentioned at (i) to (vi) where retail sale price has not been mentioned by the manufacturer or packer on the package, the retail dealer shall display prominently at a conspicuous place of the premises in which he carries on his retail sale, the retail sale price of the package for the information of consumer.
(vii) any package containing bidis.
(viii) any domestic liquefied petroleum gas cylinder of which the price is covered under the Administered Price Mechanism of the Government.
Explanation I. - The month and the year in which the commodity is pre-packed may be expressed either in words, or by numerals indicating the month and year, or by both.
Explanation II. - Liquid milk does no include condensed milk.
C.T.SELVAM, J gm
10. If the provisions of Rule 6(1-B) of the Rules which does not permit affixture of individual stickers/labels on the package except in so far as the proviso thereto allows, then the same directly would run contra to the provisions of Section 39 and Rule 6(1) which permits affixture of labels. That the rules cannot go beyond the provisions of the Act also is to be taken note of.
09.07.2012 Index: Yes/No Internet: Yes/No gm To The Controller of Legal Metrology Office of the Controller of Legal Metrology 117-118, 'C' Block, Vikas Bhawan, I.T.O., New Delhi.
W.P.No.11672 of 2005