Telangana High Court
M/S Arush Enterprises And Another vs The State Of Telangana And 6 Others on 24 February, 2022
Author: A. Abhishek Reddy
Bench: A. Abhishek Reddy
THE HON'BLE SRI JUSTICE A. ABHISHEK REDDY
WRIT PETITION No. 25848 of 2021
ORDER:
The present Writ Petition is filed seeking to declare the action of the respondents in seizing 300 quintals of rice along with lorry bearing No.GJ36 V 9781 of the petitioners by conducting panchanama dated 09.09.2021, in connection with Crime No.83 of 2021 dated 09.09.2021, as illegal and arbitrary.
Heard. Perused the record.
The case of the petitioners, in brief, is that petitioner No.1 is doing business in purchasing and selling the pulses, paddy and rice. He used to purchase the auctioned stock from the Civil Supplies Department and then, sell the same after cleaning, to the needy traders. During the course of business, while transporting the auctioned rice to Zaheerabad for curing purpose with distillery mode so as to sell away the same to poultry farms and fish ponds, respondent No.7 - Station House Officer, Chiragpally Police Station, Sanga Reddy District, has seized the stock in question as well as the subject vehicle on the ground that they are transporting PDS rice in the subject 2 AAR, J W.P.No.25848 of 2021 vehicle. Aggrieved by the said action, the present Writ Petition has been filed.
Learned counsel for the petitioners has contended that the rice and paddy are not essential commodities. Further, there is no material on record to substantiate the allegation made against the petitioners that they are transporting PDS rice in the subject vehicles. Therefore, the action of the respondent authorities in seizing the same is not sustainable.
Per contra, learned Government Pleader, on instructions, has stated that even though the petitioner has purchased the paddy in the auction conducted by the official respondents, the said paddy is meant for distillation purposes but not for consumption purpose. That the official respondents having found that the petitioner is trying to sell the same in the market after polishing, seized the subject stock as the same is not fit for human consumption. The learned Government Pleader has also stated that under similar circumstances, this Court in a batch of writ petitions being W.P. Nos.23826 of 2009 & batch, vide order dated 30.04.2021, placing reliance upon the judgment of the Division Bench of erstwhile High Court of Andhra Pradesh in 3 AAR, J W.P.No.25848 of 2021 Elluru Chandra Obul Reddy vs. Joint Collector, Kadapa1, has held as under:
".... the Government of Telangana, in exercise of jurisdiction under Section 3 read with Section 5 of the Act and in terms of the order of the Ministry of Consumer Affairs, Food and Public Distribution, Government of India GSR No.213 (3) dated 20.03.2015, and in suppression of Andhra Pradesh State Public Distribution System (Control) Order, 2008, issued G.O.Ms.No.29 dated 19.08.2016 promulgating Control Order, 2016 where under Clause 17 (e) makes the purchase of rice supplied through PDS either from the card holder or the F.P. shop dealer or any other source, liable for criminal action and imposition of penalty as may be fixed by the competent authority. Therefore, the judgment of the Division Bench (1 supra), is not application to the cases, where the allegation of purchase of PDS rice from the card holders, is after introduction of Clause 17(e) to Control Order, 2016, and the said judgment is applicable only to the cases, which fall prior to introduction of the said provision.
To sum up, it is to be seen that as held by the Division Bench (2 supra), 'rice' and 'paddy' are 'essential commodities' and though there is no requirement of obtaining licence for doing business in rice and paddy, and there is also no restriction of movement of 'rice' and 'paddy', purchase of PDS rice from the card holder is made an offence under Clause 17(e) of the Control Order, 2016. Control Order, 2016 is promulgated by the Government of Telangana in exercise of power conferred under Section 3 read with Section 5 of the Act. As the 1 2008 (6) ALT 538 (D.B.) 4 AAR, J W.P.No.25848 of 2021 allegation against petitioners is contravention of Clause 17(e) of the Control Order, 2016, made under Section 3 of the Act, the rice is liable for seizure and confiscation under Section 6-A of the Act, after following the due procedure, and also liable for criminal action under Section 7 of the Act, which deals with penalties."
In view of the above proposition of law laid down by this Court in the judgment referred to above, the contention of the learned counsel for the petitioners that 'paddy' and 'rice' are not essential commodities is not sustainable.
Having regard to the above, it is open to the petitioners to approach respondent No.2 - Collector (CS), Sanga Reddy District, seeking release of the seized stock as well as the seized vehicle pending enquiry under Section 6-A of the Essential Commodities Act, 1955.
Insofar as the request for release of the seized stock in favour of petitioner No.1 is concerned, respondent No.2 shall pass necessary orders thereon strictly in accordance with law, as expeditiously as possible, preferably, within a period of two (2) weeks thereof. Till such time the orders are passed, the respondent authorities shall not sell the seized stock.
Insofar as the request for release of the seized vehicle is concerned, respondent No.2 shall release the subject vehicle in 5 AAR, J W.P.No.25848 of 2021 favour of petitioner No.2 after obtaining the valuation certificates from the Motor Vehicle Inspector concerned, subject to the following conditions:
i) Petitioner No.2 shall furnish bank guarantee for an amount valued by the Motor Vehicle Inspector concerned;
ii) Petitioner No.2 shall furnish his undertaking in writing that he will not alienate or change the physical features of the subject vehicle;
iii) Petitioner No.2 shall produce the subject vehicle whenever required;
iv) Respondent No.2 shall write to the RTA authorities not to entertain any application to transfer the vehicle in question on any third party's name without clearance from the Civil Supplies Department;
v) The release of the subject vehicle shall be subject to the orders to be passed in the enquiry under Section 6-A of the E.C.Act/prosecution of crime registered, if any.6
AAR, J W.P.No.25848 of 2021 Subject to the above, this Writ Petition is disposed of. Miscellaneous petitions pending, if any, shall stand closed. There shall be no order as to costs.
________________________ A.ABHISHEK REDDY, J 24th February, 2022.
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