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Chattisgarh High Court

Sunil Kumar Jaiswal vs State Of Chhattisgarh 13 ... on 7 March, 2018

                                1

                                                              AFR

    HIGH COURT OF CHHATTISGARH, BILASPUR

                     CRMP No. 1213 of 2017

     Sunil Kumar Jaiswal S/o Vedprakash Jaiswal, Aged About 38
     Years R/o Old Bus Stand, Pali Police Station Pali, District
     Korba Chhattisgarh.,                          --- Petitioner

                             Versus

     State of Chhattisgarh through Police Station Ratanpur.,
     Chhattisgarh                                --- Respondent



For the applicant       : Mr. Saleem Kazi, Advocate
For the State           : Mr. Adhiraj Surana, Dy.Govt. Advocate



                      CRMP No. 1475 of 2017

     Amit Dubey S/o Ramesh Dubey Aged About 26 Years R/o
     Gond Para, Subhash Nagar, Bilaspur, District Bilaspur
     Chhattisgarh, Through The Power Of Attorney Holder Ramesh
     Kumar Dubey, Aged About 55 Years, S/o Lalmani Dubey, R/o
     Gondpara, Subhash Nagar, Bilaspur Chhattisgarh,
     Chhattisgarh                                 --- Petitioner

                             Versus

     State of Chhattisgarh through the Police Station Ratanpur,
     District Bilaspur Chhattisgarh , Chhattisgarh
                                                   --- Respondent



For the applicant       : Mr. Abhijeet Mishra, Advocate
For the State           : Mr. Adhiraj Surana, Dy.Govt. Advocate




               Hon'ble Shri Justice Goutam Bhaduri

                           CAV ORDER

                    (Reserved on 17.01.2018)

                    (Delivered on 07.03.2018)

   1. Since the question of law involved in both the petitions are

      one and the same, they are being decided by this common

      order.
                                    2

2. Cr.M.P. No. 1213 of 2017 is filed against the order dated 17 th

   July, 2017 passed in Criminal Revision No.90/2017 by the 5 th

   Additional Sessions Judge, Bilaspur.               The said order has

   affirmed     the   order   of    the    Judicial    Magistrate    dated

   08.06.2017     whereby     the      application     preferred    by   the

   petitioner Sunil Kumar Jaiswal for custody of the vehicle was

   dismissed.

3. Likewise Cr.M.P. No.1475/2017 is preferred against the order

   dated 07th October, 2017 passed by the 4 th Additional

   Sessions Judge, Bilaspur, in Criminal Revision No.180/2017

   which was filed against the order dated 05.07.2017 passed

   by the Court of JMFC Kota wherein the application filed u/s

   457 of Cr.P.C., was rejected.

4. The facts of Cr.M.P. No. 1213 are that a Truck bearing

   Regn.No.C.G.04-JC/4238 was seized by the Police Station

   Ratanpur in Crime No.159/2017 for the offence punishable

   u/s 41(1-4) of the Code of Criminal Procedure read with

   section 379 of IPC and Sections 3 & 7 of the Essential

   Commodities Act and section 23 of the Petroleum Act, 1934

   and is kept in police station.         Subsequently an application

   was filed u/s 457 of Cr.P.C., by petitioner Sunil Kumar Jaiswal

   on the ground that he is owner of the said Truck and the

   entire livelihood    is dependent upon the said vehicle,

   therefore, the truck may be released in his favour. The said

   application for custody of the vehicle was dismissed by the

   Judicial Magistrate First Class, Kota and having preferred a

   revision against such order, the revision was also dismissed

   by holding that the Court do not have any jurisdiction to

   grant Suprudnama of the vehicle u/s 6(E) of the Essential
                                        3

       Commodities Act.       Therefore, the Cr.M.P.No.1213/2017 is

       preferred.

     5. Likewise the facts of Cr.M.P.1475/2017 are that on 28.6.2017

       certain information was received that a Truck bearing No.

       M.P.06-HC/0667 was carrying the food grains which was

       meant for the distribution to the Fair Price Shops and the

       same were being sold out to other persons                who were not

       entitled to receive the same. Thereafter, the police has

       seized the truck from the godown of Ashwini Sahu at village

       Lakram with sacks of wheat and thereafter the police has

       registered the offence u/s 3 & 7 of the Essential Commodities

       Act, 1955 (hereinafter referred to Act, 1955) and section 407

       read with section 34 of IPC against the driver of truck

       Manohar Sharma and the owner of the godown Ashwin Sahu.

       Subsequently, the applicant herein namely Amit Dubey has

       filed an application u/s 457 of Cr.P.C., before the JMFC, Kota

       for handing over the vehicle on interim custody.             The said

       application was rejected on the ground that the confiscation

       is proposed by the Collector thereby the bar is created under

       section 6-E of the Essential Commodities Act 1955 and the

       Court has no jurisdiction to entertain the application seeking

       custody   of   the   vehicle.       The   said   order   having   been

       challenged before the Revisional Court, the revisional court

       also affirmed the order of the JMFC. Hence, this petition.

6.     The order would reveal that the rejection for delivery of the

       vehicles on Suprudnama is primarily on the ground that

       Section 6E of the Essential Commodities Act creates a bar as

       it takes away the jurisdiction of the Courts to grant the

       custody of the vehicle. The rejection of custody of vehicle
                                   4

     was predominantly on the ground by reference of an order

     passed by the Bench of this Court in Cr.M.P. No. 1068 of

     2014 (Vishnu Prasad Vaishnav Vs. State of C.G.,) decided on

     17.12.2014 wherein it was held that section 6E of the

     Essential Commodities Act takes away the jurisdiction to

     grant the vehicle on Suprudnama, therefore, the respective

     prayers were rejected.

7.   Learned counsel for the petitioner would submit that in the

     instant   case,   the    confiscation   proceedings   has    not

     commenced, therefore, the bar of Section 6-E of the

     Essential Commodities Act, 1955 would not apply.            It is

     further submitted that the petitioner being the owner of the

     vehicle, the right to claim the vehicle is always with him and

     keeping the vehicle in the police station will not help the

     prosecution in any manner and the bar created by section 6-

     E of the Act, 1955 is not absolute. He further submits that

     the reply of the State would show that no documents have

     been placed on record, even a notice or any proceeding of

     the confiscation have commenced, thereby the confiscation

     cannot be automatically presumed.        Referring to case law

     laid down in (2002) 10 SCC 283 - Sunderbhai Ambalal

     Desai Vs. State of Gujarat , he submitted that under the

     facts and circumstances of the case, the custody of the

     vehicle as an interim measure can always be provided for.

8.   Per contra, learned State Counsel opposes the arguments

     and would submit that pursuant to the law laid down by the

     coordinate Bench of this Court in Cr.M.P.No. 1068/2014

     in Vishnu Prasad Vaishnav Vs. State of Chhattisgarh

     2015 (1) CGBLJ 40 the custody of the vehicle cannot be
                                   5

      handed over when the vehicle is involved in some offence

      under the Act of 1955 as section 6-E of the Act of 1955 takes

      away the complete jurisdiction to grant custody of vehicle. It

      is further submitted that the order passed by both the courts

      below are well merited which do not call for any interference.

9.    I have heard learned counsel for the parties and have also

      perused the documents filed      with the petition as also the

      case law relied by the State Counsel in          case of Vishnu

      Prasad Vaishnav Vs. State (Supra).

10.   As the entire emphasis was placed that the bar created by

      section 6-E of the Essential Commodities Act, 1955, the

      relevant sections   and   the provisions    of       the Essential

      Commodities Act 1955 were examined. The relevant sections

      of confiscation are described in the Act of 1955 from section

      6-A, 6-B & 6-C of the Act and the confiscation is covered

      under 6-E of the Act 1955. Section 6-A, the relevant Part-1 is

      reproduced herein below :

                        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
                                       6

                 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 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.



11.   Likewise, the relevant part of section 6-B is reproduced

      herein below:

                 6-B.     Issue     of     show    cause      notice     before
           confiscation      of   food-grains,     etc.   -   (1)   No    order
           confiscating      any    essential      commodity,        package,
           covering or receptacle, animal, vehicle, vessel or other
           conveyance shall be made under Section 6A 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 ground 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
                presentation in writing within such reasonable
                time as may be specified in the notice against the
                grounds of confiscation; and
                                     7

                  (c)    is given a reasonable opportunity of being
                heard in the matter


12.   Section 6-C provides for appeal. It reads as under :



         6-C. Appeal. -- (1) Any person aggrieved by an order of
         confiscation under section 6A 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.


13.   Section 6E creates a bar of jurisdiction in certain cases. It

      reads as under :

                  "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 6A, the Collector, or, as the case may be, the
              judicial authority appointed under section 6C 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."


14.   Reading of section 6-A shows that where any essential

      commodity is seized in pursuance of an order made u/s 3 in
                                        8

      relation thereto, a report of seizure shall be made to the

      Collector and irrespective of the fact that whether the

      prosecution is instituted for the contravention of the order or

      not, the collector may if he thinks fit direct the production of

      the same for inspection and subsequent thereto if he is

      satisfied that there has been a contravention of the order, he

      may order for production of the Essential Commodities "as

      also the vehicle for confiscation".              Therefore, reading of

      section 6A would show that it is "in two parts" - (1) The "first

      part"    speaks     about      the    production    of        the    essential

      commodity for inspection and (ii) the second part touches

      upon that if the Collector is satisfied that there has been a

      contravention of the order, he may direct for confiscation.

      Therefore, in a given case it may also happen that after the

      inspection    the    collector       may    or   may     not        order    for

      confiscation.

15.   Section 6-A creates certain riders which are to be complied

      before order of the confiscation by the Collector. The said

      section gives power of confiscation to the Collector on the

      ground that "if he is satisfied" that               there has been a

      contravention of the order then the confiscation can be

      ordered.     Reading      of   section     6-B   would        show    that    it

      prescribed the procedure for confiscation and mandates that

      the confiscation of the vehicle, vessel, conveyance, essential

      commodity etc., cannot be made unless the owner is given a

      notice and is heard.            Therefore, the satisfaction of the

      Collector to proceed with confiscation under section 6-A has

      to be reflected in the manner prescribed u/s 6-B of the Act.

      Unless     and    until   any    primary     notice      is    issued,       the
                                   9

      contemplated satisfaction in the mind of the authority cannot

      be presumed. This can be looked into from other angle that

      once the essential commodity is seized u/s 6-A and the

      inspection is made by the Collector, he may find in a

      particular case that the confiscation may not be required. So

      after the seizure of essential commodity or the goods or the

      vehicle if the proceeding for confiscation is not commenced

      by issuance of notice u/s 6-B, it cannot be interpreted that

      except the Collector, no one has authority to grant the

      custody of the vehicle. As has been laid down in AIR 1990

      SC 1849 - State of M.P. Vs. Rameshwar Rathod under

      the code of criminal procedure. The criminal courts of the

      country would have jurisdiction.    The ouster of jurisdiction,

      therefore, cannot be inferred ordinarily. The power to grant

      the custody of any vehicle, goods, encompasses under the

      Cr.P.C, and when the prosecution is pending unless any

      specific bar is created for operations of any provisions of

      Cr.P.C., the criminal court will have the jurisdiction to deal

      with it.

16.   If the facts of the both the cases are seen together, in Cr.M.P.

      No. 1213 of 2017 the criminal case is pending before the

      JMFC. Reading of the petition of Cr.M.P.No.1213/2017 would

      show that the petitioner has categorically averred at Para 4

      of the petition that the confiscation proceeding by the

      Collector has not yet started. In reply to this, the State has

      contended that after due investigation, the charge sheet has

      been filed before the learned Court i.e., JMFC. One reply was

      filed on 01.10.2017 which is silent on the fact that whether

      the confiscation proceeding has commenced before the
                                     10

      Collector or not. Along-with the petition copy of the charge

      sheet has been preferred before the JMFC u/s 379, 411/34

      read with section 3 & 7 of the Essential Commodities Act and

      section 23 of the Petroleum Act.

17.   Likewise in Cr.M.P.No.1475/2017, the order of the revisional

      Court   records   that   in   respect   of   the   Truck   bearing

      M.P.06/HC/0667, report was called by the collector, Bilaspur,

      Food Inspector, therefore,     it would lead to presume       that

      confiscation proceedings has started.        The pleading in the

      petition i.e., Cr.M.P.No.1475/2017, categorical submissions

      have been made that no confiscation proceedings have

      started. In reply to such petition, the State is silent and it

      has been stated that the enquiry report has been called from

      the Police by the Collector, therefore, it records that the

      confiscation proceeding is pending before the Collector.

18.   In both the cases, not a single document has been placed by

      the State to substantiate that the confiscation proceeding

      has been started by the Collector in respect of vehicles.

19.   Section 6-A of the Act of 1955 purports that after seizure, a

      report of such seizure shall be made to the collector of the

      District in which such commodity is seized. No documents

      have been placed in both the cases to show that there has

      been a compliance of first part of section 6-A.       Section 6A

      further contemplates that irrespective of the fact whether

      the prosecution has been launched or not, the Collector may

      call for production of such goods for inspection. The reply to

      the State and the documents placed are also silent on the

      fact that whether such compliance was made to that part of

      section 6-A. Subsequent thereto no document is placed on
                                      11

      record   at   least    the    memo/notice    to   show   that   the

      confiscation was contemplated and show cause for hearing

      was given as per section 6-B.

20.   Reading of section 6E would show that when the essential

      commodity is seized or any animal, vehicle etc., used in

      carrying such essential commodity so seized then "pending

      confiscation u/s 6-A", the Collector shall have jurisdiction to

      grant the custody meaning thereby the interim custody also

      and if the confiscation order has been passed, then in such a

      case the Judicial Authority appointed under section 6-C shall

      have the power to order for delivery or disposal of goods,

      animal, vehicle,      essential commodity, etc., which includes

      the custody of vehicle        till the final adjudication of appeal

      against confiscation.        The necessary interpretation can be

      made when the order for confiscation is under challenge

      before the Judicial Authority under section 6C in appeal, the

      judicial authority can also grant custody of vehicle by way of

      interim order.        Therefore, section 6E of the Essential

      Commodity Act do not create an absolute bar on the judicial

      authority for grant of custody of vehicle.

21.   Now the other question which falls for consideration is

      whether the Judicial Authority will have jurisdiction to grant

      custody of vehicle when prosecution is pending before it. As

      has been discussed earlier in the foregoing paragraphs, the

      ouster of jurisdiction of judicial authority cannot be easily

      inferred. Therefore, when the charge sheet is pending before

      the Judicial Authority by application of provisions of the Code

      of Criminal Procedure, normally it will have the jurisdiction.

      Section 6E of the Act of 1955 if is read in between the lines it
                                     12

      purports that it only takes away the jurisdiction of the Judicial

      Authority when the "confiscation proceeding has been

      commenced" by the Collector.

22.   At this juncture, in order to assess the position of Judicial

      Authority, the sections of the Act of 1955 which were

      amended from time to time would demonstrate the intention

      of Legislature.     The amendment made taking away of the

      jurisdiction of Judicial Authority was for specific period of

      time and after the time lapsed, the Judicial Authority again

      resumed its jurisdiction.      Section 6C and Section 6E were

      amended     by      the   special     provisions   of    the   Essential

      Commodities Act, 1981 wherein the right of the judicial

      authority was taken away by amendment which was as

      under:

                   "5. Amendment of Section 6C.- In section

               6C of the principal Act, -

                   (a)     in sub-section (1), for the words "any
               judicial     authority       appointed     by     the    State
               Government concerned and the judicial authority",
               the words "the State Government concerned and the
               State Government" shall be constituted.
                   (b)     in sub-section (2), for the words "such
               judicial     authority",       the     words     "the    State
               Government" shall be substituted."
                                          ...........

"6. Amendment of Section 6E.- In Section 6E of the principal Act,-

(a) for the words, figure and letter "the judicial authority appointed under Section 6C "the words, figures and letter "the State Government concerned under section 6C" shall be substituted;
(b) for the words "any other court, tribunal or authority", the words "any court, tribunal or other 13 authority" shall be substituted."

23. The said amendment by Act 34 of 1993 was in operation for a period of 15 years and after 1993 i.e., after passing of 15 years, the original sections as are existing in 6C & 6E again revived in the Act of 1955. Therefore, if any essential commodity, goods, vehicle etc., is seized, in pursuance of an order u/s 3 of the Act, the following interpretation of Sections 6-A, 6-B, 6-C & 6-E emerges out :

(i) Report of such seizure has to be made to the Collector of the District
(ii) Irrespective of the fact whether the prosecution is instituted or not, the Collector if felt expedient to do so may ask for inspection of the commodities or goods, vessel, vehicle etc., so seized
(iii) "Having satisfied" that there is contravention of the order, the Collector may direct for confiscation; AND if not satisfied about the breach of order may also release the goods, vehicles, etc.
(iv) The satisfaction to proceed for confiscation has to be reflected in terms of section 6-B of the Act of 1955 which requires notice and hearing ;
(v) Once notice of confiscation is issued it would be presumed that confiscation proceedings have started and the jurisdiction of Judicial Authority shall be barred to grant interim custody of goods, vehicles etc., even in the prosecution case pending before it as per Section 6-E of the Act;
(vii) After an order of confiscation is passed by 14 the Collector, the aggrieved party may file an appeal u/s 6-C of the Act of 1955. In such case, the Judicial Authority will get the jurisdiction to grant custody of goods, vehicle etc., during pendency of Appeal u/s 6-

C as section 6-E of the Act makes a reference of Judicial Authority appointed u/s 6-C.

24. Therefore, section 6E of the Act takes away the jurisdiction of the Judicial Authority with regard to the possession, delivery etc., only when the confiscation is pending before the Collector. In absence of pendnency of confiscation proceeding before the Collector, the Judicial Authority shall have jurisdiction to grant possession of the vehicle, vessel, goods etc.

25. In the facts and circumstances of the present case, as discussed above, as the vehicle is still lying in the custody of Police, following the law laid down in (2010) 6 SCC 768 General Insurance Council Vs. State of A.P. , wherein the earlier principles laid down in case of Sunderbhai Ambalal Desai Vs. State of Gujarat (2002) 10 SCC 283 were reiterated, the orders of rejection of application for interim custody cannot be allowed to sustain. Consequently applying the said principles, it is directed that the vehicle(s) be released in favour of the petitioner(s) by way of interim measure, if the confiscation proceedings have not been concluded till the date of production of this order.

26. Therefore, the vehicle is directed to be released to the petitioner on the following conditions :

            (i)    Before    release    of    vehicle    proper
         Panchnama be prepared;
                                    15



           (ii)    Photographs of vehicle should be taken

and bond should also be produced that the article would be produced if required at the time of trial;

(iii) Proper security i.e., personal bond of Rs.15 lakhs and like sum of surety be obtained before release of the vehicle.

27. In view of the principles as has been interpreted by this Court, this Court is in respectful disagreement with the principles of law laid down by this Court earlier. This judgment comes into conflict with ratio of judgment reported in Cr. M. P. No.1068/2014 (Vishnu Prasad Vaishnav Vs. State of Chhattisgarh) 2015 (1) CGBLJ 40 decided by this Court as the earlier judgment has laid down that the Judicial Magistrate or any Judicial Authority shall not have the jurisdiction with regard to custody of the vehicle u/s 457 of Cr.P.C., to dispose of the vehicle seized under the Essential Commodities Act.

28. In view of the foregoing discussion, this Court is in disagreement with the view taken in judgment/order passed by the coordinate Bench of this Court in Cr. M. P. No. 1068/ 2014 (Vishnu Prasad Vaishnav Vs. State of Chhattisgarh) 2015 (1) CGBLJ 40 decided on 17.12.2014. In the result, I am of the considered view that the judgment delivered by this Court in Cr.M.P. No. 1068/2014 (supra) requires to be reconsidered by a Bench of two Judges.

29. Therefore, let the matter be placed before Hon'ble the Chief Justice as provided in Rule 32 (2)(ii) of the High Court of Chhattisgarh Rules, 2007 for being referred to a larger 16 Bench of Judges to decide the following questions of law :

(A) In absence of confiscation proceedings pending, whether section 6-E of the Essential Commodities Act, 1955 creates an absolute bar to deal with Section 457 of the Code of Criminal Procedure ?
(B) Whether section 6-E takes away the jurisdiction of the Judicial Authority to grant custody of vehicle, goods etc., pending appeal u/s 6-C of the Act of 1955 ?

30. In view of the principles as set forth in the foregoing paragraphs, both the petitions are allowed. No order as to costs.

Sd/-

GOUTAM BHADURI JUDGE Rao