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2012 (7) TMI 1105 - SC - Indian LawsRelease of wheat - illegal storage of subsidized food grains - Quashing of confiscation proceedings - Essential Commodities Act, 1955 - No legal owner or claimant of confiscated goods - black marketing - In the present case, The SDO and other officers from the local police raided the premises of the said flour mill (respondent) and found off loading of wheat from Truck. It was found that the grains bags had the seal of Food Corporation of India, (FCI). The seized material made it apparent that there had been diversion of FCI grains for the purpose of black marketing. HELD THAT:- We are at pains to observe that the High Court has dealt with the issue in most casual and caviler manner without any application of mind showing complete disregard of the legislature enacting the provisions for general welfare. In the subsequent order dealing with the ownership of the wheat the High Court has only taken note of the fact that as the respondents herein were prepared to furnish adequate/sufficient security to the satisfaction of the court below for release of the wheat in question, the wheat could have been released by the CJM, there was no justification for the High Court to issue directions for release of such material merely because applicant could furnish the security. The High Court has totally ignored the fact that any order passed under Section 6-A is appealable under Section 6-C of the EC Act. Therefore, to consider such an application for release of the goods was totally unwarranted at least at that stage. Learned counsel for the parties are not in a position to reveal the status of the criminal proceedings initiated against the respondents. In such a fact-situation, as has been suggested by learned counsel for the parties we set aside the aforesaid judgments and orders dated 15.3.2011 and 29.4.2011 and remand the case back to the High Court to consider afresh after examining all factual and legal issues involved in the case. Till the disposal of the case afresh, interim order passed by this Court on 31.10.2011 shall remain operative. The appeals stand disposed of accordingly.
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