TMI Blog1984 (8) TMI 362X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the seized commodities to be taken towards levy by the KFCSC Ltd./FCI, shimoga and the amount thereof be deposited in the P.D. Account of the Deputy Commissioner. 4. It is contended on behalf of the petitioners that there is no seizure effected; that without the seizure the proceedings initiated against the petitioners under Section 6A of the Act are without jurisdiction; that the order directing disposal of the seized commodities under S. 6A(2) of the Act can be passed only on being satisfy by the Deputy Commissioner that there is a prima facie case for proceeding under S. 6A of the Act, that the commodities were seized are subject to speedy and natural decay or it is otherwise expedient in the public interest so to do. It is submitted that no such findings are either separately recorded are apparent from the impugned orders in question. It is also further contended that the seized commodities - if at all the same are to be disposed of pending final decision in the case - cannot be disposed of by directing that the same be taken towards levy; that in such an event the seized commodities can be disposed of only in the manner it is done by the 1st respondent under the impugned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orders fall within the proviso to S. 6A(2) of the Act ? 6. What order ? Point No. 1 : 7. The impugned orders to mention that the Tahsildar on seizure has reported the matter to the Deputy Commissioner. The Tahsildar being one of the enforcement officers has the authority to effect seizure. It is on the report of seizure, made by the Tahsildar, of the commodities in question, the Deputy Commissioner has initiated the proceedings under S. 6A of the Act. Whether in fact there is a seizure or not is a matter which can be verified by the Deputy Commissioner. In fact the seizure of essential commodity in pursuance of an order made under S. 3 of the Act in relation to such essential commodity, is the foundation for the initiation of the proceeding under S. 6A of the Act. As such, if such a contention is raised before the Deputy Commissioner, he has an undoubted jurisdiction to decide the same. Therefore, this contention is left open to be urged before the Deputy Commissioner. Point No. 2 : 8. A proceeding under S. 6A of the Act can be initiated by the Deputy Commissioner only on receipt of the report of seizure of the essential commodity for the contravention of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al commodities even before the case is finally decided. It is even possible under S. 6A(2) of the Act to dispose of the seized essential commodity without giving notice, and without affording an opportunity of being heard, to the affected person or party if the facts and circumstances of the case warrant it. Such being the consequences, it is necessary that the requirements of S. 6A(2) of the Act should be strictly adhered to. To avoid an arbitrary exercise of power, S. 6A(2) of the Act itself lays down certain conditions. According to it, it is only when the Deputy Commissioner is satisfied that the seized essential commodity is subject to speedy and natural decay or it is otherwise expedient in the public interest so to do. Unless any one of these conditions is satisfied it is not permissible to dispose of the seized essential commodity. Therefore, in every such case it is necessary to record a positive finding on any one of the aforesaid conditions before the seized essential commodity is ordered to the disposed of under S. 6A(2) of the Act. In other words, a direction to dispose of the seized essential commodity pending disposal of the proceeding initiated under S. 6A of the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assumes the character of a final order, because ultimately it is the final order under under S. 6A(1) of the Act, that determines whether the person or the party concerned with the seized essential commodity is or is not entitled to it or the value thereof. The nature and condition of the seized essential commodity may be such that it may not be in a condition to last long and in such an event it may not be in the interest of the party or the person affected to retain it. In such a situation if the rule of audi alteram partem has to be applied, it will result in delay of disposal of the seized essential commodity, consequently it may decay and ultimately it may become useless. Thus it will neither be in the interest of the affected party or person, nor it serves the public interest. Similarly, it may so happen that the seized essential commodity may be urgently required for public consumption because of the varied circumstances such as famine, flood, scarcity, etc. In such a situation if a notice and an opportunity of being heard has to be given to the affected party or person the public interest will suffer. Sub-section (2) of S. 6A of the Act itself provides sufficient safegua ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re an order for disposal of the seized essential commodity in accordance with the provisions of S. 6A(2) of the Act is passed. However, there may be cases in which having regard to the facts and circumstances involved therein nothing is lost if a notice is issued and an opportunity of being heard is afforded to the affected person or the party. In such cases, it is necessary to comply with the rule of audi alteram partem, failure to do so, vitiates the order passed under S. 6A(2) of the Act. Point No. 5 : 11. Section 6A(2) of the Act provides for three modes in which the seized essential commodity can be disposed of pending the final decision in the proceeding under S. 6A(1) of the Act. They are : (i) Sale at the controlled prince, if any, fixed for such essential commodity under the Act or any other law for the time being in force; or (ii) Where no such price is fixed sale by public auction; or (iii) Sale through fair price shops at the retail sale price fixed by the Central Government or the State Government under the Act or any other law for the time being in force. The third mode for disposal of the seized essential commodity is incorporated in the proviso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d essential commodities at the levy rate is accepted, it does not help to sustain the impugned orders. Reliance is placed on a decision of this Court reported in AIR 1979 Kant 12 (Joe Pereira v. Union of India) in which a Division Bench of this Court has considered the question as to what is the controlled price. Though there is an amendment to S. 3(3-B) of the Act subsequent to the aforesaid decision, but the said amendment in my opinion does not affect the aforesaid decision on the question as to what is the controlled price. It is held in the said decision that : Controlled price is a price which is required to be determined by taking into consideration all the circumstances like the interest of the grower, the consumer and the general public. It must be fair from the point of view of the producer and also from the point of view of the consumer. It has to be determined in such a way that the producer does not perish and the consumer is not crippled. The controlled price once fixed must be applicable to all sales and purchases. It should not be intended to control the price of a particular type of transaction. The price which the State Government fixed in the Levy Order or pa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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