SRIVASTAVA, J. ( 1 ) THIS is a reference made by the learned Sessions Judge of Sultanpur. ( 2 ) ON a report dated the 20th August, 1955, submitted by the Station Officer, Kotwali, Sultanpur, a charge has been framed against Bhagwat Saran and Srimati Sushila Devi under Section 7 of the essential Supplies (Temporary Powers) Act, 1946 read with Section 11 B (3) of the Iron and steel (Control of Production and Distribution) Order, 1941. The allegation is that they sold iron and steel goods at a price higher than the controlled price. ( 3 ) THE accused went up in revision against the order framing the charge to the Sessions Judge and raised two points. The first point was that the learned Magistrate could not have taken cognizance of the offence alleged as the report on the basis of which cognizance was taken did not contain sufficient materials as required by Section 11 of the Essential Supplies Act. The second point was that no maximum price having been fixed, there was no question of the accused having sold iron and steel at a price higher than the controlled price. ( 4 ) THE first contention found favour with the learned Sessions Judge but the second did not. In respect of the second he found that the maximum price had been fixed by a notification published in the Gazette of India. On the basis of the first contention, however, he has recommended that the charge framed against the applicants be quashed and that they be discharged. ( 5 ) WHEN this reference was argued before me, the learned counsel who appeared in support of it reiterated the first contention which found favour with the Sessions Judge. He did not urge the second contention, but instead urged another contention. That was that Section 11 B (3) of the iron and Steel (Control of Production and Distribution) Order, 1941, was ultra vires and even if the accused are held to have sold the iron and steel at a price higher than that notified under that provision, they cannot be held to have committed any offence. In support of this new contention, the learned counsel placed reliance on a Full Bench case of the High Court of Madhya Pradesh reported in State v. Haidarali, (S) AIR 1957 Madh. Pra. 179.
In support of this new contention, the learned counsel placed reliance on a Full Bench case of the High Court of Madhya Pradesh reported in State v. Haidarali, (S) AIR 1957 Madh. Pra. 179. ( 6 ) NOW so far as the first contention is concerned, it is true that the report which the Station officer submitted did not contain the full particulars as it ought to have contained, but on account of that defect, I think it cannot be maintained that the cognizance taken by the learned magistrate on the basis of that report was illegal or that the proceedings started against the accused stand vitiated. In this connection we have to bear in mind the observations made by their Lordships of the supreme Court in the case of H. N. Rishbud v. State of Delhi, reported in AIR 1955 S. C. 196. There it was laid down in connection with Section 190, Cr. P. C. which is in almost identical terms with Section 11 of the Essential Supplies (Temporary Powers) Act, 1946: "no doubt a police report which results from an investigation is provided in Section 190, Cr. P. C. as the material on which cognizance is taken. But it cannot be maintained that a valid and legal police report is the foundation of the jurisdiction of the Court to take cognizance, Section 190, Cr. P. C. is one out of a group of Sections under the heading conditions requisite for initiation of proceedings. " The language of this Section is in marked contrast with that of the other Sections of the group under the same heading,. e. , Sections 193 and 195 to 199. These latter Sections regulate the competence of the Court and bar its jurisdiction in certain cases excepting in compliance therewith. But Section 190 does not. While no doubt, in one sense, clauses (a), (b) and (c) of Section 190 (1) are conditions requisite for taking of cognizance it is not possible to say that cognizance on an invalid police report is prohibited and is therefore a nullity. " In view of these observations, I think it is not possible to accept the contention of the accused that because the police report submitted in this case was not as detailed as it could have been, the cognizance taken by the learned Magistrate was a nullity and the proceedings must be quashed on that account.
" In view of these observations, I think it is not possible to accept the contention of the accused that because the police report submitted in this case was not as detailed as it could have been, the cognizance taken by the learned Magistrate was a nullity and the proceedings must be quashed on that account. The first contention which appealed to the Sessions Judge thus becomes unacceptable. ( 7 ) THE second contention, however, raises an important point of general importance on which there does not appear to be any decision of this Court. The point is important enough, in my opinion, for being decided by a Division Bench. I, therefore, direct that the case be placed before the Honble the Chief Justice for constituting a larger Bench for the consideration of the question whether Section 11 B (3) of the Iron and Steel (Control of Production and Distribution) Order, 1941, is ultra vires. ORDER m. L. Chaturvedi, J. ( 8 ) A learned Single Judge of this Court has referred the following question for decision by a bench; - "whether Section 11b (3) of the Iron and Steel (Control of Production and Distribution) Order, 1941, is ultra vires. " ( 9 ) THE above question arises under the following circumstances. The applicant No. 2, Srimati sushila Devi, is said to be the proprietor of the firm Balwanta Devi Sushila Devi situate in sultanpur and the applicant No. 1 Bhagwati Saran, who is the husband of Sushila Devi, is said to be the Manager of the firm. On the 11th of January, 18th of February and 26th of February, 1952, the firm sold iron bars to certain purchasers. The case of the prosecution is that the applicants charged a price higher than the controlled price. The case was accordingly sent to the Court of the Magistrate and the Magistrate framed charges with respect to the above sales charging the applicants that they "committed an offence punishable under Section 7 Essential Supplies (Temporary Powers) Act 1946 with Section 11-B (iii) of the Iron and Steel (Control of Production and Distribution) Order, 1941. . . . . . " The applicants filed a revision before the Sessions Judge praying that this charge be quashed.
. . . . . " The applicants filed a revision before the Sessions Judge praying that this charge be quashed. There were two points urged before him one of which the learned Sessions judge rejected and on the other he made a reference to this Court for quashing the charge. This other point was that the report sent by the police to the Court in respect of the charge was not a full and detailed report containing all the necessary facts and on such a report no charge against the applicants should have been framed. ( 10 ) THE learned Single Judge before whom the revision came up for heating did not agree with the Sessions Judge on the point on which the reference was made by him and expressed the opinion that even though the police report did not contain all the facts in detail the Magistrate was still competent to take cognizance of me offence. Before the learned Judge, however, another point was urged by the learned counsel for the applicants and it was to the effect that clause 11-B of the Iron and Steel (Control of Production and Distribution) Order of 1941 gave an unrestricted and uncontrolled power to the Iron and Steel Controller to fix any price he liked for the sale of the goods mentioned in the Control Order and the placing of such a power in the hands of an executive officer amounted to an unreasonable restriction on the fundamental right of the applicants to carry on their trade. The learned Single Judge was of the opinion that the point raised by the learned counsel was an important one and there being no decision of this court on this point, it should be decided by a Division Bench. ( 11 ) THE learned counsel for the applicants has urged the same point before us, which he took before the learned Single Judge, and his contention is that the restriction being an unreasonable one Clause 11-B (iii) of the Iron and Steel (Control of Production and Distribution) Order of 1941 (hereinafter called the control order) is inconsistent with Article 19 (1) (g) of the constitution. In support of his contention the learned counsel referred to the case of (S) AIR 1957 Madh. Pra. 179 (F. B. ).
In support of his contention the learned counsel referred to the case of (S) AIR 1957 Madh. Pra. 179 (F. B. ). A Full Bench of the Madhya Pradesh High Court considered the question in some detail (if we may say with respect) and in the end came to the conclusion that Clause 11-B of the Control order "is ultra vires as it amounts to an unreasonable restriction upon the fundamental rights guaranteed by the Constitution in Article 19 (1) (f) and (g ). " The learned counsel for the applicants before us has not urged that Clause 11-B was inconsistent with Article 19 (1) (f) of the constitution but has only urged that it is inconsistent with Article 19 (1) (g ). ( 12 ) THE Control Order was originally, passed! tinder the Defence of India Rules. On these rules ceasing to have force, the order was adopted under the Essential Supplies (Temporary Powers) act of 1946. The life of this Act was extended from time to time till it was substituted by the essential Commodities Act (Act X of 1955) which received the assent of the President on the 1st april, 1955. Both parties agree that the order is still in force. The sole contention of the learned counsel for the applicants is that in the control order itself no formula for fixation of the price of the goods covered by the order has been laid down, and absolute authority has been given to the Iron Controller to fix any price that he likes of the said articles. It is said that the Iron and Steel Controller may fix a price lower than the cost price and it may not be possible for the dealers to sell the articles at that price. In such a case the entire business of the dealers would be paralysed and they would not be able to carry on the trade concerning which a fundamental right has been conferred upon them under article 19 (1) (g) of the Constitution. In order to appreciate the point we may refer to certain provisions of the Essential Commodities Act of 1955 Sub-section (1) of Section 3 is in all material particulars the same as Sub-section (1) of Section and of the Essential Supplies (Temporary Powers) Acts 1946.
In order to appreciate the point we may refer to certain provisions of the Essential Commodities Act of 1955 Sub-section (1) of Section 3 is in all material particulars the same as Sub-section (1) of Section and of the Essential Supplies (Temporary Powers) Acts 1946. It is as follows:- " (1) If the Central Government is of opinion that it is necessary or expedient so to do for maintaining or increasing supplies of any essential commodity or for securing their equitable distribution, and availability at fair prices, it may, by order, provide for regulating or prohibiting the production, supply and distribution thereof and trade and commerce therein. ( 13 ) SUB-SECTION (2) of the Section says that without prejudice to the generality of the powers conferred by Sub-section (1), an order made thereunder may provide for the matters enumerated in the Sub-section. Only Clause (c) of the Sub-section is important and it is to the effect that the order may provide for controlling the price at which any essential commodity may be bought or sold. ( 14 ) SECTION 5 of the Essential Commodities Act is also for all practical purposes the same as section 4 of the Essential Supplies Act. It is as follows:- "the Central Government may, by notified order, direct that the power to make orders under section 3 shall, in relation to such matters and subject to such conditions, if any, as may be specified in the direction, be exercisable also by (a) such officer or authority subordinate to the Central Government, or (b) such State Government or such officer or authority subordinate to a State Government, as may be specified in the direction. " ( 15 ) A reading of the above provisions of law would show that an authority has been conferred on the Central Government, on condition of its being of opinion that it is necessary or expedient in order to maintain or increase supplies of any essential commodity or securing its equitable distribution and availability on fair prices, to make an order providing for regulating or distributing the production, supply and distribution of the commodity and trade and commerce therein. For the above purposes it may also control the price at which any essential commodity may be bought or sold.
For the above purposes it may also control the price at which any essential commodity may be bought or sold. Section 4 of the Essential Commodities Act further authorises the Central legislature to confer powers and duties upon the Central Government, the State Government or the officers of the Governments, and it may also issue directions to the said authorities concerning the exercise of such power. The Central Government in its turn has been authorised by Section 5 to direct that the power to make orders mentioned in Section 3 shall in relation of such matters and subject to such conditions, if any, be exercisable also, by the State Government or any officer or authority subordinate to the Central Government or the State Government. ( 16 ) THE legality of the delegation of powers contained in Sections 3 and 4 of the Essential supplies Act and also Section 6 of that Act was challenged in the case of Hari Shankar Bagla v. State of Madhya Pradesh, AIR 1954 S. C. 465. The Nagpur High Court had held Section 6 of the essential Supplies Act to be an invalid piece of legislation but had upheld the constitutionality of sections 3 and 4 of the Act. Their Lordships of the Supreme Court, however, declared that all the three Sections were constitutionally valid. On account of the above decision the learned counsel for the appellants did not challenge the constitutionality of any of the provisions of Essential Commodities Act of 1955. His sole grievance is that the price schedule has not been framed by the Central government in the impugned control order but the Central Government left that matter to be settled by the Iron and Steel Controller of India. The learned counsel has also not alleged that the prices fixed by the Iron and Steel controller in his notification dated the 1st of July, 1952 are in any way unreasonable or did not provide for the availability of the commodities at fair prices.
The learned counsel has also not alleged that the prices fixed by the Iron and Steel controller in his notification dated the 1st of July, 1952 are in any way unreasonable or did not provide for the availability of the commodities at fair prices. His contention is that an officer subordinate to the Central Government has been authorised, by the Central Government to fix any price that he liked and the conferment of these uncontrolled and unguided powers might possibly had the effect of prices being fixed at unreasonable rates and that possibility by itself is sufficient for holding that the notification issued by the Iron and steel Controller of India fixing the prices of these articles to be invalid, as also Clause 11-B (iii) of the said control order. Clause 11-B (i) of the Control Order authorises the Controller to fix from time to time, by notification in the Gazette of India, the maximum price at which any Iron or Steel may be sold by the producer, the stock-holder and any other class of persons. He has been authorised to fix different prices for iron and steel obtainable from different sources and may include allowances for contribution and payment from any equalisation fund established by the Controller for equalising freight, the concession rates payable to each producer or class of producer for any other disadvantages. Sub-clause (iii) of Clause B prohibits a producer or stockholder and all other persons from selling or offering to sale or from acquiring any iron or steel at a price exceeding the maximum price fixed under Clause 11-B. ( 17 ) WE have carefully considered the decision of the Full Bench of the Madhya Pradesh High court in the case of (S) AIR 1957 Madh. Pra. 179 (supra) but there is one aspect of the question which does not appear to have been put before the learned Judges of Nagpur High Court.
Pra. 179 (supra) but there is one aspect of the question which does not appear to have been put before the learned Judges of Nagpur High Court. That aspect is that the delegation of power contained in Sections 3 and 4 of the Essential supplies Act having been held to be valid by their Lordships of the Supreme Court, the exercise of that power by any one of the delegates or sub-delegates has to be taken to have been exercised by a proper authority; and unless the power has been exercised in such a manner as to make the order passed by the authority unreasonable the order, we think, cannot be held to be invalid on the ground that it might possibly have been a different order and might possibly have been unreasonable so as to impose an improper fetter on the exercise of the trade by the dealers in iron. A reading of the judgment of the Full Bench mentioned above shows that they might have upheld the order passed by the Iron and Steel Controller fixing the prices, if these fixations were to be found in the control order itself. What they have mainly objected is the conferment, by clause 11-B of the Control Order, of power on controller without laying down any principles for the guidance of the Controller or without the control order itself having specified the principles on which the prices were to be fixed. ( 18 ) AFTER considerable hesitation, we have arrived at the conclusion that the conferment of powers by Sections 3 and 4 of the Essential Supplies Act having been held to be valid, any of the persons mentioned in those Sections could exercise the power and it made no difference whether part of the power was exercised by the delegate mentioned in Section 3 and the other part by the sub-delegate mentioned in Section 4 of the Essential Supplies Act or the corresponding provisions in the Essential Commodities Act. ( 19 ) IN the case of Dwarka Prasad v. State of U. P. , AIR 1954 S. C 224, their Lordships of the supreme Court were called upon to consider the constitutionality of the U. P. Coal Control Order of 1953.
( 19 ) IN the case of Dwarka Prasad v. State of U. P. , AIR 1954 S. C 224, their Lordships of the supreme Court were called upon to consider the constitutionality of the U. P. Coal Control Order of 1953. This control order conferred powers on the licensing authority to grant, refuse to grant, renew or refuse to renew a licence and also to suspend, cancel, revoke or modify any such licence or any terms of the licence. Clause 7 of this order authorised the State Controller by written order to require any person holding stock of coal to sell the whole or part of it to such person or class of persons and on such terms and prices as might be determined in accordance with the provisions of the order. The control order itself laid down a formula for the fixation of prices of different kinds of coal. The learned Judges held that the licensing authority had been given absolute power to grant or to refuse to grant or to renew or revoke or cancel the licence. It was remarked that this power could be exercised by every person whom the State Controller thought fit. The provision was therefore held to be an unreasonable one, because no rules had been framed and no directions given as to the exercise of the powers by the licensing officer. Consequently, clause (4) (iii) of the order was held to be unconstitutional. But their Lordships also considered the validity of clauses 7 and 8 of the Control Order. Clause 7 authorised the State Coal Controller to fix a price at which alone coal could be sold or purchased. Clause 8 also related to the maximum price at which coal could be sold. The learned judges upheld the validity of these clauses, after entering, into the question whether the formula given in the control order laid down reasonable terms or not. They were of opinion that the terms of the formula were not unreasonable and they upheld the validity of Clauses 7 and 8. The important fact to notice is that the control order was issued by the State Government of U. P. and it must have been authorised to issue the order by the Central Government.
They were of opinion that the terms of the formula were not unreasonable and they upheld the validity of Clauses 7 and 8. The important fact to notice is that the control order was issued by the State Government of U. P. and it must have been authorised to issue the order by the Central Government. The power was thus exercised by a sub-delegate under Section 4 of the Essential Supplies Act and their lordships considered it necessary to go into the reasonableness of the formula of the fixation of prices laid down by the sub-delegate. In the case of the control order impugned before us, the prices were fixed by a sub-delegate under Section 4 of the Essential Supplies Act. The Central Government, instead of itself fixing the prices, has authorised the Iron and Steel Controller to fix them, without laying down any detailed principles or directions. This it could do under Section 4 (a) of the Essential Supplies act. The power thus having been exercised by a person authorised by the Statute itself, it could not beheld to be invalid unless it was found that it had been unreasonably exercised. The same appears to be the position in the case of State of Rajasthan v. Nathmal, AIR 1954 S. C, 307. In this case the validity of a number of provisions of Rajasthan Food Grain Control Order of 1949 was challenged. Their Lordship upheld the provision conferring authority on the officers mentioned in Clause 25 to freeze stock of food grains, but that Clause contained a further power that these stocks could be requisitioned or disposed of under orders of the said officers at the prices fixed for the purpose of Government procurement. After holding that the power given to the officers of freezing stock of food grains was a reasonable restriction on the right of the respondent, they proceeded to consider whether the provision for requisition or disposal of the food grains at the prices fixed by the officer was valid or not. They held that this power was an unrestricted and unreasonable one and then their Lordships did proceed to consider whether the prices fixed for procurement at Government rates were reasonable or not and they came to the conclusion that they were unreasonable. The market price at the time was Rs. 17/- or Rs. 18/- per maund but the Government could requisition at Rs.
The market price at the time was Rs. 17/- or Rs. 18/- per maund but the Government could requisition at Rs. 9/per maund. This portion of Clause 25 was therefore held to be invalid but the provisions of Clauses 23 and 24 were held to be in contrast with the last provision1 of Clause 25. Clause 23 authorised the commissioner and other officers to fix the ceiling price at which food grain in any area, to which the order applied could be sold; and from time to time the prices so fixed could be altered. Clause 24 authorised the officers concerned to issue any direction to any person to sell food grains or part thereof to any person or persons at such price as might be fixed under Clause 23. A reading of Clause 23 does not show that any guiding principles for the fixation of price were given in the Clause. It is true that the officers enumerated in the Clause could fix the price with the approval of the Director, but that makes out no difference in principle. ( 20 ) IN the case of Hari Shanker Bagla, AIR 1954 SC 465 (supra) their Lordships have remarked that Section 3 of the Essential Supplies Act does contain some guiding principles, namely, the maintenance or the increasing of supply of essential commodities or securing their equitable distribution and availability at fair prices. The relevant principle laid down by the legislature thus is that the commodities which are covered by the Essential Supplies Act or the Essential commodities Act should be available at fair prices. The authorities enumerated in Sections 3 and 4 were delegated power to fix the prices of the said commodities, among other matters. The prices that have been fixed under the control order impugned before us have been fixed by an authority mentioned in Section 4 of the Essential supplies (T. P.) Act, 1946. The said authority has, under valid statutory power, fixed the prices and unless the prices are unreasonable in any manner, we do not think that the notification of the iron and Steel Controller of India can be struck down on the ground that no principles for the fixation of the prices were mentioned in the control order itself.
The said authority has, under valid statutory power, fixed the prices and unless the prices are unreasonable in any manner, we do not think that the notification of the iron and Steel Controller of India can be struck down on the ground that no principles for the fixation of the prices were mentioned in the control order itself. As already stated, the control order was issued by the delegate mentioned in Section 3 of the essential Supplies Act and that delegate left it to its sub-delegate to fix the prices. The delegate may not have laid down any guiding principles but the sub-delegate also had valid statutory authority to lay down the principles at which prices were to be fixed. We do not think that the fixation of the prices should be held to be invalid merely on the ground that the delegate mentioned in Section 3 had not laid down any principles of the fixation of prices itself but left the matter to its sub-delegate. The question of fixing prices involves a consideration of numerous factors and circumstances and the prices also have to be altered from time to time. It is difficult to lay down any principles for any substantial period of time and the matter was thus left to a senior officer of the Central government, to whom the powers in that behalf could be delegated under Section 4 of the essential Supplies Act. ( 21 ) FOR the above reasons we think that no portion of Clause 11-B of Iron and Steel (Control of production and Distribution) Order 1941 is unconstitutional. ( 22 ) THE question referred to us and mentioned in the beginning of our judgment is thus answered in the negative. BY THE COURT. A. P. Srivastava, J. ( 23 ) THIS is a reference made by the learned Sessions Judge of Sultanpur. ( 24 ) THE facts giving rise to it have been mentioned in my order dated 3-6-1958 and need not be repeated. ( 25 ) TWO contentions were pressed on behalf of the applicants in support of the reference. The first was that as the report submitted under Section 11 of the Essential Supplies (Temporary powers) Act, 1946, did not contain sufficient details cognizance could not have been taken on its basis.
( 25 ) TWO contentions were pressed on behalf of the applicants in support of the reference. The first was that as the report submitted under Section 11 of the Essential Supplies (Temporary powers) Act, 1946, did not contain sufficient details cognizance could not have been taken on its basis. The other contention was that Section 11-B (3) of the Indian Iron and Steel Supplies (Control of Production and Distribution) Order, 1941 was ultra vires. The first contention was rejected. The other contention was considered to be important enough to merit consideration by a Division bench. The case was therefore directed to be placed before the Honble the Chief Justice for constituting a larger Bench for the consideration of the question. A Bench consisting of Mr, justice Chaturvedi and Mr. Justice James has since considered the question and has held that section 11-B (3) of the Indian Iron and Steel (Control of Production and Distribution) Order, 1941 is not ultra vires. The point thus now stands concluded against the applicants. ( 26 ) LEARNED counsel for the applicants did not feel satisfied with the view that had been taken in the order dated 3-6-1958 in respect of his first contention and urged that Section 11 of the essential Supplies Act was analogous more to Section 193 of the Criminal Procedure Code than to Section 190 and that on that account if the report submitted under Section 11 was not a complete and detailed report cognizance could not be taken on its basis. He relied in support of this contention on Dr. N. G. Chatterji v. Emperor, 47 Cri LJ 876: (AIR 1946 All 416), Roshan lal v. Rex, 1949 All LJ 541, Rachpal Singh v. Rex, 50 Cri LJ 469; (AIR 1949 Oudh 66) and state of Assam v. Deo Kishan Mohta, AIR 1955 NUC (Assam) 4246 (V 42 ). ( 27 ) SECTION II of the Essential Supplies Act (Act XXIV of 1946) provides : "no Court shall take cognizance of any offence punishable under this Act, except on the report in writing of the facts constituting such offence made by the person who is a public servant as defined in Section 21 of the Indian Penal Code.
( 27 ) SECTION II of the Essential Supplies Act (Act XXIV of 1946) provides : "no Court shall take cognizance of any offence punishable under this Act, except on the report in writing of the facts constituting such offence made by the person who is a public servant as defined in Section 21 of the Indian Penal Code. " All that is therefore required for compliance with this provision is (1) that there should be a report in writing, (2) that it should be made by a public servant as defined in Section 21 of the indian Penal Code and (3) that it should contain facts constituting the offence. ( 28 ) A report in the present case was admittedly submitted by the Station Officer, Kotwali sultanpur, who was a public servant as defined in Section 21 of the Indian Penal Code. The report was in writing. It was stated therein that the firm Balwanta Devi Sushila Devi was owned by Smt. Sushila Devi and that her husband Bhagwati Saran was its manager. It was also alleged in it that iron goods had been sold by Bhagwati Saran over and above the controlled rates a number of times and that accounts and receipts had been fabricated with a view to escape detention by the authorities. It was also stated definitely that the accused had in that manner contravened the provisions of the Indian Iron and Steel (Control of Production and Distribution) order, 1941. ( 29 ) AFTER cognizance had been taken a charge was framed against the applicant in the following terms : "that you between 10-1-52 and 27-2-52 in Sultanpur sold 11 cwt. 12 lbs. iron bars on 11-1-1952, 3 cwt. iron bars on 18-2-52 and 6 cwt. iron bars on 26-2-52 at the rate of Rs. 21-13-9 per cwt. though the controlled rate as notified in Government of India Gazette dated 1-7-52 for the commodity was Rs. 21-2-4 per cwt. and thus you charged Rs. 1-15-0, Rs. 2-2-3 and Rs. 4-4-6 respectively excess and more than the controlled price and thereby committed an offence punishable under Section 7 E. S. T. P. Act, 1946 read with Section 11b (iii) of Iron and Steel control of Production and Distribution Order of 1941 and I hereby direct that you be tried by the said Court on the said charge.
2-2-3 and Rs. 4-4-6 respectively excess and more than the controlled price and thereby committed an offence punishable under Section 7 E. S. T. P. Act, 1946 read with Section 11b (iii) of Iron and Steel control of Production and Distribution Order of 1941 and I hereby direct that you be tried by the said Court on the said charge. " ( 30 ) THE argument of the learned counsel for the applicants is that because the details of the offence, viz. , the date, time or the name to whom the iron was sold, had not been mentioned in the report submitted under Section 11 of the Essential Supplies Act it was not open to the learned magistrate to take cognizance of the case. The report which was to be submitted under Section 11 of the Act could not, however, be expected to take the place of the charge which was to be ultimately framed against the accused after cognizance had been taken. The only thing which was required by law to be entered in the report was "facts constituting the offence. " In the present case the offence consisted of the fact that iron had been sold by the accused at rates exceeding the controlled rates. That was clearly mentioned in the report. The provision of law which had been contravened had also been specifically mentioned. It cannot therefore be said that the report was deficient inasmuch as the facts constituting the offence were not mentioned in it. Before the trial commenced all the necessary details were mentioned in the charge and the applicants thus knew very well what case they were required to meet. They cannot therefore contend that they have been prejudiced in any manner. ( 31 ) THE cases relied upon do not appear to be of much help to the applicants. Thus in the case of 47 Cri LJ 876: (AIR 1946 All 416) (supra) the appellant had been convicted under Rule 81, sub-rule (4), of the Defence of India Rules but in the report on the basis of which cognizance of that offence had been taken neither the rule which was alleged to have been contravened had been mentioned nor were any facts given which could show that any rule had been contravened. It was therefore held that the report was defective and cognizance of the offence could not have been taken.
It was therefore held that the report was defective and cognizance of the offence could not have been taken. The case is distinguishable from the present one because as has already been mentioned in the present case the rule which had been contravened was specifically mentioned and the facts constituting the contravention, viz. , that iron had been sold at rates higher than controlled rates was also mentioned. In 50 Cri LJ 469: (AIR 1949 Oudh 66) (supra) the only thing which had been mentioned in the report was that an offence under Rule 81 (2) of the Defence of India Rules had been committed. No facts were given and the rule which had actually been contravened was also not mentioned. The same appears to have been the defect in the report submitted in the case of 1949 All LJ 541 (supra ). The only thing mentioned in the report submitted in that case was that a contravention of the provisions of paragraph 4 of the Government Order No. 1029 dated 8-2-1947 had been committed. But there was not a single word as to what had been done by the accused which constituted the contravention of the Order. The Assam case AIR 1955 NUC (Assam) 4246 (supra) has not been reported in full and we do not know what the contents of the report submitted in that case were. It, however, appears that in that case the allegation was that certain corrugated iron sheets had been removed in violation of a certain notification issued under Clause 10 (c) of the Iron and steel (Control of Production and Distribution) Order, 1941, but in the report which had been submitted by the sub-inspector there was no attempt to suggest that the removal was itself an offence or that it was in violation of any notification. All these cases are thus distinguishable from the present case on facts and cannot be said to be authorities for the proposition that every minute detail which is to be subsequently mentioned in the charge to be framed against the accused should find a place in the report on the basis of which cognizance is to be taken and that if any such detail is missing the power to take cognizance becomes absent.
( 32 ) I am therefore still of opinion that the first contention of the applicants had no real force and was bound to be rejected. ( 33 ) BOTH the contentions urged in support of the reference were therefore untenable. The reference cannot therefore be accepted. It is accordingly rejected. Let the record be sent back at an early date so that the trial may proceed. .