R. K. DASH, J. ( 1 ) THE appellant (hereinafter referred to as 'the accused'), being aggrieved by the judgment and order of conviction passed by the learned Special Judge, Koraput, in T. R. Case No. 25 of 1986 has preferred the present appeal. By the impugned judgment the accused has been found guilty under Section 7 of the Essential Commodities Act, 1955 (for short, 'the Act') for contravening clause 3 of the Orissa Pulses, Edible Oil-seeds and Edible Oils Dealers (Licensing) Order, 1977 (for short, 1977 Licensing Order') and clause 3 of the Orissa Declaration of Stocks and Price of Essential Commodities Order, 1973 (for short, 1973 Order'), and has been sentenced to undergo rigorous imprisonment for three months and to pay a fine of Rs. 1,000/ -. in default to undergo rigorous imprisonment for a further period of one and half months. ( 2 ) SHORTLY stated, the prosecution case was that on 12-12-1985 the Civil Supply Enforcement Squad of Rayagada Sub-division raided the residence-cum-trade premises of the accused and found him to be possessing 65 bags of niger seed, an edible oil seed weighing Q. 48. 87 Kgs. without valid licence or permit and had stored the same for the purpose of sale. It was further alleged that though the accused had kept the said stock for sale but had not displayed the stock and price board as required in the 1973 Order. An F. I. R. was lodged by the Marketing Inspector, Kolnara at Rayagada P. S. and after due investigation, charge-sheet was laid against the accused to stand his trial under Section 7 of the Act for contravening clause 3 of both 1977 Licensing Order and the 1973 Order. ( 3 ) THE plea of the accused was that he being a cultivator had raised niger seeds and after harvest had kept the same in his threshing floor in heaps and not in gunny bags for sale as alleged by the prosecution. ( 4 ) THE prosecution in order to bring home the accusation against the accused examined six witnesses including the Investigating Officer and two independent witnesses. Besides, it also brought on record the weighment chart, seizure list, etc.
( 4 ) THE prosecution in order to bring home the accusation against the accused examined six witnesses including the Investigating Officer and two independent witnesses. Besides, it also brought on record the weighment chart, seizure list, etc. The learned trial Judge on consideration of the evidence, accepted the prosecution case that the accused as a dealer had purchased niger seeds and had stored for sale in his business premises and that he had not displayed the stock and price board. Consequently he held him guilty under Section 7 of the Act for contravening clause 3 of the 1977 Licensing Order and clause 3 of the 1973 Order and convicted and sentenced him as hereinbefore stated. ( 5 ) LEARNED Counsel for the accused assailing the impugned judgment contended that the learned Special Judge while appreciating evidence of witnesses of the prosecution should have taken note of and considered the evidence of D. W. 1 who supported the defence plea that the accused was a cultivator who had raised niger seeds on his own land and after harvest had stored on his threshing floor. The above evidence of D. W. 1 having not been seriously challenged by the prosecution, urged the counsel, the ultimate conclusion would have been that accused's possession of niger seeds was as a cultivator and not as a 'dealer'. It was further contended that in absence of any cogent and convincing evidence that the accused was carrying on business of the said commodity as a dealer, finding of guilt recorded against him for contravention of clause 3 of the 1977 Licensing Order being contrary to law is unsustainable. The further submission of the learned Counsel was that Ext. 5 on which reliance was placed by the learned Court below as 'admission' of guilt of the accused should have been accepted with a pinch of salt, since the Executive Magistrate who recorded it was a member of the raiding staff and there is a grave doubt as to its voluntariness. In the above view of the matter, learned trial Judge should have excluded the said statement, Ext. 5 from consideration while assessing the evidence of the prosecution. ( 6 ) IN reply, learned Additional Standing Counsel supporting the impugned judgment urged that finding of guilt recorded by the trial Court being based on proper evaluation of evidence, does not call for interference in the present appeal.
5 from consideration while assessing the evidence of the prosecution. ( 6 ) IN reply, learned Additional Standing Counsel supporting the impugned judgment urged that finding of guilt recorded by the trial Court being based on proper evaluation of evidence, does not call for interference in the present appeal. ( 7 ) THERE is no dispute that 65 bags of niger needs weighing 48. 87 quintals were seized from the possession of the appellant. According to P. W. 1, Marketing Inspector, it was a one-roomed house which was being used both as residence and business premises and from there the aforesaid quantity of niger seeds were seized. In view of such admitted fact, the question that arises is whether mere possession was sufficient enough to find the accused guilty for contravening clause 3 of the 1977 Licensing Order. The said clause 3 provides, inter alia, that no person shall after expiry of a period of fifteen days from the date from which the order came into force carry on business as a 'dealer' in pulses or edible oil seeds or in edible oils except and in accordance with the terms and conditions of a licence granted in that behalf by the Licensing Authority. The word 'dealer' defined in clause 2 (b) of the said Order means "a person engaged in the business of purchase, sale or storage for sale of any pulses, edible oil seeds or edible oils whether or not in conjunction with any other business and includes his representative or agent". The expressions "engaged in business" and "carry on business" are to be read and interpreted keeping in mind the intent and purpose for which the 1977 Licensing Order has been promulgated. It is apparent that in order to have overall control on purchase, sale or storage for sale of the pulses, edible oilseeds or edible oils the State Government has promulgated the said Order so that there may not be artificial scarcity created by the unscrupulous businessmen dealing in such commodities. It is because of this reason a bar has been created in the 1977 Licensing Order prohibiting a person to deal in those commodities without a valid licence.
It is because of this reason a bar has been created in the 1977 Licensing Order prohibiting a person to deal in those commodities without a valid licence. ( 8 ) TO bring a person within the ambit of the definition of 'dealer' it must be shown that his activities of purchase, sale or storage for sale are continuous and not an isolated ones, and the same occupy his time, attention and labour and are carried on with the intention to earn livelihood. The phrase "carrying on business" implies a repetition of series of acts. According to Black's Law Dictionary, Sixth Edition, the phrase "carry on trade or business" means 'to conduct, prosecute or continue a particular avocation or business as a continuous operation or permanent occupation'. The above being the meaning of the phrase 'carry on business', it is to be ascertained from the available evidence in the present case as to whether the prosecution has been able to satisfy that the accused was carrying on business in niger seeds as a dealer without having obtained any licence as required in clause 3 of 1977 Licensing Order so as to make him liable for punishment under Section 7 of the Act. ( 9 ) P. W. 1 whose evidence I have already referred to earlier speaks that the accused had in his possession 65 bags of niger seeds on the date of incident. To the same effect is the statements of P. Ws. 2 and 3. The other two witnesses upon whose evidence prosecution heavily relied upon are P. Ws. 4 and 5. As deposed to by them, they had sold 12 Kgs. of niger seeds on single occasion to the accused. But their evidence is silent as to if they had the knowledge of the accused dealing in niger seeds in regular course of business. In absence of such evidence, even if the statements of P. Ws. 4 and 5 are accepted as true, stray purchase of niger seeds by the accused is not enough to hold that he was carrying on business as a dealer. it is common experience that in rural areas people purchase paddy, rice, etc. and stock them for use for whole of the year.
4 and 5 are accepted as true, stray purchase of niger seeds by the accused is not enough to hold that he was carrying on business as a dealer. it is common experience that in rural areas people purchase paddy, rice, etc. and stock them for use for whole of the year. So if their such purchase is interpreted in a manner to bring them within the definition of 'dealer', then they all would be liable for contravening the provisions of various Control Orders. ( 10 ) AS against the evidence of P. Ws. 4 and 5 as aforesaid, the accused by examining D. W. 1 proved that he being owner of some cultivable lands had been raising varieties of crops, such as niger seeds, paddy, etc. This part of his evidence remained unassailed during cross-examination. The learned Court below, therefore, should have given due weight to the defence version as deposed to by D. W. 1 while scrutinising the prosecution evidence to find the guilt or otherwise of the accused. ( 11 ) NOW coming to what value should be attached to the statement of the accused, Ext. 5 which is termed as an admission, it is the prosecution case that the Executive Magistrate, P. W. 2 had accompanied the Marketing Inspector, P. W. 1 and other officials to the house of the accused and during search, he got his statement, Ext. 5 recorded. It was alleged that the accused admitted before him that he was dealing in niger seeds without having any licence and that he had not displayed the stock and price board of the said commodity. A reading of Ext. 6 creates a grave doubt about the voluntariness of the said statement. When the officials of the Supply Department raided the house of the accused it was quite but natural that he must be in a mental agony and at that stage he could not have made a statement on his volition admitting his guilt. Moreover, it does not transpire from P. W. 2's evidence as to what led the accused in such circumstances to make a clean-breast confession of having committed the offence as alleged by the prosecution. To me, therefore, it appears that P. W. 2, the Executive Magistrate acted in a partisan spirit and taking advantage of his position, created Ext. 5 to support the prosecution case.
To me, therefore, it appears that P. W. 2, the Executive Magistrate acted in a partisan spirit and taking advantage of his position, created Ext. 5 to support the prosecution case. ( 12 ) REGARD being had to the facts and circumstances of the case, I am unable to persuade myself to agree with the findings of the trial Court and uphold the ultimate conclusion of guilt recorded against the accused. Consequently the appeal is allowed and the order of conviction and sentence recorded against him is set aside. Appeal allowed.