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2023 DIGILAW 82 (KER)

Super Gas Agencies v. District Collector, Collectorate, Kakkanad, Ernakulam

2023-01-24

MURALI PURUSHOTHAMAN

body2023
JUDGMENT : The writ petition is filed challenging Ext.P10 order passed by the District Collector imposing a fine of Rs.10,000/- on the petitioner in exercise of the powers under Section 7 of the Essential Commodities Act, 1955 (for short, 'the Act'). 2. The petitioner is a distributor of Liquefied Petroleum Gas (for short, 'LPG') of Indian Oil Corporation. Based on Ext.P6 complaint regarding leakage of the LPG cylinder filed by the 3rd respondent, a customer, the District Collector passed Ext.P10 order finding the petitioner guilty under the LPG (Regulation of Supply and Distribution) Order, 2000 (for short, 'the Order, 2000') and imposing a fine of Rs.10,000/- under Section 7 of the Act. 3. According to the petitioner, the 1st respondent has no authority to impose fine under Section 7 of the Act or under the Order, 2000. Apart from the question of jurisdiction of the District Collector to impose fine, the petitioner has also challenged the order on merits as well as on the ground of violation of the principles of natural justice. 4. A Statement is placed on record on behalf of the District Collector wherein it is stated inter alia that the offences relating to the supply and distribution of LPG are very numerous and it is the practice to summarily hear the accused and impose fines and penalties as per Section 7 of the Act and the same saves the State and the party from the long drawn out process of prosecution and trial. 5. Heard Sri. A. Rajasimhan, the learned counsel for the petitioner, Sri. Jacob E. Simon, the learned Government Pleader for the 1st respondent, Smt. Ramola Nayanpally, the learned counsel for the 2nd respondent and Sri. Saju J. Vallyara, the learned counsel for the 3rd respondent. 6. The impugned order of the District Collector reads as under:- “ORDER Having found that M/s.Super Gas Agency, Indian Oil Corporation Dealer, has failed in their responsibility pertaining to an authorized agency as per LPG (Regulation of Supply and Distribution) Order, 2000, a fine of Rs.10,000/- (Rupees Ten Thousand Only) is imposed upon the agency. The City Rationing Officer, Ernakulam shall ensure remittance and report. This order is passed by virtue of the powers conferred upon me by Section 7 of Essential Commodities Act, 1955. Sd/- District Collector” (emphasis supplied). 7. The City Rationing Officer, Ernakulam shall ensure remittance and report. This order is passed by virtue of the powers conferred upon me by Section 7 of Essential Commodities Act, 1955. Sd/- District Collector” (emphasis supplied). 7. Section 7 of the Essential Commodities Act, 1955 reads as follows:- “7.Penalties.— [(1) If any person contravenes any order made under section 3,- (a) he shall be punishable,- (i) in the case of an order made with reference to clause (h) or clause (i) of sub-section (2) of that section, with imprisonment for a term which may extend to one year and shall also be liable to fine, and (ii) in the case of any other order, with imprisonment for a term which shall not be less than three months but which may extend to seven years and shall also be liable to fine: [Provided that the court may, for any adequate and special reasons to be mentioned in the judgment, impose a sentence of imprisonment for a term of less than three months;] (b) any property in respect of which the order has been contravened shall be forfeited to the Government; (c) any package, covering or receptacle in which the property is found and any animal, vehicle, vessel or other conveyance used in carrying the commodity shall, if the court so orders, be forfeited to the Government.] [(2) If any person to whom a direction is given under clause (b) of subsection (4) of section 3 fails to comply with the direction, he shall be punishable with imprisonment for a term which shall not be less than three months but which may extend to seven years and shall also be liable to fine: [Provided that the court may, for any adequate and special reasons to be mentioned in the judgment, impose a sentence of imprisonment for a term of less than three months.] (2A) If any person convicted of an offence under sub-clause (ii) of clause (a) of sub-section (1) or under sub-section (2) is again convicted of an offence under the same provision, he shall be punishable with imprisonment for the second and for every subsequent offence for a term which shall not be less than six months but which may extend to seven years and shall also be liable to fine: [Provided that the court may, for any adequate and special reasons to be mentioned in the judgment impose a sentence of imprisonment for a term of less than six months.] (emphasis supplied). Under Section 7 of the Act, the power to impose penalty is upon the Court and not on the District Collector. Section 10A of the Act provides that every offence punishable under the Act shall be cognizable. Section 11 provides that no Court shall take cognizance of any offence punishable under the Act except on a report in writing of the facts constituting such offence made by a person who is a public servant or any person aggrieved or any recognised consumer association. Section 12 of the Act deals with special provision regarding fine and provides that it shall be lawful for any Metropolitan Magistrate, or any Judicial Magistrate of the first class specially empowered by the State Government in this behalf, to pass a sentence of fine exceeding five thousand rupees on any person convicted of contravening any order made under Section 3. Thus, the power to impose penalty or fine under the Act is vested with the Court and not with the District Collector. 8. Section 6A of the Act deals with confiscation of essential commodities by the District Collector in pursuance of an order of seizure under Section 3 and the 2nd proviso thereto provides that, where any animal, vehicle, vessel or other conveyance is used for carrying the seized essential commodity, 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. This is the only situation where the District Collector, the executive authority can accept fine under the Act. Section 6D provides that the award of any confiscation under the Act by the District Collector shall not prevent the infliction of any punishment to which the person affected thereby is liable under the Act. 9. The Order, 2000 framed under Section 3 of the Act also does not empower the District Collector to impose fine or penalty for contravention of the Order. 10. The District Collector has no jurisdiction to impose fine or penalty under Section 7 of the Essential Commodities Act, 1955. Accordingly, Ext.P10 order is set aside. The writ petition is allowed as above. There will be no order as to costs.