STATE OF KARNATAKA Vs. KRISHNA BHIMA WALVAKAR

JUDGEMENT

(1.) In this appeal, by special leave, from the judgment of the Karnataka High Court, the only issue between the parties is as to the legality and propriety of the order of confiscation passed by the Deputy Commissioner, Belgaum, of a consignment of 7,200 kg. of groundnut oil seized for contravention of sub-cls. (2) (a) and (b) of Cl. 3 of the Edible Oil, Edible Oil Seeds and Oil Cakes (Declaration of Stocks) Order, 1976 (hereinafter called the Order).

(2.) Briefly stated, the facts are these:On 6-6-1977 at about 11-30 a. m., the Sub Inspector of Police, Hukeri, intercepted a truck bearing registration No. MHL 2675 laden with 40 barrels of groundnut oil weighing 7,200 kg. which were being transported from Kampli to Nippani, without furnishing a declaration in Form II to Tahsildar, Hospet, as required under sub-cls. (2) (a) and (b) of CL 3 of the Order. The Sub Inspector of Police, after seizing the vehicle and the oil registered a case and thereafter reported the matter to the Deputy Commissioner, Belgaum. He forwarded the report together with the seized vehicle and the oil to the Deputy Commissioner, Belgaum for taking action under S. 6-A of the Essential Commodities Act, 1955 (hereinafter called the Act). The truck was released to the owner on his executing an indemnity bond, and the groundnut oil released to the Respondent 4, Gopinath Manikchand Dharia, Proprietor, Messrs. Anant Oil Mills, Nippani on his furnishing a bank guarantee for Rs. 70,000/- towards the price thereof. The Deputy Commissioner gave notices as required under S. 6-B of the Act to the parties concerned. During the enquiry, the respondent No. 4 produced before him a copy of the invoice dated 5-6-1977 issued by Sri Satyanarayana Oil Mills, Bellary Road, Kampli, showing the sale of 7,200 Kg. of groundnut oil to Messrs. Anant Oil, Mills, Nippani. He also produced a copy of the declaration in Form No. 39 prescribed under the Mysore Sales Tax Act, 1957. The Deputy Commissioner, after affording the parties an opportunity of hearing, held that the respondents had contravened the provisions of sub-cls. (2) (a) and (b) of Cl. 3 of the Order and accordingly confiscated 40 barrels of groundnut oil and the truck bearing registration No. MHL 2675,

(3.) The respondents preferred an appeal under S. 6-C of the Act before the II Additional Sessions Judge, Belgaum, who was the Appellate Authority. But he, by his well-considered judgment, confirmed the order of confiscation passed by the Deputy Commissioner under S. 6-A of the Act. Thereupon, the respondent preferred a revision before the High Court and a learned single Judge has, by his judgment, set aside the order of the Appellate Authority as well as the Deputy Commissioner on the ground that there was substantial compliance of the requirements under sub-cls. (2) (a) and (b) of cl. 3 of the Order inasmuch as the respondents had sent the prescribed declaration in Form II to the Tahsildar, Hospet on 7-6-1977. According to the High Court, no such declaration could be furnished on 5-6-1977 as it was a holiday being Sunday. Upon that view, the High Court set aside the order of confiscation passed by the Deputy Commissioner under S. 6-A of the Act and directed restoration of all the properties to the persons concerned. Hence this appeal by special leave.