FIRM RAMDEO ONKARMAL Vs. STATE OF UTTAR PRADESH

JUDGEMENT

(1.) This appeal by certificate granted under sub-clause (c) of clause (1) of Article 134 of the Constitution by the Allahabad High Court is directed against a judgment of that Court dismissing the appellants petition for quashing criminal proceedings against them under the Forward Contracts (Regulation) Act, 1952.

(2.) The appellants are being prosecuted for various offences under Section 20 and Section 21 of the Forward Contracts (Regulation) Act, 1952 on the ground that three transactions of purchase of Tur (Arhar) were entered into by them in violation of Notifications Nos. 1384-B, 1384-C and 1384-D, all dated July 17, 1958, issued by the Central Government under that Act. During the proceedings before the Sub-Divisional magistrate, the appellants challenged the validity of the three notifications. The Sub-Divisional Magistrate, and thereafter the learned Sessions Judge in revision took the view that it was premature to decide the question. They applied to the Allahabad High Court under Section 561 A read with Section 435, Code of Criminal Procedure, raising the same question and praying for the quashing of the criminal proceedings. The learned single Judge of the High Court hearing the petition considered the question to be of substantial importance and accordingly the case was referred to a larger Bench.

(3.) A Division Bench of the High Court by its judgment dated May 22, 1975* upheld the validity of the notifications and dismissed the petition. It saw no substance in the plea of the appellants that the notifications did not specifically mention the area over which they were to operate and, therefore, were invalid. On application by the appellants the High Court granted a certificate under sub-clause (c) of clause (1) of Article 134 of the Constitution that the case was fit for appeal to this Court.