DADA AND COMPANY BANGALORE Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) petitioners are wholesale dealers holding licences under the Provisions of the Karnataka essential commodities licensing Order, 1986 (referred to as the 'licence order'). They challenge clause 14(l)(d) of the licensing order: clause 14 of the licensing order reads thus:

(2.) in appanna setty's case, the bench was considering the Mysore foodgrains (wholesale) dealers licensing Order, 1964 and a similar licensing order governing the retail dealers, as also another licensing order governing the non-edible essential commodities. Clause 8 of the non-edible essential commodities control order was upheld with the following observation:

(3.) the resultant position is that the power to search any premises in which foodgrains may be stored, and the power to seize and remove stocks of foodgrains, are not regulated by any guiding principle and are not controlled by any conditions like the enforcement officer having reason to believe that any contravention of the Provisions of the respective licence has been, is being or is about to be committed. Thus, the power of search, seizure and removal in regard to stocks of foodgrains is unguided, uncontrolled and unqualified. There is no check on the exercise of such power by an enforcement officer. Thus, the powers conferred by clause 11 are so wide as to enable the enforcement officer to seize stocks of foodgrains even without the least suspicion of therebeing any contravention of any of the Provisions of the orders or the licence." the bench also pointed" but that the relevant clause ll(d) which empowered search and seizure "even without the safeguard that the enforcement officer should have reason to believe or suspect contravention of the Provisions of the licensing orders or the conditions of licence" cannot but be regarded as arbitrary, unguided, etc., and hence it was violative of article 19 of the Constitution of india. In the instant case, the power of search and seizure is a guided and controlled power; the requisite guidance and control are found in the opening sentence of clause 14(1), which govern all the sub-clauses (a) to (d) of clause 14(1). The authority has to have reason to believe that (i) there is or has been contravention of the Provisions of the order or (ii) with a view to securing compliance with the order or (iii) to satisfy himself that there is or has been any contravention of the Order, before exercising the power under sub-clause (d).