STATE OF KERALA Vs. CHAKKU

JUDGEMENT

(1.) Contravention of the provisions of the Essential Commodities Act or any Orders issued pursuant thereto may entail confiscation of the essential commodity. Before final orders are passed, it may also be necessary to sell the commodity in public auction or at controlled rates when it is subject to speedy natural decay or when it is otherwise expedient in public interest. When, confiscation, is finally awarded, does it not attach to the money representing the commodity or can it be said that there was no confiscation of the sale proceeds and that the money has to be returned. The answer seems to be simple; but the learned counsel for the respondents submit on the basis of Abdu v. State of Kerala ( 1979 KLT 189 ) that the sale proceeds have to be disbursed to the person from whom the cement was seized, notwithstanding confiscation of the commodity. This requires consideration and so to the facts.

(2.) The Police seized 49 bags of cement from the house of the first respondent Chakku. Confiscation proceedings were initiated under the Essential Commodities Act and notice was issued to him. He contended that 25 bags of cement were purchased by him on the strength of permits and 24 bags were purchased by one Narayanan, the second respondent, who in his turn entrusted the same to Chakku for safe custody. The Assistant Collector, authorised in this behalf, held that the entire cement seized was procured illegally and kept for sale violating Kerala Cement Distribution (Licensing and Regulation) Order, 1974, This order was passed on 18-1-1980. Meanwhile the cement had been sold in public auction and the sale proceeds were kept in revenue deposit. The Assistant Collector therefore directed that the sale proceeds shall be confiscated.

(3.) The matter was taken in appeal to the District Judge, Trichur, under S.6C of the Act. The District Judge relying on 1979 KLT 189 allowed the appeal and directed the return of the sale proceeds to the person from whom the cement was seized. The State has filed this revision.