INDEXPORT LTD Vs. STATE OF UTTAR PRADESH

JUDGEMENT

(1.) The prayer made in this petition is that the F.I.R. lodged against the petitioners and all consequent proceedings may be quashed and the U.P. Oil-Seeds and Oil-Seed Products Control Order, 1966 (hereinafter referred to as the Control Order) may be declared as unconstitutional.

(2.) Mahavir Singh, Marketing Inspector, Ghaziabad (respondent No. 3) lodged an FIR under Section 3 / 7 of the Essential Commodities Act against Indexport Ltd. (petitioner No. 1) on 25-8-1982 at police Station Kotwali, Ghaziabad, and on the basis thereof a case was registered as Crime No. 483 of 1982. The main allegation in the F.I.R. is that an application for oil-seeds licence had been given by Indexport. Ltd. and in connection there of the first informent along with certain other personnel of the Food and Civil Supplies Department reached the premises of the M/s. Hindustan Lever Ltd. and on inspection it was revealed that the former had started trading in edible oils on 20-7-1982 even without obtaining a licence under the Control Order. M/s. Indexport Ltd. got prepared and gave under the singnature of P. K. Noyogi (petitioner No. 2) particulars of the trading done by them during the period 20-7-l982 to 23-8-1982. The petitioner No. 1 had transferred the oil received by them to M/ s. Hindustan Lever Ltd., Ghaziabad for processing and storage. M/ s. Hindustan Lever Ltd. informed that they had in their possession 108.054 Tonnes of groundnut oil belonging to M/s. Indexport Ltd. which they had stored along with their own oil in tankers. The aforesaid 108.054 tonnes of ground-nut oil, valued at approximately Rs. 15 lacs, was entrusted to M/s. Hindustan Lever Ltd. and they were directed to keep it in safe custody. A recovery memo was also prepared.

(3.) Clauses 2 (g),(h) and 4 of the U.P. OilSeeds and Oil-Seed products Control Order, 1966 which are relevant for the present case read as follows. 2(g) "Dealer" menas a person engaged in the business of purchase or sale or storage for sale of oil seeds or oil seed products, but does not include the Food Corpotation of India, the U.P. Food and Essential commodities Corporation or a dealer who stocks less than 5 quintals of oil or less than 10 quintals of oilseeds or less than 25 quitals of oil-cakes." 2(h) "Commission agent" means a person who is not himself a dealer but carries on the business of purchase, sale or storage for sale on behalf of a dealer or any other person for commission. "