JAISWAL GRAIN AGENCY Vs. STATE OF U P

JUDGEMENT

(1.) This writ petition has been filed for quashing the order dated 2-1 -2005 passed by respondent No. 2 and for a direction to the respondents to pay interest on the amount received by the respondents towards the sale of goods after confiscation of the same under provisions of Section 6-A of The Essential Commodities Act, 1955, (hereinafter called 'the Act 1955').

(2.) The facts and circumstances giving rise to this case are that the petitioner No. 1 is a proprietary firm engaged in the business of purchase, sale and storage of goods/grains having a licence under the provisions of U. P. Food Grains Dealers (Licensing and Restriction on Hoarding) Order, 1976. The petitioners had purchased huge quantity of grains, i.e. fine rice in 1985. However, 120 bags of the said consignment had been confiscated by the authorities under Section 6-A (1) of the Act 1955. The said rice had been sold for an amount of Rs. 17,600/- on 5-1-1986 and the amount was retained by the respondents. Petitioner No. 2 stood acquitted in the trial vide judgment and order dated 19-4-1988. He had been pursuing the authorities for refund of the said amount with interest but invain, hence, being aggrieved, they filed Writ Petition No. 39995 of 1992 wherein this Court directed the authorities to decide the representation of the petitioners, vide order dated 15-10-1996. In pursuance thereof, the amount was refunded only on 10-1-2005. The interest has been denied on the ground that the amount fetched by sale of the rice did not secure any interest. An application for awarding interest has been rejected vide 2-1 -2005 (Annex. 9). Hence the present petition.

(3.) We have considered the submissions made by Shri Rajeev Mishra, learned counsel for the petitioners and Sri C. K. Rai, learned Standing Counsel for the respondents and perused the record.