Case Note & Summary
The Supreme Court acquitted Appellants, who were convicted under Section 3 read with Section 7 of the Essential Commodities Act, 1955 for allegedly possessing Government quota cement with intention of black-marketing. The Court found that the prosecution failed to establish the existence of a valid operative control order that was contravened, as the relevant provisions of the Cement Control Order, 1967 had been deregulated before the alleged incident. The Court emphasized that conviction under Section 7 requires proof of contravention of an order under Section 3, which was not established in this case. The judgments of the trial Court and High Court were set aside, and the appellants were acquitted.
Headnote
The Supreme Court allowed the criminal appeals filed by Appellants against their conviction under Section 3 read with Section 7 of the Essential Commodities Act, 1955 (E.C. Act) -- The appellants were convicted by the trial Court and the High Court for allegedly possessing 365 bags of Government quota cement with intention of black-marketing -- The Court examined the legal framework including the Maharashtra Cement (Licensing and Control) Order, 1973 and the Cement Control Order, 1967 -- The Court found that Clause 21 of the 1973 Order, which prohibited selling or buying cement at higher prices, depended entirely on Clause 10 of the Cement Control Order, 1967 for price fixation -- The Central Government had substantially deregulated price and distribution control of cement through S.O. 168 dated 01.03.1989, which omitted Clause 10 of the Cement Control Order, 1967 -- Consequently, Clause 21 of the 1973 Order became unenforceable -- The prosecution failed to prove the existence of a valid operative order under Section 3 of the E.C. Act that was allegedly contravened -- There was no evidence regarding the controlled price of cement on the relevant date or proof of purchase, sale, or intention to sell -- The Court held that conviction under Section 7 of the E.C. Act requires proof of contravention of a valid order under Section 3 -- The appeals were allowed and the appellants were acquitted of all charges
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Issue of Consideration: The Issue of Consideration was whether the conviction of the appellants under Section 3 read with Section 7 of the Essential Commodities Act, 1955 for alleged violation of the Maharashtra Cement (Licensing and Control) Order, 1973 was legally sustainable given the deregulation of cement control and lack of evidence regarding valid operative orders and contravention
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Final Decision
The Supreme Court allowed the criminal appeals -- Set aside the judgments of the trial Court and High Court -- Acquitted the appellants of all charges under Section 3 read with Section 7 of Essential Commodities Act, 1955 -- Appellants were directed to be released forthwith if not required in any other case
