ESSENTIAL COMMODITIES ACT 1955

by Usha Rai · April 26, 2015

THE ESSENTIAL COMMODITIES ACT, 1955

ACT No.10 OF 1955 1

1st April, 1955

An Act to provide, in the interests of thegeneral public, for the control of the production, supply and distribution of,and trade and commerce in, certain commodities.

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1. Extended to Goa, Damanand diu with modifications by Regulation 12 of 1942, Sec. 3 and Sch. to Dadraand Nagar Haveli by Regulation 6 of 1963, Sec.2 Sch. I and Lakshadweep and Amindivi Islands by Regulation 8 of 1965 Sec. 3 and Sch.to the State of Sikkim (w. e. f. 7-1-1976) vide S.O. 28 (E), dated 7th January,1976.

This Act has been amended in Maharashtra byMaharashtra Act, 71 of 1976, in Orissa by Orissa Act 8 of 1976, in UttarPradesh by Uttar Pradesh Acts 9 of 1974, 18 of 1975, 39 of 1975 and 16 of 1978.

Be it enacted by Parliament in the SixthYear of the Republicof India as follows: –

1.Short title and extent: (1) This Act maybe called The Essential Commodities Act, 1955.

(2) It extends to the whole of India 1[*].

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1. Words "except the State of Jammu and Kashmir" omitted by the Central Laws(Extension to Jammu and Kashmir)Act, 1968 (25 of 1968), Section 2 and Sch. (15-8-1968).

2.Definitions: In this Act, unless thecontext otherwise requires,-

1 [ 2 [3 [(ia)]] "Code" means theCode of Criminal Procedure, 1973 (2 of 1974); and]

4 [(ia) 5 [(iia)] "Collector"includes an Additional Collector and such other officer not below the rank ofSub-Divisional Officer as may be authorised by the Collector to perform thefunctions and exercise the powers of the Collector under this Act;]

(a) essential commodities means any of thefollowing classes of commodities :-

(i) Cattle fodder, including oilcakes andother concentrates;

(ii)Coal, including coke and other derivatives;

(iii)6 [*]

(iv)Cotton and woollen textiles;

7 [(iva) drugs.

Explanation: – In this sub-clause"drug" has the meaning assigned to it in clause (b) of section 3 ofthe Drugs and Cosmetics Act, 1940.]

(v) foodstuffs, including edible oilseedsand oils;

(vi) iron and steel, including manufacturedproducts of iron and steel;

(vii) paper, including newsprint,paperboard and straw board;

(viii) petroleum and petroleum products;

(ix) raw cotton, whether ginned or unginned,and cotton seed;

(x) raw jute;

(xi) any other class of commodity which theCentral Government may, by notified order, declare to be an essential commodityfor the purposes of this Act, being a commodity with respect to whichParliament has power to make laws by virtue of entry 33 in List III in theSeventh Schedule to the Constitution;

(b) ‘food-crops’ include crops ofsugarcane;

8 [(cc) "order" includes adirection issued thereunder;]

9 [(d) ‘State Government’, in relation to aUnion territory, means the administrator thereof.]

8 [(e) "sugar" means-

(i) any form of sugar containing more thanninety per cent.of sucrose, including sugar candy;

(ii) Khandsari sugar or bura sugar orcrushed sugar or any sugar in crystalline or powdered form; or

(iii) sugar in process in vacuum pan sugarfactory or raw sugar produced therein.]

10 [(f) words and expressions used but notdefined in this Act and defined in the Code shall have the meaningsrespectively assigned to them in that Code.]

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1. Clause (ia) re-numbered as cl. (iia) andbefore so re-numbered clause new clause (ia) added and cl.(f), inserted by Act18 of 1981, Sec.3 (a) (1-9-82).

2. The clause (ia) inserted by Act 18 of1981 is for a period of fifteen years which now stands ceased to have effectafter expiry of fifteen years and hence shown in a dim colour.

3. Re-numbered by Sec.2 of The EssentialCommodities (Amendment) Ordinance, 1998 (13 of 1998) w.e.f.25th April, 1998.

4. Inserted by Act 92 of 1976, Sec.2(2-9-1976).

5. The re-numbered clause (iia) takes backits original number (ia) since the re-numbering is effective for fifteen yearswhich now stands ceased to have effect after expiry of fifteen years and henceshown in a dim colour.

6. The words in clause (a) sub-clause (iii)"component parts and accessories of automobiles" omitted by TheEssential Commodities (Amendment) Ordinance, 1998 (13 of 1998).

7. Inserted by Act 30 of 1974, Sec.2 (w.e.f.22-6-1974).

8. Inserted by Act 36 of 1967, Sec.2(30-12-1967).

9. Substituted for former clause (d) byAdaptation of Laws No.3 Order, 1956.

10. The clause (f) inserted by Act 18 of1981 after clause (e) is for a period of fifteen years which now stands ceasedto have effect after expiry of fifteen years and hence shown in a dim colour.

STATE AMENDMENTS

Himachal Pradesh

In its application to the State of Himachal Pradesh, inSection 2 (a), after sub-clause (vi) insert as under-

"(vi-a) packing cases made wholly orpartly of wood, card-board or straw."

Vide Himachal Pradesh Act 1 of 1992, Sec.2(29-2-92).

Maharashtra

In its application to the State of Maharashtra, in section2-

(a) after the words "the contextotherwise requires, "and before clause (a), the following clause shall beinserted, namely:

"(ai)’Collector’ in Greater Bombay means the Controller of Rationing andincludes any Deputy or Assistant Controller of Rationing, and elsewhere meansthe Collector of the District and includes any Assistant or Deputy Collector orDistrict Supply Officer within his respective jurisdiction;"

(b) after clause (b), the following clausesshall be inserted, namely:-

"(ba)’holder’, in relation to any agricultural land, means the personcorporate, firm, association, joint family or body of individuals in jointpossession of such land;

(bb)’holding’ means the aggregate of all lands in possession of aholder;"

Vide Maharashtra Act 1 of 1976, Sec.2(w.e.f.12-11-1975).

Uttar Pradesh

Uttar Pradesh Act 18 of 1975, Sec.3, hadadded clause (aa) defining ‘Collector’, w.e.f.31-3-1975; the said clause wasomitted by Uttar Pradesh Act 16 of 1978, Sec.2 with effect from 2-9-1976.Thiswas omitted because in the principal Act definition of ‘Collector’ was introducedin Sec.2 by Act 92 of 1976 with effect from 2-9-1976.

3.Powers to control production, supply,distribution, etc., of essential commodities: (1) If the Central Government isof opinion that it is necessary or expedient so to do for maintaining orincreasing supplies of any essential commodity or for securing their equitabledistribution and availability at fair prices, 1 [or for securing any essentialcommodity for the defence of India or the efficient conduct of militaryoperations] it may, by order, provide for regulating or prohibiting theproduction, supply and distribution thereof and trade and commerce therein.

(2) Without prejudice to the generality ofthe powers conferred by sub-section (1), an order made thereunder may provide –

(a) for regulating by licences, permits orotherwise the production or manufacture ofany essential commodity;

(b) for bringing under cultivation anywaste or arable land, whether appurtenant to abuilding or not, for the growing thereon of food-crops generally or ofspecified food-crops, and for otherwise maintaining or increasing thecultivation of food-crops generally, or of specified food-crops;

(d) for regulating by licences, permits orotherwise the storage, transport, distribution, disposal, acquisition, use orconsumption of , any essential commodity;

(e) for prohibiting the withholding fromsale of any essential commodity ordinarily kept for sale;

2 [(f) for requiring any person holding instock, or engaged in the production, or in the business of buying or selling,of any essential commodity, –

(a) to sell the whole or a specified partof the quantity held in stock or produced or received by him, or

(b) in the case of any such commodity whichis likely to be produced or received by him, to sell the whole or a specifiedpart of such commodity when produced or received by him,

to the Central Government or a StateGovernment or to an officer or agent of such Government or to a Corporationowned or controlled by such Government or to such other person or class ofpersons and in such circumstances as may be specified in the order.

Explanation 1: – An order made under thisclause in relation to food-grains, edible oilseeds or edible oils, may, havingregard to the estimated production, in the concerned area, of such foodgrains,edible oilseeds and edible oils, fix the quantity to be sold by the producers insuch area and may also fix, or provide for the fixation of, such quantity on agraded basis, having regard to the aggregate of the area held by, or under thecultivation of, the producers.

Explanation 2: – For the purpose of thisclause, "production" with its grammatical variations and cognateexpressions includes manufacture of edible oils and sugar;]

(g) for regulating or prohibiting any classof commercial or financial transactions relating to foodstuffs or cottontextiles which, in the opinion of the authority making the order, are, or, ifunregulated, are likely to be, detrimental to the public interest;

(h) for collecting any information orstatistics with a view to regulating or prohibiting any of the aforesaidmatters;

(i) for requiring persons engaged in theproduction, supply or distribution, of, or trade and commerce in, any essentialcommodity to maintain and produce for inspection such books, accounts andrecords relating to their business and to furnish such information relatingthereto, as may be specified in the order;

3 [(ii) for the grant or issue of licenses,permits or other documents, the charging of fees therefor, the deposit of suchsum, if any, as may be specified in the order as security for the dueperformance of conditions of any such licence, permit or other document, theforfeiture of the sum so deposited or any part thereof for contravention of anysuch conditions, and the adjudication of such forfeiture by such authority asmay be specified in the order;]

4 [(j) for any incidental and supplementarymatters, including in particular, the entry, search or examination of premises,aircraft, vessels, vehicles or other conveyances and animals, and the seizureby a person authorised to make such entry, search or examination-

(i) of any articles an respect of whichsuch person has reason to believe that a contravention of the order has been,is being, or is about to be, committed and any packages, coverings orreceptacles in which such articles are found;

(ii) of any aircraft, vessel, vehicle orother conveyance or animal used in carrying such articles, if such person hasreason to believe that such aircraft, vessel or vehicle or other conveyance oranimals is liable to be forfeited under the provisions of this Act;

5 [(iii) of any books of accounts anddocuments which in the opinion of such person, may be useful for, or relevantto, any proceeding under this Act and the person from whose custody such booksof accounts or documents are seized shall be entitled to make copies thereof orto take extracts therefrom in the presence of an officer having custody of suchbooks of accounts or documents.]]

6 ["Provided that where a personauthorised under an order issued under this section to make the entry, search,examination or seizure is below the rank of a Magistrate of the first class orits equivalent, he shall obtain prior permission of an officer not below therank of a Magistrate of the first class or its equivalent before making suchentry, search, examination or seizure."

(2A) An order made under this section mayprovide for certain allowance for difference between physical stock and stockin record of any essential commodity which may occur due to climatic conditionsor handling of the essential commodity.]

(3) Where any person sells any essentialcommodity in compliance with an order made with reference to clause (f) ofsub-section (2), there shall be paid to him the price therefor as hereinafterprovided: –

(a) where the price can, consistently withthe controlled price, if any, fixed under this section, be agreed upon, theagreed price;

(b) where no such agreement can be reached,the price calculated with reference to the controlled price, if any,

(c) where neither clause (a) nor clause (b)applies, the price calculated at the market rate prevailing in the locality atthe date of sale.

7 [(3A) (i)If the Central Government is of opinion that it is necessary so to do forcontrolling the rise in prices, or preventing the hoarding, of any foodstuffsin any locality, it may, by notification in the Official Gazette, direct thatnotwithstanding anything contained in sub-section (3), the price at which thefoodstuff shall be sold in the locality in compliance with an order made withreference to clause (f) of sub-section (2) shall be regulated in accordancewith the provisions of this sub-section.

(ii) Any notification issued under thissub-section shall remain in force for such period not exceeding three months asmay be specified in the notification.

(iii) Where, after the issue of anotification under this sub-section, any person sells foodstuffs of the kindspecified therein and in the locality so specified, in compliance with an ordermade with reference to clause (f) of sub-section (2), there shall be paid tothe seller as the price therefor-

(a) where the price can consistently withthe controlled price of the foodstuffs, if any, fixed under this section, beagreed upon, the agreed price;

(b) where no such agreement can be reached,the price calculated with reference to the controlled price, if any;

(c) where neither clause (a) nor clause (b)applies, the price calculated with reference to the average market rateprevailing in the locality during the period of three months immediatelypreceding the date of the notification.

(iv) For the purposes of sub-clause (c) ofclause (iii) the average market rate prevailing in the locality shall bedetermined by an officer authorised by the Central Government in this behalf,with reference to the prevailing market rates for which published figures areavailable in respect of that locality or of a neighbouring locality; and theaverage market rate so determined shall be final and shall not be called inquestion in any Court.]

8 [(3B) Where any person is required, by anorder made with reference to clause (f) of sub-section (2) to sell to theCentral Government or to a State Government or to an officer or agent of suchGovernment or to a corporation owned or controlled by such Government, anygrade or variety of foodgrains, edible oilseeds or edible oils in relation towhich no notification has been issued under sub-section (3A), or suchnotification having been issued, has ceased to be in force, there shall be paidto the person concerned, notwithstanding anything to the contrary contained insub-section (3), an amount equal to procurement price of such foodgrains,edible oilseeds or edible oils, as the case may be specified by the StateGovernment, with the previous approval of the Central Government having regardto-

(a) the controlled price, if any, fixedunder this section or by or under any other law for the time being in force forsuch grade or variety of foodgrains, edible oilseeds or edible oils;

(b) the general crop prospects;

(c) the need for making such grade orvariety of foodgrains, edible oilseeds or edible oils available at reasonableprices to the consumers, particularly the vulnerable sections of the consumers;and

(d) the recommendations if any, of theAgricultural Prices Commissions with regard to the price of the concerned gradeor variety of foodgrains, edible oil seeds or edible oils.]

9 [(3C) Where any producer is required byan order made with reference to clause (f) of sub-section (2) to sell any kindof sugar (whether to the Central Government or a State Government or to anofficer or agent of such Government or to any other person or class of persons)and either no notification in respect of such sugar has been issued undersub-section (3A) or any such notification, having been issued, has ceased toremain in force by efflux of time, then, notwithstanding anything contained insub-sec.(3), there shall be paid to that producer an amount therefor whichshall be calculated with reference to such price of sugar as the CentralGovernment may, by order, determine, having regard to-

(a) the minimum price, if any fixed forsugarcane by the Central Government under this section;

(b) the manufacturing cost of sugar;

(d) the securing of a reasonable return onthe capital employed in the business of manufacturing sugar, and differentprices may be determined from time to time for different areas or for differentfactories or for different kinds of sugar.

Explanation: – For the purposes of thissub-section, "producer" means a person carrying on the business ofmanufacturing sugar.]

(4) If the Central Government is of opinionthat it is necessary so to do for maintaining or increasing the production andsupply of an essential commodity, it may, by order, authorise any person(hereinafter referred to as an authorised controller) to exercise, with respectto the whole or any part of any such undertaking engaged in the production andsupply of the commodity as may be specified in the order such functions ofcontrol as may be provided therein and so long as such order is in force withrespect to any undertaking or part thereof,-

(a) the authorised controller shallexercise his functions in accordance with any instructions given to him by theCentral Government, so, however, that he shall not have any power to give anydirection inconsistent with the provisions of any enactment or any instrumentdetermining the functions of the persons in charge of the management of theundertaking, except in so far as may be specifically provided by the order; and

(b) the undertaking or part shall becarried on in accordance with any directions given by the authorized controllerunder the provisions of the order, and any person having any functions ofmanagement in relation to the undertaking or part shall comply with any suchdirections.

(5) An order made under this sectionshall,-

(a) in the case of an order of a generalnature or affecting a class of persons, be notified in the Official Gazette;and

(b) in the case of an order directed to aspecified individual be served on such individual-

(i) by delivering or tendering it to thatindividual, or

(ii) if it cannot be so delivered ortendered, by affixing it on the outer door or some other conspicuous part ofthe premises in which that individual lives, and a written report thereof shallbe prepared and witnessed by two persons living in the neighbourhood.

(6) Every order made under this section bythe Central Government or by any officer or authority of the Central Governmentshall be laid before both Houses of Parliament, as soon as may be, after it ismade.

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1. Inserted by the Essential Commodities(Second Amendment) Act, 1967 (36 of 1967), Sec.3 (a).

2. Substituted by Act 92 of 1976, Sec.3 (a)( i ) (2-9-1976).

3. Inserted by Essential Commodities(Amendment) Act, 1961 (17of 1961), Sec.

2. Substituted by Act 66 of 1971, Sec.2(23-12-1971).

5. Substituted for sub-clause (iii) ofclause (j) by Act 92 of 1976, Sec.3 (ii) (2-9-1976).

6. Inserted by Sec.3 of The EssentialCommodities (Amendment) Ordinance, 1998 (13 of 1998).

7. Inserted by the Essential Commodities(Amendment) Act, 1957 (13 of 1957), Sec.2 (4-6-1957).

8. Substituted for former sub-section (3B)by Act 92 of 1976, Sec.3 (b) (2-9-1976).

9. Inserted by the Essential Commodities(Second Amendment) Act, 1967 (36 of 1967), Sec.3 ( c ) (30-12-1967).

STATE AMENDMENTS

Bihar

In its application to State of Bihar, in Section 3 –

(i) in sub-section (2), for clause (f) thefollowing clause shall be and shall be deemed always to have been substituted:-

"(f) for requiring any person holdingin stock, or engaged in the manufacture or production of, or in the business ofbuying or selling any essential commodity to sell the whole or a specified partof the quantity held in stock or produced or caused to be produced or likely tobe manufactured or produced or caused to be produced by him or received orlikely to be received by him in the course of the said business, to the CentralGovernment or a State Government or to such other person or class of personsand in such circumstances as may be specified in the order.

Explanation: – An order relating tofoodgrains made with reference to this clause,-

(i) may specify the prices, fixed by theCentral/State Government in this behalf, after taking into account therecommendations, if any of the Agricultural Prices Commission and with theprior concurrence of the Central Government as the amount which shall be paidfor the foodgrain required to be sold under the order.

(ii) may fix or provide for the fixation ofthe quantity to be sold by a producer with reference to the area undercultivation and the availability of irrigation for production of the particularfoodgrain to which the order relates, and also fix or provide for the fixationof such quantities on a graded basis having regard to the aggregate area heldby or under the cultivation of different producers."

Vide BiharAct 9 of 1978, Sec.3.

(ii) in sub-section (3), for clause (c),the following clauses shall be and shall be deemed always to

have been substituted:

"(c) in the case of foodgrains, whereneither clause (a) nor clause (b) applies, the price, if any specified in thesaid order;

(d) where neither clause (a), nor clause(b), nor clause (c) applies, the price calculated at the market rate prevailingin the locality at the date of sale.

Vide BiharAct 9 of 1978, Sec.3.

(iii) in sub-section (3B), after clause(a), the following clause shall be and shall be deemed always

to have been inserted,-

"(aa) in the case of foodgrains, whereno controlled price is fixed by an order made with reference to clause ( c ) ofsub-section (2), the amount specified in the said order made with reference toclause (f) of sub-section (2) for such grade or variety of foodgrains or"

Vide BiharAct 9 of 1978, Sec.3.

Maharashtra

In its application to the State of Maharashtra, in section3: –

(a) in sub-section (2), for clause (f), thefollowing clause shall be substituted, and shall be deemed always have beensubstituted, namely: –

"(f) for requiring any person holdingin stock, or likely to hold in stock, or engaged in the manufacture orproduction or processing of, or in the business of buying or selling, anyessential commodity, to sell, the whole or a specified part of the quantity ofthe essential commodity held in stock or likely to be held in stock by him ormanufactured or produced or processed or likely to be manufactured or producedor processed by him or received or likely to be received by him in his businessof buying or selling to the Central Government or the State Government or toan officer or agent of any Government orto such other person or class of persons and in such circumstances as may bespecified in the order:

Explanation: – An order made under thisclause in respect of foodgrains may fix or provide for fixation of the quantityto be sold by a producer with reference to the nature and extent of his holdingor the land revenue payable by him with certain weightages which may beprescribed for certain crops or lands enjoying irrigation or other facilitiesand also fix or provide for fixation of the quantity to be sold on a gradedbasis having regard to the size of the holdings of different producers."

Vide MaharashtraAct 1 of 1976, Sec.3.

(b) In sub-section (3), for clause (c ),the following clause shall be substituted, and shall be deemed always to havebeen substituted, namely:-

"(c) where neither clause ( c ), thefollowing clause shall be substituted, and shall be deemed always to have been substituted, namely:-

"(c) where neither clause (a) norclause (b) applies, in the case of foodgrains, the amount, if any, specified inor calculated in accordance with the order made under clause (f) of sub-section(2) read with sub-section (3-B), and in the case of any other essentialcommodity, the price calculated at the market rate prevailing in the localityat the date of sale."

Vide MaharashtraAct 1 of 1976, Sec.3 (b).

(c) for sub-section (3-B), the followingsub-section shall be substituted and shall be deemed always to have beensubstituted, namely:-

"(3-B) where, by an order made withreference to clause (f) of sub-section (2), any person is required to sell anygrade or variety of foodgrains, edible oilseeds or edible oils to the CentralGovernment or a State Government or an officer or agent of such Government or acorporation owned or controlled by such Government or to a person or class of persons specifiedin the order, and either no notification in respect of such foodgrains, edibleoilseeds or edible oils has been issued under sub-section (3-A) or any suchnotification having been issued, has ceased to remain in force by efflux oftime then, notwithstanding anythingcontained in sub-section (3), there shall be paid to the person concernedan amount determined by the Central Government or the State Government, as thecase may be,-

(a) having regard to the controlled price,if any, fixed under this section or by or under any law for the time being inforce for such grade or variety of foodgrains, edible oilseeds or edible oils,or

(b) having regard to the prices recommendedby the Agricultural Prices Commission for the concerned essential commodity,where no controlled price in relation to such commodity, has been fixed by orunder any law for the time being in force."

Vide MaharashtraAct 1 of 1976, Sec.3 (c).

Uttar Pradesh

(i) clause "(ff) for preventing thehoarding of any essential commodity" introduced by Uttar Pradesh Act 9 of1974 is deemed to have been repealed with effect from 22-6-1974

Vide Uttar Pradesh Act 18 of 1975, Sec.2.

(ii) In its application to State of Uttar Pradesh: –

(a) in Section 3, in sub-section (2), forclause (f), the following clause shall be substituted and deemed always to havebeen substituted.-

* [(f) for requiring any person holding instock or engaged in the manufacture or production of, or in the business ofbuying or selling any essential commodity to sell the whole or a specified partof quantity held in stock or manufactured or produced or likely to bemanufactured or produced by him or received or likely to be received by him inthe course of said business of buying or selling, to the Central Government ora State Government or to an officer or agent of such Government or to suchother person or class of persons and in such circumstances as may be specifiedin the order;

Explanation: – An order relating tofoodgrains made with reference to this clause-

(I) may specify the price fixed by CentralGovernment in this behalf after taking into account the recommendations, ifany, of the Agricultural Prices Commission as the amount which shall be paidfor the foodgrains required to be sold under the order;

** [(II) may fix or provide for thefixation of the quantity to be sold by a producer with reference to the areaunder cultivation for production of the particular foodgrains to which theorder relates, and also fix or provide for the fixation of such quantities on agraded basis having regard to the aggregate area held by or under the cultivationof different producers.]]

* Substituted by U.P.Act 18 of 1975, Sec.4.

** Substituted and deemed always to havebeen so, by U.P.Act 39 of 1975, Section 2.

(b) in sub-section (3), for clause (c), thefollowing clauses shall be substituted and be deemed always to have beensubstituted.-

"(c) in the case of foodgrains, whereneither clause (a) nor clause (b) applies, the amount, if any specified in thesaid order made with reference to clause (f) of sub-section (2);

(d) where neither clause (a), nor clause(b), nor clause (c), applies the price calculated, at the market rateprevailing in the locality at the date of sale."

Vide Uttar Pradesh Act 18 of 1975, Sec.4(b).

(c) in sub-section (3-B), after clause ( i), the following clause shall be inserted and be deemed always to have beeninserted,-

"(i-a) in the case of foodgrains,where no controlled price is fixed by an order made with reference to clause(f) of sub-section (2), for such grade or variety of foodgrains.".

Vide Uttar Pradesh Act 18 of 1975, Sec.4(c).

4.Imposition of duties on StateGovernments, etc: An order made under section 3 may confer powers and imposeduties upon the Central Government or the State Government or officers andauthorities of the Central Government or State Government, and may containdirections to any State Government or to officers and authorities thereof as tothe exercise of any such powers or the discharge of any such duties.

5.Delegation of Powers: The CentralGovernment may, by notified order, direct that 1 [the power to make orders orissue notifications under section 3] shall in relation to such matters, andsubject to such conditions, if any, as may be specified in the direction, beexercisable also by-

(a) such officer or authority subordinateto the Central Government, or

(b) such State Government or such officeror authority subordinate to a State Government,

as may be specified in the direction.

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1. Substituted for the words and figure"the power to make orders under Section 3" by Act 66 of 1971, Sec.3(23-12-1971).

6.Effect of orders inconsistent with otherenactments: Any order made under section 3 shall have effect notwithstandinganything inconsistent therewith contained in any enactment other than this Actor any instrument having effect by virtue of any enactment other than this Act.

1 [6A.Confiscation of foodgrains, edibleoilseeds and edible oils: 2 [(1)] Where any 3 [essential commodity is seized]in pursuance of an order made under section 3 in relation thereto, 4 [a reportof such seizure, shall without unreasonable delay be made to] the Collector ofthe district or the Presidency-town in which such 3 [essential commodity isseized] and whether or not a prosecution is instituted for the contravention ofsuch order, the Collector, 5 [may, if he thinks it expedient so to do, directthe essential commodity so seized to be produced for inspection before him andif he is satisfied] that there has been a contravention of the order 6 [mayorder confiscation of-

(a) the essential commodity so seized;

(b) any package, covering or receptacle in which such essentialcommodity is found; and

Provided that without prejudice to anyaction which may be taken under any provision of this Act, no foodgrains oredible oilseeds seized in pursuance of an order made under section 3 inrelation thereto from a producer shall, if the seized foodgrains or edibleoilseeds have been produced by him be confiscated under this section.

7 [Provided further that in the case of anyanimal, vehicle, vessel or other conveyance used for the carriage of goods orpassengers for hire, the owner of such animal, vehicle, vessel or other conveyanceshall be given an option to pay, in lieu of its confiscation, a fine notexceeding the market price at the date of seizure of the essential commoditysought to be carried by such animal, vehicle, vessel or other conveyance].

8 [(2) Where the Collector, on receiving areport of seizure or on inspection of any essential commodity under sub-section(1), is of the opinion that the essential commodity is subject to speedy andnatural decay or it is otherwise expedient in the public interest so to do, hemay-

(i) order the same to be sold at the controlled price, if any, fixed forsuch essential commodity under

this Act or under any other law for the time being in force; or

(ii) where no such price is fixed, order the same to be sold by publicauction:

9[10 [Provided that, in case of any essential commodity the retail sale pricewhereof has been fixed by the Central Government or a State Government underthis Act or under any other law for the time being in force and which is beingsold through fair price shops, theCollector may, for its equitable distribution and availability at fair prices,order the same to be sold through fair price shops at the price so fixed.]]

(3) Where any essential commodity is sold,as aforesaid, the sale proceeds thereof, after deduction of the expenses of anysuch sale or auction or other incidental expenses relating thereto, shall-

(a) where no order of confiscation is ultimately passed by theCollector,

(b) where an order passed on appeal under sub-section (1) of section 6Cso requires, or

confiscation has been made under this section, the person concerned isacquitted,

be paid to the owner thereof or the personfrom whom it is seized.]

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1. Sections 6A to 6D inserted by Act 25 of1966, Sec.3 (3-9-1966).

2. Sec.6A renumbered as sub-section (1)thereof by Act 92 of 1976, Sec.4 (2-9-1976).

3. Substituted for "foodgrains, edibleoil seeds or edible oils are seized" by Act 36 of 1967, Sec.4(31-12-1967).

4. Substituted for words "it may beproduced without any unreasonable delay before" by Act 92 of 1976, Sec.4(9) ( i ), (2-9-1976).

5. Substituted for words "ifsatisfied" by Act 92 of 1976, Sec.4 (2-9-1976).

6. Substituted by Act 30 of 1974 Sec.4 for"may order confiscation of the essential commodity so seized:".

7. Inserted by Act 92 of 1976, Sec.4 (a)(ii) (2-9-1976).

8. Inserted by Act 92 of 1976, Sec.4(2-9-1976).

9. Proviso subs. by Act 18 of 1981 asamended by Act 34 of 1983 for a period of 15 years which now stands ceased tohave effect after the expiry of fifteen years – Section 4 of the EssentialCommodities (Special Provisions) Act, 1981 (18 of 1981).(Square Brackets shownin dim colour).

10. Substituted by Sec.6A of The EssentialCommodities (Amendment) Ordinance, 1998 (13 of 1998).

STATE AMENDMENTS

Bihar

In its application to the State of Bihar for Section 6A substitutethe following.-

"6-A.Confiscation of foodgrains,edible oilseeds, edible oils, etc.: (1) Where any essential commodity is seizedin pursuance of an order made under section 3 in relation thereto it shall bereported without any reasonable delay to the Collector of the district in whichsuch essential commodity is seized and the Collector may, if he thinks itexpedient so to do, inspect or cause to be inspected such essential commodity,whether or not the prosecution is instituted for the contravention of suchorder and the Collector, if satisfied that there has been a contravention ofthe order, may order confiscation of –

(a) the essential commodities so seized;

(b) any package, covering or receptacle inwhich such essential commodity is found; and

Provided that, without prejudice to anyaction which may be taken under any other provision of this Act, no foodgrainsor edible oilseeds seized in pursuance of an order made under section 3 inrelation thereto from producer shall, if the seized foodgrains or edibleoil-seeds have been produced by him, be confiscated under this section.

(2) Where the Collector, on receiving areport of seizure or in inspection of any essential commodity under sub-section(1), is of the opinion that such essential commodity is subject to speedy andnatural decay or that it is otherwise expedient in the public interest so todo, he may order the same to be sold at the controlled price if any, fixedunder any law for the time being in force.

(3) In the case of foodgrains, where thereis no controlled price, the Collector, if he thinks fit, may order thefoodgrains seized under sub-section (1) to be sold through fair price shops atthe price fixed by the Central Government or the State Government, as the casemay be for the sale of such foodgrains to the public through these shops or mayorder such foodgrains by public auction.

(4) The Collector shall whenever it ispracticable so to do having regard to the nature of the essential commoditytake and preserve sample of the same in the prescribed manner before its saleor distribution.

(5) Where any essential commodity is soldas aforesaid, the sale proceeds thereof, after deduction of all expenses of thesale or auction, as the case may be, shall-

(a) where no order of confiscation isultimately passed by the Collector; or

(b) where an order passed on appeal undersub-clause (1) of section 6-C so requires; or

(c) in the case of prosecution beinginstituted for the contravention of the order in respect of which an order ofconfiscation has been made under this section and where the person concerned isacquitted be paid to the owner thereof or the person from whom it is seized:

Provided that in the case of foodgrainssold through fair price shops in accordance with sub-sections (2) and (3) theowner shall be paid for the foodgrains so sold, the price fixed by the StateGovernment, for retail sale of such foodgrains through such shops less allexpenses of sale or auction under sub-sections (2) and (3).

(6) Notwithstanding anything to thecontrary contained in the Code of Criminal Procedure (Act II of 1974), whenCollector or the appellate authority is seized with the matter under thissection no court shall entertain any application in respect of essentialcommodities, any package covering, receptacle, any animal, vehicle or otherconveyance used in carrying such commodities as far as its release,distribution etc. is concerned and the jurisdiction of Collector or theappellate authority with regard to the disposal of the same shall be exclusive.

(7) The State Government may bynotification in the Official Gazette, authorise any officer not below the rankof sub-divisional Magistrate, to discharge all or any of the functions of aCollector under this section.

(8) The Collector shall for the purposes ofthis Act have the same powers as are vested in a court under the Code of CivilProcedure, 1908 when making enquiries under this section in respect offollowing matters, namely:-

(a) receiving evidence on affidavits;

(b) summoning and enforcing the attendanceof any person and examining him on oath; and

(9) All enquiries and proceedings underthis section before the Collector and the appellate authority shall be deemedto be judicial proceeding and while discharging functions under this sectionthe Collector and the appellate authority shall be deemed to be a Court.

Explanation: – For the purposes of thissection the Collector shall include ‘Additional Collector’ and any officerspecially authorised under sub-section (7).

Vide BiharAct 9 of 1978, Sec.4 (6-9-1978).

Maharashtra

In its application to the State of Maharashtra, for Sec.6A,substitute the following: –

"6-A.Confiscation of seizedcommodities: (1) Where any essential commodity is seized in pursuance of anorder made under section 3 in relation thereto, a report to that effect shall,without any reasonable delay be sent to the Collector within whose jurisdictionthe seizure is made, and the Collector may, if he thinks it expedient so to so,inspect or cause to be inspected such essential commodity, and whether or not aprosecution is instituted for the contravention of such order, the Collector,if satisfied that there has been contravention of the order, may orderconfiscation of –

(a) the essential commodity so seized;

(b) any package, covering or receptacle inwhich such essential commodity is found; and

Provided that without prejudice to anyaction that may be taken under any other provision of this Act, no foodgrainsor edible oilseeds seized in pursuance of an order made under section 3 inrelation thereto from a producer shall, if the seized foodgrains or edibleoilseeds have been produced by him, be confiscated under this section;

Provided further that where any animal,vehicle, vessel or other conveyance is used for the carriage of goods orpassengers for hire, the owner of such animal, vehicle, vessel or otherconveyance shall be given an option to pay in lieu of its confiscation a finenot exceeding the market price at the date of seizure of the essentialcommodity sought to be carried.

(2) Where the Collector on receiving areport of seizure or on inspection of any essential commodity under sub-section(1) is of the opinion that such essential commodity is subject to speedy andnatural decay or that it is otherwise expedient in the public interest so toso, he may order the same to be sold at the controlled price if any, fixedunder any law for the time being in force; or where no such price is fixed byauction:

Provided that, in the case of foodgrainswhere there is no controlled price, the Collector may order the foodgrainsseized to be sold through fair price shops at the price fixed by the CentralGovernment or the State Government as the case may be for the sale of suchfoodgrains to the public through these shops:

Provided further that, whenever it ispracticable so to so, having regard to the nature of the essential commodity,he shall take and preserve sample of the same before its sale or auction.

(3) Where any essential commodity is soldas aforesaid, the sale proceeds thereof after deduction of the expenses of thesale or auction, as the case may be, shall-

(a) where no order of confiscation isultimately passed by the Collector; or

(b) where an order passed, on appeal undersub-clause (1) of section 6-C so requires; or

(c) in the case of a prosecution beinginstituted for the contravention of the order in respect of which an order ofconfiscation has been made under be paid to the owner thereof or the personfrom whom it is seized:

Provided that, in the case of foodgrainssold through fair price shops in accordance with the first priviso tosub-section (2), the owner shall be paid for the food grains so sold the pricefixed by the State Government, for retail sale of such foodgrains through suchshops, less all expenses of sale or auction under sub-section (2)."

Vide Maharashtra Act 1 of 1976, Sec.4(w.e.f.12-11-1975).

Uttar Pradesh

Sec.6A was substituted by Uttar Pradesh Act18 of 1975, Sec.3.But Uttar Pradesh Act 16 of 1978, Sec.4 has omitted the samestating "Sections 6A and 6C as amended that substituted by Uttar PradeshAmendment, Sections 6A and 6C respectively, as amended or substituted by theCentral Amendment shall be and be deemed with effect from the date ofcommencement of the Central Amendment to have been substituted."

1 [6B.Issue of show cause notice beforeconfiscation of foodgrains, etc: 2 [(1)] No order confiscating 3 [any 4[essential commodity, package, covering or receptacle, animal, vehicle, vesselor other conveyance] shall be made under Section 6A unless the owner of such 4[essential commodity, package, covering or receptacle, animal, vehicle, vesselor other conveyance] or the person from whom 5 [it is seized]-

(a) is given a notice in writing informing him on the grounds on whichit is proposed to confiscate the

4 [essential commodity, package, covering or receptacle, animal,vehicle, vessel or other

conveyance].

(b) is given an opportunity of making a representation in writing withinsuch reasonable time as may

be specified in the notice against the ground of confiscation; and

6 [(2) Without prejudice to the provisionsof sub-section (1), no order confiscating any animal, vehicle, vessel or otherconveyance shall be made under Section 6A if the owner of the animal, vehicle,vessel or other conveyance proves to the satisfaction of the Collector that itwas used in carrying the essential commodity without the knowledge orconnivance of the owner himself, his agent, if any, and the person in charge ofthe animal, vehicle, vessel or other conveyance and that each of them had takenall reasonable and necessary precautions against such use].

7 [(3) No order confiscating any essentialcommodity, package, covering, receptacle, animal, vehicle, vessel or otherconveyance shall be invalid merely by reason of any defect or irregularity inthe notice given under clause (a) of sub-section (1), if, in giving such notice,the provisions of that clause have been substantially complied with.]

____________________

1. Sections 6A to 6D were inserted by Act25 of 1966, Sec.3 (3-9-1966).

2. Sec.6B renumbered as sub-section (1);thereof by Act 30 of 1974, Sec.5 (a) (w.e.f.22-6-1974).

3. Subs. by Act 36 of 1967 Sec. 5 for"any foodgrains, edible oilseeds or edible oils".

4. Subs. by act 30 of 1974 Sec. 5 for words"essential commodity" in the renumbered sub-section (1) of Sec.6B(22-6-1974).

5. Substituted for ‘they are seized’, byAct 36 of 1967, Sec.5 (31-12-1967).

6. Sub-section (2) inserted by Act 30 of1974, Sec.5 (b) (w.e.f.22-6-1974).

7. Inserted by Act 92 of 1976, Sec.5(2-9-1976).

STATE AMENDMENT

Uttar Pradesh

In its application to the State of Uttar Pradesh, afterSection 6-B, insert Section 6-BB, namely.-

"6BB.Review: (1) Where the Collectoris satisfied that an order of confiscation or an order refusing confiscationmade under Section 6-A suffers from a mistake apparent on the face of therecord (including any mistake of law) he may within one month of such orderissue notice to the owner of the essential commodity, package, covering,receptacle, animal, vehicle, vessel or other conveyance, or, as the case maybe, the person from whom it was seized, to show cause why that order should notbe reviewed, and after giving him a reasonable opportunity of being heard, passsuch order on review as he thinks fit.

(2) The provisions of Sections 6-C and 6-Dshall apply in relation to an order passed originally under Sec.6-A."

Vide Uttar Pradesh Act 18 of 1975, Sec.6(31-3-1975).

6C.Appeal: (1) Any person aggrieved by anorder of confiscation under Section 6A may within one month from the date ofthe communication to him of such order, appeal to 1 [the State Government concernedand the State Government] 1 [any judicial authority appointed by the StateGovernment concerned and the judicial authority] after giving an opportunity tothe appellant to be heard pass such order as it may think fit, confirming,modifying or annulling the order appealed against.

(2) Where an order under Section 6A ismodified or annulled by 2 [the State Government] 2 [such judicial authority] orwhere in a prosecution instituted for the contravention of the order in respectof which an order of confiscation has been made under Section 6A the personconcerned in acquitted, and in either case it is not possible for any reason to3 [return the essential commodity seized] 4 [such person shall except asprovided by sub-section (3) of Section 6A, be paid] the price therefor 5 [as ifthe essential commodity] had been sold to the Government with reasonableinterest calculated from the day of the seizure of 6[the essential commodity] 7[and such price shall be determined-

(i) in the case of foodgrains, edible oilseeds or edible oils, inaccordance with the provisions of

sub-section (3B) of section 3;

(ii) in the case of sugar, in accordance with the provisions ofsub-section (3C) of Section 3; and

(iii) in the case of any other essential commodity, in accordance withthe provisions of sub-section (3)

of Section 3].

____________________

1. The words "the State Governmentconcerned and the State Government" subs. by Act 18 of 1981and amended byAct 34 of 1993 for words "any judicial authority appointed by the StateGovernment and the judicial authority" by Act 18 of 1981, Sec.5 (a)(1-9-1982) for a period of fifteen years, now they stand ceased to have effectafter the expiry of fifteen years.

2. The words "the StateGovernment" subs. by Act 18 of 1981 and amended by Act 34 of 1993 for"such judicial authority" by Act 18 of 1981, Sec.5 (b), (1-9-1982)for a period of fifteen years, now they stand ceased to have effect after theexpiry of fifteen years.

3. Substituted for "return thefoodgrains, edible oilseeds or edible oil seized" by Act 36 of 1967, Sec.6(31-12-1967).

4. Substituted for "such person shallbe paid" by Act 92 of 1976, Sec.6(2-9-1976).

5. Substituted for "as if thefoodgrains, edible oilseeds or edible oils, as the case may be," by Act 36of 1967, Sec.6 (31-12-1967).

6. Substituted for "articles" byAct 36 of 1967, Sec.6 (31-12-1967).

7. Substituted for "and such priceshall be determined in accordance with the provisions of sub-section (3B)of Sec.3", by Act 36 of 1967, Sec.6(31-12-1967).

STATE AMENDMENTS

Bihar

In its application to the State of Bihar,Sec.6-C shall be substituted as follows:

"6-C.Appeal: (1) Any person aggrievedby an order of confiscation under Section 6-A may, within one month from thedate of the communication to him of such order, appeal to any judicialauthority appointed by the State Government concerned and the judicialauthority shall, after giving an opportunity to the appellant to be heard, passsuch order as it may think fit, confirming, modifying or annulling the orderappealed against.

(2) Where an order under Section 6-Amodified or annulled by such judicial authority, or where in a prosecution forthe contravention of the order in respect of which an order of confiscation hasbeen made under Section 6-A, the person concerned is acquitted and in eithercase it is not possible for any reason to return the essential commodityseized, such person shall, save as provided by sub-section (3) of Section 6-A,be paid the price thereof as if the essential commodity had been sold to theGovernment with reasonable interest calculated from the day of the seizure ofthe essential commodity and such price shall be determined –

(i) in the case of foodgrains, edible oilseedsor edible oils, in accordance with the provisions of sub-section (3B) ofSection 3;

(ii) in the case of sugar in accordancewith the provisions of sub-section (3-C) of Section 3; and

(iii) in the case of any other essentialcommodity, in accordance with the provisions of sub-section (3) of Section3."

Vide BiharAct 9 of 1978, Sec.5 (6-9-1978).

Maharashtra

In its application to the State ofMaharashtra, in Sec.6-C, in sub-section (2), for the words "such personshall be paid", the words, brackets, figures and letters "such personshall, except as provided by sub-section (3) of Section 6-A, be paid",shall be substituted.

Vide Maharashtra Act 1 of 1976, Sec.5(w.e.f.12-12-1975).

Uttar Pradesh

Sec.6C as substituted and amended CentralAmendment shall be and be deemed always to have been substituted and amended asby Central Amendment-See Uttar Pradesh Act 16 of 1975, Sec.4.The effect is towipe out Uttar Pradesh Amendment made by Uttar Pradesh Act 18 of 1975.SimilarlySec.8 of Uttar Pradesh Act 18 of 1975 validates all orders passed by the StateGovernment under Sec.3 (2) (f) prior to the commencement of the said AmendingAct of 1975 any judgment, decree or order of any court notwithstanding Act 18of 1975 came into force on 31-3-1975.

1 [6D.Award of confiscation not tointerfere with other punishments: The award of any confiscation under this Actby the Collector shall not prevent the infliction of any punishment to whichthe person affected thereby is liable under this Act].

____________________

1. Section 6D inserted by the EssentialCommodities (Amendment) Act, 1966 (25 of 1966), Section 3 (3-9-1966).

1 [6E.Bar of jurisdiction in certain cases:Whenever any essential commodity is seized in pursuance of an order made underSec.3 in relation thereto, or any package, covering or receptacle in which suchessential commodity is found, or any animal, vehicle, vessel or otherconveyance used in carrying such essential commodity is seized pendingconfiscation under Sec.6A, the Collector, or as the case may be, the StateGovernment concerned under Sec.6C shall have, and, notwithstanding anything tothe contrary contained in any other law for the time being in force, any Court,tribunal or other authority shall not have, jurisdiction to make orders with regardto the possession, delivery, disposal, release or distribution of suchessential commodity, package, covering, receptacle, animal, vehicle, vessel orother conveyance.]

____________________

1. Section 6E ins. by Act 92 of 1976, Sec.7(2-9-1976) and substituted by Essential Commodities (Amendment) Act (42 of1986), Sec.2 (8-9-1986).

7.Penalties: 1 [(1) If any personcontravenes any order made under section 3, –

(a) he shall be punishable,-

2 [(i) in the case of an order made withreference to clause (h) or clause (i) of sub-section (2) of that section, withimprisonment for a term which may extend to one year, or with fine which mayextend to ten thousand rupees, or with both:

Provided that, if any person is againconvicted of the same offence under this sub-clause, he shall be punishablewith imprisonment for the second and for every subsequent offence for a termwhich shall not be less than three months but which may extend to one year andwith fine which may extend to twenty thousand rupees or with both:

Provided further that the court may, forany adequate and special reasons to be mentioned in the judgment, impose asentence of imprisonment for a term of less than three months;]

(ii) in the case of any other order, withimprisonment for a term which shall not be less than three months but which mayextend to 3 [two years and shall also be liable to fine which shall not be less than twenty-fivethousand rupees]:

4 [*]

4 [Provided that the court may, for anyadequate and special reasons to be mentioned in the judgement, impose asentence of imprisonment for a term of less than three years]

(b) any property in respect of which theorder has been contravened shall be forfeited to the Government:

(c) any packing, covering or receptacle inwhich the property is found and any animal, vehicle, vessel or other conveyanceused in carrying the property shall, if the court so orders, be forfeited tothe Government.

(2) If any person to whom a direction isgiven under clause (b) of sub-section (4) of section 3 fails to comply with thedirection, he shall be punishable with imprisonment for a term which shall notbe less than three months but which may extend to 3 [two years and shall alsobe liable to fine which shall not be less than twenty-five thousand rupees]:

4 [*]

4 [Provided that the court may, for anyadequate and special reasons to be mentioned in the judgement, impose asentence of imprisonment for a term of less than three years]

(2A) If any person convicted of an offenceunder sub-clause (ii) of clause (a) of sub-section (1) or under sub-section (2)is again convicted of an offence under the same provision, he shall bepunishable with imprisonment for the second and for every subsequent offencefor a term which shall not be less than six months but which may extend to 3[two years and shall also be liable to fine which shall not be less thanfifty-thousand rupees]:

4 [*]

4 [Provided that the court may, for anyadequate and special reasons to be mentioned in the judgement, impose asentence of imprisonment for a term of less than six months]

4 [*]

4 [(2B) For the purposes of sub-sections(1), (2) and (2A), the fact that an offence under sub-clause (ii) of clause (a)of sub-section (1) or under sub-section (2) has caused no substantial harm togeneral public or to any individual, shall be an adequate and special reasonfor awarding a sentence of imprisonment for a term of less than three months,as the case may be.]

5 [(3) Where a person having been convictedof an offence under sub-section (1) is again convicted of an offence under that sub-section forcontravention of an order in respect of an essential commodity, the Court bywhich such person is convicted shall, in addition to any penalty which may beimposed on him under that sub-section, by order, direct that, that person shallnot carry on any business in that essential commodity for such period, notbeing less than six months, as may be specified by the Court in the order.]

____________________

1. Substituted for sub-sections (1) and(2), by Act 30 of 1974, Sec.6 (w. e. f. 22-6-1974).

2. Substituted by Sec.5 of The EssentialCommodities (Amendment) Ordinance, 1998 (13 of 1998) w.e.f.25th April, 1998.

3. Substituted by ibid.

4. Provisos to, sub-section (1) (ii) sub-sections(2) and (2A) and sub-section (2A) omitted by Act 18 of 1981, Sec.7 (1-9-1982) for a period offifteen years, now they stand ceased to have effect after the expiry of fifteenyears.

5. Inserted by Act 36 of 1967, Sec.7(30-12-1967).

1 [7A.Power of Central Government torecover certain amounts as arrears of land revenue: (1) Where any person,liable to-

(a) pay any amount in pursuance of anyorder made under section 3, or

(b) deposit any amount to the credit of anyAccount or Fund constituted by or in pursuance of any order made under thatsection,

makes any default in paying or depositingthe whole or any part of such amount, the amount in respect of which suchdefault has been made shall [whether such order was made before or after thecommencement of the Essential Commodities (Amendment) Act, 1984 and whether theliability of such person to pay or deposit such amount arose before or aftersuch commencement] be recoverable by Government together with simple interestdue thereon computed at the rate of 2 [fifteen per cent, per annum from thedate of such default to the date of recovery of such amount, as an arrear ofland revenue 3 [or as a public demand]

(2) The amount recovered under sub-section(1) shall be dealt with in accordance with the order under which the liabilityto pay or deposit such amount arose.

(3) Notwithstanding anything contained inany other law for the time being in force or any contract to the contrary, nocourt, tribunal or other authority shall grant any injunction or make any orderprohibiting or restraining any Government from recovering any amount as anarrear of land revenue 3 [or as a public demand] in pursuance of the provisionsof sub-section (1).

(4) If any order, in pursuance of which anyamount has been recovered by Government as an arrear of land revenue undersub-section (1) is declared by a competent court, after giving to theGovernment a reasonable opportunity of being heard, to be invalid, theGovernment shall refund the amount so recovered by it to the person from whomit was recovered, together with simple interest due thereon, computed at therate of 2 [fifteen per cent per annum, from the date of recovery of such amountto the date on which such refund is made.

Explanation: – For the purposes of thissection, "Government" means the Government by which the Concernedorder under section 3 was made or where such order was made by an officer orauthority subordinate to any Government, that Government.]

____________________

1. Inserted by Essential Commodities(Amendment) Act (34 of 1984), Sec.2 (1-7-1984).

2. Substituted for the words "six percent" by Essential Commodities (Amendment) Act (42 of 1986), Sec.3 (a)(8-9-1986).

3. Inserted by Act 42 of 1986 Sec.3 (b)(8-9-1986).

STATE AMENDMENTS

Punjab: Haryana: Chandigarh

After Section 7, insert the following newsection:

"7-A.Forfeiture of certain propertyused in the commission of the offence: Whenever any offence relating tofoodstuffs which is punishable under section 7 has been committed, the Courtshall direct that all the packages, coverings or receptacles in which anyproperty liable to be forfeited under the said section is found and all theanimals, vehicles, vessels or other conveyances used in carrying the saidproperty shall be forfeited to the Government."

Vide Punjab Act XXXIV of 1959, Section 2(27-8-1959).

Rajasthan:

After Section 7, insert the following newsection and proviso:

Provided that if the Court is of opinionthat it is not necessary to direct forfeiture in respect of all such packages,coverings or receptacles or such animals, vehicles, vessels, or otherconveyances or any of them, it may, for reasons to be recorded, refrain fromdoing so."

Rajasthan Act 32 of 1960, Section 2(24-9-1960).

8.Attempts and abetment: Any person whoattempts to contravene, or abets a contravention of any order made undersection 3 shall be deemed to have contravened that order.

1 [Provided that where a person has abettedthe contravention of any order for the purpose of procuring any essentialcommodity of the nature mentioned in sub-clause (iva) or sub-clause (v) ofclause (a) of section 2 for his own use or for the use of any member of hisfamily or for the use of any person dependent on him, and not for the purposeof carrying on any business or trade in such essential commodity, the court may,notwithstanding anything contained in section 7 and for reasons to be mentionedin the judgment, impose a sentence of fine only.]

1 [*]

____________________

1. The proviso was ins. by Act 18 of 1981,Sec.8 (1-9-1982) as amended by act 34 of 1993 for a period of fifteen years,now they stand ceased to have effect after the expiry of fifteen years.

9.False statements: If any person, –

(i) when required by any order made undersection 3 to make any statement or furnish any information, makes any statementor furnishes any information which is false in any material particular andwhich he knows or has reasonable cause to believe to be false, or does notbelieve to be true, or

(ii) makes any such statement as aforesaidin any book, account, record, declaration, return or other document which he isrequired by any such order to maintain or furnish,

he shall be punishable with imprisonmentfor a term which may extend to 1 [five years], or with fine or with both.

____________________

1. Substituted for "three years"by the Essential Commodities (Second Amendment) Act, 1967 (36 of 1967), Section8 (30-12-1967).

10.Offences by companies: (1) If the personcontravening an order made under section 3 is a company, every person who, atthe time the contravention was committed, was in charge of, and was responsibleto, the company for the conduct of the business of the company as well as thecompany, shall be deemed to be guilty of the contravention and shall be liableto be proceeded against and punished accordingly:

Provided that nothing contained in thissub-section shall render any such person liable to any punishment if he provesthat the contravention took place without his knowledge or that he exercisedall due diligence to prevent such contravention.

(2) Notwithstanding anything contained insub-section (1) where an offence under this Act has been committed by a companyand it is proved that the offence has been committed with the consent orconnivance of, or is attributable to any neglect on the part of, any director,manager, secretary, or other officer of the company, such director, manager,secretary or other officer shall also be deemed to be guilty of that offenceand shall be liable to be proceeded against and punished accordingly.

Explanation: – For the purposes of thissection, –

(a) ‘company’ means any body corporate, andincludes a firm or other association of individuals; and

(b) ‘director’ in relation to a firm meansa partner in the firm.

1 [ 2 [10A.Provision as to cognizance andbill: Notwithstanding anything contained in the Code, every offence punishableunder-

(a) this Act shall be cognizable;

(b) this Act, except under sub-clause (h)or sub-clause (i) of clause (a) of sub-section (1) of section 7, shall benon-bailable;

(c) sub-clause (h) or sub-clause (i) ofclause (a) of sub-section (1) of section 7, if committed more than once, shall be non-bailable for the second andevery subsequent offence.]]

____________________

1. Inserted by the Essential Commodities(Second Amendment) Act, 1967 (36 of 1967), Section 9 (30-12-1967).

2. Substituted by Sec.6 of The EssentialCommodities (Amendment) Ordinance, 1998 (13 of 1998) w.e.f.25th April 1998.

1 [10AA.Power to arrest: 2 [Notwithstandinganything contained in the Code, no officer below the rank of sub-inspector ofpolice shall arrest any person accused of committing an offence punishableunder this Act.]]

____________________

1. Inserted by Essential Commodities(Special Provisions) Amendment Act (34 of 1993), Sec.4 (w.e.f.27-8-1992) byamending the provisions of the Essential Commodities (Special Provisions) Act(18 of 1981) which amends the Principal Act for a period of fifteen years, nowthey stand ceased to have effect after the expiry of fifteen years.

2. Inserted by Sec.7 of The EssentialCommodities (Amendment) Ordinance, 1998 (13 of 1998) w.e.f.25th April, 1998.

1 [10B.Power of court to publish name,place of business, etc., of companies convicted under the Act: (1) Where anycompany is convicted under this Act, it shall be competent for the courtconvicting the company to cause the name and place of business of the company,nature of the contravention, the fact that the company has been so convictedand such other particulars as the court may consider to be appropriate in the circumstancesof the case, to be published at the expense of the company in such newspapersor in such other manner as the court may direct.

(2) No publication under sub-section (1)shall be made until the period for preferring an appeal against the orders ofthe court has expired without any appeal having been preferred, or such anappeal, having been preferred, has been disposed of.

(3) The expenses of any publication undersub-section (1) shall be recoverable from the company as if it were a fineimposed by the court.

Explanation: – For the purposes of thissection, "company" has the meaning assigned to it in Clause (a) ofthe Explanation to section 10.]

____________________

1. Inserted by Act 30 of 1974, Sec.3 (w. e.f. 22-6-1974).

1 [10C.Presumption of culpable mentalstate: (1) In any prosecution for any offence under this Act which requires aculpable mental state on the part of the accused, the court shall presume theexistence of such mental state but it shall be a defence for the accused to provethe fact that he had no such mental state with respect to the act charged as anoffence in that prosecution.

Explanation: – In this section,"culpable mental state" includes intention, motive, knowledge of afact and the belief in, or reason to believe, a fact.

(2) For the purposes of this section, afact is said to be proved only when the court believes it to exist beyondreasonable doubt and not merely when its existence is established by apreponderance of probability.]

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1. Inserted by Act 30 of 1974, Sec.8(w.e.f.22-6-1974).

11.Cognizance of offences: No court shalltake cognizance of any offence punishable under this Act except on a report inwriting of the facts constituting such offence made by a person who is a publicservant as defined in section 21 of the Indian Penal Code 1 [or any personaggrieved or any recognised consumer association whether such person is amember of that association or not].

1 [Explanation: – For the purposes of thissection and Section 12AA, "recognised consumer association" means avoluntary consumer association registered under the Companies Act, 1956 or anyother law for the time being in force.]

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1. Inserted by Essential Commodities(Amendment) Act (73 of 1986), Sec.2 (a) and (b) (1-5-1987).

STATE AMENDMENT

Uttar Pradesh

In its application to the State of UttarPradesh, in section 11, substitute for the words "by person who is apublic servant as defined in section 21 of the Indian Penal Code, "thewords" by order of, or under authority from the District Magistrate orsuch other officer as may be empowered by the State Government by general orspecial order in this behalf.’

Vide Uttar Pradesh Act 9 of 1974, Sec.7(24-4-1974).

1[12.Special provision regarding fine: 1 [*]

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1. Section 12 was omitted by Act 18 of1981, Sec.10 (1-9-1982) and as amended by Act 34 of 1993 Act for a period offifteen years, which stood restored after the expiry of fifteen years was againomitted by Sec.8 of The Essential Commodities(Amendment) Ordinance, 1998 (13of 1998) w.e.f.25th April 1998.

1[12A.Constitution of Special Court: (1) The State Government may, for thepurpose of providing speedy trial of the offences under this Act, bynotification in the Official Gazette, constitute as many Special Courts as maybe necessary for such area as may be specified in the notification.

(2) A Special Court shall consist of asingle judge who shall be appointed by the High Court upon a

request made by the State Government.

Explanation: – In this sub-section, theword "appoint" shall have the meaning given to it in the Explanation to section 9 of the Code.

(3) A person shall not be qualified forappointment as a judge of a SpecialCourt unless-

(a) he is qualified for appointment as aJudge of a High Court, or

(b) he has, for a period of not less thanone year, been a Session Judge or an Additional Sessions Judge.] ]

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1. Section 12A was omitted by Act 18 of1981, Sec.10 (1-9-1982) and as amended by Act 34 of 1993 Act for a period offifteen years, which stood restored after the expiry of fifteen years was againsubstituted by Sec.9 of The Essential Commodities (Amendment) Ordinance, 1998 (13 of 1998) w.e.f.25th April 1998.

1 [12AA.Offences triable by Special Courts:(1) Notwithstanding anything contained in the Code, –

(a) all offences under this Act shall betriable only by the Special Court constituted for the area in which the offencehas been committed or where there are more Special Courts than one for sucharea, by such one of them as may be specified in this behalf by the High Court;

(b) where a person accused of or suspectedof the commission of an offence under this Act is forwarded to a Magistrateunder sub-section (2) or sub-section (2A) of section 167 of the Code, suchMagistrate may authorise the detention of such person in such custody as hethinks fit for a period not exceeding fifteen days in the whole where suchMagistrate is a Judicial Magistrate and seven days in the whole where suchMagistrate is an Executive Magistrate:

Provided that where such Magistrateconsiders-

(i) when such person is forwarded to him asaforesaid; or

(ii) upon or at any time before the expiryof the period of detention authorised by him;

that the detention of such person isunnecessary, he may, if he is satisfied that the case falls under the provisoto section 8, order the release of such person on bail and if he is not sosatisfied, he shall order such person to be forwarded to the Special Court havingjurisdiction;

(c) the Special Court may, subject to theprovisions of clause (d) of this sub-section, exercise, in relation to theperson forwarded to it under clause (b), the same power which a Magistratehaving jurisdiction to try a case may exercise under section 167 of the Code inrelation to an accused person in such case who has been forwarded to him underthat section;

(d) save as aforesaid no person accused ofor suspected of the commission of an offence under this Act shall be releasedon bail by any court other than a Special Court or the High Court:

Provided that a Special Court shall notrelease any such person on bail-

(i) without giving the prosecution anopportunity to oppose the application for such release unless the SpecialCourt, for reasons to be recorded in writing, is of opinion that it is notpracticable to give such opportunity; and

(ii) where the prosecution opposes theapplication, if the Special Court is satisfied that there appear reasonablegrounds for believing that he has been guilty of the offence concerned:

Provided further that the Special Court maydirect that any such person may be released on bail if he is under the age ofsixteen years or is a woman or is a sick or infirm person, or if the SpecialCourt is satisfied that it is just and proper so to do for any other specialreason to be recorded in writing;

(e) a Special Court may, upon a perusal ofpolice report of the facts constituting an offence under this Act * [or upon acomplaint made by an officer of the Central Government or a State Governmentauthorised in this behalf by the Government concerned ** [or any personaggrieved or any recognised consumer association, whether such person is amember of that association or not] take cognizance of that offence without theaccused being committed to it for trial;

(f) all offences under this Act shall betried in a summary way and the provisions of sections 262 to 265 (bothinclusive) of the Code shall, as far as may be, apply to such trial:

Provided that in the case of any convictionin a summary trial under this section, it shall be lawful for the Special Courtto pass a sentence of imprisonment for a term not exceeding two years.

(2) When trying an offence under this Act,a Special Courtmay also try an offence other than an offence under this Act, with which theaccused may, under the Code, be charged at the same trial:

Provided that such other offences is underany other law for the time being in force, triable in a summary way:

Provided further that in the case of anyconviction for such other offence in such trial, it shall not be lawful for theSpecial Court to pass a sentence of imprisonment for a term exceeding the termprovided for conviction in a summary trial under such other law.

(3) A Special Court may, with a view toobtaining the evidence of any person suspected to have been directly orindirectly concerned in, or privy to, an offence under this Act, tender apardon to such person on condition of his making a full and true disclosure ofthe whole circumstances within his knowledge relating to the offence and toevery other person concerned whether as principal or abettor in the commissionthereof and any pardon so tendered shall for the purposes of Section 308 of theCode, be deemed to have been tendered under Section 307 thereof.

(4) Nothing contained in this section shallbe deemed to affect the special powers of the High Court regarding bail underSection 439 of the Code and the High Court may exercise such powers includingthe power under clause (b) of sub-section (1) of that section as if thereference to "Magistrate" in that section included also a referenceto a "Special Court" constituted under Section 12A.]

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* Inserted by Essential Commodities(Amendment) Act (42 of 1986), Sec.4 (8-9-1986).

** Inserted by Act 73 of 1986, Sec.3(1-5-1987).

12AB.Appeal and revision: The High Courtmay exercise, so far as may be applicable, all the powers conferred by ChaptersXXIX and XXX of the Code on a High Court, as if a Special Court within thelocal limits of the jurisdiction of the High Court were a Court of Sessiontrying cases within the local limits of the jurisdiction of the High Court.]

12AC.Application of Code to proceedingsbefore a Special Court: Save as otherwise provided in this Act, the provisionsof the Code (including the provisions as to bail and bonds) shall apply to theproceedings before a Special Court and for the purposes of the said provisions,the Special Court shall be deemed to be a Court of Session and the personconducting a prosecution before a Special Court, shall be deemed to be a PublicProsecutor.]

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1. Sections 12AA, 12AB, 12AC were insertedby the Essential Commodities (Special Provisions) Act (18 of 1981) which amendsthe Principal Act for a period of fifteen years, now they stand ceased to haveeffect after the expiry of fifteen years.

1 [12B.Grant of injunction, etc., by civilcourts: No civil court shall grant an injunction or make any order for anyother relief against the Central Government or any State Government or a publicofficer in respect of any act done or purporting to be done by such Government,or such officer in his official capacity, under this Act or any order madethereunder, until after notice of the application for such injunction or otherrelief has been given to such Government or officer.]

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1. Inserted by Act 30 of 1974, Sec.11(w.e.f.22-6-1974).

13.Presumption as to orders: Where an orderpurports to have been made and signed by an authority in exercise of any powerconferred by or under this Act, a Court shall presume that such order was somade by that authority within the meaning of the Indian Evidence Act, 1872.

14.Burden of proof in certain cases: Wherea person is prosecuted for contravening any order made under section 3 whichprohibits him from doing any act or being in possession of a thing withoutlawful authority or without a permit, licence or other document, the burden ofproving that he has such authority, permit, licence or other document shall beon him.

15.Protection of action taken under Act:(1) No suit, prosecution or other legal proceeding shall lie against any personfor anything which is in good faith done or intended to be done in pursuance ofany order made under Section 3.

(2) No suit or other legal proceeding shallbe against the Government for any damage caused or likely to be caused byanything which is in good faith done or intended to be done in pursuance of anyorder made under Section 3.

1 [15A.Prosecution of public servants:Where any person who is a public servant is accused of any offence alleged tohave been committed by him while acting or purporting to act in the dischargeof his duty in pursuance of an order made under section 3, no court shall takecognizance of such offence except with the previous sanction-

(a) of the Central Government, in the caseof a person who is employed or, as the case may be, was at the time ofcommission of the alleged offence employed, in connection with the affairs ofthe Union;

(b) of the State Government, in the case ofa person who is employed or, as the case may be, was at the time of commissionof the alleged offence employed, in connection with the affairs of the State].

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1. Inserted by Act 92 of 1976, Sec.8(2-9-1976).

16.Repeals and savings: (1) The followinglaws are hereby repealed: –

(a) the Essential Commodities Ordinance,1955;

(b) any other law in force in any State immediatelybefore the commencement of this Act in so far as such law controls orauthorises the control of the production, supply and distribution of, and tradeand commerce in, any essential commodity.

(2) Notwithstanding such repeal, any ordermade or deemed to be made by any authority whatsoever, under any law repealedhereby and in force immediately before the commencement of this Act, shall, inso far as such order may be made under this Act, be deemed to be made underthis Act and continue in force, and accordingly any appointment made, licenceor permit granted or direction issued under any such order in force immediatelybefore such commencement shall continue in force until and unless it issuperseded by any appointment made, licence or permit granted or directionissued under this Act.

(3) The provisions of sub-section (2) shallbe without prejudice to the provisions contained in section 6 of the GeneralClauses Act, 1897, which shall also apply to the repeal of the Ordinance orother law referred to in sub-section (1), as if such Ordinance or other law hadbeen an enactment.

OBJECTS AND REASONS

(i) Sub-section (3A) inserted by Act XIIIof 1957: – "Under Cl. (f) of sub-section (2) of Section 3 of the EssentialCommodities Act, 1955, the Central Government can direct a person holdingstocks of food grains to sell the whole or a specified part of it to any personor class of persons. Under sub-section (3) of the said section, the personholding the stocks is required to be paid the price for the foodgrains at themarket rate prevailing in the locality at the date of the sale, if there is nocontrolled price in force at the time. At present there is no control of pricesin any part of the country. In a rising market, the present provisions of theAct do not discourage hoarding as the stockists can at any time obtain theprevailing market price on the date of issue of orders by the CentralGovernment directing them to sell the stocks.

2.In view of the present high level ofprices, it is considered necessary in order to discourage hoarding and toprevent undue profiteering by the traders, to alter this provision. It isproposed that in the absence of a controlled price, the stockist should beentitled to receive the average market rate prevailing in the locality duringthe period of three months preceding the date of the issue of the notificationapplying the new provisions, and not the market rate prevailing on the date ofsale."-S.O.R., Gaz.of Ind., 1957, Extra., Pt.II, Sec.2, p.203.

(ii) Clause (j) of section 3 (2) of theEssential Commodities Act, 1955 (hereinafter referred to as the Act) enablesthe Central Government, while making an order under Section 3 of the Act, toprovide for incidental and supplementary matters including the entry into andsearch of, premises and conveyances and the seizure by an authorised person ofarticles in respect of which any contravention of such order has taken place oris about to take place. That clause does not expressly authorise the seizure ofthe coverings or receptacles in which the property is found or the conveyancesused in carrying the property, although the Court is empowered to order theirforfeiture to Government after trial. It is, therefore, proposed to amend thatclause to empower the seizure of such coverings and receptacles, and toauthorise the seizure of conveyances or animals used for the transport ofoffending goods when the person seizing the goods has reason to believe thatthe conveyance or animal is liable to be forfeited.

Sub-section: – (3B) of Sec.3 of the Actlays down the procedure for fixing prices of foodgrains, edible oilseeds oredible oils, sold in pursuance of an order made under Section 3 (2) (f) of theAct. Such price is to be fixed having regard to (i) the controlled price offoodgrains, edible oilseeds or edible oils fixed under that section or by orunder any other law; and (ii) the price of the foodgrains, edible oilseeds andedible oils prevailing or likely to prevail during the post-harvest period inthe area to which the order applies.The question of assessing the prevailingprice or the price likely to prevail during the post-harvest period will ariseonly when there is no controlled price.It is, therefore, proposed to amendsub-section (3B) suitably to make this clear.-Gaz.of Ind., 14-12-1971, Pt.II,Sec.2, Ext., p.1163 (Act 66 of 1971).

(iii) Sub-section (3B) of Section 3 isbeing substituted to provide for the procedure for fixing the price in the caseof levy on foodgrains, edible oilseeds or edible oils and further to providefor the criteria for the fixation of such price.

(iv) According to the provisions of Section3 (2) (j) (iii) original books of accounts and documents, which are seizedunder the Act, are required to be returned to the persons from whom they hadbeen seized. It is now proposed to retain the original documents and to empowerthe affected persons to make copies for their own use. – Gaz. of India,27-5-1976,Pt.II, Sec.2, Ext., p.960.(Act 92 of 1976).

Section 5 of the Act enables the CentralGovernment to delegate the power to pass orders under section 3 of the Act to aState Government and to other officers or authorities mentioned in thatsection. However, as sub-section (3A) of section 3 of the Act enables the issueof a notification, a doubt has arisen whether such a power to issue anotification can also be delegated under section 5.It is proposed to amend thatsection to make it clear that the power to issue such a notification can alsobe delegated.- Gaz. of India, 14-12-71, Pt.II, Sec.2, Ext., p.1103.

The scope of Section 6A is being enlargedso that the physical production of the seized commodities before the Collectormay not be obligatory and to give the Collector a discretion to direct theproduction of such commodities only when he desires such commodities to beproduced before him for inspection.The Collector is also being empowered toorder the distribution of the seized foodgrains through fair price shops at theprice fixed by the Government.-Gaz.of India, 27-5-1976, Pt.II, Section 2, Ext,p.960.

Section 6B: – (vi) a new clause is beinginserted in Section 6B to ensure that the orders regarding confiscation ofessential commodities may not be considered illegal merely by reason of anydefect or irregularity in the notice served for the purpose.-Gaz.of India,27-5-1976, Pt.II, Sec.2, Ext., p.960.

Section 15A: – In order to protect thepublic servants functioning under the Act against malicious and vexatiouscomplaints, a new section, namely, Section 15A, is being inserted providingthat no cognizance shall be taken of any complaint against any public servantexcept with the previous sanction of the Central Government or, as the case maybe, of the State Government.-Gaz.of India, 27-5-1976 part II, Sec.2, Ext.,p.960.

ESSENTIAL COMMODITIES ACT 1955

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