BIJAYA KUMAR AGARWALA JAGDISHPRASADAGARWAL Vs. STATE OF ORISSA
LAWS(SC)-1996-8-2
SUPREME COURT OF INDIA (FROM: ORISSA)
Decided on August 01,1996

JAGDISH PRASAD AGARWAL,BIJAYA KUMAR AGARWALA Appellant
VERSUS
STATE OF ORISSA Respondents

JUDGEMENT

Ahmadi, C.J.I - (1.) -Leave granted.
(2.) Section 3(1) of the Essential Commodities Act, 1955 (hereinafter called 'the Act') provides that if the Central Government is of the opinion that it is necessary or expedient so to do for maintaining or increasing supplies of any essential commodity or for securing their equitable distribution and availability at fair prices, it may, by order, provide for regulating or prohibiting the production, supply and distribution thereof and trade and commerce therein. Section 3(2)(d) further clarifies that the order may provide, inter alia, for regulating by licences, permits or otherwise, the storage, transport, distribution, disposal, acquisition use or consumption of, any essential commodity. We may reproduce the exact words of the relevant part of Section 3 which reads as under: "3. Power to control production, supply, distribution, etc., of essential commodities:- (1) ********** (2) Without prejudice to the generality of the powers conferred by sub-section (1), an order made thereunder may provide- (a) to (c) ********** (d) for regulating by licences, permits or otherwise the storage, transport, distribution, disposal, acquisition, use or consumption of, any essential commodity; (e) and (f) ********** Section 7 of the Act makes contravention of any Order made under Section 3 punishable.
(3.) On 29th December, 1965, the Orissa Rice and Paddy Control Order, 1965 (hereinafter referred to as 'the Order') was issued in exercise of the powers conferred by Section 3 of the Act. Clause 3 of the Order which is relevant is reproduced below: "3. Licensing of persons - (1) No person shall act as a dealer except under and in accordance with a licence issued in that behalf by the licensing authority: Provided that the Government may, by a special or general order, exempt, subject to such conditions as may be specified in the order, any class of persons from the operation of this sub-clause. (2) For the purpose of this clause, any person who stores rice or paddy or rice and paddy taken together in quantity exceeding ten quintals inside the State of Orissa excluding the border area and exceeding two quintals inside the border area shall, unless the contrary is proved, be deemed to act as a dealer". The term 'dealer' is defined in clause 2(b) as under: "2(b). 'Dealer' means any person who purchases, sells or stores in wholesale quantity rice or paddy or rice and paddy taken together: Provided that, if such a person happens to be a cultivator or landlord, he shall not be deemed to be a dealer in respect of rice or paddy being the produce of the land cultivated or owned by him." ;


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