- (1.) -This appeal by special leave has been placed before us by a reference. The facts are not in dispute. The appellant-State has filed an F.I.R. with allegations as under:- " It is submitted that Modi Paints and Varnish Works, manufacturers Varnish and Paints at Modinagar. This firm had been buying linseed oil and other edible oils in large quantities for quite some time, and had been storing the same and utilising it for the manufacture of paints and varnish. This industrial unit had been buying and storing the linseed oil and other edible oils, and in this respect the said industrial unit has not obtained any licence. The said industrial unit had given an application for obtaining a licence in respect of their business for the purpose of said oils for utilising the same in paints and varnish but their application was rejected. Subsequent to that also, the said industrial unit kept purchasing, storing and utilising the said oils and kept manufacturing said selling paints and varnish. Earlier also this firm had not made available its records concerning stock of bills. To-day on 4-12-1985 in the evening at about 3.30 p.m. myself Abdul Quadir, Senior Marketing Inspector, Modinagar under the direction of Sri. P.K.Upadhayaya, Addl. District Magistrate (Supply) Ghaziabad along with Sri Mohan Sing, District Supply Officer, Ghaziabad, Sri Rameshwar Dayal, Supply Inspector Modinagar, Sri Rais Ahmad, Supply Inspector Modinagar, Sri S.K. Mishra, Marketing Inspector, Sri S. K. Singh, Marketing Inspector, Sri Anil Kumar Srivastava, Marketing Inspector Modinagar, Sri J. R. Joshi, sub-Inspector, Sri Samaj Sing, Constable No. 56, Sri Sukhbir Singh Head Constable No. 53, Police Station Modinagar etc. inspected the oil stored in the oil tankers of Modi Paints and Varnish Works, Modinagar. To verify four tanks oil stored in them the oils stated by the party, three samples each were taken from every tank total 27 samples and sealed on the spot in the presence of the representatives of the firm Sri Kailash Chandra, Store Clerk and Sri O.P. Sharma, Factory Manager, the stock register peratining to the year 1985-86 consisting of serially numbered was taken into custody after the used pages signed by me and the said Kailsh Chandra. The stock of stored oil was inspected on the basis of the stock register and the following quantities of oil was found stored in the tanks : 1. Soyabean oil 843 Qtls, and 57 kgs. 2. Castor oil 8147 Qtls. and 45 kgs. 3. Refined Soyabean oil 32 Qtls. and 31 Kgs. The sample fard was prepared of one sample each from the collected samples and after taking the signature of every one it was handed over to the store clerk Sri Kailash Chandra. The stock register pertaining to the year 1984-85 was taken into custody and according to it on 1-11-1985 they had in their stock 2000 kiloliters of linseed oil stored with them. According to the oil register taken into custody, the aforesaid unit had purchased the refined soyabean oil, soyabean oil and linseed oil, had stored the same, utilised the same for manufacturing of varnish. The said oils comes in the category of edible oils because soyabean oil and refined soyaben oil are such oils in which the food can be cooked. In this way the said unit has utilised the edible oils in the manufacture of paints and varnish in illegal manner and without obtaining any licence. In this way the said unit and the owner of the said unit (Modi Industrial Unit) Sri Kailash Chandra, Store Clerk, Om, Prakash Sharma, factory Manager and Modi Paints and Varnish Works, Modinagar have violated the Clause 4 of the U.P. Oil Seeds and Oilseeds Products Control Order 1966 (as amended up to date) government Order 1284/XXIX-E-C-L-112(US)/77 dated 8-3-1977 which is published in the U.P. Gazette dated 8/03/1977 and G.O. No. 4500/XXIX-Section -8-22 Oil/82 dated 29-10-1982 and Clauses 2,3 and 6 of Pulses Edible Oil Seed and Edible Oil (Storage Control) Order 1977 (as amended up to date) which is a punishable offence under Section 3/7 of the Essential Commodities Act, 1955. Therefore register a case against all the aforesaid persons and take necessary action. The copies of recovery memos and Supurdginama are enclosed herewith accordingly the entire aforesaid stored oil has been given in the custody of Sri Nand Kishore, General Manager, Modi Industries, Modinagar and the sample seal and the nine sealed samples along with two stock registers are accordingly being handed over by me in the police station.
(2.) THE respondent filed Criminal Misc. Petition No. 15985 of 1985 in the High Court of Allahabad. THE learned single Judge of the High Court by order dated 7/01/1986 quashed the F.I.R. holding that as per the case set out in the counter-affridavit, the respondent was not engaged in the sale or purchase of the oil seeds; he has been engaged in the manufacture of paints and varnishes. THErefore, he is not a dealer in oil seeds or edible oil covered under the U.P. Oil-seeds and Oil-seeds Products Control Order, 1966 (for short, the 'Order'). Accordingly, the prosecution against the respondent is not in accordance with law. THE application was accordingly allowed and the F.I.R. was quashed. Thus this appeal by special leave. The term "dealer" has been defined in Clause 2 (g) of the Order thus : "(g) 'Dealer' means a person engaged in the business of purchase or sale or storage for sale of oil seeds and oilseeds products, but does not include the (Food Corporation of India) the U.P. Food and Essential Commodities Corporation or a dealer who stocks less than 5 quintals of oils or less than 10 quintals of oil seeds or less than 25 quintals". No dealer shall occupy or set up any premise for purchase or sale or storage for sale of oil-seeds products, except under and in accordance with the terms of a licence granted by the Regional Food Controller under the Order.
(3.) ANOTHER Order, viz., Pulses, Edible Oil-seeds and Edible Oils (Storage Control Order), 1977 was issued. "Dealer" under Clause 2 (f) thereof was defined to mean "a person engaged in the business of purchase. sale or storage for sale of any pulses, edible oil seeds or edible oils, whether or not in conjuction with any other business and includes his representtive or agent". Clause 3 thereof also provides the mandatory requirement of obtaining licence by dealers with the following language : "3. Licensing of dealers :- Notwithstanding anything contained in any State Order, after the expiration of period of fifteen days from the coming into force of this clause, no person shall carry on business as dealer in pulses or in edible oilseeds or in edible oils except under and in accordance with the terms and conditions of a licence granted under a State Order if the stocks of pulses or edible oilseeds or edible oils in his possession exceed the quantities specified below : JUDGEMENT_705_7_1996Html1.htm Clause 4 imposes restriction on possession of pulses, edible oil-seeds and edible oils. No dealer shall, after a period of fifteen days from the coming into force of this clause, either by himself or by any person on his behalf, store or have in his possession at any time pulses, edible oil seeds or edible oils in excess of the quantities specifed thereunder. The quantities specified or stock limits-maximum and minimum-have been prescribed.;