D.N. Jha, J. - (1.) VIJAI Narain Dubey has directed this petition under Section 482 Code of Criminal Procedure for quashing of the investigation launched on the basis of first information report dated 20th March, 1985 on the basis of which crime case No. 99 of 1985 had been registered purporting to be for a charge under Section 3/7 of the Essential Commodities Act. P.S. Lalganj, District Pratapgarh.
(2.) THE Petitioner is running a brick -kiln. On the basis of some information on 20th March, 1.985 the Supply Inspector lodged a first information report under Section 3/7 of the Essential Commodities Act against the applicant alleging that there was no valid licence available in the premises with Triveni Prasad Ojha and he could not produce the same when he demanded it. In absence of any licence from brick kiln, have resulted in violation of the Coal Control Order, 1977 and a report under Section 3/7 of the Essential Commodities Act, 1955 was registered. The Inspector further found that three metric tones of slack coal was lying at the site and hence there was further violation of the said Order. I have heard the learned Counsel for the parties and gone through the various provisions of the said Act and the allegations contained in this petition. Admittedly this is a case where slack coal was being used by the owner at the brick kiln.
(3.) THE purpose of the Essential Commodities Act, 1.955 as disclosed through its preamble is to provide, in the interest of the general public, for the control of the production, supply and distribution of, and trade and commerce in certain commodities. Clause (a) of Section 2 of the Act defines the term essential commodities'. Apart from nominating certain commodities, Sub -clause (xi) of Clause (a) confers powers upon the Central Government to declare commodity to be an essential commodity for the purposes of the Act. Section 3 of the Act confers power upon the Government to issue order for regulating or prohibiting the production, supply and distribution of an essential commodity. Such an order may be issued when the Government is of opinion that it is necessary or expedient 10 do so for maintaining or increasing supplies of any essential commodity or for securing its equitable distribution and availability at fair prices or for securing any essential commodity for the defence of India or for the efficient conduct of military operations. Sub -section (2) of Section 3 provides that an order issued under Sub -section (1) of Section 3 may provide for regulating by licences, permits or otherwise, the production or manufacture of any essential commodity. In exercise of this power the State Government, with the concurrence of the Central Government, issued the Uttar Pradesh Coal Control Order, 1977. Clause 4 of this Order provides that no person shall import coal and carry on business as a Coal Agent or as Coal Depot Holder or run brick kiln with coal except, under, and in accordance with the terms and conditions of a licence issued under this Order. Under this provision a licence is required for carrying on business in coal and also for running a brick kiln with coal. Clause 6 provides that the licence shall be valid upto 31st March next following the date on which it is issued and may be renewed from year to year for a maximum period of three years. This Clause also provides the fee that an applicant for the licence is required to pay. For whole sale trade the fee fixed is Rs. 60/ - while for retail trade the fee fixed is Rs. 30/ -. For running a brick kiln with coal the fee is Rs. 45/ -. There are other fees also prescribed by this Clause but the amount does not exceed Rs. 60/ - in any case. Under Clause 7, a Coal Agent is required to furnish security for the sum of Rs. 1000/ - while a Coal Depot Holder is required to furnish security in the sum of Rs. 200/ -. Rs. 300/ -is the amount of security fixed in respect of brick kiln. Clause 8 requires the licensee to acquire full quota of the coal allotted to him unless he is prevented by sufficient cause to the satisfaction of the District Magistrate. This Clause also requires the licensee to comply with any direction that may be issued to him from time to time by the State Coal Controller or the District Magistrate in regard to import, purchase, sale, storage or distribution of coal or for running a kiln with coal and sale and distribution of bricks as applicable to him. Under Sub -clause (2) of Clause 8 the Coal Agent is required not to sell at a rate higher than those fixed from time to time by the District Magistrate. Clause 13 confers powers upon the State Coal Controller or Licencing Authority or any Inspector, with a view to securing compliance with the order, to enter upon and inspect any premises on which he has reason to believe that coal has been, or is being or is likely to be kept, stored, distributed, disposed of or from which coal has been, or is being, or is likely to be removed or transported. It also confers power to seize coal and records pertaining to the business. Clause 15 prescribes the penalties which may be imposed in the event of the failure to comply with the provisions of the Order. It stated that the defaulter may be punished under the provisions of the Essential Commodities Act, 1955. It is obvious that the U.P. Coal Control Order, 1977 was issued at a time when there was shortage of coal and it was felt necessary to regulate its distribution and supply as well as its price. As and when the shortage eased, the State Government issued orders from time to time. At one time the District Administration regulated the storage of coal and also the price of coal. At one stage the price of bricks baked by coal also came to be fixed under the provisions of the Order. Through Government Order dated 17 -12 -1981 control over the price of bricks baked by coal brought by rail was abolished. Price control over sack coal brought by rail was also abolished. It appears that the supply position of coal eased and thereupon free sale coal was available. Transport of coal was allowed by road so that it may be available to the consumers according to their requirements without any difficulty. Since transport charges through road were not uniform, it was found difficult to fix price of coal or of the bricks baked by them. Therefore, the Government did not fix any price either for coal or for bricks baked by coal. This is noticed in the Government Order No. 3057/19 Anu -9 -2 Etta/82, dated 3 -6 -82. It appears that although coal was available for free sale and there was no price fixation either in respect of coal or in respect of bricks baked by them, the District Magistrate continued to make searches and seizing coal and launching prosecutions. This caused dissatisfaction amongst the brick kiln owners. The State Government, therefore, issued the order dated 3 -6 -1982 referred to herein above. Through this order it was specifically provided that except the licencing Clauses 4 to 7 of the Coal Control Order, 1977, all the provisions of the said Order shall be kept in abeyance. The consequence of keeping these Clause in abeyance was also indicated in this Order. It was provided that no action, except that contemplated by Clauses 4 to 7, shall be taken under the provisions of the Order or of the Essential Commodities Act, 1955. From this Order it appears that the Government did not appreciate the raids and searches which were organised by the District Administration for checking quantity of coal stored by Coal Depot Holders or brick kiln owners. A clarification of the Government Order dated 3 -6 -82 was made by G.O. No. 4453/19 -Anubhag -9 -2 Etta Bhatta/82 dated 9 -11 -1982. It appears that clarification had been sought from the Government as to whether a person was liable for penal Clauses of the Coal Control Order 1977 in case he did coal business without licence or operated a brick kiln without it. The Government issued the clarification to the effect that all the clauses of the Coal Control Order will be applicable in cases where licences were not obtained. Another Government Order was issued on 7 -12 -1982 being numbered 6057/19 -Anubhag -9 -69 Coila/81. In Government Order No. 533/19 -Anubhag -9 -2 Etta Bhatta/82 dated 4 -1 -1983 it was mentioned that Clauses 4 to 7 of the Coal Control Order were suspended with a view to promote production of bricks in sufficient quantity.;