Not to sale seized stock in public auction pending inquiry under sec.6 A = The petitioner is a dealer in food grains carrying on business in the name and style of ‘M/s. Naga Chandra Agro Foods’ at New Nagole, Hyderabad. On 21.01.2013, respondent No.2 along with the staff and mediators inspected the petitioner’s godown, wherein they have found 65 quintals of rice. The said stock was seized on suspicion that the same was meant for public distribution system and unauthorisedly stored by the petitioner. Assailing the initiation of the proceedings under Section 6-A of the Act and order dated 31.01.2013, directing the sale of the seized stock, the petitioner filed this Writ petition. = sale of the seized stock pending proceedings under Section 6-A of the Act is likely to cause financial loss to the petitioner. Hence, to balance the interests of both the parties, it is appropriate that the seized stock is not sold pending finalisation of proceedings under Section 6-A of the Act.

THE HONOURABLE SRI JUSTICE C.V.NAGARJUNA REDDY

WRIT PETITION No.7427 of 2013

 

DATE: 19.03.2013

 

Between:

 

Omkar Patil, S/o.Sri Nagashetty Patil,

Hindu, 40 years, Proprietor of M/s.Naga

Chandra Agro Foods, R/o.House No.16-11-511/C/42,

Pratap Nagar, Shalivahana Nagar, Moosarambagh,

Hyderabad 500 036.

                   ..  Petitioner

          And

 

The Collector (Civil Supplies),

Ranga Reddy District at Lakdi-ka-pul,

Hyderabad

and another.                                                                   ..  Respondents

Counsel for the Petitioner                   : Mr. N.Siva Reddy

Counsel for the Respondents      : Assistant Government Pleader for

                                                    Civil Supplies

The Court made the following:

ORDER:      

This writ petition is filed for a Mandamus to declare the seizure of 65 quintals of rice under Panchanama dated 21.01.2013, as illegal and arbitrary. 

I have heard Sri N.Siva Reddy, learned counsel for the petitioner and the learned Assistant Government Pleader for Civil Supplies. 

The petitioner is a dealer in food grains carrying on business in the name and style of ‘M/s. Naga Chandra Agro Foods’ at New Nagole, Hyderabad.  On 21.01.2013, respondent No.2 along with the staff and mediators inspected the petitioner’s godown, wherein they have found 65 quintals of rice.  The said stock was seized on suspicion that the same was meant for public distribution system and unauthorisedly stored by the petitioner.  On the basis of the report filed by respondent No.2, proceedings under Section 6-A of the Essential Commodities Act, 1955 (for short ‘the Act’) were initiated by respondent No.1.  On 31.01.2013, respondent No.1 has passed an order directing respondent No.2 to dispose off the seized stock in public auction.  Assailing the initiation of the proceedings under Section 6-A of the Act and order dated 31.01.2013, directing the sale of the seized stock, the petitioner filed this Writ petition. 

This Court by order dated 13.03.2013, while adjourning the case for reporting instructions by the learned Assistant Government Pleader for Civil Supplies, directed that the seized stock shall not be disposed off, if the same has already not been disposed off. 

At the hearing, the learned Assistant Government Pleader has instructed that the seized stock has not been disposed off.

In view of the fact that serious allegation has been made against the petitioner regarding storage of the seized stock and proceedings under Section 6-A of the Act are pending, it is not appropriate for this Court to interdict the said proceedings.  The petitioner is entitled to participate in the enquiry before respondent No.1.  However, sale of the seized stock pending proceedings under Section 6-A of the Act is likely to cause financial loss to the petitioner.  Hence, to balance the interests of both the parties, it is appropriate that the seized stock is not sold pending finalisation of proceedings under Section 6-A of the Act. 

Accordingly while declining to interfere with the initiation of proceedings under Section 6-A of the Act, respondent No.1 is directed not to sell the seized stock pending the proceedings under Section 6-A of the Act.

Subject to the above direction, the Writ Petition is disposed of. 

As a sequel to disposal of the Writ Petition, W.P.M.P.No.9328 of 2013, shall stand disposed of as infructuous.

______________________________

JUSTICE C.V.NAGARJUNA REDDY

19^th March, 2013

siva/Am

THE HONOURABLE SRI JUSTICE C.V.NAGARJUNA REDDY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

WRIT PETITION No.7427 of 2013

 

 

 

 

 

 

 

 

 

 

 

 

DATE: 19.03.2013

          siva/Am