THE ESSENTIAL COMMODITIES ACT, 1955
ACT NO. 10 OF 1955 1*
[1st April, 1955.]
An Act to provide, in the interests of the general public, for the
control of the production, supply and distribution of, and trade and
commerce in, certain commodities.
BE it enacted by Parliament in the Sixth Year of the Republic of
India as follows:--
1.
Short title and extent.
1. Short title and extent. (1) This Act may be called the
Essential Commodities Act, 1955.
(2) It extends to the whole of India 2***.
2.
Definitions.
2. Definitions. In this Act, unless the context otherwise
requires,--
5*[(ia) "Code" means the Code of Criminal Procedure, 1973 (2 of
1974)]
4*[(iia)] "Collector" includes an Additional Collector and such
other officer, not below the rank of Sub-Divisional Officer, as may be
authorised by the Collector to perform the functions and exercise the
powers of the Collector under this Act;'].
(a) "essential commodity" means any of the following classes of
commodities:--
(i) cattle fodder, including oilcakes and other
concentrates;
(ii) coal, including coke and other derivatives;
(iii) component parts and accessories of automobiles;
(iv) cotton and woollen textiles;
3*[(iva) drugs.
Explanation.--In this sub-clause, "drug" has the meaning assigned
to it in clause (b) of section 3 of the Drugs and Cosmetics Act,
1940;]
(v) foodstuffs, including edible oilseeds and oils;
(vi) iron and steel, including manufactured products 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 the Central
Government may, by notified order, declare to be an
essential commodity for the purposes of this Act, being
a commodity with respect to which Parliament has
Extended to and brought into force in the State of Sikkim (w.e.f. 7-1-
1976) vide. Notifn. No. S.O. 28 (E), dated 7-1-1976
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1 The Act has been extended to Goa, Daman and Diu by Reg. 12 of
1962, s. 3 and Sch., and to Dadra and Nagar Haveli by Reg. 6 of 1963,
s. and Sch. I.
2 The words "except the State of Jammu and Kashmir" omitted by Act
25 of 1968, s. 2 and Sch. (w.e.f. 15-8-1968).
3 Ins. by Act 30 of 1974, s. 2 (w.e.f. 22-6-1974).
4 Ins. by Act 92 of 1976, s. 2 (w.e.f. 2-9-1976).
5 Ins. and renumbered by Act 18 of 1981, s. 3 for fifteen years
(w.e.f. 1.9.1982).
42
power to make laws by virtue of entry 33 in List III in
the Seventh Schedule to the Constitution;
(b) "food-crops" include crops of sugarcane;
(c) "notified order" means an order notified in the Official
Gazette;
1*[(cc) "order" includes a direction issued thereunder;]
2*[(d) "State Government", in relation to a Union territory,
means the administrator thereof;]
1*[(e) "sugar" means--
(i) any form of sugar containing more than ninety
per cent. of sucrose, including sugar candy;
(ii) khandsari sugar or bura sugar or crushed
sugar or any sugar in crystalline or powdered from; or
(iii) sugar in process in vacuum pan sugar factory
or raw sugar produced therein.]
4*[(f) words and expressions used but not defined in this
Act and defined in the Code shall have the meanings
respectively assigned to them in that Code.]
3.
Powers to control production, supply, distribution, etc., of
essentialcommodities.
3. Powers to control production, supply, distribution, etc., of
essential commodities. (1) If the Central Government is of 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 3*[or for
securing any essential commodity for the defence of India or the
efficient conduct of military operations], it may, by order, provide
for regulating or prohibiting the production, supply and distribution
thereof and trade and commerce therein.
(2) Without prejudice to the generality of the powers conferred
by sub-section (1), an order made thereunder may provide--
(a) for regulating by licences, permits or otherwise the
production or manufacture of any essential commodity;
(b) for bringing under cultivation any waster or arable
land, whether appurtenant to a building or not, for the
growing thereon of food-crops generally or of specified
food-crops, and for otherwise maintaining or increasing
the cultivation of food-crops generally, or of
specified food-crops;
(c) for controlling the price at which any essential
commodity may be bought or sold;
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1 Ins. by Act 36 of 1967, s. 2.
2 Subs. by the Adaptation of Laws (No. 3) Order, 1956 for the
former clause.
3 Ins. by Act 36 of 1967, s. 3.
4 Ins. by Act 18 of 1981, s. 3 for fifteen years (w.e.f. 1-9-1982).
43
(d) for regulating by licences, permits or otherwise the
storage, transport, distribution, disposal,
acquisition, use or consumption of, any essential
commodity;
(e) for prohibiting the withholding from sale of any
essential commodity ordinarily kept for sale;
4*[(f) for requiring any person holding in stock, 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 part of the
quantity held in stock or produced or received by him,
or
(b) in the case of any such commodity which is
likely to be produced or received by him, to sell the
whole or a specified part of such commodity when
produced or received by him,
to the Central Government or a State Government or to an officer or
agent of such Government or to a Corporation owned or controlled by
such Government or to such other person or class of persons and in
such circumstances as may be specified in the order.
Explanation 1.--An order, made under this clause in relation to
foodgrains, edible oilseeds or edible oils, may, having regard 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 in such area and may also fix, or provide for the fixation
of, such quantity on a graded basis, having regard to the aggregate of
the area held by, or under the cultivation of, the producers.
Explanation 2.--For the purpose of this clause, "production" with
its grammatical variations and cognate expressions includes
manufacture of edible oils and sugar;]
(g) for regulating or prohibiting any class of commercial or
financial transactions relating to foodstuffs or cotton
textiles which, in the opinion of the authority making
the order, are, or, if unregulated, are likely to be,
detrimental to the public interest;
(h) for collecting any information or statistics with a view
to regulating or prohibiting any of the aforesaid
matters;
(i) for requiring persons engaged in the production, supply
or distribution of, or trade and commerce in, any
essential commodity to maintain and produce for
inspection such books, accounts and records relating to
their business and to furnish such information relating
thereto, as may be specified in the order;
2*[(ii) for the grant or issue of licences, permits or other
documents, the charging of fees therefor, the deposit
of such sum, if any, as may be specified in the order
as security for the due performance of the conditions
of any such licence, permit or other document, the
forfeiture of the sum so deposited or any part thereof
for contravention of any such conditions, and the
adjudication of such forfeiture by such authority as
may be specified in the order;]
3*[(j) for any incidental and supplementary matters,
including, in particular, the entry, search or
examination of premises, aircraft, vessels, vehicles or
other conveyances and
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1 Subs. by Act 28 of 1957, s. 2, for the original clause (with
retrospective effect).
2 Ins. by Act 17 of 1961, s. 2.
3 Subs. by Act 66 of 1971, s. 2, for cl. (j).
4 Subs. by Act 92 of 1976, s. 3 (w.e.f. 2-9-1976).
44
animals, and the seizure by a person authorised to make
such entry, search or examination,--
(i) of any articles in respect of which such
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 or receptacles in
which such articles are found;
(ii) of any aircraft, vessel, vehicle or other
conveyance or animal used in carrying such articles, if
such person has reason to believe that such aircraft,
vessel, vehicle or other conveyance or animal is liable
to be forfeited under the provisions of this Act;
2*[(iii) of any books of accounts and documents
which in the opinion of such person, may be useful for,
or relevant to, any proceeding under this Act and the
person from whose custody such books of accounts or
documents are seized shall be entitled to make copies
thereof or to take extracts therefrom in the presence
of an officer having the custody of such books of
accounts or documents.]
(3) Where any person sells any essential commodity in compliance
with an order made with reference to clause (f) of sub-section (2),
there shall be paid to him the price therefor as hereinafter
provided:--
(a) where the price can, consistently with the controlled
price, if any, fixed under this section, be agreed
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 at the market rate prevailing in the
locality at the date of sale.
1*[(3A) (i) If the Central Government is of opinion that it is
necessary so to do for controlling the rise in prices, or preventing
the hoarding, of any foodstuff in any locality, it may, by
notification in the Official Gazette, direct that notwithstanding
anything contained in sub-section (3), the price at which the
foodstuff shall be sold in the locality in compliance with an order
made with reference to clause (f) of sub-section (2) shall be
regulated in accordance with the provisions of this sub-section.
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1 Ins. by Act 13 of 1957, s. 2.
2 Subs. by Act 92 of 1976, s. 3 (w.e.f. 2-9-1976).
44A
(ii) Any notification issued under this sub-section shall remain
in force for such period not exceeding three months as may be
specified in the notification.
(iii) Where, after the issue of a notification under this sub-
section, any person sells foodstuff of the kind specified therein and
in the locality so specified, in compliance with an order made with
reference to clause (f) of sub-section (2), there shall be paid to the
seller as the price therefor--
(a) where the price can, consistently with the controlled
price of the foodstuff, if any, fixed under this
section, be agreed 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
rate prevailing in the locality during the period of
three months immediately preceding the date of the
notification.
(iv) For the purposes of sub-clause (c) of clause (iii), the
average market rate prevailing in the locality shall be determined by
an officer authorised by the Central Government in this behalf, with
reference to the prevailing market rates for which published figures
are available in respect of that locality or of a neighbouring
locality; and the average market rate so determined shall be final and
shall not be called in question in any Court.]
4*[(3B) Where any person is required, by an order made with
reference to clause (f) of sub-section (2), to sell to the Central
Government or a State Government or to an officer or agent of such
Government or to a Corporation owned or controlled by such Government,
any grade or variety of foodgrains, edible oilseeds or edible oils in
relation to which no notification has been issued under sub-section
(3A), or such notification having been issued, has ceased to be in
force, there shall be paid to the person concerned, notwithstanding
anything to the contrary contained in sub-section (3), an amount equal
to the procurement price of such foodgrains, edible oilseeds or edible
oils, as the case may be, specified by the State Government, with the
previous approval of the Central Government having regard to--
(a) the controlled price, if any, fixed under this section
or by or under other law for the time being in force for such
grade of variety of foodgrains, edible oilseeds or edible oils;
(b) the general crop prospects;
(c) the need for making such grade or variety of foodgrains,
edible oilseeds or edible oils available at reasonable prices to
the consumers, particularly the vulnerable sections of the
consumers; and
(d) the recommendations, if any, of the Agricultural Prices
Commission with regard to the price of the concerned grade or
variety of foodgrains, edible oilseeds or edible oils.]
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1 Ins. by Act 25 of 1966, s. 2.
2 Subs. by Act 66 of 1971, s. 2, for certain words.
3 Subs. by s. 2, ibid., for "and".
4 Subs. by Act 92 of 1976, s. 3 (w.e.f. 2-9-1976).
44B
3*[where no such price is fixed, an amount calculated having
regard to]
2*[(3C) Where any producer is required by an order made with
reference to clause (f) of sub-section (2) to sell any kind of sugar
(whether to the Central Government or a State Government or to an
officer 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 under sub-section (3A) or any such notification, having been
issued, has ceased to remain in force by efflux of time, then,
notwithstanding anything contained in sub-section (3), there shall be
paid to that producer an amount therefor which shall be calculated
with reference to such price of sugar as the Central Government may,
by order, determine, having regard to--
(a) the minimum price, if any, fixed for sugarcane by the
Central Government under this section;
(b) the manufacturing cost of sugar;
(c) the duty or tax, if any, paid or payable thereon; and
(d) the securing of a reasonable return on the capital
employed in the business of manufacturing sugar,
and different prices may be determined from time to time for different
areas or for different factories or for different kinds of sugar.
Explanation.--For the purposes of this sub-section, "producer"
means a person carrying on the business of manufacturing sugar.]
(4) If the Central Government is of opinion that it is necessary
so to do for maintaining or increasing the production and supply of an
essential commodity, it may, by order, authorise any person
(hereinafter referred to as an authorised controller) to exercise,
with respect to the whole or any part of any such undertaking engaged
in the production and supply of the commodity as may be specified in
the order such functions of control as may be provided therein and so
long as such order is in force with respect to any undertaking or part
thereof,--
(a) the authorised controller shall exercise his functions
in accordance with any instructions given to him by the
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1 Subs. by Act 66 of 1971, s. 2, for "the price".
2 Ins. by Act 36 of 1967, s. 3.
3 Subs. by Act 30 of 1974, s. 3 (w.e.f. 22-6-1974).
45
Central Government, so, however, that he shall not have
any power to give any direction inconsistent with the
provisions of any enactment or any instrument
determining the functions of the persons in charge of
the management of the undertaking, except in so far as
may be specifically provided by the order; and
(b) the undertaking or part shall be carried on in
accordance with any directions given by the authorised
controller under the provisions of the order, and any
person having any functions of management in relation
to the undertaking or part shall comply with any such
directions.
(5) An order made under this section shall,--
(a) in the case of an order of a general nature or affecting
a class of persons, be notified in the Official
Gazette; and
(b) in the case of an order directed to a specified
individual be served on such individual--
(i) by delivering or tendering it to that
individual, or
(ii) if it cannot be so delivered or tendered, by
affixing it on the outer door or some other conspicuous
part of the premises in which that individual lives,
and a written report thereof shall be prepared and
witnessed by two persons living in the neighbourhood.
(6) Every order made under this section by the Central Government
or by any officer or authority of the Central Government shall be laid
before both Houses of Parliament, as soon as may be, after it is made.
4.
Imposition of duties on State Governments, etc.
4. Imposition of duties on State Governments, etc. An order made
under section 3 may confer powers and impose duties upon the Central
Government or the State Government or officers and authorities of the
Central Government or State Government, and may contain directions to
any State Government or to officers and authorities thereof as to the
exercise of any such powers or the discharge of any such duties.
5.
Delegation of powers.
5. Delegation of powers. The Central Government may, by notified
order, direct that 1*[the power to make orders or issue notifications
under section 3] shall, in relation to such matters and subject to
such conditions, if any, as may be specified in the direction, be
exercisable also by--
(a) such officer or authority subordinate to the Central
Government, or
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1 Subs. by Act 66 of 1971, s. 3, for certain words.
46
(b) such State Government or such officer or authority sub-
ordinate to a State Government,
as may be specified in the direction.
6.
Effect of orders inconsistent with other enactments.
6. Effect of orders inconsistent with other enactments. Any order
made under section 3 shall have effect notwithstanding anything
inconsistent therewith contained in any enactment other than this Act
or any instrument having effect by virtue of any enactment other than
this Act.
6A.
Confiscation of essential Commodity.
1*[6A. Confiscation of essential Commodity. 9*[(1)] Where any
2*[essential commodity is seized] in pursuance of an order made under
section 3 in relation thereto, 3* 9*[a report of such seizure shall,
without unreasonable delay, be made to] the Collector of the district
or the Presidency-town in which such 2*[essential commodity is seized]
and whether or not a prosecution is instituted for the contravention
of such order, the Collector, 9*[may, if he thinks it expedient so to
do, direct the essential commodity so seized to be produced for
inspection before him, and if he is satisfied] that there has been a
contravention of the order, 2* 7*[may order confiscation of--
(a) the essential commodity so seized;
(b) any package, covering or receptacle in which such
essential commodity is found; and
(c) any animal, vehicle, vessel or other conveyance used in
carrying such essential commodity:]
Provided that without prejudice to any action which may be taken
under any other provision of this Act, no foodgrains or edible
oilseeds seized in pursuance of an order made under section 3 in
relation thereto from a producer shall, if the seized foodgrains or
edible oilseeds have been produced by him, be confiscated under this
section:
9*[(2) Where the Collector, on receiving a report 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 and
natural decay or it is otherwise expedient in the public interest so
to do, he may--
(i) order the same to be sold at the controlled price, if
any, fixed for such 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 public auction:
11*[Provided that in the case of any such essential commodity
the retail sale price whereof has been fixed by the Central Government
or a State Government under this Act or under any other law for the
time being in force, the Collector 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 any such sale or
auction or other incidental expenses relating thereto, shall--
(a) where no order of confiscation is ultimately passed by
the Collector,
(b) where an order passed on appeal under sub-section (1) of
section 6C so requires, or
(c) where in a prosecution instituted for the contravention
of the order in respect of which an order of confiscation has
been made under this section, the person concerned acquitted,
be paid to the owner thereof or the person from whom it is seized.]
9*[Provided further that in the case of any animal, vehicle,
vessel or other conveyance used for the carriage of goods or
passengers for hire, the owner of such animal, vehicle, vessel or
other conveyance shall be given an option to pay, in lieu of its
confiscation, a fine not exceeding the market price at the date of
seizure of the essential commodity sought to be carried by such
animal, vehicle, vessel or other conveyance.]
6B.
Issue of show-cause notice before confiscation of essential commodity.
6B. Issue of show-cause notice before confiscation of essential
commodity. [(1)] 8* No order confiscating 4*[any] essential commodity
package, covring, receptacle, animal, vehicle, vehicle or other
conveyance shall be made under section 6A unless the owner of such
5*** essential commodity package, covring, receptacle, animal,
vehicle, vehicle or other conveyance or the person from whom 6*[it
is seized]--
(a) is given a notice in writing informing him of the
grounds on which it is proposed to confiscate the 5*
8*[essential commodity package, covering, receptacle,
animal, vehicle, vessel or other conveyance];
(b) is given an opportunity of making a representation in
writing within such reasonable time as may be specified
in the notice against the grounds of confiscation; and
(c) is given a reasonable opportunity of being heard in the
matter.
8*[(2) Without prejudice to the provisions of sub-section (1),
no order confiscating any animal, vehicle, vessel or other conveyance
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 it was used in carrying the essential commodity without the
knowledge or connivance of the owner himself, his agent, if any, and
the person in charge of the animal, vehicle, vessel or other
conveyance and that each of them had taken all reasonable and
necessary precautions against such use.]
10*[(3) No order confiscationg any essential commodity, package,
covering, receptacle, animal, vehicle, vessel or other conveyance
shall be invalid merely by reason of any defect or irregularity in the
notice given under clause (a) of sub-section (1), if, in giving such
notice, the provisions of that clause have been substantially complied
with.]
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1 Ins. by Act 25 of 1966, s. 3.
2 Subs. by Act 36 of 1967, s. 4, for certain words.
3 Subs. by s. 4, ibid., for "they may".
4 Subs. by s. 5, ibid., for "any foodgrains, edible oilseeds or
edible oils".
5 Subs. by s. 5, ibid., for "articles".
6 Subs. by s. 5, ibid., for "they are seized".
7 Subs. by Act 30 of 1974, s. 4 (w.e.f. 22-6-1974).
8 Re-numbered, subs & ins. by s. 5. ibid.
9 Re-numbered, subs & ins. by Act 92 of 1976, s. 4 (w.e.f. 2-9-
1976).
10 Ins. by s. 5, ibid.
11 Subs. by Act 18 of 1981, s. 4 for fifteen years (w.e.f. 1-9-
1982).
46A
6C.
Appeal.
6C. Appeal. (1) Any person aggrieved by an order of confiscation
under section 6A may, within one month from the date of the
communication to him of such order, appeal to 3*[the State Government
concerned and the State Government] shall, after giving an
opportunity to the 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 is modified or annulled by
3*[the State Government], or where in a prosecution instituted for the
contravention of the order in respect of which an order of
confiscation has been made under section 6A, the person concerned is
acquitted, and in either case it is not possible for any reason to
1*[return the essential commodity seized], 2*[such person shall,
except as provided by sub-section (3) of section 6A, be paid] the
price therefor 1*[as if the essential commodity] had been sold to
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1 Subs. by Act 36 of 1967, s. 6, for certain words.
2 Subs. by Act 92 of 1976, s. 6 (w.e.f. 2-9-1976).
3 Subs. by Act 18 of 1981, s. 5 for fifteen years (w.e.f. 1-9-
1982).
47
the Government with reasonable interest calculated from the day of the
seizure of 1*[the essential commodity] 2*[and such price shall be
determined--
(i) in the case of foodgrains, edible oilseeds or edible
oils, in accordance with the provisions of sub-section
(3B) of section 3;
(ii) in the case of sugar, in accordance with the provisions
of sub-section (3C) of section 3; and
(iii) in the case of any other essential commodity, in
accordance with the provisions of sub-section (3) of
section 3].
6D.
Award of confiscation not to interfere with other punishments.
6D. Award of confiscation not to interfere with other
punishments. The award of any confiscation under this Act by the
Collector shall not prevent the infliction of any punishment to which
the person affected thereby is liable under this Act.]
6E.
Bar of jurisdiction in certain cases.
11*[6E. Bar of jurisdiction in certain cases. Whenever any
essential commodity is seized in pursuance of an order made under
section 3 in relation thereto, or any package, covering or receptacle
in which such essential commodity is found, or any animal, vehicle,
vessel or other conveyance used in carrying such essential commodity
is seized pending confiscation under section 6A, the Collector, or, as
the case may be, the State Government concerned under section 6C shall
have, and, notwithstanding anything to the 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 regard to
the possession, delivery, disposal, release or distribution of such
essential commodity, package, covering, receptacle, animal, vehicle,
vessel or other conveyance.]
7
Penalties.
7. Penalties. [(1) If any person contravenes any order made
under section 3,--
(a) he shall be punishable,--
(i) in the case of an order made with reference to clause
(h) or clause (i) of sub-section (2) of that section, with
imprisonment for a term which may extend to one year and shall
also be liable to fine, and
(ii) in the case of any other order, with imprisonment for a
term which shall not be less than three months but which may
extend to seven years and shall also be liable to fine:
10* * * * *
(b) any property in respect of which the order has been
contravened shall be forfeited to the Government;
(c) any packing, covering or receptacle in which the
property is found and any animal, vehicle, vessel or other
conveyance used in carrying the property shall, if the court so
orders, be forfeited to the Government.
(2) If any person to whom a direction is given under clause (b)
of sub-section (4) of section 3 fails to comply with the direction, he
shall be punishable with imprisonment for a term which shall not be
less than three months but which may extend to seven years and shall
also be liable to fine;
10* * * * *
(2A) If any person convicted of an offence under 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 be
punishable with imprisonment for the second and for every subsequent
offence for a term which shall not be less than six months but which
may extend to seven years and shall also be liable to fine.
10* * * * *
10* * * * *
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1 Subs. by Act 36 of 1967, s. 6, for "articles".
2 Subs. by s. 6, ibid., for certain words.
3 Subs. by s. 7, ibid., for certain words.
4 Subs. by s. 7, ibid., for "three years".
5 Subs. by s. 7, ibid., for the proviso.
6 Subs. by s. 7, ibid., for cl. (b).
7 Subs. by Act 30 of 1974, s. 6 (w.e.f. 22-6-1974).
8 Ins. by Act 92 of 1976, s. 7 (w.e.f. 2-9-1976).
9 Subs. by Act 18 of 1981, s. 6 for fifteen years (w.e.f. 1-9-
1982).
10 Omitted by s. 7, ibid. for fifteen years (w.e.f. 1-9-1982).
11 Subs. by Act 42 of 1986, s.2
48
3*[(3) Where a person having been convicted of an offence under
sub-section (1) is again convicted of an offence under that sub-
section for contravention of an order in respect of an essential
commodity, the Court by which such person is convicted shall, in
addition to any penalty which may be imposed on him under that sub-
section, by order, direct that person shall not carry on any business
in that essential commodity for such period, not being less than six
months, as may be specified by the Court in the order.]
7A.
Power of Central Government to recover certain amounts as arrears ofland
revenue.
5*[7A. Power of Central Government to recover certain amounts as
arrears of land revenue. (1) Where any person, liable to--
(a) pay any amount in pursuance of any order made under
section 3, or
(b) deposit any amount to the credit of any Account or Fund
constituted by or in pursuance of any order made under that
section,
makes any default in paying or depositing the whole or any part of
such amount, the amount in respect of which such default has been made
shall [whether such order was made before or after the commencement of
the Essential Commodities (Amendment) Act, 1984, and whether the
liability of such person to pay or deposit such amount arose before or
after such commencement] be recoverable by Government together with
simple interest due thereon computed at the rate of 7*[fifteen per
cent.] per annum from the date of such default to the date of recovery
of such amount, as an arrear of land revenue [or as a public
demand]7*.
(2) The amount recovered under sub-section (1) shall be dealt
with in accordance with the order under which the liability to pay or
deposit such amount arose.
(3) Notwithstanding anything contained in any other law for the
time being in force or any contract to the contrary, no court,
tribunal or other authority shall grant any injunction or make any
order prohibiting or restraining any Government from recovering any
amount as an arrear of land revenue 7*[or as a public demand] in
pursuance of the provisions of sub-section (1).
(4) If any order, in pursuance of which any amount has been
recovered by Government as an arrear of land revenue 7*[or as a public
demand] under sub-section (1) is declared by a competent court, after
giving to the Government a reasonable opportunity of being heard, to
be invalid, the Government shall refund the amount so recovered by it
to the person from whom it was recovered, together with simple
interest due thereon, computed at the rate of 7*[fifteen per cent.]
per annum, from the date of recovery of such amount to the date on
which such refund is made.
Explanation.--For the purposes of this section, "Government"
means the Government by which the concerned order under section 3 was
made or where such order was made by an officer or authority
subordinate to any Government that Government.]
8.
Attempts and abetment.
8. Attempts and abetment. Any person who attempts to contravene,
or abets a contravention of, any order made under section 3 shall be
deemed to have contravened that order:
6*[Provided that where a person has abetted the contravention of
any order for the purpose of procuring any essential commodity of the
nature mentioned in sub-clause (iva) or sub-clause (v) of clause (a)
of section 2 for his own use of for the use of any member of his
family or for the use of any person dependent on him and not for the
purpose of carrying on any business or trade in such essential
commodity, the court may, notwithstanding anything contained in
section 7 and for reasons to be mentioned in the judgment, impose a
sentence of fine only.]
9.
False statements.
9. False statements. If any person,--
(i) when required by any order made under section 3 to make
any statement or furnish any information, makes any
statement or furnishes any information which is false
in any material particular and which he knows or has
reasonable cause to believe to be false, or does not
believe to be true, or
(ii) makes any such statement as aforesaid in any book,
account, record, declaration, return or other document
which he is required by any such order to maintain or
furnish,
he shall be punishable with imprisonment for a term which may extend
to 4*[five years], or with fine, or with both.
10.
Offences by Companies.
10. Offences by Companies. (1) If the person contravening an
order made under section 3 is a company, every person who, at the time
the contravention
---------------------------------------------------------------------
1 Ins. by Act 25 of 1966, s. 4.
2 Subs. by Act 36 of 1967, s. 7 for "three years".
3 Ins. by s. 7, ibid.
4 Subs. by s. 8, ibid., for "three years".
5 Ins. by Act 34 of 1984, s. 2 (w.e.f. 1-7-1984).
6 Added by Act 18 of 1981, s. 8 for fifteen years (w.e.f. 1-9-
1982).
7 Subs. and ins. by Act 42 of 1986, s. 3.
48A
was committed, was in charge of, and was responsible to, the company
for the conduct of the business of the company as well as the company,
shall be deemed to be guilty of the contravention and shall be liable
to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render
any such person liable to any punishment if he proves that the
contravention took place without his knowledge or that he exercised
all due diligence to prevent such contravention.
(2) Notwithstanding anything contained in sub-section (1), where
an offence under this Act has been committed by a company and it is
proved that the offence has been committed with the consent or
connivance 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 offence and shall be liable to be proceeded against
and punished accordingly.
Explanation.--For the purposes of this section,--
(a) "company" means any body corporate, and includes a firm
or other association of individuals; and
(b) "director" in relation to a firm means a partner in the
firm.
10A.
Offences to be cognizable and non-bailable.
1*[10A. Offences to be cognizable and non-bailable.
Notwithstanding anything contained in 3*[the Code of Criminal
Procedure, 1973 (2 of 1974), every offence punishable under this Act
shall be cognizable [3*** 7*[and non-bailable]
10AA
Power to arrest.
7*[10AA. Power to arrest. Notwithstanding anything contained in
the Code of Criminal Procedure, 1973, no officer below the rank of an
officer in charge of a police station or any police officer authorised
by him in this behalf in writing, shall arrest any person accused of
committing an offence punishable under this Act.]
10B.
Power of court to publish name, place of business, etc., of companiesconvicted
under the Act.
10B. Power of court to publish name, place of business, etc., of
companies convicted under the Act. (1) Where any company is convicted
under this Act, it shall competent for the court convicting 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 convicted
and such other particulars as the court may consider to be appropriate
in the circumstances of the case, to be published at the expense of
the company in such newspapers or 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 of the court has
expired without any appeal having been preferred, or such an appeal,
having been preferred, has been disposed of.
(3) The expenses of any publication under sub-section (1) shall
be recoverable from the company as if it were a fine imposed by the
court.
Explanation.--For the purposes of this section, "company" has the
meaning assigned to it in clause (a) of the Explanation to section 10.
10C.
Presumption of culpable mental state.
10C. Presumption of culpable mental state. (1) In any prosecution
for any offence under this Act which requires a culpable mental state
on the part of the accused, the court shall presume the existence of
such mental state but it shall be a defence for the accused to prove
the fact that he had no such mental state with respect to the act
charged as an offence in that prosecution.
Explanation.--In this section, "culpable mental state" includes
intention, motive, knowledge of a fact and the belief in, or reason to
believe, a fact.
(2) For the purposes of this section, a fact is said to be proved
only when the court believes it to exist beyond reasonable doubt and
not merely when its existence is established by a preponderance of
probability.]
11.
Congnizance of offences.
11. Congnizance of offences. No Court shall take cognizance of
any offence punishable under this Act except on a report in writing of
the facts constituting such offence made by a person who is a public
servant as defined in section 21 of the Indian Penal Code (45 of
1860). 11*[or any person aggrieved or any recognised consumer
association, whether such person is a member of that association or
not]
11*[Explanation.-- For the purposes of this section and section
association registered under the Companies Act, 1956 or any other law
for the time being in force.]
12A.
Constitution of Special Courts.
9*[12A. Constitution of Special Courts. (1) The State Government
may, for the purpose of providing speedy trial of the offences under
this Act by notification in the Official Gazette constitute as many
Special Courts as may be necessary for such area or areas as may be
specified in the notification.
(2) A Special Court shall consist of a single judge who shall be
appointed by the High Court upon a request made by the State
Government.
Explanation.--In this sub-section the word "appoint" shall have
the meaning given to it in the Explanation to section 9 of the Code.
(a) he is qualified for appointment as a judge of a High
Court, or
(b) he has for a period of not less than one year been a
Sessions Judge or an Additional Sessions Judge.
12AA
Offences triable by Special Courts.
12AA. Offences triable by Special Courts. (1) Notwithstanding
anything contained in the Code--
(a) all offences under this Act shall be triable only by the
Special Court constituted for the area in which the offence has been
committed or where there are more Special Courts than one for such
area by such one of them as may be specified in this behalf by the
High Court.
(b) where a person accused of or suspected of the commission of
an offence under this Act is forwarded to a Magistrate under sub-
section (2) or sub-section (2A) of section 167 of this Code, such
Magistrate may authorise the detention of such person in such custody
as he thinks fit for a period not exceeding fifteen days in the whole
where such Magistrate is a Judicial Magistrate and seven days in the
whole where such Magistrate is an Executive Magistrate:
Provided that where such Magistrate considers--
(i) when such person is forwarded to him as aforesaid, or
(ii) upon or at any time before the expiry of the period of
detention authorised by him;
that the detention of such person is unnecessary, he may if he is
satisfied that the case falls under the proviso to section 8 order the
release of such person on bail and if he is not so satisfied he shall
order such person to be forwarded to the Special Court having
jurisdiction;
(c) the Special Court may, subject to the provisions of clause
(d) of this sub-section exercise, in relation to the person forwarded
to it under clause (b), the same power which a Magistrate having
jurisdiction to try a case may exercise under section 167 of the Code
in relation to an accused person in such case who has been forwarded
to him under that section;
(d) save as aforesaid no person accused of or suspected of
commission of an offence under this Act shall be released on bail by
any court other than a Special Court or the High Court.
Provided that a Special Court shall not release any such person
on bail--
(i) without giving the prosecution an opportunity to oppose the
application for such release unless the Special Court for reasons to
be recorded in writing, is of opinion that it is not practicable to
give such opportunity; and
(ii) where the prosecution opposes the application, if the
Special Court is satisfied that
there appear reasonable grounds for believing that he has been guilty
of the offence concerned:
Provided further that the Special Court may direct that any such
person may be released on bail if he is under the age of sixteen years
or is woman or is a sick or infirm person, or if the Special Court is
satisfied that it is just and proper so to do for any other special
reason to be recorded in writing;
(e) a Special Court may, upon a persual of police report of the
facts constituting an offence under this Act [or upon a complaint made
by an officer of the Central Government or a State Government
authorised in this behalf by the Government concerned or any person
aggrieved or any recognised consumer association, whether such person
is a member of that association or not,] take cognizance of that
offence without the accused being committed to it for trial;
(f) all offences under this Act shall be tried in a summary way
and the provisions of sections 262 to 265 (both inclusive) of the Code
shall, as far as may be, apply to such trial;
Provided that in the case of any conviction in a summary trial
under this section, it shall be lawful for the Special Court to pass a
sentence of imprisonment for a term not exceeding two years.
(2) When trying an offence under this Act, a Special Court may
also try an offence other than an offence under this Act, with which
the accused may, under the Code, be charged at the same trial:
Provided that such other offence is, under any other law for the
time being in force, triable in a summary way:
Provided furthe that in the case of any conviction for such other
offence in such trial, it shall not be lawful for the Special Court to
pass a sentence of imprisonment for a term exceeding the term provided
for conviction in a summary trial under such other law.
(3) A Special Court may, with a view to obtaining the evidence of
any person suspected to have been directly or indirectly concerned in,
or privy to, an offence under this Act, tender a pardon to such person
on condition of his making a full and true disclosure of the whole
circumstances within his knowledge relating to the offence and to
every other person concerned whether as principal or abettor in the
commission thereof and any pardon so tendered shall, for the purposes
of section 308 of the Code, be deemed to have been tendered under
section 307 thereof.
(4) Nothing contained in this section shall be deemed to affect
the special powers of the High Court regarding bail under section 439
of the Code and the High Court may exercise such powers in cluding the
power under clause (b) of sub-section (1) of that section as if the
reference to "Magistrate" in that section included also a reference to
a "Special Court" constituted under section 12A.
12AB
Appeal and revision.
12AB. Appeal and revision. The High Court may exercise, so far as
may be applicable, all the powers conferred by Chapters XXIX and XXX
of the Code on a High Court, as if a Special Court within the local
limits of the jurisdiction of the High Court were a Court of Sessions
trying cases within the local limits of the jurisdiction of the High
Court.
12AC
Application of Code to proceedings before a Special Court.
12AC. Application of Code to proceedings before a Special Court.
Save as otherwise provided in this Act, the provisions of the Code
(including the provisions as to bail and bonds) shall apply to the
proceedings before a Special Court and for the purposes of the said
provisions, the Special court shall be deemed to be a Court of
Sessions and the person conducting a prosecution before a Special
Court, shall be deemed to be a Public Prosecutor.]
---------------------------------------------------------------------
1 Ins. by Act 36 of 1967, s. 9.
2 Ins. by Act 47 of 1964, s. 2.
3 Subs. & omitted by Act 30 of 1974, s. 7 (w.e.f. 22-6-74).
4 Ins. by s. 8, ibid.
5 Subs. by s. 9, ibid.
6 Subs. by s. 10, ibid.
7 Ins. by Act 18 of 1981, s. 9 & 9A for fifteen years (w.e.f. 1-9-
1982).
8 Omitted by s. 10, ibid. for fifteen years (w.e.f. 1-9-1982).
9 Subs. by s. 11, ibid. for fifteen years (w.e.f. 1-9-1982).
10 Ins. by Act 42 of 1986, s. 4.
11 Ins. and added by Act 73 of 1986, s. 2 (w.e.f. 1-5-1987).
12 Ins. by s. 3, ibid. (w.e.f. 1-5-1987).
48C
1*[section 452] 1***
12B.
Grant of injunction, etc., by civil courts.
12B. Grant of injunction, etc., by civil courts. No civil court
shall grant an injunction or make any order for any other relief
against the Central Government or any State Government or a public
officer 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 made thereunder, until after notice of the application
for such injunction or other relief has been given to such Government
or officer.]
13.
Presumption as to orders.
13. Presumption as to orders. Where an order purports to have
been made and signed by an authority in exercise of any power
conferred by or under this Act, a Court shall presume that such order
was so made by that authority within the meaning of the Indian
Evidence Act, 1872. (1 of 1872)
14.
Burden of proof in certain cases.
14. Burden of proof in certain cases. Where a person is
prosecuted for contravening any order made under section 3 which
prohibits him from doing any act or being in possession of a thing
without lawful authority or without a permit, licence or other
document, the burden of proving that he has such authority, permit,
licence or other document shall be on him.
15.
Protection of action taken under Act.
15. Protection of action taken under Act. (1) No suit,
prosecution or other legal proceeding shall lie against any person for
anything which is in good faith done or intended to be done in
pursuance of any order made under section 3.
(2) No suit or other legal proceeding shall lie against the
Government for any damage caused or likely to be caused by anything
which is in good faith done or intended to be done in pursuance of any
order made under section 3.
15A.
Prosecution of public servants.
15A. Prosecution of public servants. Where any person who is a
public servant is accused of any offence alleged to have been
committed by him while acting or purporting to act in the discharge of
his duty in pursuance of an order made under section 3, no court shall
take cognizance of such offence except with the previous sanction--
(a) of the Central Government, in the case of a person
who is employed or, as the case may be, was at the time of
commission of the alleged offence employed, in connection
with the affairs of the Union;
(b) of the State Government, in the case of a person
who is employed or, as the case may be, was at the time of
commission of the alleged offence employed, in connection
with the affairs of the State.]
16.
Repeals and savings.
16. Repeals and savings. (1) The following laws are hereby
repealed:--
(a) the Essential Commodities Ordinance, 1955 (1 of 1955);
(b) any other law in force in any State immediately before
the commencement of this Act in so far as such law
controls or authorises the control of the production,
supply and distribution of, and trade and commerce in,
any essential commodity.
(2) Notwithstanding such repeal, any order made or deemed to be
made by any authority whatsoever, under any law repealed hereby and in
force immediately before the commencement of this Act,
---------------------------------------------------------------------
1 Subs. & omitted by Act 30 of 1974, s. 10 (w.e.f. 22-6-1974).
2 Ins. by s. 11, ibid.
3 Ins. by Act 92 of 1976, s. 8 (w.e.f. 2-9-1976).
48D
shall, in so far as such order may be made under this Act, be deemed
to be made under this Act and continue in force, and accordingly any
appointment made, licence or permit granted or direction issued under
any such order and in force immediately before such commencement shall
continue in force until and unless it is superseded by any appointment
made, licence or permit granted or direction issued under this Act.
(3) The provisions of sub-section (2) shall be without prejudice
to the provisions contained in section 6 of the General Clauses Act,
1897 (10 of 1897), which shall also apply to the repeal of the
Ordinance or other law referred to in sub-section (1) as if such
Ordinance or other law had been an enactment.