Sections 6A to 6E of the Essential Commodities Act, 1955: Confiscation, Show Cause Notice, Appeal and Jurisdiction
Sections 6A to 6E create the statutory framework governing confiscation after seizure of an essential commodity under an order made under Section 3. They deal with the Collector's confiscation power, procedural safeguards, appeal, the relationship between confiscation and punishment, and the statutory bar on other authorities dealing with seized property while confiscation proceedings are pending.
Section 6A - Confiscation of essential commodity
Meaning and scope. When an essential commodity is seized in pursuance of an order made under Section 3, a report of seizure is to be made without unreasonable delay to the Collector of the district or Presidency town where the seizure occurs. Whether or not prosecution is instituted, the Collector may require production of the seized commodity for inspection and, on being satisfied that the relevant order has been contravened, may order confiscation of the commodity, its package, covering or receptacle, and an animal, vehicle, vessel or other conveyance used for carrying it.
Important safeguards and consequences
Foodgrains or edible oilseeds produced by the producer and seized from that producer receive the protection stated in the first proviso to Section 6A(1). In the case of a conveyance used for carriage of goods or passengers for hire, the owner must be given the statutory option contemplated by the second proviso to pay a fine in lieu of confiscation, subject to the ceiling specified by the section.
Section 6A(2) also permits sale of a commodity that is subject to speedy and natural decay, or where sale is otherwise expedient in the public interest, at the controlled price where one exists or by public auction where it does not. The statutory proviso contains a special mechanism for foodgrains. Section 6A(3) governs payment of sale proceeds where confiscation is not ultimately ordered, an appellate order so requires, or the person concerned is acquitted in the prosecution described in the section.
Section 6B - Issue of show cause notice before confiscation
Procedural protection. Section 6B generally prevents a confiscation order under Section 6A unless the owner, or the person from whom the property was seized, receives written notice of the proposed grounds of confiscation, is allowed a reasonable opportunity to make a written representation, and is given a reasonable opportunity of being heard.
For an animal, vehicle, vessel or other conveyance, Section 6B(2) provides a defence where the owner proves to the Collector's satisfaction that the conveyance was used without the knowledge or connivance of the owner, the owner's agent, if any, and the person in charge, and that each had taken reasonable and necessary precautions against such use. Under Section 6B(3), a confiscation order is not invalid merely because of a defect or irregularity in the notice where the statutory requirement has been substantially complied with.
Section 6C - Appeal
Right of appeal. A person aggrieved by an order of confiscation under Section 6A may appeal within one month from communication of the order to the judicial authority appointed by the State Government concerned. After giving the appellant an opportunity of being heard, the judicial authority may confirm, modify or annul the confiscation order.
Section 6C(2) addresses restoration or monetary compensation where the confiscation order is modified or annulled, or where the person concerned is acquitted in the prosecution referred to in the section and return of the seized commodity is not possible. The price is determined in the manner prescribed by Section 6C by reference to the applicable provisions of Section 3, together with reasonable interest calculated from the date of seizure.
Section 6D - Award of confiscation not to interfere with other punishments
Confiscation by the Collector is not a substitute for other punishment under the Act. Section 6D expressly provides that an award of confiscation does not prevent the infliction of any punishment for which the affected person is otherwise liable under the Essential Commodities Act, 1955.
Section 6E - Bar of jurisdiction in certain cases
Exclusive control over seized property. Where an essential commodity, its package, covering or receptacle, or a conveyance used for carrying it has been seized pursuant to an order under Section 3 and confiscation under Section 6A is pending, Section 6E gives the Collector, or the State Government concerned under Section 6C as applicable under the statutory text, authority over possession, delivery, disposal, release or distribution. The non-obstante clause excludes the jurisdiction of a court, tribunal or other authority to make orders concerning those matters while the statutory bar operates.
How Sections 6A to 6E work together
In practical sequence, seizure under an order made under Section 3 may lead to a report to the Collector and confiscation proceedings under Section 6A. Before confiscation, Section 6B supplies notice, representation and hearing safeguards. Section 6C provides the statutory appeal. Section 6D preserves exposure to other punishment under the Act, while Section 6E regulates jurisdiction over the seized property during the confiscation process.
Related provisions
These provisions should be read with Section 3 - powers to control production, supply and distribution and Section 7 - penalties. For definitions and the statutory meaning of essential commodities, see Sections 1, 2 and 2A.
Legal information only. The applicable control order, State amendment, notification and facts of the particular seizure should be checked before relying on these provisions in a proceeding.