Sections 7, 7A and 8 of the Essential Commodities Act, 1955
These provisions deal with punishment for contravention of orders made under Section 3, recovery by Government of specified unpaid amounts, and liability for attempting or abetting a contravention.
Section 7 - Penalties
Meaning and scope. Section 7 is the principal penal provision of the Act for breach of an order made under Section 3. The punishment depends on the nature of the order contravened. The provision also addresses forfeiture and enhanced consequences for repeat convictions.
(1) If any person contravenes any order made under Section 3:
(a)(i) for an order made with reference to clause (h) or clause (i) of Section 3(2), imprisonment may extend to one year and the person is also liable to fine;
(a)(ii) for any other order, imprisonment shall ordinarily be not less than three months and may extend to seven years, and the person is also liable to fine. The court may impose imprisonment for less than three months for adequate and special reasons recorded in the judgment.
(b) Property in respect of which the order has been contravened is liable to forfeiture to Government.
(c) The court may also order forfeiture of a package, covering or receptacle containing the property and any animal, vehicle, vessel or other conveyance used in carrying it.
(2) Failure to comply with a direction under Section 3(4)(b) is punishable with imprisonment ordinarily ranging from three months to seven years and fine, subject to the court's power to impose a shorter term for adequate and special reasons recorded in the judgment.
(2A) A second or subsequent conviction under the specified provisions attracts imprisonment ordinarily ranging from six months to seven years and fine, with power to impose a shorter term for adequate and special reasons recorded in the judgment.
(2B) Absence of substantial harm to the general public or an individual is expressly treated as an adequate and special reason for awarding imprisonment below the otherwise prescribed minimum in the circumstances stated in the section.
(3) On a repeat conviction under Section 7(1) concerning an essential commodity, the court must, in addition to the penalty imposed, direct that the convicted person shall not carry on business in that essential commodity for the period specified by the court, which shall not be less than six months.
For the authoritative statutory wording, amendments and State amendments, refer to the official India Code text linked below.
Section 7A - Power of Central Government to recover certain amounts as arrears of land revenue
Meaning and scope. Section 7A creates a recovery mechanism where a person defaults in paying an amount required by an order under Section 3, or in depositing an amount to the credit of an account or fund constituted by or under such an order.
(1) The amount in default is recoverable by Government, together with simple interest at fifteen per cent per annum from the date of default to recovery, as an arrear of land revenue or as a public demand. The section applies in the manner stated in the Act even where the relevant order or liability arose before commencement of the 1984 amendment.
(2) An amount recovered under sub-section (1) is to be dealt with in accordance with the order under which the liability to pay or deposit arose.
(3) The provision contains a non-obstante clause restricting courts, tribunals and other authorities from granting an injunction or order prohibiting or restricting recovery under sub-section (1).
(4) If the underlying order is subsequently declared invalid by a competent court after Government has been given a reasonable opportunity of being heard, Government must refund the recovered amount with simple interest at fifteen per cent per annum from recovery to refund.
Explanation: For this section, "Government" means the Government by which the concerned Section 3 order was made, or the Government to which the officer or authority making that order was subordinate.
Section 8 - Attempts and abetment
Meaning and scope. A person who attempts to contravene, or abets the contravention of, an order made under Section 3 is deemed to have contravened that order. The provision therefore extends statutory liability beyond a completed contravention to an attempt or abetment.
Related provisions
Section 3 is central to Sections 7, 7A and 8 because these provisions operate by reference to orders made under Section 3. Confiscation proceedings under Sections 6A to 6E are separate statutory provisions and should be read independently where seizure or confiscation is involved.