THE HON’BLE SRI JUSTICE NOUSHAD ALI WRIT PETITION No.26149 of 2011 Date: 19.09.2011 Between: R. Lakshminarayana … Petitioner and The Collector (CS), Prakasam District, Ongole and others. … Respondents THE HON’BLE SRI JUSTICE NOUSHAD ALI WRIT PETITION No.26149 of 2011 ORDER : Heard Sri I. Gopal Reddy, learned counsel appearing for the petitioner, as well as the learned Government Pleader for Civil Supplies appearing for the respondents, and with their consent the writ petition is being disposed of at the admission stage. 2. The petitioner is the owner of Lorry bearing registration No.AP 28W 1455. The said lorry was seized by the Enforcement Deputy Tahsildar, Ongole-I along with other staff on the ground that it was found transporting 84.00 quintals of P.D.S. rice. Based on a report dated 1.8.2011 submitted in that regard, the 1st respondent-Collector (Civil Supplies), Prakasam District, initiated action for confiscation of the vehicle along with the stock under Section 6-A of the Essential Commodities Act, 1955 (for brevity “the Act”). The petitioner, being the owner of the vehicle, filed a petition dated 23.8.2011 before the 1st respondent seeking release of the vehicle contending that the cleaner has accepted to transport the contraband rice without his knowledge or approval and he is innocent of the alleged offence and not liable for action under the Act. Even before filing the said petition, the 1st respondent passed the impugned proceedings No.Rc.CS1/6A/125/2011-2, dated 13.8.2011, directing release of the vehicle on the petitioner furnishing bank guarantee for an amount of Rs.3.50 Lakhs. Aggrieved by the same, the petitioner has filed the present writ petition seeking release of the vehicle. 3. Learned counsel for the petitioner submits that the petitioner had no knowledge about the transportation of P.D.S. rice by the cleaner and, therefore, the vehicle is not liable to be confiscated. He further submits that even though the market value of the seized stock as assessed by the 1st respondent is only Rs.1,68,000/-, insisting the petitioner to furnish bank guarantee for a sum of Rs.3-50 Lakhs is contrary to law. The learned counsel, therefore, submits that the impugned order be modified directing the petitioner to furnish bank guarantee for the value of the seized stock. 4. Indisputably, the petitioner’s vehicle was seized while transporting P.D.S. rice and the proceedings under Section 6-A of the Act have already been initiated against the petitioner. Whether the petitioner was transporting the seized stock with knowledge or whether he is innocent of the offence alleged are all the questions to be decided in an enquiry being conducted by the competent authority under Section 6-A of the Act. It is true that the vehicle was seized on 1.8.2011 and the petitioner approached the 1st respondent seeking release of the vehicle. 5. Under Section 6-A of the Act, any essential commodity seized for contravention of the provisions of the A.P. State Public Distribution System (Control) Order, 2008 and the vehicle used for carrying such commodity are liable to be confiscated. However, insofar as the vehicle is concerned, the second proviso to Section 6-A of the Act provides that in the case of any vehicle, which may be liable for confiscation, the owner of the vehicle 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. Having regard to the said provision, the 1st respondent ought not have directed the petitioner to furnish bank guarantee for Rs.3-50 Lakhs, which is more than the market price and hence, the impugned order to that extent is unsustainable. 6. In the circumstances, this writ petition is disposed of modifying the impugned order dated 13.8.2011 directing the 1st respondent to release the petitioner’s Lorry bearing No.AP 28W 1455 on condition of the petitioner furnishing bank guarantee for a sum of Rs.1,68,000/- (Rupees one lakh sixty eight thousand only), which is equivalent to the value of the seized stock as assessed by the 1st respondent, for a period of three years from a Nationalised Bank, pending finalisation of the enquiry under Section 6-A of the Act. No order as to costs. ________________________ JUSTICE NOUSHAD ALI 19.09.2011. NOTE: Issue C.C. in three days. (B/O) Msr THE HON’BLE SRI JUSTICE NOUSHAD ALI WRIT PETITION No.26149 of 2011 19.09.2011 (Msr)