(2008) 12 S.C.R. 892

M/S. IPOUR GKC & RKC & SONS & ANR. r

STATE REP. BY STATION HOUSE OFFICER

PONDICHERRY & ORS. (Criminal Appeal No. 504 of 2001)

AUGUST 28, 2008

[DR. ARIJIT PASAYAT AND DR. MUKUNDAKAM )....

SHARMA, JJ.]

c Pondicherry Kerosene Control Order, 1969/Essential Commodities Act, 1955 - Clause 131 s. 7 - Violation of the provisions - Vehicle reporting carrying kerosene for the accused firm found empty at check-post...:. Driver and cleaner of the vehicle stated to have sold the kerosene on the way -

D Prosecution of the firm, its partner, driver, cleaner and retail dealers on the basis of the statement - Trial court acquitting all the accused - High Court convicting the firm and its partner

- On appeal, held: The provisions are not. applicable to the present case so as to warrant conviction of the firm and its

E partner.

Seven accused were charged for having violated Clause 13 of Pondicherry Kerosene Control Order, 1969.

Appellant-A1 was a partnership firm-wholesale dealer of kerosene. Appellant-A2 was. the partner of the firm, A3

F and A4 were the driver and cleaner respectively of the

vehicle in which the kerosene was being imported to A1

-L ' firm. AS, AG and A7 were the retail dealers of kerosene.

According to prosecution, the vhicle reporting import of 11,000 litres of kerosene, when was stopped G and checked at the checkpost, it was found empty.

Statement of A3 (driver) was recorded to the effect that he + had sold the oil on the way. The statement, however, was

.\,

not signed by him. Prosecution was initiated. Trial court acquitted all the accused. High Court convicted A1-firm H 392

. ,;

M/S. !POUR GKC & RKC & SONS & ANR. v. STATE 893

REP. BY STATION HOUSE OFFICER

--+ and A2-Partner and upheld acquittal as regards other. A accused. Hence the present appeal. .

Allowing the appeal, the Court

HELD:Both the trial Court and the High Court held that A3 is purported to have made a statement that he B had sold the kerosene on the way. Similar statement was purportedly given by A4. But the officials proceeded to act on the aforesaid statements which were undisputedly not signed statement. Apart from the fact that the said statement did not in any way implicate the c appellants, the effect of such statement to find the appellants guilty has been lost sight of by the High Court.

The trial court found that there was no evidence to show and no steps were taken and no investigation was focused, as to whether the articles were sold on the 0 way. The categorical findings of the trial Court and the High Court were that no suc.h sale took place. Even if the stand of the prosecution is accepted that the receipt was not established, that would in a sense relate to the purchase and not to sale and, therefore, Clause 13 of Pondicherry Kerosene Control Order, 1969 read with E Section 7 of the Essential Commodities Act, 1955 do not have any application. The trial Court was, therefore, justified in directing acquittal of the appellant and the High Court without properly analyzing the legal position directed conviction. [Para 6] [895 H 896 A, B, C, D] F

CRIMINALAPPELLATE JURISDICTION: Criminal Appeal No. 504 of 2001

From the final Judgment and Order dated 22.11.2000 of the High Court of Judicature at Madras in Criminal Appeal No.

G 401 of 1993

M. Karpaga Vinayagam, Anil Kaush1k, Shiv Prakash Pandey and Gopal Singh for the A.ppellants.

V. Kanakraj, S.J. Aristotle. V.G. Pragasam and H

SUPREME COURT REPORTS

(2008] 12 S.C.R.

A Prabhuramasubramanian for the Respondent. .......-

The Judgment of the Court was delivered by

Or. ARIJIT PASAYAT, J. 1.Challenge in this appeal is to the judgment of a learned Single Judge of the Madras High

8,., Court setting aside the judgment of acquittal rendered by learned

Special judge, Pondicherry in STR No .. 95 of 1984 so far as the appellants are concerned while upholding the acquittal in respect -,,.___

of five others.

2. The seven accused persons faced trial in the following manner:

The charges against the accused/appellants are that Al is a.partnership firm and A2 is the partner of the firm, A3 is the

Driver of the Vehicle concerned and A4 is Cleaner, while A5, A6 .and A7 are said to be retail dealers of Kerosene. The

I D Hindustan Petroleum Corporation Limited from Madras is

tdistributing Kerosene to A 1 firm at Pondicherry and Al firm has to observe Clause 13 of the Pondicherry Kerosen.e Control * Order, 1969 (in short the 'Control Order') and sell the Kerosene

E only to another wholesale dealer licensed under that order or to registered dealer or to any institution or person approved by . the licensing authority. Such sales shall be in such quantities and or such intervals, as the licensing authority may, by general or special order, direct.

F The prosecution case is that on 15-07-1984, at about 6 p.m. one tanker lorry PYZ-5699 was brought to the check post +- ' from Madras reporting import of 11,000 litres of Kerosene to Al firm and the driver also paid octroi of Rs.110/- vide receipt No.966260 dated 15-07-1984. After looking at the invoice No.

G 6124 dated 01-07-1984, which has been marked as Ex.P2

Series, the authorities entertained suspicion because the + dispatch was on 14. 7.1984 and when they checked the vehicle .... they found it empty. Therefore, the driver was questioned, who gave statement (Ex.P3) written in his own hand writing, but did

H not sign and escaped with A4 cleaner. Therefore, a case was

.. M/S. !POUR GKC & RKC & SONS & ANR v. STATE 895

REP BY STATION HOUSE OFFICER [DR ARIJIT PASAYAT, J.]

registred against A 1 firm as well as A2 partner alongwith driver A and ieaner besides charging AS, A6 & A 7 who are the retail sellers of kerosene to whom A 1 claimed to have suld the kerosE;!ne.

~·:The trial Court on consideration of the evidence came to ·, hold tat the accusations have not been established. The State" 8

of Pondicherry filed an appeal before the High Court questioning thediidgment of acquittal recorded by the trial court. By the , impugn.ed order the High Court set aside the acquittal so far as the present appellants are concerned while dismissing the spme.

qu~ h~ other five co-accused persons. c

..:,. ti . 3.: Learned counsel for the appellant submitted that the.

High Court has lost sight of the fact that the ingredients.·

neesary to bring in application of clause 13 of the Control .

Order bave not been established and, therefore, the conviction~ D as-recorded by the High Court cannot be sustained. It is pointed ' outJhat the basis for the proceeding against the appellant was

(;!llgd statement of A3, who has been acquitted by the tria! , .court and the same has been upheld by the High court.

4. Learned counsel for the respondent-State on the other .. E , hand submitted that the appellants produced certain documents to show receipt of the 11,000 litres of kerosene. But on verification it was noticed that those documents are not relatable

nd, therefore, the High Court was justified in finding the app.eUants guilty.

5. Clause 13 of the Control Order reads as follows: •'13. Restriction on sale of kerosene - No wholesale dealer .. sha}I sell kerosene, except to another wholesale .dealer ., licensed under this order or to registered dealer or to any G . , , irtstitution or person approved by the licensing authority. Su9h •. sales shall be in such quantities and at such intervals, as the

.. licensing authority may, by general or special order, direct." .

6. A bare perusal of the provision shows that it is relatable " • to sl.e. Both the trial Court and the High Court held thfA3 is.}:! .:. 4

/,; . • ~. .. i ~~: ·\ ; ~

• {<.

, 896

SUPREME COUR.T R~PORTS

[2008] 12 S.C.R.

A purported to have made a statement that he had soid the kerosene on the way. Similar statement was purportedly given by A4. But the officials proceeded to act on the aforesaid statements which were undisputedly not signed statement. Apart from the fact that the said statement did not in any way implicate s the appellants, the effect of such statement to find the appellants

 guilty has been lost sight of by the High Court. The trial court foun:i that there was no evidence to show and no steps were taken and no investigation was focused, as to whe.ther the articles were sold on the way. The categorical findings of the c trial Court and the High Court were that no such sale took place.

Even if the stand of the prosecution is accepted that the receipt was not established that would in a sense relate to the purchase and not to sale and, therefore, Clause 13 read with Section 7 of the Essential Commodities Act, 1955 (in short the 'Act') do

0 not have any application. The trial Court was, therefore, justified in directing acquittal of the appellant and the High Court without propPrly analyzing the legal position directed conviction which canPot be maintained.

7. The appeal is allowed. The bail bonds executed by the E appellants for release on bail, pursuant to the order dated

20.4.2008 shall stand discharged.

K.K.T.

Appeal allowed.

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