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The Essential Commodities Act, 1955 Set-3
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1. A defective notice will not invalidate confiscation if the provisions of Section 6B(1)(a) have been:
a. Completely ignored
b. Partially followed
c. Substantially complied with
d. Approved by court
2. Section 6B primarily ensures:
a. Judicial punishment
b. Administrative convenience
c. Principles of natural justice before confiscation
d. Immediate seizure of goods
3. The requirement of giving an opportunity of hearing reflects the legal principle of:
a. Res judicata
b. Natural justice
c. Judicial review
d. Strict liability
4. Section 6C of the Essential Commodities Act deals with:
a. Seizure of commodities
b. Appeal against confiscation orders
c. Delegation of powers
d. Licensing of traders
5. Any person aggrieved by an order of confiscation under Section 6A may file an appeal within:
a. 15 days
b. 30 days (one month)
c. 60 days
d. 90 days
6. The appeal against confiscation under Section 6A lies before:
a. The District Magistrate
b. A judicial authority appointed by the State Government
c. The High Court
d. The Central Government
7. The time period for filing an appeal under Section 6C starts from the date of:
a. Seizure of commodity
b. Passing of confiscation order
c. Communication of confiscation order to the person concerned
d. Filing of police report
8. Before deciding the appeal, the judicial authority must give the appellant:
a. A chance to negotiate price
b. A reasonable opportunity of being heard
c. Permission from police
d. Permission from the State Government
9. The judicial authority hearing the appeal under Section 6C may:
1. Confirm the order
2. Modify the order
3. Annul the order
a. 1 only
b. 1 and 2 only
c. 2 and 3 only
d. 1, 2 and 3
10. If a confiscation order is modified or annulled on appeal, the seized commodity should:
a. Be destroyed
b. Be returned to the owner if possible
c. Be auctioned again
d. Be exported
11. If the seized commodity cannot be returned for any reason after annulment or modification of confiscation, the person concerned shall be:
a. Prosecuted again
b. Paid the price of the commodity
c. Given a government job
d. Awarded damages by the court
12. The compensation paid when the seized commodity cannot be returned includes:
a. Market price only
b. Price plus reasonable interest from date of seizure
c. Auction price only
d. Government subsidy
13. The price payable for seized foodgrains, edible oilseeds or edible oils under Section 6C shall be determined according to:
a. Section 3(3)
b. Section 3(3A)
c. Section 3(3B)
d. Section 3(3D)
14. The price payable for seized sugar under Section 6C shall be determined according to:
a. Section 3(3A)
b. Section 3(3B)
c. Section 3(3C)
d. Section 3(3D)
15. The price payable for other essential commodities under Section 6C shall be determined according to:
a. Section 3(1)
b. Section 3(2)
c. Section 3(3)
d. Section 3(4)
16. Interest on the price payable under Section 6C is calculated from the:
a. Date of confiscation
b. Date of auction
c. Date of seizure of the commodity
d. Date of appeal
17. The appellate authority under Section 6C is appointed by the:
a. Central Government
b. State Government
c. High Court
d. Supreme Court
18. The objective of Section 6C is to provide:
a. Administrative review only
b. Judicial remedy against confiscation orders
c. Export regulation
d. Licensing control
19. Section 6D of the Essential Commodities Act deals with:
a. Appeal against confiscation
b. Confiscation and criminal punishment
c. Delegation of powers
d. Price determination
20. According to Section 6D, confiscation ordered by the Collector shall:
a. Prevent prosecution
b. Replace criminal punishment
c. Not prevent the infliction of other punishments under the Act
d. Automatically cancel prosecution
21. The authority empowered to award confiscation under this Act is the:
a. Magistrate
b. Collector
c. Central Government
d. Judicial authority
22. Section 6D clarifies that confiscation under the Act:
a. Is the only penalty possible
b. Bars criminal prosecution
c. Does not interfere with other punishments under the Act
d. Requires court approval
23. If essential commodities are confiscated under Section 6A, the offender may still:
a. Avoid prosecution
b. Be punished under the Act
c. File appeal only
d. Receive compensation
24. Section 6D establishes that confiscation is:
a. A substitute for criminal punishment
b. An independent administrative penalty
c. A civil compensation mechanism
d. A judicial order only
25. Under Section 6D, confiscation and criminal punishment may:
a. Occur together
b. Never occur together
c. Be mutually exclusive
d. Require High Court approval
26. Section 6D ensures that confiscation proceedings do not:
a. Affect trade licences
b. Prevent criminal liability under the Act
c. Affect taxation
d. Affect export policies
27. The main purpose of Section 6D is to:
a. Prevent double punishment
b. Allow both confiscation and criminal punishment where applicable
c. Provide appeal procedure
d. Provide compensation for loss
28. Section 6D reinforces that confiscation ordered by the Collector under the Act:
a. Is final and bars further proceedings
b. Does not bar other punishments under the Act
c. Requires approval of State Government
d. Must be confirmed by court
29. Section 6E of the Essential Commodities Act deals with:
a. Appeal against confiscation
b. Bar of jurisdiction of courts in certain cases
c. Delegation of powers
d. Disposal of seized commodities
30. Section 6E applies when an essential commodity is:
a. Imported
b. Seized under an order made under Section 3
c. Exported
d. Stored in warehouses
31. The bar of jurisdiction under Section 6E operates when confiscation proceedings are pending under:
a. Section 6B
b. Section 6C
c. Section 6A
d. Section 5
32. During confiscation proceedings, the authority having jurisdiction over the seized property is:
a. The Magistrate
b. The Collector or State Government (in appeal)
c. The High Court
d. The police officer
33. According to Section 6E, which of the following authorities cannot make orders regarding seized commodities?
a. Courts
b. Tribunals
c. Other authorities
d. All of the above
34. The jurisdiction barred under Section 6E relates to orders concerning:
a. Possession of seized commodity
b. Delivery or release of seized commodity
c. Disposal or distribution of seized commodity
d. All of the above
35. The bar of jurisdiction under Section 6E applies notwithstanding anything contained in:
a. Judicial precedents
b. Other laws for the time being in force
c. Constitutional provisions
d. International agreements
36. Section 6E ensures that confiscation proceedings remain under the control of:
a. Courts only
b. The Collector and appellate authority under the Act
c. State police only
d. Trade authorities
37. The main objective of Section 6E is to:
a. Transfer cases to High Courts
b. Prevent interference by courts or authorities during confiscation proceedings
c. Promote free trade
d. Encourage export of essential commodities
38. Section 7 of the Essential Commodities Act deals with:
a. Licensing of traders
b. Penalties for contravention of orders
c. Confiscation of goods
d. Appeals against confiscation
39. A person contravening an order made under Section 3 shall be punishable under:
a. Section 6
b. Section 7
c. Section 8
d. Section 9
40. If a person contravenes an order made under Section 3 with reference to clause (h) or (i) of Section 3(2), the punishment may extend to:
a. 3 months imprisonment
b. 6 months imprisonment
c. 1 year imprisonment
d. 3 years imprisonment
41. Contravention of orders under clauses (h) or (i) of Section 3(2) also makes the offender liable to:
a. Confiscation only
b. Fine
c. Civil damages
d. Export penalty
42. For contravention of any other order under Section 3 (other than clauses (h) or (i)), the punishment shall be:
a. Imprisonment up to one year
b. Imprisonment between 3 months and 7 years
c. Imprisonment up to 3 years
d. Fine only
43. The minimum imprisonment for contravention of most orders under Section 3 is:
a. One month
b. Two months
c. Three months
d. Six months
44. The maximum imprisonment under Section 7 for contravention of most orders under Section 3 is:
a. 3 years
b. 5 years
c. 7 years
d. 10 years
45. The court may impose a sentence of imprisonment less than three months only if:
a. The offender pleads guilty
b. Adequate and special reasons are recorded in the judgment
c. The police recommend it
d. The State Government permits it
46. Under Section 7(1)(b), any property in respect of which the order has been contravened shall be:
a. Returned to the owner
b. Forfeited to the Government
c. Auctioned privately
d. Sent to court custody
47. The court may order forfeiture of which of the following under Section 7(1)(c)?
1. Packages or receptacles containing the property
2. Vehicles or animals used in carrying the property
a. 1 only
b. 2 only
c. Both 1 and 2
d. None
48. The forfeiture of conveyances used for transport of contravened goods occurs:
a. Automatically
b. Only if the court so orders
c. By order of police
d. By order of traders
49. If a person fails to comply with a direction given under Section 3(4)(b), the punishment may extend to:
a. 1 year imprisonment
b. 3 years imprisonment
c. 7 years imprisonment
d. 10 years imprisonment
50. Failure to comply with directions under Section 3(4)(b) carries a minimum imprisonment of:
a. 1 month
b. 2 months
c. 3 months
d. 6 months
51. The punishment for failure to comply with directions under Section 3(4)(b) also includes:
a. Civil damages
b. Fine
c. Export penalty
d. Confiscation only
52. Section 7 aims primarily to:
a. Encourage trade
b. Provide deterrent punishment for violations of control orders
c. Promote exports
d. Regulate agricultural production
53. Section 7(2A) deals with punishment for:
a. First-time offenders
b. Repeat offenders under certain provisions
c. Government officials
d. Export violations
54. Section 7(2A) applies when a person previously convicted under Section 7(1)(a)(ii) or Section 7(2):
a. Appeals against conviction
b. Is convicted again under the same provision
c. Applies for bail
d. Pays a fine
55. For a second or subsequent offence under Section 7(2A), the minimum imprisonment prescribed is:
a. 3 months
b. 4 months
c. 6 months
d. 1 year
56. The maximum imprisonment for repeat offences under Section 7(2A) is:
a. 5 years
b. 6 years
c. 7 years
d. 10 years
57. In addition to imprisonment under Section 7(2A), the offender shall also be liable to:
a. Civil damages
b. Fine
c. Confiscation only
d. Export penalty
58. The court may impose imprisonment less than six months for repeat offences only when:
a. Police recommend it
b. Adequate and special reasons are recorded in the judgment
c. The offender pleads guilty
d. The State Government approves
59. According to Section 7(2B), lack of substantial harm to the general public may be considered as:
a. A defence against prosecution
b. An adequate and special reason for reducing sentence
c. A ground for dismissal of the case
d. A reason to confiscate goods
60. Under Section 7(2B), if no substantial harm is caused, imprisonment may be reduced below:
a. One month
b. Three months or six months as the case may be
c. One year
d. Two years
61. Section 7(2B) applies to offences punishable under:
1. Section 7(1)(a)(ii)
2. Section 7(2)
a. 1 only
b. 2 only
c. Both 1 and 2
d. Neither
62. Section 7(3) applies when a person is again convicted under:
a. Section 6A
b. Section 7(1)
c. Section 5
d. Section 3
63. When a person is convicted again under Section 7(1), the court may direct that he shall not carry on business in the concerned essential commodity for:
a. At least three months
b. At least six months
c. At least one year
d. At least two years
64.The prohibition on carrying on business under Section 7(3) is imposed by:
a. State Government
b. Collector
c. Court convicting the person
d. Police officer
65. The prohibition imposed under Section 7(3) is:
a. A substitute for imprisonment
b. An additional penalty besides other punishments
c. A civil remedy
d. A police action
66. The purpose of Section 7(3) is to:
a. Encourage trade in essential commodities
b. Prevent repeat offenders from continuing the business
c. Promote exports
d. Reduce imprisonment terms
67. Section 7(2A)–(3) collectively strengthen the Act by:
a. Promoting free trade
b. Increasing punishment for repeat offenders and restricting their business activities
c. Reducing penalties
d. Removing confiscation powers
68. Section 7A of the Essential Commodities Act deals with:
a. Confiscation of goods
b. Recovery of certain amounts as arrears of land revenue
c. Appeal against confiscation
d. Licensing of traders
69. Under Section 7A, recovery proceedings apply when a person fails to:
a. Pay taxes
b. Pay or deposit amounts required under an order made under Section 3
c. Export essential commodities
d. Maintain stock records
70. The amount payable under Section 7A may arise from:
1. An order made under Section 3
2. Deposit into an account or fund constituted under such order
a. 1 only
b. 2 only
c. Both 1 and 2
d. Neither
71. If a person defaults in paying or depositing the required amount, the amount shall be recoverable as:
a. Civil debt
b. Arrear of land revenue or public demand
c. Income tax arrears
d. Export duty
72. The recovery under Section 7A applies:
a. Only to orders made after the 1984 amendment
b. Only to liabilities arising before the amendment
c. Both before and after the Essential Commodities (Amendment) Act, 1984
d. Only to State Government orders
73. The interest payable on defaulted amounts under Section 7A is calculated at:
a. 10% per annum
b. 12% per annum
c. 15% per annum
d. 18% per annum
74. Interest under Section 7A is calculated from the date of:
a. Order of confiscation
b. Default in payment
c. Court order
d. Recovery notice
75. Interest under Section 7A continues until the date of:
a. Appeal
b. Payment
c. Recovery of the amount
d. Court order
76. The recovery of amounts under Section 7A is carried out by the:
a. Courts
b. Government
c. Private traders
d. Export authorities
77. The amount recovered under Section 7A shall be dealt with according to:
a. Orders of the High Court
b. Rules framed by the police
c. The order under which the liability arose
d. State taxation laws
78. Section 7A ensures enforcement of financial liabilities created under:
a. Section 2A
b. Section 3
c. Section 6A
d. Section 10
79. The purpose of Section 7A is to ensure that amounts due under control orders are:
a. Voluntarily paid
b. Recovered effectively through revenue recovery mechanisms
c. Settled by courts
d. Adjusted through taxation
80. Recovery as arrears of land revenue means:
a. Criminal punishment
b. Administrative recovery through revenue authorities
c. Export duty collection
d. Judicial decree
81. Section 7A strengthens enforcement of the Act by ensuring:
a. Strict price control
b. Efficient recovery of government dues arising under orders made under Section 3
c. Export promotion
d. Judicial review
82.The interest imposed for default under Section 7A is:
a. Compound interest
b. Simple interest
c. Penal interest
d. Discretionary interest
83.Section 7A(3) provides that recovery of amounts as arrears of land revenue cannot be restrained by:
a. Police authorities
b. Courts, tribunals or other authorities
c. State Governments
d. Traders
84.The bar on injunctions under Section 7A(3) applies notwithstanding anything contained in:
a. Only court rules
b. Any other law for the time being in force or any contract to the contrary
c. State Government orders only
d. Judicial precedents
85. According to Section 7A(3), no court or tribunal shall grant:
a. Bail
b. Appeal
c. Injunction restraining recovery proceedings
d. Review petition
86. The recovery protected under Section 7A(3) is recovery of amounts as:
a. Civil damages
b. Tax arrears
c. Arrears of land revenue or public demand
d. Judicial penalties
87. If an order under which an amount was recovered is later declared invalid by a competent court, the Government shall:
a. Retain the money
b. Refund the amount recovered
c. Initiate prosecution
d. Confiscate property
88. Before declaring an order invalid under Section 7A(4), the competent court must give the Government:
a. Notice only
b. Reasonable opportunity of being heard
c. Police approval
d. Parliamentary approval
89. When refunding an amount recovered under Section 7A, the Government must also pay:
a. Penalty
b. Compensation
c. Simple interest
d. Compound interest
90.The rate of interest payable on refunded amounts under Section 7A(4) is:
a. 10% per annum
b. 12% per annum
c. 15% per annum
d. 18% per annum
91. Interest on refunded amounts under Section 7A(4) is calculated from:
a. Date of court order
b. Date of recovery of the amount
c. Date of seizure of commodity
d. Date of filing appeal
92. Interest under Section 7A(4) continues until the date on which the amount is:
a. Deposited in court
b. Returned to traders
c. Refunded by Government
d. Declared invalid
93. The term “Government” under the explanation to Section 7A refers to:
a. Only Central Government
b. Only State Government
c. The Government which made the order under Section 3 or whose officer issued it
d. District authorities
94. If an order under Section 3 was made by an officer subordinate to a Government, the term “Government” refers to:
a. Local authority
b. That Government to which the officer is subordinate
c. The police department
d. The Collector
95. The bar on injunction under Section 7A(3) aims to:
a. Prevent judicial review
b. Ensure uninterrupted recovery of government dues
c. Promote private trade
d. Increase taxation
96. Section 7A(4) provides a safeguard ensuring that:
a. Government actions cannot be challenged
b. Wrongfully recovered amounts are refunded with interest
c. Seized commodities are returned automatically
d. Confiscation orders cannot be appealed
97. Section 7A(3)–(4) together establish a system of:
a. Export regulation
b. Revenue recovery protection with judicial remedy through refund
c. Criminal prosecution only
d. Administrative licensing
98. Section 8 of the Essential Commodities Act deals with:
a. Confiscation of goods
b. Attempts and abetment of offences
c. Delegation of powers
d. Appeal against confiscation
99. Under Section 8, a person who attempts to contravene an order made under Section 3 shall be:
a. Warned only
b. Deemed to have contravened the order
c. Fined only
d. Prosecuted under civil law
100. Section 8 treats an attempt to contravene an order made under Section 3 as:
a. A minor offence
b. A separate civil wrong
c. Actual contravention of the order
d. An administrative violation only
101. Under Section 8, a person who abets a contravention of an order made under Section 3 shall be:
a. Exempt from liability
b. Deemed to have contravened that order
c. Punished under contract law
d. Subject only to fine
102. The provision of Section 8 applies to orders made under:
a. Section 2A
b. Section 3
c. Section 6A
d. Section 7A
103. The effect of Section 8 is that attempt and abetment are treated as:
a. Independent offences with lesser punishment
b. Equivalent to actual contravention
c. Civil liabilities only
d. Administrative breaches
104. The term “abetment” in Section 8 generally includes:
a. Instigating or assisting another person to commit the offence
b. Reporting offences to authorities
c. Refusing to cooperate with authorities
d. Paying government dues
105. Section 8 ensures that persons assisting or encouraging violations of control orders are:
a. Protected from prosecution
b. Treated as offenders
c. Treated as witnesses only
d. Liable only for civil damages
106. The purpose of Section 8 is to:
a. Promote trade in essential commodities
b. Prevent indirect violations of control orders
c. Encourage exports
d. Provide appeal remedies
107. Section 8 strengthens enforcement of the Act by extending liability to:
1. Attempts to contravene orders
2. Abetment of contraventions
a. 1 only
b. 2 only
c. Both 1 and 2
d. Neither
108A. Section 9 of the Essential Commodities Act deals with:
a. Attempts and abetment
b. False statements
c. Burden of proof
d. Protection of actions
109B. Section 9 applies when a person is required to furnish information under an order made under:
a. Section 2A
b. Section 3
c. Section 6A
d. Section 7
110C. A person commits an offence under Section 9 if he knowingly furnishes information that is:
a. Incomplete
b. False in any material particular
c. Delayed
d. Unverified
111D. Section 9 applies when a person makes a false statement which he:
1. Knows to be false
2. Has reasonable cause to believe to be false
3. Does not believe to be true
a. 1 only
b. 1 and 2 only
c. 1, 2 and 3
d. 2 and 3 only
112E. False statements under Section 9 may be made in which of the following documents?
1. Books
2. Accounts
3. Records
4. Declarations or returns
a. 1 and 2 only
b. 2 and 3 only
c. 1, 3 and 4 only
d. 1, 2, 3 and 4
113F. Section 9 applies when the statement is required to be maintained or furnished under an order made under:
a. Section 2
b. Section 3
c. Section 6
d. Section 8
114G. The punishment under Section 9 may include imprisonment which may extend to:
a. Two years
b. Three years
c. Five years
d. Seven years
115H. In addition to imprisonment under Section 9, the offender may also be punished with:
a. Only forfeiture
b. Fine
c. Confiscation of property
d. Civil damages
116I. The offence under Section 9 can be punished with:
a. Imprisonment only
b. Fine only
c. Both imprisonment and fine
d. Imprisonment, fine, or both
117J. The purpose of Section 9 is to:
a. Prevent misuse of government licences
b. Ensure truthful statements and accurate information in records maintained under the Act
c. Promote trade in commodities
d. Reduce regulatory oversight
118. Section 10 of the Essential Commodities Act deals with:
a. Attempts and abetment
b. Offences by companies
c. Confiscation of commodities
d. Appeals against confiscation
119. When a company contravenes an order made under Section 3, who shall be deemed guilty?
a. Only the company
b. Only the directors
c. The company and every person in charge of its business at the time
d. Only the manager
120. The persons deemed guilty under Section 10(1) include those who were:
a. Shareholders of the company
b. In charge of and responsible for the conduct of business of the company
c. Government officials
d. Auditors
121. A person in charge of the company will not be liable if he proves that:
a. He resigned earlier
b. The offence occurred without his knowledge or despite due diligence
c. The company is solvent
d. The police recommended exemption
122. The defence available under the proviso to Section 10(1) requires proof that:
1. The contravention occurred without knowledge, or
2. Due diligence was exercised to prevent it
a. 1 only
b. 2 only
c. Both 1 and 2
d. Neither
123. Section 10(2) states that if an offence is committed with the consent or connivance of certain officers, those officers shall be:
a. Warned only
b. Deemed guilty and punished accordingly
c. Exempt from liability
d. Liable only for civil damages
124. Under Section 10(2), liability may arise for which company officials?
1. Director
2. Manager
3. Secretary
4. Other officers
a. 1 and 2 only
b. 1, 2 and 3 only
c. 1, 2, 3 and 4
d. 2 and 4 only
125. An officer of the company may be held liable under Section 10(2) if the offence is attributable to his:
a. Negligence
b. Consent
c. Connivance
d. All of the above
126. For the purposes of Section 10, the term “company” includes:
a. Only incorporated companies
b. Only government corporations
c. Any body corporate including firms and associations of individuals
d. Only partnerships
127. Under the explanation to Section 10, the term “director” in relation to a firm means:
a. The managing partner
b. A partner in the firm
c. The auditor
d. The company secretary
128A. Section 10A of the Essential Commodities Act deals with:
a. Offences by companies
b. Cognizable nature of offences
c. Publication of company details
d. Burden of proof
129B. According to Section 10A, offences punishable under the Essential Commodities Act are:
a. Non-cognizable
b. Cognizable
c. Compoundable
d. Bailable only
130C. Section 10A begins with the phrase “Notwithstanding anything contained in” which statute?
a. Indian Penal Code, 1860
b. Code of Criminal Procedure, 1973
c. Civil Procedure Code, 1908
d. Evidence Act, 1872
131D. Because offences under the Essential Commodities Act are cognizable, the police may:
a. Investigate only with court permission
b. Arrest without warrant
c. Conduct civil trial
d. Compound offences
132E. The effect of the non-obstante clause in Section 10A is that:
a. The provision overrides conflicting provisions of CrPC
b. The CrPC provisions prevail
c. Only courts can investigate
d. Police powers are restricted
133F. The term “cognizable offence” generally means an offence where police may:
a. Arrest without warrant and start investigation
b. Arrest only with court order
c. Investigate only after civil permission
d. Investigate only after government approval
134G. Section 10A applies to:
a. Only offences under Section 3
b. Only offences under Section 7
c. All offences punishable under the Act
d. Only offences relating to foodgrains
135H. The purpose of declaring offences under the Act as cognizable is mainly to:
a. Increase civil litigation
b. Enable immediate police action against violations
c. Transfer cases to civil courts
d. Reduce penalties
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