THE ESSENTIAL COMMODITIES ACT, 1955

What is the short title, Act number, and date of commencement of the legislation titled “The Essential Commodities Act, 1955”?

The short title is The Essential Commodities Act, 1955; it is Act No. 10 of 1955; and it came into force on 1st April, 1955.

By which legislative authority and in which year of the Republic of India was the Essential Commodities Act, 1955 enacted?

It was enacted by Parliament in the Sixth Year of the Republic of India.

What is the object and purpose of the Essential Commodities Act, 1955 as expressed in its Preamble?

The purpose of the Act is to provide, in the interest of the general public, for the control of the production, supply and distribution of, and trade and commerce, in certain commodities.

What is the heading of Section 1 of The Essential Commodities Act, 1955?

The heading of Section 1 is “Short title and extent.

What does Section 1(1) of The Essential Commodities Act, 1955 provide?

Section 1(1) provides that the Act may be called the Essential Commodities Act, 1955.

What does Section 1(2) of The Essential Commodities Act, 1955 provide?

Section 1(2) provides that the Act extends to the whole of India.

What does Section 2 of The Essential Commodities Act, 1955 deal with?

Section 2 deals with definitions.

What is the opening expression used in Section 2 of The Essential Commodities Act, 1955?

The section opens with the words, In this Act, unless the context otherwise requires.

How is the term “Collector” defined under clause (ia) of Section 2?

“Collector” includes an Additional Collector and such other officer, not below the rank of Sub-Divisional Officer, as may be authorised by the Collector to perform the functions and exercise the powers of the Collector under this Act.

What is included within the meaning of “food-crops” under clause (b) of Section 2?

“Food-crops” include crops of sugarcane.

How is “notified order” defined under clause (c) of Section 2?

“Notified order” means an order notified in the Official Gazette.

What is the meaning of the term “order” under clause (cc) of Section 2?

“Order” includes a direction issued thereunder.

How is “State Government” defined in relation to a Union territory under clause (d) of Section 2?

“State Government,” in relation to a Union territory, means the administrator thereof.

How is “sugar” defined under clause (e) of Section 2?

“Sugar” means (i) any form of sugar containing more than ninety per cent of sucrose, including sugar candy; (ii) khandsari sugar, bura sugar, crushed sugar, or any sugar in crystalline or powdered form; and (iii) sugar in process in a vacuum pan sugar factory or raw sugar produced therein.

What does Section 2A of The Essential Commodities Act, 1955 deal with?

Section 2A deals with declaration of essential commodities and amendment of the Schedule.

How is “essential commodity” defined under Section 2A(1)?

“Essential commodity” means a commodity specified in the Schedule.

What power is conferred upon the Central Government under Section 2A(2)?

The Central Government may amend the Schedule by adding or removing a commodity.

Under what conditions may the Central Government amend the Schedule under Section 2A(2)?

If it is satisfied that it is necessary in the public interest and for reasons to be specified in the notification published in the Official Gazette, and in consultation with the State Governments.

Is consultation with State Governments required under Section 2A(2)?

Yes, amendment of the Schedule must be made in consultation with the State Governments.

What additional direction may be issued under Section 2A(3) while amending the Schedule?

The notification may direct that an entry be made declaring the commodity to be deemed an essential commodity for a specified period not exceeding six months.

What is the maximum initial period for which a commodity may be deemed essential under Section 2A(3)?

A period not exceeding six months.

Can the period of deemed essential status under Section 2A(3) be extended?

Yes, the Central Government may extend the period in the public interest and for reasons to be specified by notification in the Official Gazette.

What does Section 2A(4) of The Essential Commodities Act, 1955 provide?

Section 2A(4) provides that the Central Government may exercise its powers under sub-section (2) in respect of commodities to which Parliament has power to make laws by virtue of Entry 33 of List III in the Seventh Schedule to the Constitution.

In respect of which commodities may the Central Government exercise its powers under Section 2A(2) as clarified by Section 2A(4)?

In respect of commodities to which Parliament has legislative competence under Entry 33 of List III of the Seventh Schedule to the Constitution.

What procedural requirement is prescribed under Section 2A(5) regarding notifications issued under sub-section (2)?

Every notification issued under sub-section (2) shall be laid, as soon as may be after it is issued, before both Houses of Parliament.

Before which authority must notifications issued under Section 2A(2) be placed?

Before both Houses of Parliament.

What does Section 3 of The Essential Commodities Act, 1955 deal with?

Section 3 deals with the powers to control production, supply, distribution, and trade and commerce in essential commodities.

Under what condition may the Central Government exercise powers under Section 3(1)?

When it is of the opinion that it is necessary or expedient to do so.

For what purposes may the Central Government act under Section 3(1)?

For maintaining or increasing supplies of any essential commodity, securing their equitable distribution and availability at fair prices, or for securing any essential commodity for the defence of India or the efficient conduct of military operations.

What power is conferred upon the Central Government under Section 3(1)?

It may, by order, provide for regulating or prohibiting the production, supply and distribution of essential commodities and trade and commerce therein.

What is the scope of Section 3(2) of The Essential Commodities Act, 1955?

Section 3(2) provides specific illustrative powers that may be exercised under an order made under Section 3(1), without prejudice to the generality of the powers conferred by sub-section (1).

What regulatory power is provided under clause (a) of Section 3(2)?

To regulate by licences, permits or otherwise the production or manufacture of any essential commodity.

What power is conferred under clause (b) of Section 3(2) regarding land use?

To bring under cultivation any waste or arable land for growing food-crops generally or specified food-crops, and for maintaining or increasing their cultivation.

What power is granted under clause (c) of Section 3(2)?

To control the price at which any essential commodity may be bought or sold.

What activities relating to essential commodities may be regulated under clause (d) of Section 3(2)?

Storage, transport, distribution, disposal, acquisition, use or consumption may be regulated by licences, permits or otherwise.

What power is provided under clause (e) of Section 3(2)?

To prohibit the withholding from sale of any essential commodity ordinarily kept for sale.

What obligation may be imposed under clause (f) of Section 3(2) upon persons holding stock or engaged in production or trade?

They may be required to sell the whole or a specified part of the quantity held in stock, produced, received, or likely to be produced or received.

To whom may essential commodities be required to be sold under clause (f) of Section 3(2)?

To the Central Government, a State Government, an officer or agent of such Government, a Corporation owned or controlled by such Government, or to such other person or class of persons as specified in the order.

Under what circumstances may compulsory sale be directed under clause (f) of Section 3(2)?

In such circumstances as may be specified in the order.

What does Explanation 1 to clause (f) of Section 3(2) provide regarding foodgrains, edible oilseeds and edible oils?

It provides that an order may, having regard to the estimated production in the concerned area, fix the quantity to be sold by producers in such area.

On what basis may the quantity to be sold be fixed under Explanation 1 to clause (f) of Section 3(2)?

It may be fixed on the basis of estimated production in the concerned area.

Can the quantity to be sold under Explanation 1 be fixed on a graded basis?

Yes, it may be fixed or provided to be fixed on a graded basis.

On what factor may graded fixation be determined under Explanation 1?

Having regard to the aggregate of the area held by, or under the cultivation of, the producers.

What is included within the meaning of “production” under Explanation 2 to clause (f) of Section 3(2)?

“Production” includes manufacture of edible oils and sugar.

Does the term “production” under Explanation 2 extend beyond agricultural produce?

Yes, it includes manufacture of edible oils and sugar.

What power is conferred under clause (g) of Section 3(2) of The Essential Commodities Act, 1955?

To regulate or prohibit any class of commercial or financial transactions relating to foodstuffs which, in the opinion of the authority making the order, are or, if unregulated, are likely to be detrimental to the public interest.

On what basis may commercial or financial transactions be regulated or prohibited under clause (g) of Section 3(2)?

If, in the opinion of the authority making the order, such transactions are or are likely to be detrimental to the public interest.

What power is provided under clause (h) of Section 3(2)?

To collect any information or statistics with a view to regulating or prohibiting any of the matters specified in the preceding clauses.

What obligation may be imposed under clause (i) of Section 3(2)?

Persons engaged in the production, supply, distribution, trade or commerce of any essential commodity may be required to maintain and produce for inspection such books, accounts and records and furnish such information as specified in the order.

What regulatory matters are covered under clause (ii) of Section 3(2)?

Grant or issue of licences, permits or other documents, charging of fees, deposit of specified sums as security, forfeiture of such deposits for contravention of conditions, and adjudication of such forfeiture by the specified authority.

Can security deposits be required under clause (ii) of Section 3(2)?

Yes, a sum may be required to be deposited as security for due performance of licence or permit conditions.

What consequence may follow contravention of licence or permit conditions under clause (ii) of Section 3(2)?

The deposited security may be forfeited wholly or partly, subject to adjudication by the specified authority.

What power is conferred under clause (j) of Section 3(2) of The Essential Commodities Act, 1955?

To provide for incidental and supplementary matters, including entry, search or examination of premises, aircraft, vessels, vehicles, other conveyances or animals, and seizure by an authorised person.

What powers of entry and search are contemplated under clause (j) of Section 3(2)?

Entry, search or examination of premises, aircraft, vessels, vehicles, other conveyances or animals by a person authorised to do so.

What may be seized under sub-clause (i) of clause (j) of Section 3(2)?

Any articles in respect of which there is reason to believe that a contravention of the order has been, is being, or is about to be committed, including packages, coverings or receptacles in which such articles are found.

What may be seized under sub-clause (ii) of clause (j) of Section 3(2)?

Any aircraft, vessel, vehicle, other conveyance or animal used in carrying such articles, if there is reason to believe that it is liable to be forfeited under the Act.

What may be seized under sub-clause (iii) of clause (j) of Section 3(2)?

Any books of accounts and documents which, in the opinion of the authorised person, may be useful for or relevant to any proceeding under the Act.

What right is granted to a person from whose custody books of accounts or documents are seized under sub-clause (iii)?

The person is entitled to make copies or take extracts therefrom in the presence of the officer having custody of such books or documents.

What does Section 3(3) of the Essential Commodities Act, 1955 deal with?

It deals with determination of price payable when an essential commodity is sold in compliance with an order under Section 3(2)(f).

When does Section 3(3) become applicable?

When a person sells any essential commodity in compliance with an order made under Section 3(2)(f).

What is the first mode of price determination under Section 3(3)(a)?

The agreed price, provided it is consistent with the controlled price, if any.

What is the second mode of price determination under Section 3(3)(b)?

The price calculated with reference to the controlled price, if agreement cannot be reached.

What is the third mode of price determination under Section 3(3)(c)?

The price calculated at the market rate prevailing in the locality at the date of sale.

Is controlled price relevant under Section 3(3)?

Yes, it governs agreement and calculation where applicable.

When is market rate applied under Section 3(3)?

When neither agreed price nor controlled price applies.

What power is conferred upon the Central Government under Section 3(3A)(i) of The Essential Commodities Act, 1955?

If it is of opinion that it is necessary for controlling the rise in prices or preventing hoarding of any food-stuff in any locality, it may, by notification in the Official Gazette, direct that the price of such food-stuff sold in compliance with an order under clause (f) of sub-section (2) shall be regulated in accordance with this sub-section, notwithstanding sub-section (3).

For what purposes may the Central Government issue a notification under Section 3(3A)(i)?

For controlling the rise in prices or preventing hoarding of any food-stuff in any locality.

What is the maximum duration of a notification issued under Section 3(3A)(ii)?

The notification shall remain in force for a period not exceeding three months as specified therein.

Under what circumstance does Section 3(3A)(iii) become applicable?

When, after the issue of a notification under this sub-section, a person sells the specified food-stuff in the specified locality in compliance with an order under clause (f) of sub-section (2).

How is the price determined under clause (a) of Section 3(3A)(iii)?

Where the price can, consistently with the controlled price if any, be agreed upon, the agreed price shall be paid.

How is the price determined under clause (b) of Section 3(3A)(iii)?

Where no agreement can be reached, the price shall be calculated with reference to the controlled price, if any.

How is the price determined under clause (c) of Section 3(3A)(iii)?

Where neither clause (a) nor clause (b) applies, the price shall be calculated with reference to the average market rate prevailing in the locality during the three months immediately preceding the date of the notification.

Who determines the average market rate under Section 3(3A)(iv)?

An officer authorised by the Central Government.

On what basis is the average market rate determined?

With reference to prevailing market rates for which published figures are available in that locality or a neighbouring locality.

Is the determination of average market rate final?

Yes, the average market rate so determined is final.

Can the determination of average market rate be challenged in court?

No, it shall not be called in question in any court.

Does Section 3(3A)(iv) apply specifically to sub-clause (c) of clause (iii)?

Yes, it applies for determining price under Section 3(3A)(iii)(c).

What is the effect of the non obstante clause in Section 3(3A)(i)?

It gives overriding effect to sub-section (3A) over sub-section (3) for the specified period and locality.

What does Section 3(3B) of The Essential Commodities Act, 1955 provide?

Section 3(3B) provides for payment of procurement price where a person is required to sell any grade or variety of foodgrains, edible oilseeds or edible oils under an order made with reference to clause (f) of sub-section (2), in cases where no notification under sub-section (3A) is in force.

When does Section 3(3B) become applicable?

When no notification under sub-section (3A) has been issued, or such notification having been issued has ceased to be in force.

To whom must the sale be made for Section 3(3B) to apply?

To the Central Government, a State Government, an officer or agent of such Government, or a Corporation owned or controlled by such Government.

What amount is payable under Section 3(3B)?

An amount equal to the procurement price of the concerned grade or variety of foodgrains, edible oilseeds or edible oils.

Who specifies the procurement price under Section 3(3B)?

The State Government with the previous approval of the Central Government.

What overriding effect is given under Section 3(3B)?

The payment of procurement price operates notwithstanding anything to the contrary contained in sub-section (3).

What factors must be considered while specifying procurement price under Section 3(3B)?

The controlled price, if any; the general crop prospects; the need to make the commodity available at reasonable prices particularly to vulnerable sections; and the recommendations, if any, of the Agricultural Prices Commission.

Is consideration of the recommendations of the Agricultural Prices Commission mandatory under Section 3(3B)?

The recommendations, if any, of the Agricultural Prices Commission must be taken into account while specifying the procurement price.

What does Section 3(3C) of The Essential Commodities Act, 1955 provide?

Section 3(3C) provides for payment to a producer who is required to sell any kind of sugar under an order made with reference to clause (f) of sub-section (2).

When does Section 3(3C) become applicable?

When a producer is required by an order under clause (f) of sub-section (2) to sell any kind of sugar, whether or not a notification under sub-section (3A) has been issued.

To whom may the sugar be required to be sold under Section 3(3C)?

To the Central Government, a State Government, an officer or agent of such Government, or any other person or class of persons.

What overriding effect is provided under Section 3(3C)?

The payment determined under this sub-section operates notwithstanding anything contained in sub-section (3).

Who determines the amount payable to the producer under Section 3(3C)?

The Central Government determines the amount by order.

What factors must be considered by the Central Government while determining the amount under Section 3(3C)?

The fair and remunerative price of sugarcane, the manufacturing cost of sugar, the duty or tax paid or payable, and a reasonable return on the capital employed in manufacturing sugar.

Can different prices be determined under Section 3(3C)?

Yes, the Central Government may determine different prices from time to time for different areas, factories, or varieties of sugar.

What is provided in the second proviso to Section 3(3C)?

Where provisional determination of price of levy sugar was done for sugar produced up to the sugar season 2008-2009, final determination may be undertaken in accordance with the provisions as they stood immediately before 1st October, 2009.

What does Explanation I to Section 3(3C) of The Essential Commodities Act, 1955 deal with?

It defines certain expressions used in sub-section (3C).

How is “fair and remunerative price” defined under Explanation I(a) to Section 3(3C)?

It means the price of sugarcane determined by the Central Government under this section.

How is “manufacturing cost of sugar” defined under Explanation I(b) to Section 3(3C)?

It means the net cost incurred on conversion of sugarcane into sugar including the net cost of transportation of sugarcane from the purchase centre to the factory gate, to the extent borne by the producer.

Who is a “producer” under Explanation I(c) to Section 3(3C)?

A person carrying on the business of manufacturing sugar.

What is meant by “reasonable return on the capital employed” under Explanation I(d) to Section 3(3C)?

It means the return on net fixed assets plus working capital of a producer in relation to manufacturing of sugar, including procurement of sugarcane at a fair and remunerative price determined under this section.

What is declared under Explanation II to Section 3(3C)?

It declares that the expressions “fair and remunerative price,” “manufacturing cost of sugar,” and “reasonable return on the capital employed” do not include the price paid or payable under any order or enactment of any State Government.

What is the purpose of Explanation II to Section 3(3C)?

It clarifies, for removal of doubts, that State Government prices are excluded from the computation of the specified expressions under this sub-section.

What does Section 3(3D) of The Essential Commodities Act, 1955 provide?

It empowers the Central Government to direct that no producer, importer or exporter shall sell, dispose of, deliver, or remove any kind of sugar except under and in accordance with a direction issued by the Government.

To whom does Section 3(3D) apply?

It applies to producers, importers and exporters of sugar.

What restriction may be imposed under Section 3(3D)?

No sale, disposal, delivery, or removal of sugar from bonded godowns of the factory or warehouses of importers or exporters except in accordance with Government directions.

Does Section 3(3D) apply to bonded godowns situated outside factory premises?

Yes, it applies whether such godowns are situated within the factory premises or outside.

What is the effect of the proviso to Section 3(3D)?

It provides that the sub-section does not affect the pledging of sugar by a producer or importer in favour of specified banks.

In favour of which banks may sugar be pledged under the proviso to Section 3(3D)?

In favour of a scheduled bank as defined in section 2(e) of the Reserve Bank of India Act, 1934, or a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970.

Can a bank sell sugar pledged to it without restriction under the proviso to Section 3(3D)?

No, the bank shall not sell the pledged sugar except under and in accordance with a direction issued by the Central Government.

What power is conferred upon the Central Government under Section 3(3E) of The Essential Commodities Act, 1955?

The Central Government may, by general or special order, direct any producer, importer, exporter, recognised dealer or class thereof to take specified action regarding sugar.

What matters may be regulated under Section 3(3E)?

Production, maintenance of stocks, storage, sale, grading, packing, marking, weighment, disposal, delivery and distribution of any kind of sugar.

In what manner may directions be issued under Section 3(3E)?

By general or special order specifying the manner in which action is to be taken.

Who is a “producer” for the purposes of sub-sections (3D) and (3E)?

A person carrying on the business of manufacturing sugar.

Who is a “recognised dealer” under the Explanation to Section 3(3E)?

A person carrying on the business of purchasing, selling or distributing sugar.

What is included within the meaning of “sugar” under the Explanation to Section 3(3E)?

Plantation white sugar, raw sugar and refined sugar, whether indigenously produced or imported.

To whom may directions under Section 3(3E) be issued?

To any producer, importer, exporter, recognised dealer or any class of producers or recognised dealers.

What power is conferred upon the Central Government under Section 3(4) of The Essential Commodities Act, 1955?

If it is of opinion that it is necessary for maintaining or increasing the production and supply of an essential commodity, it may, by order, authorize any person as an authorised controller to exercise specified functions of control over an undertaking engaged in such production and supply.

Who is an “authorised controller” under Section 3(4)?

A person authorised by order of the Central Government to exercise specified functions of control over the whole or any part of an undertaking engaged in the production and supply of an essential commodity.

Under what condition may an authorised controller exercise functions under Section 3(4)?

So long as the order authorising him remains in force with respect to the undertaking or part thereof.

In accordance with what must the authorised controller act under Section 3(4)(a)?

In accordance with any instructions given by the Central Government.

What limitation is imposed on the authorised controller under Section 3(4)(a)?

He shall not give any direction inconsistent with any enactment or instrument determining the functions of persons in charge of management, except as specifically provided by the order.

What obligation is imposed on the undertaking under Section 3(4)(b)?

The undertaking or part thereof shall be carried on in accordance with directions given by the authorised controller.

What duty is cast upon persons managing the undertaking under Section 3(4)(b)?

They shall comply with any directions given by the authorised controller under the order.

How must an order of a general nature under Section 3 be published as per Section 3(5)(a)?

It shall be notified in the Official Gazette.

How must an order directed to a specified individual be served under Section 3(5)(b)?

By delivering or tendering it to the individual, or if that is not possible, by affixing it on the outer door or conspicuous part of the premises where he lives, with a written report witnessed by two neighbours.

What procedural requirement is prescribed under Section 3(6)?

Every order made under this section by the Central Government or its officer or authority shall be laid before both Houses of Parliament as soon as may be after it is made.

What does Section 4 of The Essential Commodities Act, 1955 deal with?

Section 4 deals with imposition of duties on State Governments and other authorities through orders made under Section 3.

What powers may an order made under Section 3 confer as per Section 4?

It may confer powers upon the Central Government, the State Government, or officers and authorities of the Central or State Government.

What duties may be imposed under Section 4?

Duties may be imposed upon the Central Government, the State Government, or officers and authorities of the Central or State Government.

Can directions be issued to State Governments under Section 4?

Yes, an order under Section 3 may contain directions to any State Government or to officers and authorities thereof.

In relation to what matters may directions be issued under Section 4?

As to the exercise of powers conferred or the discharge of duties imposed under the order.

What does Section 5 of The Essential Commodities Act, 1955 deal with?

Section 5 deals with delegation of powers by the Central Government.

What power may be delegated under Section 5?

The power to make orders or issue notifications under Section 3.

How may the Central Government delegate its powers under Section 5?

By a notified order.

To whom may powers be delegated under clause (a) of Section 5?

To such officer or authority subordinate to the Central Government as specified in the direction.

To whom may powers be delegated under clause (b) of Section 5?

To such State Government or such officer or authority subordinate to a State Government as specified in the direction.

Is delegation under Section 5 absolute?

No, it is subject to such matters and conditions as may be specified in the direction.

What does Section 6 of The Essential Commodities Act, 1955 deal with?

Section 6 deals with the overriding effect of orders made under Section 3 over inconsistent enactments.

What is the legal effect of an order made under Section 3 as per Section 6?

Such order shall have effect notwithstanding anything inconsistent contained in any enactment other than this Act.

Does Section 6 give overriding effect over all enactments?

It gives overriding effect over any enactment other than this Act.

Does the overriding effect under Section 6 extend to instruments having effect by virtue of other enactments?

Yes, it extends to any instrument having effect by virtue of any enactment other than this Act.

What is the nature of the clause contained in Section 6?

It is a non obstante clause giving overriding effect to orders made under Section 3.

What does Section 6A of The Essential Commodities Act, 1955 deal with?

Section 6A deals with confiscation of essential commodities and related articles upon contravention of an order made under Section 3.

When does Section 6A(1) become applicable?

When any essential commodity is seized in pursuance of an order made under Section 3.

To whom must a report of seizure be made under Section 6A(1)?

To the Collector of the district or Presidency town in which the essential commodity is seized.

Is confiscation under Section 6A(1) dependent upon institution of prosecution?

No, the Collector may proceed whether or not a prosecution is instituted.

What must the Collector be satisfied about before ordering confiscation under Section 6A(1)?

That there has been a contravention of the order made under Section 3.

What items may be confiscated under Section 6A(1)?

The essential commodity seized, any package or receptacle in which it is found, and any animal, vehicle, vessel or other conveyance used in carrying it.

What protection is provided to producers under the first proviso to Section 6A(1)?

Foodgrains or edible oilseeds produced by a producer shall not be confiscated if seized in pursuance of an order under Section 3.

What option is provided under the second proviso to Section 6A(1) in case of hired conveyances?

The owner may be given an option to pay a fine not exceeding the market price of the essential commodity at the date of seizure in lieu of confiscation.

Under what circumstances may the Collector order sale under Section 6A(2)?

When the essential commodity is subject to speedy and natural decay or it is expedient in the public interest.

How may the essential commodity be sold under Section 6A(2)?

At the controlled price if fixed, or if not, by public auction.

What special provision exists regarding sale of foodgrains under Section 6A(2)?

The Collector may order sale through fair price shops at the price fixed by the Central or State Government for retail sale.

How are sale proceeds to be dealt with under Section 6A(3)?

After deduction of expenses, they shall be paid to the owner or the person from whom seized in specified circumstances.

In what circumstances are sale proceeds payable to the owner under Section 6A(3)?

Where no confiscation order is ultimately passed, where an appellate order so requires, or where the accused is acquitted in prosecution relating to the confiscation.

What does Section 6B of the Essential Commodities Act, 1955 deal with?

Section 6B deals with issue of show cause notice before confiscation under Section 6A.

Is issuance of show cause notice mandatory before confiscation under Section 6A?

Yes, no confiscation order shall be made unless requirements under Section 6B are complied with.

To whom must notice be given under Section 6B(1)?

To the owner of the essential commodity, package, covering, receptacle, animal, vehicle, vessel or conveyance or the person from whom it is seized.

What must the notice under Section 6B(1)(a) contain?

It must inform the person in writing of the grounds on which confiscation is proposed.

Does Section 6B apply to confiscation of conveyances and animals?

Yes, it applies to essential commodity and any package, receptacle, animal, vehicle, vessel or other conveyance.

Can confiscation be ordered without written notice of grounds?

No, written notice stating grounds is mandatory.

What additional safeguards are provided under Section 6B(1)(b) before confiscation?

The person must be given an opportunity to make a written representation within reasonable time against the proposed confiscation.

What is required under Section 6B(1)(c) before confiscation?

The person must be given a reasonable opportunity of being heard in the matter.

Are principles of natural justice incorporated in Section 6B?

Yes, notice, representation and hearing are mandatory before confiscation.

Can an animal, vehicle, vessel or conveyance be confiscated if the owner proves absence of knowledge?

No, confiscation shall not be made if the owner proves lack of knowledge or connivance and due precautions.

What must the owner prove under Section 6B(2) to avoid confiscation?

That the conveyance was used without his knowledge or connivance and that reasonable and necessary precautions were taken.

Does Section 6B(2) override Section 6B(1)?

No, it operates without prejudice to sub-section (1).

Who must be satisfied regarding absence of knowledge under Section 6B(2)?

The Collector.

What does Section 6B(3) of the Essential Commodities Act, 1955 provide?

It provides that confiscation shall not be invalid merely due to defect or irregularity in notice.

Does every defect in notice invalidate confiscation under Section 6B(3)?

No, not if there has been substantial compliance with Section 6B(1)(a).

What condition must be satisfied for protection under Section 6B(3)?

The provisions of clause (a) of sub-section (1) must have been substantially complied with.

Does Section 6B(3) apply to confiscation of conveyances and animals?

Yes, it applies to essential commodity and related package, receptacle, animal, vehicle, vessel or conveyance.

What principle is reflected in Section 6B(3)?

The principle of substantial compliance in procedural requirements.

What does Section 6C of the Essential Commodities Act, 1955 deal with?

Section 6C deals with appeal against order of confiscation under Section 6A.

Who can file an appeal under Section 6C(1)?

Any person aggrieved by an order of confiscation under Section 6A.

Within what time must appeal be filed under Section 6C(1)?

Within one month from the date of communication of the confiscation order.

To whom does appeal lie under Section 6C(1)?

To a judicial authority appointed by the State Government concerned.

What powers does the appellate authority have under Section 6C(1)?

It may confirm, modify or annul the confiscation order.

Is opportunity of hearing mandatory in appeal under Section 6C(1)?

Yes, the appellant must be given an opportunity of being heard.

When is price payable under Section 6C(2)?

When confiscation order is modified or annulled, or the accused is acquitted and return of commodity is not possible.

How is compensation calculated under Section 6C(2)?

As if the commodity had been sold to the Government with reasonable interest from the date of seizure.

How is price determined for foodgrains, edible oilseeds or edible oils under Section 6C(2)?

In accordance with Section 3(3B).

How is price determined for sugar under Section 6C(2)?

In accordance with Section 3(3C).

How is price determined for other essential commodities under Section 6C(2)?

In accordance with Section 3(3).

What does Section 6D of The Essential Commodities Act, 1955 deal with?

Section 6D deals with the effect of confiscation on other punishments under the Act.

Does confiscation under Section 6A bar criminal punishment under the Act as per Section 6D?

No, confiscation does not prevent the infliction of any punishment to which the person is liable under the Act.

Who awards confiscation under the Act as referred to in Section 6D?

The Collector.

What is the legal principle embodied in Section 6D?

Confiscation proceedings are independent of and do not bar criminal liability or punishment under the Act.

What does Section 6E of The Essential Commodities Act, 1955 deal with?

Section 6E deals with the bar of jurisdiction of courts and other authorities in matters relating to seized essential commodities pending confiscation.

When does Section 6E become applicable?

When any essential commodity or related package, receptacle, animal, vehicle, vessel or conveyance is seized in pursuance of an order under Section 3 and is pending confiscation under Section 6A.

Who has exclusive jurisdiction under Section 6E?

The Collector, or as the case may be, the State Government concerned under Section 6C.

What matters are covered by the bar of jurisdiction under Section 6E?

Possession, delivery, disposal, release or distribution of the seized essential commodity or related articles.

Does Section 6E override other laws?

Yes, it operates notwithstanding anything to the contrary contained in any other law for the time being in force.

Can any court, tribunal or authority pass orders regarding seized essential commodities pending confiscation?

No, they shall not have jurisdiction in such matters.

What does Section 7 of The Essential Commodities Act, 1955 deal with?

Section 7 deals with penalties for contravention of orders made under Section 3.

When does Section 7(1) become applicable?

When any person contravenes any order made under Section 3.

What is the punishment under Section 7(1)(a)(i)?

In the case of an order made with reference to clause (h) or clause (i) of sub-section (2) of Section 3, imprisonment up to one year and liability to fine.

What is the punishment under Section 7(1)(a)(ii)?

In the case of any other order, imprisonment for a term not less than three months but which may extend to seven years and liability to fine.

Can the court impose a sentence of less than three months under Section 7(1)(a)(ii)?

Yes, for adequate and special reasons to be mentioned in the judgment.

What is the consequence under Section 7(1)(b)?

Any property in respect of which the order has been contravened shall be forfeited to the Government.

What may the court order under Section 7(1)(c)?

Forfeiture to the Government of any package, covering, receptacle, animal, vehicle, vessel or other conveyance used in carrying the property.

Is forfeiture under Section 7 in addition to imprisonment and fine?

Yes, forfeiture is in addition to the punishment of imprisonment and fine.

When does Section 7(2) of The Essential Commodities Act, 1955 become applicable?

When a person to whom a direction is given under clause (b) of sub-section (4) of Section 3 fails to comply with such direction.

What is the punishment prescribed under Section 7(2)?

Imprisonment for a term not less than three months but which may extend to seven years and liability to fine.

Can the court impose a sentence of less than three months under Section 7(2)?

Yes, for adequate and special reasons to be mentioned in the judgment.

When does Section 7(2A) become applicable?

When a person convicted under Section 7(1)(a)(ii) or Section 7(2) is again convicted under the same provision.

What is the punishment for second or subsequent conviction under Section 7(2A)?

Imprisonment for a term not less than six months but which may extend to seven years and liability to fine.

Can the court impose a sentence of less than six months under Section 7(2A)?

Yes, for adequate and special reasons to be mentioned in the judgment.

Is the punishment under Section 7(2A) more stringent than for the first conviction?

Yes, the minimum term of imprisonment increases to six months for second and subsequent convictions.

What does Section 7(2B) of The Essential Commodities Act, 1955 provide?

It provides that absence of substantial harm to the general public or to any individual shall be an adequate and special reason for awarding a sentence of imprisonment for a term of less than three months or six months, as the case may be.

For which provisions is Section 7(2B) applicable?

It applies to offences under sub-sections (1), (2) and (2A).

What constitutes an adequate and special reason under Section 7(2B)?

The fact that the offence has caused no substantial harm to the general public or to any individual.

When does Section 7(3) become applicable?

When a person, having been convicted under sub-section (1), is again convicted under the same sub-section for contravention of an order in respect of an essential commodity.

What additional order may the Court pass under Section 7(3)?

The Court shall direct that the person shall not carry on any business in that essential commodity for such period as specified.

What is the minimum period of prohibition under Section 7(3)?

The period shall not be less than six months.

Is the prohibition under Section 7(3) in addition to other penalties?

Yes, it is in addition to any penalty imposed under sub-section (1).

What does Section 7A of The Essential Commodities Act, 1955 deal with?

Section 7A deals with Power of the Central Government recovery of certain amounts as arrears of land revenue or as a public demand.

When does Section 7A(1) become applicable?

When a person liable to pay or deposit any amount under an order made under Section 3 makes default in such payment or deposit.

What amounts are recoverable under Section 7A(1)?

Any amount payable under an order made under Section 3 or required to be deposited to the credit of any Account or Fund constituted under such order.

How are amounts in default recovered under Section 7A(1)?

They are recoverable by Government together with simple interest at fifteen per cent per annum from the date of default to the date of recovery, as arrears of land revenue or as a public demand.

Does Section 7A(1) apply irrespective of the date of the order or liability?

Yes, it applies whether the order or liability arose before or after the commencement of the Essential Commodities (Amendment) Act, 1984.

How is the amount recovered under Section 7A(1) to be dealt with as per Section 7A(2)?

It shall be dealt with in accordance with the order under which the liability arose.

What bar is created under Section 7A(3)?

No court, tribunal or authority shall grant injunction or restrain Government from recovering such amount as arrears of land revenue or as a public demand.

What happens if the recovery order is declared invalid under Section 7A(4)?

The Government shall refund the amount recovered together with simple interest at fifteen per cent per annum from the date of recovery to the date of refund.

What is meant by “Government” under the Explanation to Section 7A?

It means the Government which made the concerned order under Section 3, or where the order was made by a subordinate officer or authority, that Government.

What does Section 8 of The Essential Commodities Act, 1955 deal with?

Section 8 deals with attempts and abetment relating to contravention of orders made under Section 3.

What is the legal effect of an attempt to contravene an order under Section 3?

Any person who attempts to contravene an order made under Section 3 shall be deemed to have contravened that order.

What is the legal effect of abetment under Section 8?

Any person who abets a contravention of an order made under Section 3 shall be deemed to have contravened that order.

Does Section 8 create a deeming fiction?

Yes, it deems attempt or abetment as actual contravention of the order.

Is actual completion of contravention necessary for liability under Section 8?

No, attempt or abetment itself attracts liability as if the order was contravened.

What does Section 9 of The Essential Commodities Act, 1955 deal with?

Section 9 deals with punishment for making false statements or furnishing false information in compliance with orders made under Section 3.

When does Section 9(i) become applicable?

When a person required under an order made under Section 3 to make a statement or furnish information makes a statement or furnishes information which is false in any material particular and which he knows or has reasonable cause to believe to be false or does not believe to be true.

What does Section 9(ii) provide?

It applies when a person makes a false statement in any book, account, record, declaration, return or other document required to be maintained or furnished under an order made under Section 3.

What is the essential mental element required under Section 9?

Knowledge or reasonable cause to believe that the statement is false, or lack of belief in its truth.

What is the punishment prescribed under Section 9?

Imprisonment for a term which may extend to five years, or fine, or both.

Is materiality of the false statement relevant under Section 9?

Yes, the statement must be false in a material particular.

What does Section 10 of The Essential Commodities Act, 1955 deal with?

Section 10 deals with offences committed by companies.

When does Section 10(1) become applicable?

When a company contravenes an order made under Section 3.

Who is deemed to be guilty under Section 10(1)?

Every person who, at the time of contravention, was in charge of and responsible to the company for the conduct of its business, as well as the company itself.

What defence is available under the proviso to Section 10(1)?

The person may avoid liability if he proves that the contravention took place without his knowledge or that he exercised all due diligence to prevent it.

When does Section 10(2) apply notwithstanding sub-section (1)?

When the offence is committed with the consent or connivance of, or is attributable to neglect by, any director, manager, secretary or other officer of the company.

Who may be held liable under Section 10(2)?

Any director, manager, secretary or other officer whose consent, connivance or neglect led to the offence.

What is meant by “company” under the Explanation to Section 10?

Any body corporate, and includes a firm or other association of individuals.

Who is a “director” in relation to a firm under Section 10?

A partner in the firm.

Does Section 10 create a deeming fiction of liability?

Yes, it deems specified persons to be guilty of the offence committed by the company.

What does Section 10A of the Essential Commodities Act, 1955 provide?

Section 10A declares offences under the Act to be cognizable.

Does Section 10A override the Code of Criminal Procedure, 1973?

Yes, it operates notwithstanding anything contained in the Code of Criminal Procedure, 1973.

Are all offences under the Essential Commodities Act cognizable?

Yes, every offence punishable under the Act is cognizable.

Can police register FIR and investigate offences under the Act without prior court order?

Yes, since the offences are cognizable.

What does Section 10B of The Essential Commodities Act, 1955 deal with?

Section 10B deals with the power of the court to publish the name, place of business and other particulars of companies convicted under the Act.

When can the court exercise power under Section 10B(1)?

When a company is convicted under the Act.

What particulars may be published under Section 10B(1)?

The name and place of business of the company, nature of the contravention, fact of conviction and such other particulars as the court considers appropriate.

At whose expense is publication made under Section 10B(1)?

At the expense of the company.

When can publication be made under Section 10B(2)?

After the period for filing appeal has expired without appeal, or after the appeal, if filed, has been disposed of.

How are publication expenses recovered under Section 10B(3)?

They are recoverable from the company as if they were a fine imposed by the court.

What is meant by “company” under the Explanation to Section 10B?

It has the meaning assigned in clause (a) of the Explanation to Section 10.

Is publication under Section 10B automatic upon conviction?

No, it is at the discretion of the court convicting the company.

What does Section 10C of The Essential Commodities Act, 1955 deal with?

Section 10C deals with presumption of culpable mental state in prosecutions under the Act.

What presumption is created under Section 10C(1)?

The court shall presume the existence of culpable mental state where the offence requires such mental state.

Is the presumption under Section 10C(1) rebuttable?

Yes, it is a defence for the accused to prove that he had no such mental state.

What is included within the meaning of “culpable mental state” under the Explanation to Section 10C?

Intention, motive, knowledge of a fact and belief in, or reason to believe, a fact.

What standard of proof is required from the accused under Section 10C(2)?

The accused must prove absence of culpable mental state beyond reasonable doubt.

Does mere preponderance of probability suffice under Section 10C(2)?

No, the fact must be proved beyond reasonable doubt and not merely by preponderance of probability.

What does Section 11 of The Essential Commodities Act, 1955 deal with?

Section 11 deals with cognizance of offences under the Act.

Under what condition can a Court take cognizance of an offence under the Act?

Only on a report in writing of the facts constituting the offence.

Who may file a report under Section 11?

A public servant as defined in Section 21 of the Indian Penal Code, or any person aggrieved, or any recognised consumer association.

Can a recognised consumer association file a complaint even if the person is not a member?

Yes, whether such person is a member of that association or not.

What is meant by “recognised consumer association” under the Explanation to Section 11?

A voluntary consumer association registered under the Companies Act, 1956 or any other law for the time being in force.

Is cognizance barred in the absence of a written report as specified under Section 11?

Yes, no Court shall take cognizance except on such written report.

What does Section 12 of the Essential Commodities Act, 1955 deal with?

Section 12 provides special provision regarding imposition of fine.

Does Section 12 override the Code of Criminal Procedure, 1973?

Yes, it operates notwithstanding Section 29 of the Code of Criminal Procedure, 1973.

Which courts are empowered under Section 12?

A Metropolitan Magistrate or a Judicial Magistrate of the First Class specially empowered by the State Government.

Can such Magistrates impose fine exceeding five thousand rupees?

Yes, they may pass a sentence of fine exceeding five thousand rupees.

In respect of which offences can enhanced fine be imposed?

On any person convicted of contravening any order made under Section 3.

Is special empowerment required for Judicial Magistrate of First Class?

Yes, special empowerment by the State Government is required.

What does Section 12A of The Essential Commodities Act, 1955 deal with?

Section 12A deals with the power to provide for summary trial of contraventions of certain orders made under Section 3.

When may the Central Government exercise power under Section 12A(1)?

When it is of opinion that, in the interests of production, supply, distribution, trade or commerce of an essential commodity and other relevant considerations, it is necessary that contravention of an order under Section 3 be tried summarily.

How is power exercised under Section 12A(1)?

By notification in the Official Gazette specifying such order to be a special order for purposes of summary trial.

What procedural requirement applies to notifications issued under Section 12A(1)?

Every such notification shall be laid before both Houses of Parliament as soon as may be after it is issued.

What is the duration of a notification issued after the commencement of the Essential Commodities (Amendment) Act, 1971?

It shall cease to operate at the expiration of two years from the date of publication unless sooner rescinded.

What is the duration of a notification in force immediately before the commencement of the Amendment Act, 1971?

It shall cease to operate at the expiration of two years after such commencement unless sooner rescinded.

What is the effect of rescission or expiry of notification on pending summary trials?

Proceedings commenced before rescission or expiry shall continue as if the notification had not been rescinded or had not ceased to operate.

What is meant by a “special order” under Section 12A?

An order made under Section 3 specified by notification for the purposes of summary trial under Section 12A.

What does Section 12A(2) of The Essential Commodities Act, 1955 provide?

Section 12A(2) provides for summary trial of specified offences notwithstanding anything contained in the Code of Criminal Procedure, 1973.

Which offences are triable summarily under Section 12A(2)(a)?

Offences relating to contravention of an order made under Section 3 with respect to foodstuffs including edible oilseeds and oil, and drugs.

Which offences are covered under Section 12A(2)(b)?

Contravention of a special order specified in a notification issued under sub-section (1) while such notification is in force.

Who is competent to try offences summarily under Section 12A(2)?

A Judicial Magistrate of the First Class specially empowered by the State Government or a Metropolitan Magistrate.

Which provisions of the Code of Criminal Procedure apply to summary trials under Section 12A(2)?

Sections 262 to 265 (both inclusive) of the Code of Criminal Procedure, 1973, as far as may be.

What is the maximum sentence of imprisonment that may be imposed in a summary trial under Section 12A(2)?

Imprisonment for a term not exceeding one year.

When must the Magistrate convert the summary trial into a regular trial under Section 12A(2)?

When it appears that a sentence exceeding one year may have to be passed or it is otherwise undesirable to try the case summarily.

What procedure must the Magistrate follow upon deciding not to try the case summarily?

The Magistrate shall record an order to that effect, recall any witnesses examined, and proceed to hear or re-hear the case in accordance with the Code of Criminal Procedure.

What does Section 12A(3) of The Essential Commodities Act, 1955 provide?

Section 12A(3) bars appeal in certain cases tried summarily under this section notwithstanding the Code of Criminal Procedure, 1973.

When is no appeal permitted under Section 12A(3)?

When in a summary trial the Magistrate passes a sentence of imprisonment not exceeding one month and fine not exceeding two thousand rupees.

Does the bar of appeal under Section 12A(3) apply even if an order of forfeiture or an order under Section 452 of the Code of Criminal Procedure is made?

Yes, no appeal shall lie even if such additional orders are made.

When does an appeal lie under Section 12A(3)?

When the Magistrate passes a sentence in excess of one month’s imprisonment or fine exceeding two thousand rupees.

What does Section 12A(4) deal with?

Section 12A(4) deals with summary trial of pending cases relating to contravention of certain orders.

Which pending cases are to be tried summarily under Section 12A(4)?

Cases relating to contravention of orders under clause (a) of sub-section (2), not being special orders, pending before commencement of the 1974 Amendment, and cases relating to special orders pending before issuance of notification under sub-section (1), provided no witnesses have been examined.

What condition must be satisfied for pending cases to be tried summarily under Section 12A(4)?

No witnesses must have been examined before the relevant commencement date.

What happens if a pending case is before a Magistrate not competent to try it summarily?

The case shall be forwarded to a Magistrate competent to try it summarily under this section.

What does Section 12B of The Essential Commodities Act, 1955 deal with?

Section 12B deals with restriction on grant of injunction or other relief by civil courts against Government or public officers.

Against whom is injunction barred under Section 12B?

Against the Central Government, any State Government, or a public officer.

In respect of what acts does Section 12B apply?

Acts done or purporting to be done by such Government or officer in official capacity under the Act or any order made thereunder.

What is the procedural requirement before a civil court may grant injunction under Section 12B?

Notice of the application for such injunction or other relief must be given to the Government or officer.

Can a civil court grant immediate injunction without notice under Section 12B?

No, injunction or other relief cannot be granted until notice has been given.

What is the object of Section 12B?

To protect Government and public officers from injunction without prior notice in matters arising under the Act.

What does Section 13 of The Essential Commodities Act, 1955 deal with?

Section 13 deals with presumption as to orders made under the Act.

When does the presumption under Section 13 arise?

When an order purports to have been made and signed by an authority in exercise of powers conferred by or under the Act.

What is the nature of presumption under Section 13?

The court shall presume that the order was so made by that authority.

Under which statute is the presumption to be understood?

Within the meaning of the Indian Evidence Act, 1872.

Is proof of formal validity required once the order purports to be signed by competent authority?

No, the court shall presume that it was validly made by that authority.

What is the evidentiary effect of Section 13?

It shifts the burden by creating a statutory presumption in favour of validity of orders made under the Act.

What does Section 14 of The Essential Commodities Act, 1955 deal with?

Section 14 deals with burden of proof in certain prosecutions under the Act.

When does Section 14 become applicable?

When a person is prosecuted for contravening an order made under Section 3 which prohibits doing any act or possession of any thing without lawful authority, permit, licence or other document.

On whom does the burden of proof lie under Section 14?

On the accused person.

What must the accused prove under Section 14?

That he had lawful authority, permit, licence or other document as required.

What is the nature of burden imposed under Section 14?

It shifts the burden to the accused to prove existence of authority or licence.

Does the prosecution have to prove absence of licence under Section 14?

No, the burden of proving lawful authority or licence lies on the accused.

What does Section 15 of The Essential Commodities Act, 1955 deal with?

Section 15 deals with protection of action taken in good faith under orders made under Section 3.

What protection is provided under Section 15(1)?

No suit, prosecution or other legal proceeding shall lie against any person for anything done or intended to be done in good faith in pursuance of an order under Section 3.

What protection is provided to the Government under Section 15(2)?

No suit or other legal proceeding shall lie against the Government for any damage caused or likely to be caused by anything done or intended to be done in good faith under an order made under Section 3.

What is the essential condition for protection under Section 15?

The act must have been done or intended to be done in good faith.

Does Section 15 bar both civil and criminal proceedings?

Yes, it bars suits, prosecutions and other legal proceedings subject to the requirement of good faith.

What does Section 15A of The Essential Commodities Act, 1955 deal with?

Section 15A deals with requirement of previous sanction for prosecution of public servants.

When does Section 15A become applicable?

When a public servant is accused of an offence alleged to have been committed while acting or purporting to act in discharge of duty under an order made under Section 3.

What is the bar imposed under Section 15A?

No court shall take cognizance of such offence without previous sanction.

From whom is sanction required under Section 15A(a)?

From the Central Government where the public servant is or was employed in connection with the affairs of the Union.

From whom is sanction required under Section 15A(b)?

From the State Government where the public servant is or was employed in connection with the affairs of the State.

Does Section 15A apply to acts done while purporting to act in discharge of duty?

Yes, it applies to acts done or purported to be done in discharge of official duty under Section 3.

Is prior sanction mandatory before cognizance under Section 15A?

Yes, previous sanction is a condition precedent for taking cognizance.

What does Section 16 of The Essential Commodities Act, 1955 deal with?

Section 16 deals with repeal of earlier laws and saving of existing orders.

Which enactments are repealed under Section 16(1)?

The Essential Commodities Ordinance, 1955 and any other State law in force immediately before commencement of the Act controlling production, supply, distribution, trade or commerce in essential commodities.

What is saved under Section 16(2) notwithstanding repeal?

Any order made or deemed to be made under the repealed laws and in force immediately before commencement, insofar as it may be made under this Act.

Do appointments, licences, permits or directions issued under repealed laws continue after commencement of this Act?

Yes, they continue in force until superseded by any appointment, licence, permit or direction issued under this Act.

Is the saving under Section 16(2) absolute?

It applies only insofar as such order could have been made under this Act.

What is the effect of Section 16(3)?

It preserves the application of Section 6 of the General Clauses Act, 1897 to the repeal as if the repealed Ordinance or law had been an enactment.

Does Section 16(3) operate in addition to sub-section (2)?

Yes, it is without prejudice to sub-section (2) and ensures continued application of Section 6 of the General Clauses Act.