Shivraj Prasad Sah @ Shivraj Sah vs. The State Of Bihar Through The Collector-Cum- District Magistrate

CR. WJC/947/2024HC PatnaGSTCNR BRHC01043248202406 February 2025Bench: MR. JUSTICE BIBEK CHAUDHURI3 pages

AI SummaryAllowed

Facts

The petitioner, Shivraj Prasad Sah, filed a writ petition under Article 226 of the Constitution of India seeking the release of 345 bags of arwa rice. The rice was purchased by the petitioner for valuable consideration and intended for transportation to Haryana. The seizure occurred in connection with Khagaria P.S. Case No. 426/2020, registered on June 17, 2020, under Section 7 of the Essential Commodities Act, 1955, alleging black-marketing of rice. The petitioner submitted documents proving the purchase, payment, E-transit bills, and GST numbers of the purchaser and himself.

Held

The Court held that the FIR was maliciously instituted due to mala fide actions by the respondents. It found that even if the FIR were taken at its face value, it did not establish a case under Section 7 of the Essential Commodities Act, 1955. This conclusion was significantly influenced by the Central Government Notification dated February 15, 2022, which authorized dealers to freely buy, stock, sell, transport, distribute, dispose of, acquire, use, or consume any quantity of rice without requiring a permit or license under the Essential Commodities Act, 1955. The Court relied on its previous decisions in similar cases, where relief was granted under Article 226 of the Constitution of India, directing the return of seized food grains. The ratio decidendi is that a criminal case under the Essential Commodities Act for trading in rice is unsustainable post the notification of February 15, 2022, and if instituted maliciously, it warrants relief under Article 226. The Court directed the release of the seized 345 bags of arwa rice upon the petitioner executing a jammnma of Rs. 5 lacs in favour of the District Magistrate, Khagaria.

Key Issues

1. Whether the registration of a criminal case under Section 7 of the Essential Commodities Act, 1955, is sustainable in light of the Central Government Notification dated February 15, 2022, which permits free trade of commodities like rice? Petitioner's argument: The petitioner contended that the FIR was maliciously instituted and based on mala fide actions by the respondents. He argued that even if the FIR is taken at face value, it does not establish a case under Section 7 of the Essential Commodities Act, 1955, especially considering the subsequent government notification. The petitioner relied on several previous High Court decisions, including Ram Sagar Choudhary Vs. The State Of Bihar and others (2024), and unreported decisions in Cr. Misc. No. 11049 of 2021, CWJC No. 2245 of 2017, and 2006 SCC Online Pat. 4. Revenue's argument: The judgment does not record any specific arguments made by the State respondents.

Sections Cited

Section 7 of the Essential Commodities Act, 1955

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

IN THE HIGH COURT OF JUDICATURE AT PATNA Criminal Writ Jurisdiction Case No.947 of 2024 Arising Out of PS. Case No.-426 Year-2020 Thana- KHAGARIA District- Khagaria ====================================================== Shivraj Prasad Sah @ Shivraj Sah Son of Late Dukhan Sao Resident of Gaushala Road, Khagaria, P.S.- Khagaria, Dist.- Khagaria ... ... Petitioner/s Versus 1. The State of Bihar through the Collector-cum- District Magistrate Khagaria 2. The Sub-Divisional Magistrate Khagaria 3. The Assistant Godown Manager, T.P. P.S. Godown Khagaria ... ... Respondent/s ====================================================== Appearance : For the Petitioner/s : Mr. Ajit Kumar Sinha, Advocate For the State : Mr. Madhaw Pd. Yadav, GP 23 Mr. Rajesh Kumar Sinha, AC to GP 23 ====================================================== CORAM: HONOURABLE MR. JUSTICE BIBEK CHAUDHURI

ORAL ORDER 3 06-02-2025 This is an application under Article 226 of the Constitution of India praying for a direction to the respondents for releasing of 345 bags of arwa rice which was purchased by the petitioner on valuable consideration for transportation to the State of Haryana.

By filing a supplementary affidavit the petitioner has filed all documents relating to purchase of seized rice, payment of consideration price, E-transit bills for transportation of the rice to Haryana, GST number of the purchaser as well as the petitioner himself.

On the allegation that the petitioner was involved in black-marketing of rice Khagaria P.S. Case No. 426/2020 dated 2/3 17th June, 2020 under Section 7 of the Essential Commodities Act was registered against the petitioner.

It is needless to say that by virtue of Central Government Notification dated 15th February, 2022, any dealer is authorized to freely buy, stock, sale, transport, distribute, dispose acquire use or consume any quantity of wheat, paddy/rice, coarse grains, sugar, edible oil seeds etc., and shall Misc. No. 11049 of 2021 (Naresh Sah Vs. State of Bihar & Anr.) decided on 19th February, 2022 (ii) CWJC No. 2245 of 2017 (Sandip Kumar Jaiswal @ Sandip Jaiswal Vs. The State of 4. In view of such circumstances, this Court finds that 3/3 the FIR was maliciously instituted on the ground of mala fide by the respondents and even if the FIR is taken at its face value, it does not establish a case under Section 7 of the Essential Commodities Act.

Accordingly, the instant writ petition is allowed. The respondents are directed to release 345 bags of arwa chawal in favour of the petitioner on his executing a jammnma of Rs. 5 lacs in favour of the District Magistrate, Khagaria. Prakash/- (Bibek Chaudhuri, J) U

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