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Issues Involved:
1. Legality of the order of discharge by the Chief Presidency Magistrate. 2. Retrospective effect of the Deviation Order. 3. Condonation of the offence by the Textile Commissioner. 4. Presence of mens rea in the accused. 5. Scope and interpretation of Section 251-A, Criminal Procedure Code (CrPC). Issue-wise Detailed Analysis: 1. Legality of the Order of Discharge by the Chief Presidency Magistrate The Chief Presidency Magistrate had discharged the accused on the grounds that the Deviation Orders exempted the mill from compliance with the statutory directions, thereby nullifying any contravention of the control orders. The High Court, however, set aside this discharge, directing the Magistrate to frame charges against the accused under Section 120B, IPC, and Section 7 of the Essential Commodities Act. The Supreme Court found that the Chief Presidency Magistrate's order did not suffer from any serious legal infirmity and was just and fair. 2. Retrospective Effect of the Deviation Order The appellants argued that the Deviation Order issued on June 25, 1965, had retrospective effect, thereby exempting them from any offence committed between October 20, 1964, and June 25, 1965. The High Court did not find this argument frivolous but felt it required full argument at the hearing of the case. The Supreme Court, however, held that the Deviation Order, along with the circular dated November 2, 1964, permitted the mill to continue manufacturing the disputed dhotis, provided they had been traditionally manufacturing them for three years prior to October 1964. 3. Condonation of the Offence by the Textile Commissioner The trial Magistrate accepted that the Textile Commissioner had condoned the offence by issuing a warning along with the Deviation Order dated June 25, 1965. The High Court, while acknowledging that the Textile Commissioner was not desirous of pursuing the matter, did not consider this sufficient to dismiss the charges. The Supreme Court found that the Textile Commissioner's actions indicated that the alleged irregularities were not considered serious enough for prosecution, thus supporting the trial Magistrate's conclusion. 4. Presence of Mens Rea in the Accused The trial Magistrate found no mens rea on the part of the accused, as they had a bona fide belief that they were entitled to the Deviation Order. The High Court, however, felt that a contrary view was not only possible but highly probable. The Supreme Court reiterated that mens rea is necessary for an offence under the Essential Commodities Act, as established in Nathulal's case. The Court held that the appellants acted without any guilty mind, assuming there was a technical violation of the notifications. 5. Scope and Interpretation of Section 251-A, CrPC Section 251-A(2) mandates that if the Magistrate considers the charge against the accused to be groundless after considering all documents and hearing both sides, he shall discharge the accused. The High Court opined that the Magistrate had exceeded his jurisdiction by deciding on the merits of the case at the initial stage. The Supreme Court clarified that the Magistrate is entitled and indeed has a duty to consider the entire material to determine if there is a ground for presuming the commission of the offence. The Court held that the Magistrate rightly concluded that there was no ground for presuming the appellants to be guilty. Conclusion The Supreme Court allowed the appeals, set aside the High Court's order, and restored the Chief Presidency Magistrate's order discharging the appellants. The Court emphasized that the prosecution was groundless due to the lack of mens rea and the retrospective effect of the Deviation Order, thereby preventing unnecessary harassment of the appellants.
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