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TMI Blog2000 (2) TMI 866X X X X Extracts X X X X X X X X Extracts X X X X ..... ted 1.9.1983 on his furnishing a bank guarantee of Rs. one lakh. That order was challenged by the respondent before the High Court of Karnataka at Bangalore in W.P. No.16668 of 1983 on the ground that imposition of such condition was illegal and onerous. The learned Single Judge after considering second proviso to Section 6A(1) held that the words market price occurring in the section relate only to the essential commodity sought to be carried. According to the learned Judge the proviso gives a concession to the owner to avert confiscation by paying fine not exceeding the market price prevalent on the date of its seizure of the essential commodity. According to the learned Judge if option is to pay a fine equivalent to the market price of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l Commodities Act, 1955 (herein after referred to as The Act) provides for levy of fine on the basis of market value of the confiscated vehicle or on the basis of the market price of the essential commodity sought to be carried by such vehicle. Section 6A of The Act is as under : - 6A. Confiscation of essential commodity (1) Where any essential commodity is seized in pursuance of an order made under section 3 in relation thereto, a report of such seizure shall, without unreasonable delay, be made to the collector of the district or the Presidency town in which such essential commodity is seized and whether or not a prosecution is instituted for the contravention of such order, the Collector may, if he thinks it expedient so to do, direct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gulating or prohibiting the production, supply and distribution of essential commodity and trade and commerce therein if the same is considered necessary or expedient inter alia for maintaining or increasing supply of any essential commodity or for securing their equitable distribution and availability at fair prices by passing an appropriate order. Section 6A as quoted above provides for seizure and confiscation of essential commodity for contravention of any order issued under Section 3. Further Section 6B provides for issuance of show cause notice and the procedure for confiscation of the seized essential commodity as well as any package, covering or receptacle in which essential commodity is found or any animal, vehicle, vessel or other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... levant part of proviso would be in the case of vehiclethe owner of suchvehicle shall be given an option to pay, in lieu of its confiscation, a fine not exceeding the market price at the date of seizure of the essential commodity sought to be carried by suchvehicle. Question is whether fine should not exceed the market price of the seized essential commodity or whether it should not exceed the market price of the vehicle. For this purpose, it appears that there is some ambiguity in the Section. It is not specifically provided that in lieu of confiscation of vehicle a fine not exceeding the market price of the vehicle or of the seized essential commodity is to be taken as measure. Still however, it is difficult to say that measure of fine is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the vehicle on the date of seizure of essential commodity. That is to say, limit of such fine would be up-to the market price of the vehicle on the relevant date and it is within the discretion of the competent authority to fix such reasonable amount considering the facts and circumstances of each case. In Shambhu Dayal Agarwala v. State of West Bengal and another1 after considering the scheme of Sections 6A and 7 and dealing with the proviso (ii) to sub-section (2) of Section 6A, this Court observed: - Section 6-A, therefore, merely confers power of confiscation and not the power of release, disposal, distribution, etc., except to the limited extent permitted by sub-section (2) thereof. Of course, the second proviso to sub-section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iso is clear, the idea sought to be conveyed under the proviso to Section 6A(1) of the Act appear to be the same. In our view, the analogy drawn by the High Court is erroneous because the proviso specifically mentions that where any such conveyance is used as a means of transport in the smuggling of goods, the owner of any conveyance is to be given an option to pay in lieu of the confiscation of the conveyance, a fine not exceeding the market price of the goods which are sought to be smuggled. Explanation provides that market price means market price at the date when the goods are seized. As against this, Section 6A second proviso does not refer to payment of fine not exceeding market price of the essential commodity but apparent reference ..... X X X X Extracts X X X X X X X X Extracts X X X X
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