Essential Commodities Act, 1955

The appellant, a licensed dealer of high‑speed diesel oil, challenged the cancellation of his licence under the Uttar Pradesh High Speed Diesel Oil and Light Diesel Oil (Maintenance of Supplies and Distribution) Order, 1981, alleging that the cancellation was based on vague allegations of malice by a political rival an…

The appellants, Mahalakshmi Sugar Mills and Govind Nagar Sugar Ltd., challenged the Central Government's fixation of levy‑sugar prices for the 1983‑84 and 1984‑85 sugar years, arguing that the government ignored the additional price payable to cane growers under clause 5A of the Sugarcane (Control) Order, 1966 and the …

Special Courts were created under the Essential Commodities (Special Provisions) Act, 1981 to try offences under the Essential Commodities Act, 1955, and later were also empowered to try NDPS offences. The EC (Special Provisions) Act lapsed in 1998, causing those courts to lose jurisdiction over EC cases, although they…

The respondents, operators of sugar factories in Madhya Pradesh, challenged notices issued by market committees that required them to obtain licences under the Madhya Pradesh Krishi Upaj Mandi Act, 1972 and to pay market fees on purchases of sugarcane. The High Court quashed the notices, holding that the transactions w…

Glaxo India Ltd. manufactured three bulk drugs and their formulations. The Central Government fixed maximum prices for these drugs by notifications dated 12‑May‑1981, 20‑Nov‑1986 and 2‑Jan‑1989, the latter superseding the earlier ones. The Government later demanded that Glaxo deposit Rs 71.21 crore into the Drug Prices…

The Supreme Court examined the constitutional validity of the Reserve Bank of India's 1987 directions regulating Residuary Non‑Banking Companies (RNBCs) under Sections 45J, 45K(3) and 45L of the RBI Act. The petitioners, a group of finance companies including Peerless, argued that the directions were ultra vires, unrea…

The Supreme Court examined whether the Union Government could de‑license the sugar industry by issuing Press Note 12 and a Notification under Section 298 of the Industries (Development and Regulation) Act, 1951, without a parliamentary amendment. It held that the executive power under Article 73(1) is co‑extensive with…

The appellant, Dayle De’Souza, a director of Writer Safeguard Pvt. Ltd., was served with a notice and later a criminal complaint under Section 22A of the Minimum Wages Act, 1948 for alleged non‑compliance at an ATM site, although the company itself was not named as an accused. The High Court dismissed his petition unde…

The appellants, S. Chinnasamy and R. Soundarajan, were found operating a seed shop without a valid licence and in violation of the Seeds (Control) Order, 1983. A seed inspector seized a small quantity of cotton and tomato seeds, noted the absence of a price list and records, and the Special Judge convicted them under t…

M/s. Holani Auto Links Pvt. Ltd. entered into a dealership agreement with Castrol India Ltd. and stored over 33,000 litres of engine oil at its premises. The State Food Department seized the oil and, under the Madhya Pradesh Essential Commodities (Exhibition of Price & Price Control) Order, 1977, issued a show‑cause no…

The Central Government, under Section 2(a)(xi) of the Essential Commodities Act, 1955, issued a 1983 notification declaring various seeds as essential commodities and issued the Seeds (Control) Order, 1983. Earlier, a Division Bench of this Court upheld the validity of that notification and order in the Raghu Seeds & F…

The Supreme Court considered two appeals where vehicles carrying essential commodities were seized under the Essential Commodities Act, 1955. The Deputy Commissioner ordered the release of the vehicles on payment of a fine based on the market price of the vehicles, which the High Court struck down, holding that the fin…

The petitioners, including A.K. Roy, challenged the National Security Ordinance, 1980 and the subsequent National Security Act, 1980 on grounds that the President's ordinance‑making power under Article 123 is an executive power and not "law" within the meaning of Article 21, that the provisions of the Act are vague, un…

The appellant Market Committee sought to levy market fees under the Uttar Pradesh Krishi Utpadan Mandi Adhiniyam on Pillibhit Pantnagar BeeJ Ltd., which deals in the purchase, processing and sale of certified wheat seeds. The respondents argued that wheat seed is not listed in the Schedule of the Act and therefore is n…

The case arose from a FIR lodged by a Sub‑Inspector (the respondent) against M/s Jain Gas Agency under the Essential Commodities Act, which the appellant claimed was false and alleged that the officer had misappropriated gas cylinders and accepted a bribe. The Special Judge directed the investigating officer to obtain …

The petitioners challenged the validity of the Central Government's notification dated 24 February 1983 declaring seeds of food‑crops, fruits and vegetables as essential commodities under the Essential Commodities Act, 1955, and the consequent Seeds (Control) Order, 1983 which required licences for dealing in such seed…

The case involved a partnership firm (A1) dealing in kerosene, its partner (A2), the driver (A3), cleaner (A4) and three retail dealers (A5‑A7). A tanker carrying 11,000 litres of kerosene was stopped at a Pondicherry check‑post and found empty. The driver gave an unsigned statement that he had sold the kerosene en rou…

The State of Punjab appealed against a High Court order that quashed charges framed under Section 7(1)(a)(ii) of the Essential Commodities Act, 1955 against the directors of Mis. Sangrur Vanaspati Mills Ltd., leaving only the production manager to stand trial for adulterating vegetable oil. The Supreme Court examined w…

The Food Corporation of India (FCI) purchased food grains from the State of Uttar Pradesh under levy orders issued pursuant to Section 3 of the Essential Commodities Act, 1955, and also distributed fertilizers under the Fertilizer (Control) Order, 1957. The State sought to levy purchase tax and a 5% surcharge on the FC…

The Supreme Court examined the fixation of levy‑sugar prices for the years 1974‑75 to 1979‑80 under Section 3(3‑C) of the Essential Commodities Act, 1955. Earlier the Court had directed the Government to amend the notifications to include the sugar producer’s liability under clause SA (5A) of the Sugarcane (Control) Or…

The Maharashtra Government issued the 1984 Maharashtra Sugar Factories (Reservation of Areas and Regulation of Crushing and Sugarcane Supply) Order to zone sugarcane supply to factories. In 1997 it amended clause 3(2) to allow non‑co‑operative growers to sell to any factory and to bind cooperative members to supply to …

Sunil Kumar was convicted under Section 7 of the Essential Commodities Act, 1955 for possessing and selling large quantities of blue kerosene and was sentenced to one year imprisonment and a fine. His appeal against the conviction was dismissed by the High Court, and a subsequent application seeking modification of the…

The Tamil Nadu Government, invoking powers under the Essential Commodities Act, 1955 and a central notification (G.S.R. 800, 1978), issued the Tamil Nadu Paddy (Restriction on Movement) Order, 1982, which completely banned the transport of paddy from certain districts. Traders challenged the order, alleging it exceeded…

Gupta Sugar Works, a Khandsari sugar manufacturer, challenged the Uttar Pradesh Khandsari Sugar (Levy) Order, 1981 which required surrender of 50% of first‑process output at a fixed price of Rs 320 per quintal. The petition alleged that the price fixation ignored the guidelines of sub‑section 3C of the Essential Commod…

The dispute concerned applications by several industrial units for coal allotment and linkages. The Coal Controller, under Clause 12A of the Colliery Control Order, 1945, allotted more than 5,000 tonnes of coal and granted linkages, contrary to a Central Government circular that limited linkages to 5,000 tonnes per mon…

Rampa! Sahu was detained on 17 December 1985 under section 3(2) of the National Security Act, 1980 for allegedly removing railway material and thereby prejudicing the maintenance of essential supplies. The State served the grounds, allowed a representation, referred the matter to the Advisory Board, and confirmed the o…

The State of Madhya Pradesh appealed the acquittal of lorry drivers, cleaners and a coolie who were intercepted while transporting fertiliser bags from Indore to Maharashtra without the permit required under the Fertiliser (Movement Control) Order, 1973. The trial court held that the prosecution had not proved mens rea…

The appellants were convicted for conspiracy, cheating, forgery of a palmolein oil permit and offences under the Prevention of Corruption Act and Essential Commodities Act. The prosecution alleged that accused A1, A2 and A4 had interpolated and forged the permit, relying mainly on handwriting identification by witnesse…

The appeal concerned Nagammayi Cotton Mills' liability under the Essential Commodities Act, 1955 and the Textile (Control) Order, 1986/1993 regarding the mandatory production of hank yarn. The petitioner sought to have past liability waived for the periods April 1 1993‑March 31 1995 and April 1 1990‑September 30 1992, …

The Tata Iron & Steel Co. Ltd. and other steel manufacturers were required by the Joint Plant Committee (JPC) and Steel Priority Committee (SPC) to add certain elements to the ex‑works price of iron and steel for funds such as the Steel Development Fund. The Central Excise Department contended that excise duty was paya…

The State of Tamil Nadu, under the Tamil Nadu Essential Articles Control and Requisitioning Act, 1949, declared timber an essential article and issued the Tamil Nadu Timber (Movement Control) Order, 1982 which allowed transport of timber outside the State only on a permit. In September 1983 the State amended the Order,…

The Allahabad Canning Co., a manufacturer of syrups and related food products, purchased levy sugar from K.M. Sugar Mills at a price higher than the controlled price. The excess amount of Rs 22,681.88 recovered by the High Court registrar was credited to the Levy Sugar Price Equalisation Fund under the Levy Sugar Price…

The Food Corporation of India (FCI) demanded that authorised retailer V.K. Sukumaran refund the price differential on rice purchased on 10‑11 October 1985 and on stock held on 9 October 1985, after the Government of India revised the issue price of rice effective 10 October 1985. The State of Kerala, invoking the Keral…

The State of Bihar seized 5,923 bags of wheat from the flour mill of Arvind Kumar & Anr. after a raid based on secret information indicating diversion of subsidised food grains for black marketing. The respondents filed a writ petition seeking quashing of the FIR under the Essential Commodities Act, 1955 and release of…

The Supreme Court considered two appeals: one under Section 409 IPC where the appellant sought discharge under Section 167(5) of the CrPC after the two‑year investigation period expired, and another under Section 7(1)(a)(ii) of the Essential Commodities Act concerning the limitation bar under Section 468 of the CrPC. I…

The appellants were seized by a Sub‑Inspector of Police at a bus stop in Phagwara on suspicion of selling gas cylinders at a price lower than the prescribed rate. They were convicted under Section 7 of the Essential Commodities Act, 1955 for unauthorized possession of the cylinders and sentenced to six months imprisonm…

Sidheshwar Sahakari Sakhar Karkhana Ltd., a cooperative sugar manufacturer, claimed a rebate under Notification No. 132/82 for excess sugar production in May‑September 1982, calculating average production over three years (including two years of nil output) as 11,009.67 quintals. The revenue authorities ignored the two…

The Kerala State Government declared raw cashew nut an essential article under the Kerala Essential Articles Control (Temporary Powers) Act, 1961 and issued a procurement and distribution order. Petitioners processing cashew nuts challenged the declaration under Article 32, arguing that raw cashew nut is a "foodstuff" …

The Centre for Public Interest Litigation filed a writ petition seeking a separate expert committee to examine the health effects of soft drinks, especially on children, and to compel the Union of India to impose stricter regulatory controls, labeling, and advertising standards. The Court examined whether the existing …

The Supreme Court examined the validity of a series of notifications fixing the price of levy sugar under the Essential Commodities Act, 1955. Sugar manufacturers contended that the Government had not taken into account the four factors prescribed in Section 3(3C) – minimum cane price, manufacturing cost, taxes and a r…

The Madhya Pradesh Government, under the Essential Commodities Act, replaced its 1960 scheme of running fair‑price shops through retail dealers with a 1981 scheme that appointed agents, giving preference to consumers' cooperative societies, to distribute foodstuffs at fair prices. Petitioners challenged the scheme as v…

The Supreme Court examined the validity of a 27 April 2018 notification issued under Section 26A of the Drugs and Cosmetics Act that restricted the domestic manufacture of oxytocin to public‑sector undertakings, excluding private manufacturers, while allowing export by both sectors. The petitioners (Union of India) arg…

The State of Andhra Pradesh issued orders fixing maximum prices for certain cooked food items served by catering establishments under the Essential Commodities Act, 1955. Several hoteliers challenged the orders, arguing that the term "foodstuffs" in the Act does not cover cooked food and that the price fixation was arb…

The Supreme Court examined a reference concerning whether the Uttar Pradesh government could fix a State Advised Price (SAP) for sugarcane under Section 16 of the U.P. Sugarcane (Regulation of Supply and Purchase) Act, 1953 and whether such power conflicted with the Central government's authority to fix a minimum price…

The State of Uttar Pradesh issued executive orders refusing to renew licences of petty diesel dealers whose premises were within five kilometres of a government‑run retail outlet. Daulat Ram Gupta, whose licence was thus refused, challenged the order. The Allahabad High Court set aside the order and directed the author…

The petitioners, owners of khandsari sugar factories in Uttar Pradesh, challenged the applicability of the U.P. Krishi Utpadan Mandi Adhiniyam, 1964 (as amended in 1970) to their product, arguing that what they produce is "khandsari sugar" and not "khandsari" covered by the Act, and that the levy of market fee and lice…

On February 3, 2000, a truck carrying 100 quintals of paddy belonging to the petitioners was stopped by a food inspector, and the grain was seized and later confiscated under Clause 6(2) of the Madhya Pradesh Essential Commodities (Exhibition of Price and Price Control) Order, 1997. The petitioners challenged the seizu…

The Supreme Court examined the validity of several notifications issued by the Central Government under the Drugs (Prices Control) Order, 1995 (DPCO 1995) that prescribed norms for conversion cost, packing charges and process loss, and fixed retail or ceiling prices of drug formulations. The Court held that the 1999 no…

Mis. Dhampur Sugar (Kashipur) Ltd., a sugar manufacturer, applied for a licence to set up a power‑crusher unit for manufacturing rah from sugarcane. The application was initially rejected under the existing licensing policy, but after the State Government modified the policy on 15 November 2003, a fresh application by …

Two sugar factories in North Mysore challenged the constitutional validity of Section 3(3C) of the Essential Commodities Act, 1955 and a 1966 government notification that placed them in Zone 1 for sugar price fixation, alleging loss and denial of a notice‑hearing. The factories argued that the zoning violated their fun…

The appellants, partners of a rice‑milling partnership, were convicted under the Essential Commodities Act, 1955 for failing to supply the levy rice required by the Haryana Rice Procurement (Levy) Order, 1979. They appealed, contending that the prosecution had not proved that they were in charge of the firm’s business …

The Supreme Court examined a writ petition under Art. 32 challenging the failure of several State Governments and Union Territories to implement mandatory provisions of the National Food Security Act, 2013 (NFS Act), including grievance redressal officers, State Food Commissions, social audits and vigilance committees.…

The appellants challenged the constitutional validity of Sections 54A, 69(4)‑(9) and 98 inserted by amendment to the Rajasthan Excise Act, 1950, alleging that they usurped the jurisdiction of criminal courts, removed the remedy of judicial review and violated Articles 14, 19, 20, 21, 301 and 254 of the Constitution. Th…

The appellants, rice millers, supplied rice to the Food Corporation of India under the Andhra Pradesh Rice (Procurement Ex‑Mill Prices) Order, 1975 and were paid the notified procurement price. The State later issued a memorandum (Nov 2 1976) extending that price to the 1976‑77 crop and, by a Gazette notification dated…

The State of West Bengal issued the West Bengal Rice and Paddy Control Order, 1997 under the Essential Commodities Act, 1955, containing clauses 9 and 10 that regulated storage, transport and export of rice and paddy. A writ petition challenged these clauses as being inconsistent with the export‑import policy framed un…

The State seized about 600 metric tonnes of tin plates worth Rs.60 lakh from Calcutta Hardware Stores alleging violations of the Essential Commodities Act, 1955 and the West Bengal Declaration of Stocks and Prices of Essential Commodities Order, 1977, and also invoked sections 1208 and 420 of the IPC. The respondents a…

The State seized a truck carrying forest produce without a transit permit and initiated confiscation proceedings under the West Bengal amendments to the Indian Forest Act, 1927. The District Judge set aside the confiscation order on the ground that the notice under Section 59‑B was invalid, directing the authorities to…

Harendra Nath Chakraborty, a licensed kerosene dealer, was convicted under Section 7(1)(a)(ii) of the Essential Commodities Act, 1955 for failing to display stock and price lists and for not maintaining the stock register as required by the West Bengal Kerosene Control Order, 1968 and the West Bengal Declaration of Sto…

The respondent, a dealer in stationery, sold ammonia paper and ferro paper and claimed they were unclassified goods liable to tax at 2% under s.3 of the U.P. Sales Tax Act, 1948. The Sales Tax Officer classified them as "paper other than hand made paper" under Notification ST‑3124/X‑1012(4)‑1965, attracting a 6% rate, …

Neyveli Lignite Corporation Ltd., a fertilizer manufacturer, received a government subsidy under the Retention Price Scheme, which compensated the difference between the retention price and the maximum price fixed by the Fertilizer (Control) Order. The Tamil Nadu tax authority treated the subsidy as part of the company…

Essar Steel Ltd. and other off‑takers had long‑term contracts to purchase regasified LNG (RLNG) at a fixed price. In 2007 the Union Government issued a policy directive to pool RLNG prices and apply a uniform, non‑discriminatory price to all long‑term contracts, which raised the price for the appellants. The appellants…

The Saurashtra Oil Mills Association challenged Gujarat's 2000 order fixing stock limits for edible oilseeds and edible oils, arguing that the Central Government's 1997 amendment deleting these items from its 1977 Storage Control Order implied repeal of the State's 1981 order and created a constitutional conflict. The …

The State of Bihar charged seven respondents under Section 7 of the Essential Commodities Act for alleged misappropriation of G.C. sheets. The case, initiated in 1963, suffered extreme delays with the charge framed only in 1967 and the trial dragging on for over 20 years. The Patna High Court quashed the proceedings in…

The Supreme Court examined whether the Coal Controller, exercising powers under Clause 8 (and 9) of the Colliery Control Order, 1945, could direct Central Coalfields Ltd. (CCL) to transfer allotted steam‑coal from Urimari and Jarangdih collieries to Sirka collieries, thereby overriding CCL's contract with Continental T…

The State Government of Andhra Pradesh issued a circular on 21 June 1985 imposing restrictions on the transport and export of groundnut seeds and oil and requiring millers and traders to sell a portion of their produce to the State at a fixed price. The traders challenged the order, and the High Court struck it down on…

The appellant, Munshi Ram Ram Niwas, was found with 80 quintals of Khandsari sugar during a raid, exceeding the 10‑quintal limit allowed without a licence under the Delhi Sugar Dealers Licensing Order, 1963. Two samples each were taken from three varieties of Khandsari and all showed sucrose content above 90%, qualifyi…

The State of Punjab prosecuted Nohar Chand, a fertilizer manufacturer in Ludhiana, for producing sub‑standard fertilizer that was marketed through his agent, Sachdeva Enterprises, in Kapurthala. A sample taken from the agent’s premises was found sub‑standard, leading to a criminal complaint under the Essential Commodit…

The case involved G.T.N. Textiles and other spinning mills that only packed cotton yarn in cone form because they lacked reeling machines. The Textile Commissioner, exercising powers under clause 16 of the Textile (Control) Order, 1986, issued a notification requiring every yarn producer to pack at least 50% of its out…

The State of Bihar prosecuted Tata Iron and Steel Co. Ltd. for selling non‑metallurgical coal without a licence under the Bihar Trade Articles (Licence Unification) Order, 1984. Tata argued that, as a colliery governed by the Central Government's Colliery Control Order, 1945, the State Order could not apply to it. The …

The Supreme Court examined a series of civil appeals concerning the payment of outstanding principal amounts to sugarcane growers by sugar factories in Uttar Pradesh. The crux of the dispute was whether the State Government could fix a State Advised Price (SAP) for sugarcane that exceeds the minimum price fixed by the …

The State of Uttar Pradesh challenged the levy imposed on Sri Laxman Rice Mills under the U.P. Rice and Paddy (Levy and Regulation of Trade) Order, 1985, contending that the levy was effective from the night of 30 September/1 October 1995 and therefore covered the rice stock already held by the millers. The State argue…

Sarabhai M. Chemicals, a bulk‑drug manufacturer, claimed exemption from excise duty under Notification No. 234/86 after obtaining certificates from the Drugs Controller. The Central Excise Department issued three show‑cause notices alleging that a portion of the sorbitol solution and vitamin C was sold to non‑pharmaceu…

The State of Andhra Pradesh filed a criminal complaint against Farmers Service Cooperative Society and others under Section 7(1) of the Essential Commodities Act for allegedly supplying sub‑standard zinc sulphate. The charge‑sheet was filed about two years after the alleged offence, and the respondents moved a petition…

Udaipur Sahakari Upbhokta Thok Bhandar Ltd., a cooperative society dealing in both non‑controlled and government‑authorised controlled commodities, claimed a deduction under Section 80P(2)(e) of the Income‑Tax Act for commissions received for storing foodgrains under the Rajasthan Foodgrains Order. The Assessing Office…

The Central Government, under the Sugar (Control) Order 1966, issued Order No. GSR‑410‑E/Ess. Com./Sugar on 14 July 1980 limiting the quantity of vacuum‑pan sugar and khandsari that recognised dealers could keep in stock and imposing a ten‑day holding period. Recognised dealers challenged the order as ultra vires of th…

Coal India Ltd (CIL) and its subsidiary Western Coalfields Ltd challenged the Competition Commission of India's (CCI) finding of abuse of dominant position, arguing that the Competition Act, 2002 does not apply to them because they are government companies created under the Coal Mines (Nationalisation) Act, 1973 and ar…

The respondents, a drug firm and its managing partner and pharmacist, were prosecuted for charging amounts in excess of the maximum retail price fixed under the Drugs (Price Control) Order, 1979 for Largactil and Hipnotex tablets. The trial court convicted them under Section 7 of the Essential Commodities Act, 1955 for…

R.K. Sharma sued the State of Assam and two police officers for malicious prosecution, seeking pecuniary damages for rice and paddy seized and non‑pecuniary damages for pain and reputation. The trial court dismissed the suit; the Gauhati High Court allowed pecuniary damages but denied non‑pecuniary damages, finding no …

The respondents, small‑scale manufacturers of single super‑phosphate (SSP) fertilizer, were entitled to a government subsidy provided they met the standards prescribed in the Fertilizer (Control) Order, 1985 under the Essential Commodities Act, 1955. The Government of Madhya Pradesh commissioned Project Development Ind…

M/s Baspa Organics Ltd. (appellant) purchased a chemical plant and continued a fire‑and‑special‑perils insurance policy issued by United India Insurance Ltd. (respondent). After a fire in January 2002, the insurer denied the claim, alleging that the appellant had over‑valued the plant and had failed to disclose that it…

The appellant was convicted under Section 3 read with Section 7(1)(a)(ii) of the Essential Commodities Act, 1955 for allegedly violating the Madhya Pradesh Sarvajanik Purti Vitaran Scheme, 1991. The appellant argued that the Scheme does not constitute an "order" as required by Section 3, and therefore Section 7 could n…

The appellant, the Principal Director of Income Tax (Investigation), sought to validate a search and seizure warrant issued under Section 132 of the Income Tax Act, 1961 against Laljibhai Kanjibhai Mandalia, who had transferred Rs 10 crore as a loan to a newly formed company and later repaid it with interest. The High …

Swami Samarth Sugars and Agro Industries Ltd. (appellant) obtained an Industrial Entrepreneur Memorandum (IEM) in 2010 to set up a new sugar factory, which was challenged in multiple writ petitions on the grounds of aerial distance and environmental compliance. The High Court dismissed the petitions but held that the a…

The appellants were arrested for a dowry death under Section 304B(8) of the IPC and applied for bail, contending that the police challan had not been filed within the statutory period. The trial magistrate rejected bail, holding that the challan was filed within 90 days, while the Sessions Judge granted bail, interpret…

The Indian Aluminium Company set up an aluminium smelter in Karnataka and entered into two tripartite agreements (1966 and 1976) with the Karnataka Electricity Board and the State for uninterrupted power at concessional rates. The Board later raised tariffs, and Karnataka amended Section 49 of the Electricity (Supply) …

The State of Andhra Pradesh assessed tax on M/s Linde India Ltd for its sale of Medical Oxygen IP and Nitrous Oxide IP, treating them as unclassified goods under Schedule V of the Andhra Pradesh Value Added Tax Act, 2005, which would attract a 12.5%/14.5% rate. Linde argued that the products are drugs/medicines covered…

The petitioners, owners of sugar mills in Uttar Pradesh, challenged the Central Government's notifications fixing levy‑sugar prices on a zonal basis under Section 3(3‑C) of the Essential Commodities Act, 1955, alleging that the price‑fixation was arbitrary, discriminatory and violative of Article 14. The Court examined…

The appellants were convicted under Section 3 read with Section 7 of the Essential Commodities Act, 1955 for allegedly possessing and diverting government‑quota cement in 1994. The prosecution relied on the Maharashtra Cement (Licensing and Control) Order, 1973 and the Cement Control Order, 1967, but the Supreme Court …

M/S RDB Textiles Ltd. manufactured jute bags for the Food Corporation of India, state governments and other agencies for use in the Public Distribution System. The Central Excise authorities denied exemption under Notification 30/2004, claiming that the bags bore a "brand name" because they displayed the buyer's name, …

The Supreme Court examined whether offences under the Essential Commodities Act, 1955 (including those committed during the period of the Essential Commodities (Special Provisions) Act, 1981) fall within the ambit of the Maharashtra Control of Organized Crime Act, 1999 (MCOCA). It held that the 1955 Act’s Section 7 sti…

The Empire Jute Co. Ltd. entered into a sale contract for raw jute with the Jute Corporation of India, which was subject to a Production Control Order compelling the mill to purchase jute at a fixed price. The appellant alleged the supplied jute was of inferior quality, refused to purchase, and filed a writ petition ch…

Jiyajeerao Cotton Mills Ltd. entered into a supply agreement with the Madhya Pradesh Electricity Board, but due to electricity scarcity the State issued two orders in 1975: a Regulation Order limiting consumption and imposing penal rates for excess use, and a Generation Order requiring consumers with captive power to g…

The Managing Director and Production Manager of M/s 5‑S Limited were prosecuted under the Essential Commodities Act for alleged violations of state licensing and price‑control orders. They contended that, under Section 10 of the Act, they could not be prosecuted unless the company itself was also prosecuted. The High C…

The Union of India challenged a Delhi High Court decision that had upheld Ranbaxy Laboratories' claim of exemption from the Drugs (Price Control) Order, 1995 for its bulk drug Pentazocine. The exemption was granted by a government notification dated 29 August 1995 and was said to expire on 31 October 1999. The issue wa…

The husband of the petitioner, Madhava Rao, was detained under Section 3 of the Prevention of Blackmarketing and Maintenance of Supplies of Essential Commodities Act, 1980 for allegedly diverting levy cement meant for railway construction to private works. The petitioner challenged the detention through a writ petition…

The State of NCT of Delhi filed a criminal appeal against D.A.M. Prabhu and others for allegedly violating Clause 17 of the Textile (Control) Order, 1986 by declaring incorrect fibre composition, thereby contravening an order made under Section 3 of the Essential Commodities Act, 1955. The trial court and a special jud…

The respondents, manufacturers of levy sugar, supplied the commodity to the Food Corporation of India (FCI) and the Uttar Pradesh Power Corporation Ltd. (UPPCF) under the Essential Commodities Act, 1955. After the Central Government sanctioned the respondents' claims, FCI withheld payment, citing alleged shortages of s…

Santosh was accused under Section 408 IPC read with Sections 3 and 7 of the Essential Commodities Act for receiving misappropriated food grains. He applied for anticipatory bail, which was rejected by the trial court and the Nagpur High Court. After depositing the alleged amount, he obtained interim protection, but the…

The State of Madhya Pradesh sought recovery of unpaid sugarcane prices and interest from Jaora Sugar Mills Ltd. and other factories under the Essential Commodities Act, 1955, the Sugarcane Control Order, 1966 and the M.P. Sugarcane (Regulation of Supply and Purchase) Act. The growers and factories had, in 1976, orally …

The Supreme Court examined whether the Bihar Agricultural Produce Markets Act, 1960 (the Market Act) could be applied to transactions involving sugarcane, sugar, molasses, wheat products, vegetable oils, rice, milk products and tea. It held that the special statutes governing sugarcane, sugar and molasses – the Bihar S…

The respondent's truck was seized by police on 10 December 1974 for an alleged violation of the Essential Commodities Act, 1955 that purportedly occurred on 15 March 1972. The respondent sought the vehicle's return through petitions before the Madhya Pradesh High Court, which held that Section 6A of the Act, as amended…

The Union of India appealed against a Delhi High Court judgment that quashed notifications fixing maximum prices of bulk drugs and retail prices of formulations under the Drugs (Prices Control) Order, 1979, on the ground that the government had failed to observe natural justice. The Court examined whether price fixatio…

The case concerned a petition by the owners of a 12.286‑cent plot in Ernakulam district seeking to have the land re‑classified as dry land (‘purayidam’) in the Basic Tax Register (BTR) under the Kerala Land Tax Act, 1961. The High Court, relying on Section 18 of the Land Tax Act, directed the Tahsildar to correct the B…

GlaxoSmithKline Pharmaceuticals Ltd challenged notices issued by the Drug Inspector after a price‑fixation notification under the Drugs (Prices Control) Order, 1995. The issue was whether the notified ceiling price became operative for all sales immediately, or whether manufacturers could continue to sell pre‑notificat…

Shivashakti Sugars Ltd obtained permission to set up a sugar factory in Saundatti, Karnataka, but the High Court held that the nearby Raibagh Sahakari factory was an existing sugar mill within 15 km, violating Clause 6A of the Sugarcane Control (Amendment) Order, 2006, and ordered the factory’s closure. On appeal, the …

In Uttar Pradesh, a severe sugar shortage prompted the Cane Commissioner to issue a notification under clause 8 of the Sugarcane (Control) Order, 1966, banning all power crushers in the reserved areas of sugar mills from 9 Oct 1980 to 1 Dec 1980, except those described as ‘vertical’. The petitioners, owners of such cru…

The case concerned a challenge by fertilizer dealers to a Uttar Pradesh Government notification issued under Rule 114 of the Defence of India Rules, 1971, which fixed the selling price of fertilizer stocks acquired before 31 May 1974 at the lower price fixed by an earlier Central Government notification of 11 October 1…

The State of Uttar Pradesh issued the U.P. Coal Control Order, 1977 under Section 3 of the Essential Commodities Act, 1955, requiring licences for brick kilns using slack coal and imposing conditions on the sale, price, size and export of the bricks produced. Brick manufacturers challenged the order, and the Allahabad …

The petitioners, who were land owners, applied for petroleum retail outlet dealerships under a 2002 policy that later was suspended. They entered into long‑term lease deeds and maintenance‑handling contracts with Indian Oil and IBP, investing substantial sums, and claimed that the oil companies were estopped from withd…

The case concerned the validity of Sections 4A, 4B and 33M inserted by the Bihar Agricultural Produce Markets (Amendment) Acts of 1992‑1993 and the power of the State Government to add or delete items from the Schedule of the Bihar Agricultural Produce Markets Act, 1960 using Section 39. The sugar mills argued that inc…

The respondent, Amrit Roller Flour Mills, held a licence under the Wheat Roller Flour Mills (Licensing and Control) Order, 1957 and supplied maida, suji and rawa to permit‑holders as directed by the District Food and Supplies Officer. It was assessed for sales tax under the Punjab General Sales Tax Act, 1948 for the ye…

M/s Sri Chamundeswari Sugar Ltd., a sugar manufacturer, purchased sugarcane from growers and paid the Statutory Minimum Price fixed by the Central Government together with the State Advised Price (SAP) fixed by Karnataka. The assessing authority levied purchase tax on the total amount, including SAP, under the Karnatak…

The State of Tamil Nadu directed sugar factories to pay an amount in excess of the statutory minimum and additional cane price fixed under the Sugarcane (Control) Order, 1966, as an advance. Kothari Sugars and Chemicals Ltd. paid this excess amount and challenged the State's demand that purchase tax be levied on it. Th…

The dealer, M/s R.M. Service Centre, held a retail licence for petrol, diesel, oil and grease. A joint inspection revealed a positive stock variation of High Speed Diesel beyond permissible limits and lack of reference density. Samples drawn were sent for testing; the first was dispatched five days after collection, ex…

The State of Karnataka appealed against the High Court's setting aside of a confiscation order of a 7,200 kg consignment of groundnut oil. The oil had been seized because the transporter failed to file the mandatory Form II declaration with the Tehsildar before the consignment left the place, as required by Clause 3(2)…

M/s Oudh Sugar Mills Ltd., a sugar manufacturer in Sitapur, Uttar Pradesh, challenged the Central Government's decision to place its factory in the Central Zone for levy‑sugar price fixation for the 1984‑85 and 1985‑86 crushing years, seeking parity with two other factories in the same district that were placed in the …

Printers (Mysore) Ltd. and other newspaper publishers challenged the Central Sales Tax authorities' demand that they pay tax at the higher 10% rate on raw materials used for printing, arguing that the amendment to the definition of "goods" in the Central Sales Tax Act, 1956 (which excluded newspapers) should not depriv…

The appellants, tea manufacturers, challenged the constitutional validity of the Tamil Nadu Scheduled Articles (Prescription of Standards) Order, 1977, which regulated tea as an essential commodity. They argued that tea is not a "foodstuff" under the Essential Commodities Act, 1955, and that the Central Government had …

Bharat Coking Coal Ltd (appellant), a government-owned company, sold hard coke to Steel Abrasers & Allied Products Ltd (respondent) for foundry use. The Central Government, under the Colliery Control Order, 1945, issued a 1991 notification fixing prices for coke but allowing additional charges for "special sizing or be…

The appellant, a fertilizer and foodgrain dealer, had large stocks seized under the Essential Commodities Act, 1955. After part of the stock was confiscated, the remainder was ordered to be released, but the State failed to do so and the goods later deteriorated in quality and quantity. The appellant sued for compensat…

The Supreme Court examined the constitutional validity of the Andhra Pradesh (Agricultural Produce and Livestock) Markets Act, 1966, particularly section 7(6) which bans sale of notified produce outside the market, and section 12(1) which authorises a market fee. The petitioners argued that these provisions infringed A…

The appellants, major pharmaceutical manufacturers, challenged the Bihar Finance Act, 1981 which imposed a 10% surcharge on dealers with a gross turnover exceeding Rs.5 lakh and prohibited those dealers from passing the surcharge on to purchasers. They argued that the provision conflicted with the Drugs (Price Control)…

The appellants, rice millers and commission agents, challenged the levy of market fee on rice imposed by Marketing Committees under the Karnataka Agricultural Produce Marketing (Regulation) Act, 1966, arguing that the Karnataka Rice Procurement (Levy) Order, 1984 (a Control Order issued under the Essential Commodities …

The Collector of Ganjam seized a bus and 42 litres of kerosene for contravening the Orissa Kerosene Control Order. Under Section 6-A(1) of the Essential Commodities Act, the Collector ordered confiscation of the vehicle but, invoking the second proviso, allowed the owner to pay a fine of Rs.20,000 instead. The High Cou…

The State of U.P. filed an FIR against O.P. Sharma, manager of Modi Paints and Varnish Works, for storing large quantities of edible oils without a licence under the U.P. Oil‑seeds and Oil‑seeds Products Control Order, 1966 and the Edible Oil‑seeds and Edible Oils (Storage Control) Order, 1977. The High Court quashed t…

The Uttar Pradesh Government, invoking the Essential Commodities Act, fixed a stock limit of 250 quintals for wholesale wheat dealers and issued a teleprinter instruction restricting movement of wheat without a formal order. Wholesale dealers challenged the stock limit and the movement restrictions as violations of Art…

The State of West Bengal prosecuted Falguni Dutta and another for contravening orders under the Essential Commodities Act, 1955. The respondents were arrested on 16 March 1984, but the charge‑sheet was filed after the statutory six‑month period, and the Special Court under Section 12A took cognizance on 13 March 1987. …

The petitioner alleged that the second respondent, Devender Agrawal, owned numerous diesel and petrol dealerships under the names of relatives, constituting benami arrangements, and also raised concerns of adulteration of petroleum products and the need for direct transfer of kerosene subsidies. The Supreme Court allow…

The appellant, the Commissioner of Income Tax, Bombay, challenged the deduction claimed by Tasgaon Taluka Sahakari Sakhar Karkhana Ltd., a cooperative sugarcane processor, for the price paid to cane growers that exceeded the Statutory Minimum Price (SMP) fixed under Clause 3 of the Sugar Cane (Control) Order, 1966. The…

Mis Precious Oil Corporation and its proprietor and employee were prosecuted under Section 7(1)(a)(i) of the Essential Commodities Act, 1955 for contravening Clauses 3, 4 and 5(5) of the Lubricating Oil and Greases (Processing, Supply and Distribution Regulation) Order, 1987 by operating without a licence, storing adul…

The Supreme Court examined the constitutional validity of the Handlooms (Reservation of Articles for Production) Act, 1985 and the 4 August 1986 order reserving certain textiles for exclusive handloom production. Petitioners argued that the reservation created a monopoly, violated Articles 14 and 19(1)(g) of the Consti…

The petitioners, dealers in rice and owners of a rice mill, challenged Clause 3 of the Haryana Rice Bran (Distribution and Price) Control Order, 1967, which required a permit for the sale of rice bran. They argued that rice bran is not an "essential commodity" under the Essential Commodities Act, 1955, and therefore th…

The petitioners challenged the constitutional validity of amendments to the Bombay Prohibition Act, 1949 made by the Gujarat Legislature that required a permit for possession of "rotten gur" in excess of a prescribed limit and regulated its manufacture. They argued that the provisions exceeded the State's legislative c…

The consumer complained that a bottle of "Lehar Pepsi" he purchased was adulterated with fungus, leading to a complaint under the Prevention of Food Adulteration Act, 1954. The Special Judicial Magistrate summoned Pepsi Foods Ltd. and others, but the appellants challenged the summons in the High Court, which dismissed …

The State of Uttar Pradesh filed criminal appeals against Aman Mittal and others for alleged short delivery of petrol and diesel, invoking offences under the Legal Metrology Act, 2009, the Essential Commodities Act, and the Indian Penal Code (IPC). The High Court had quashed the charge‑sheet under s.482 CrPC and issued…

The Union of India challenged the Delhi High Court's order setting aside price‑fixation notifications for Doxofylline formulations, arguing that Doxofylline is a derivative of the scheduled bulk drug Theophylline. The respondents contended that Doxofylline is a new chemical entity not listed in the First Schedule of th…

The Oil and Natural Gas Commission (ONGC), a statutory corporation under the Oil and Natural Gas Commission Act, 1959, supplied natural gas to certain Gujarat industries under contracts whose prices were based on thermal equivalence with alternate fuels. The respondents, forming an association of gas‑consuming industri…

Delhi Cloth Mills, a manufacturer of vegetable oil products, sold its "Panghat" and "Roshni" brands at wholesale prices lower than the maximum prices fixed by a government notification under the Essential Commodities Act due to market depression. The company submitted these actual prices to the Superintendent of Centra…

The state-owned Singareni Collieries Ltd., which supplies coal to both core (priority) and non‑core industries, issued Notification No. 3/96‑97 imposing a 20% surcharge on non‑core customers. The appellants, small‑scale coal‑using manufacturers, challenged the surcharge as arbitrary discrimination violating Article 14 …

E.I.D. Parry (India) Ltd., a sugar manufacturer, purchased sugarcane at a statutory minimum price and an additional price under Clause 5‑A of the Sugarcane (Control) Order, 1966. The additional price could be determined only after the sugar year ended, so the company paid an advance on that price, recorded only the min…

The petitioner, a mustard oil manufacturer, had 562 bags of mustard seeds and 262 tins of oil seized under the Essential Commodities Act, 1955 for alleged licence violations. After the seizure, the Collector, invoking section 6E, ordered the release of the goods to the petitioner, even though confiscation proceedings w…

The petitioners, invoking Article 32, sought a court order to stop private hospitals from forcing patients to purchase medicines and consumables exclusively from the hospitals' own pharmacies at inflated prices, alleging exploitation and violation of the right to life under Article 21. They highlighted personal experie…

Bhaurao Punjabrao Gawande, a petroleum transporter, was alleged to have repeatedly engaged in black‑marketing of kerosene and faced several prosecutions under the Essential Commodities Act, 1955. The Commissioner of Police, acting under the Prevention of Black Marketing and Maintenance of Supplies of Essential Commodit…

The petitioners, manufacturers of khandsari sugar, challenged a Uttar Pradesh Government notification that allowed a rebate of 0.625 kg per quintal for the binding material when sugarcane was brought in bundles. They argued that the power to prescribe such a rebate was conditional on fixing a minimum price, that the ra…

Mahindra & Mahindra Ltd. (M&M) sought a declaration under Section 72A of the Income‑Tax Act, 1961, to carry forward the accumulated loss and unabsorbed depreciation of International Tractor Company of India Ltd. (ITCI) after their amalgamation. The Specified Authority, after a screening committee, recommended that ITCI…

The appellant, a married daughter, applied for allotment of a fair‑price shop under the dependent quota after her mother, the previous dealer, died. The Sub‑Divisional Magistrate and the Deputy Commissioner rejected her claim, relying on a clause in the 2016 Uttar Pradesh Essential Commodities Order that excluded "marr…

The appellants owned a truck hired to transport wheat belonging to the Food Corporation of India. The Deputy Commissioner, invoking the Essential Commodities Act, 1955, ordered the truck's confiscation, a decision upheld by the Sessions Judge and the Jharkhand High Court. The appellants contended that wheat is a de‑con…

The Central Government issued the Kerosene (Restriction of Use and Fixation of Ceiling Price) Order, 1993 fixing a "declared price" that may include charges, rates, duties and taxes prescribed by the State. Madhya Pradesh’s Director and district Collectors fixed wholesale and retail kerosene rates using a "rounding off…

The dispute arose when Ojas Industries filed an Industrial Entrepreneur Memorandum (IEM) to set up a sugar mill, and Oudh Sugar Mills filed a later IEM within 7.2 km of Ojas' proposed site. The Delhi High Court held that the 15‑km distance rule applied only between an existing and a proposed mill, not between two propo…

Bharat Petroleum Corporation Ltd (BPCL) entered into a Dispensing Pump and Selling Licence (DPSL) agreement with Chembur Service Station, appointing it as a dealer to sell BPCL's petroleum products. After a surprise inspection revealed alleged manipulation of a dispensing unit, BPCL issued a show‑cause notice and subse…

The Supreme Court examined the constitutionality of Coal India Ltd.'s electronic auction (E‑Auction) scheme for allocating coal to non‑core sector consumers. The petitioners argued that coal is an essential commodity and that the scheme's variable pricing, lack of a fixed price, and inclusion of core‑sector entities vi…

The Supreme Court examined a Competition Commission of India (CCI) investigation into alleged bid‑rigging by LPG cylinder manufacturers in a tender floated by Indian Oil Corporation Ltd. (IOCL). The CCI and the Competition Appellate Tribunal (COMPAT) had found that the manufacturers colluded, relying on factors such as…

The Union of India appealed against a Bombay High Court judgment that had quashed the inclusion of seven bulk drugs in the first schedule of the Drugs (Price Control) Order, 1995 and set aside price‑fixation notices. The Supreme Court held that the High Court erred by accepting the petitioners' facts without proper scr…

The appellants Bijaya Kumar Agarwala and Jagdish Prasad were stopped while transporting paddy in trucks that exceeded the quantity permitted for storage under the Orissa Rice and Paddy Control Order, 1965, and were convicted under Section 7 of the Essential Commodities Act, 1955 for allegedly storing the commodity with…

The police intercepted the vessel M.V. Seaman Guard Ohio within Indian territorial waters and seized a large quantity of unlicensed firearms and ammunition, leading to a charge sheet under the Arms Act, 1959 and other statutes. The accused challenged the charge sheet through revision (s.397) and a petition under the in…