The essential commodities act 1955 is an act which was legislated back in 1955 when the country
depended on foreign country imports for basic goods like wheat. There was a high possibility of
hoarding of these commodities and so in order to stop accumulation and black marketing of these
products the essential commodities act 1955 was brought up. It empowered the government to
take decisions regarding the production, supply and distribution of the good and also regulate and
decide the stock limit of the essential commodities.
Scope
th
The Act was enacted on February 12 , 1980, and there are provisions and punishments for
persons who commit black marketing or hoarding.
The Act empowers the state government and central government or an official representative to
detain individuals or groups committing black marketing or hoarding.
The Act empowers district magistrates as well as the commissioner of police to take legal action
against offenders.
The Objectives of the Act
The objectives of the act are to provide for the control of
(i) Production
(ii) Supply
(iii) Distribution of trade commerce in certain commodities, in the interest of general public
Definition Section 2
The section 2 of this Act defines important terminologies used under the Act. What constitute
essential commodities:
The phrase “essential Commodity” as per the Act means any of the following commodities (S-2(a)
(i) Cattle fodder, including oilcakes and other concentrates
(ii) Coal, including cake and other derivatives;
(iii) Component parts and accessories of automobiles.
(iv) Cotton and woolen textiles
(v) Drugs food stuffs, including edible oilseeds and oils.
(vi) Iron and steel, including manufactured products of iron and steel.
(vii) Paper including newsprints, paper board and straw board.
(viii) Petroleum and petroleum products
(xi) Raw cotton, whether ginned or unginned, and cotton seed.
(x) Raw jute
(xi) Any other class of commodity, the central government may notify from time to time.
As per the act. food crops includes crops of sugarcane. Sugar means any form of sugar containing
more than 90 percent of sucrose, including sugar candy, khandsari or any sugar crystalline or
powdered form
The power of central government to make regulation
The regulation that the central government can make may include the following:
(1) By way of grant of license and permits, either for the production and manufacture of goods or
for storage, transport and distribution of goods, disposal, acquisition of essential commodities etc.
(2) For bringing under cultivation any waste or arable land;
(3) For controlling the price at which the essential commodity may be bought or sold;
(4) For prohibiting the withholding from sale of any essential commodity, ordinarily kept for sale;
(5) For regulating or prohibiting any class of commercial or financial transactions relating to food
stuffs or cotton textiles which, in the opinion of the authority making order, are, if unregulated are,
likely to be, detrimental to the public interest etc.
Imposition of duties on state government (Section 4)
As per section 4, The central government has been authorized to:
(1) Confer powers and impose duties upon the
(a) State government or
(b) Officers or authorities of central government or state government &
(2) Issue directions to the state government or officers or authorities thereof as to the exercise of
powers or the discharge of any duties.
Punishment for Violating the Act
Offenders will be put on trial under the Essential Commodities Act, 1955 (10 of 1955) or any other
as mentioned for the wrongful act. The trail shall be executed by a special court or a special
designated court, and all offences under the Act are non-bailable. Any person or organisation found
guilty of violating the act will lead to the detention of the business following with a jail term for the
individual.
Absconding or Avoiding the Order
Any individual absconding or avoiding the order should be reported to the Metropolitan or Judicial
magistrate. The punishment shall be implemented under 82, 83, 84 and 85 of the Code of Criminal
Procedure. If proven guilty after the examination of records and books, a jail term up to a year will
be handed out for minor offences. For major offences, the jail term can be extended up to seven
years with fine or both.
Burden of proof in certain cases (Section 14)
Under this Act, it is said that the burden of proof shall always lie upon the person who possesses
any essential commodity without having any lawful authority or permit or license.
Prosecution of action taken under the Act (Section 15)
This section provides that no prosecution or proceeding shall be instituted against the person who
acted in good faith or in pursuance of the order made under Section 3.
Offences by the company (Section10)
When the above offences are committed by any company. Then every person who is in charge or
responsible for the conduct and business of the company is held guilty for the offences and is liable
for the punishment. For the purpose of this Section, the term ‘company’ generally includes a body
corporate, a firm, or any other association of individuals.
Penalties (Section 7)
There are different kinds of penalties imposed upon different kinds of offences.
OFFENCES PENALTIES
Imprisonment for a term
Contravene the order made under clause (h)
which may extend to 1 year
and (i) of the Sub Section (2)
with fine
Imprisonment not less than 3
Contravene the other orders except above two. months which may extend up
to 7 years with fine
Imprisonment not less than 3
Fails to comply with the direction given
months which may extend up
under clause (b) of Sub-section (4)
to 7 years with fine
If any person convicted for offences under
Imprisonment not less than 6
Section Sub-clause (ii) of clause (a) of Sub-
months which may extend up
section (1) or under Sub-section (2) again
to 7 years with fine
convicted on the same provision
If the offences convicted under Sub-clause (ii) of Imprisonment for the term of
clause (a) of Sub-section (1) or under Sub- 3 months or 6 months
section (2) does not cause any substantial harm whichever is required as per
to any individual or the general public. the case
However, it is provided that when any person liable for punishment successfully proved that the
contravention has been taken place without his knowledge and he exercised due diligence at the
time of contravention to prevent it then he would not become liable for any punishment for such
offence.
State of Bombay v. Virkumar Gulab Chand Shah AIR 1952 SC335, In this case, it was
established that the foodstuff includes raw material, things used in the process and things used in
the preparation of food. Therefore, turmeric has been included in the scope of foodstuff.
S.Samuel, M.D., Harrisons v. Union of India 2004 SSC 256, In this case,it was decided that tea
is not a foodstuff and merely a stimulant. It neither used in the preparation of food nor contains any
nutritional value, however in general parlance also when a person takes tea doesn’t consider it as
having food.
