APHC010556442023 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3333] WEDNESDAY,THE TWENTY FOURTH DAY OF DECEMBER TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SMT JUSTICE V.SUJATHA WRIT PETITION NO: 28861/2023 Between: 1. M/S. J.K. RICE TRADERS,, VENGAIAHGARIPALEM ROAD, BINGINAPALLIVARI STREET, OLD TOWN, KAVALI, SPSR NELLORE DISTRICT REP. BY ITS PROPRIETOR, K. JAYAKRISHNA. ...PETITIONER AND 1. THE STATE OF A P, REP. BY ITS SECRETARY, FOOD, CIVIL SUPPLIES AND CONSUMER AFFAIRS DEPARTMENT, SECRETARIAT BUILDINGS, VELAGAPUDI, GUNTUR DISTRICT. 2. THE DISTRICT COLLECTOR, NELLORE, SPS NELLORE DISTRICT. 3. THE CIVIL SUPPLIES DEPUTY TAHSILDAR, KAVALI, SPSR NELLORE DISTRICT. ...RESPONDENT(S): Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased topleased to issue an order, direction or writ, more particularly one in the nature of writ of Mandamus declaring the action of the 3rd respondent in seizing 299.000 MTs of grade -A paddy, 5.300 MTs of raw rice, 7.000 MTs of discolored rice, 7.800 MTs of brokens and 500 empty jute bags from the mill of the petitioner under cover of panchanama, dt.11.06.2023 and further order of the 2nd respondent passed vide Rc.B2.172/2023, dt.17.10.2023 directing to sell the seized stock of 5.300 MTs of raw rice through public auction and directing the petitioner to furnish bank FDR for an amount of 2 VS,J W.P.No.28861 of 2023 Rs.16,43,600/- for release of 299.000 MTs of grade -A paddy, 7.000 MTs of discolored rice and 7.800 MTs of brokens as illegal, arbitrary, without any authority of law or jurisdiction and violative of Articles 14 and 19(1)(g) of the Constitution of India and contrary to the provisions of the Essential Commodities Act, 1955 and the Orders made there under and set aside the order of the 2nd respondent dt.17.10.2023 and consequently direct the respondents to release the seized stocks to the petitioner and not to take any action in pursuance of the illegal seizure IA NO: 1 OF 2023 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased pleased to direct the respondents to release 299.000 MTs of grade —A paddy, 5.300 MTs of raw rice, 7.000 MTs of discolored rice, 7.800 MTs of brokens and 500 empty jute bags to the petitioner by suspending the order of the 2nd respondent passed in Rc.B2.172/2023, dt.17.10.2023, pending disposal of writ petition IA NO: 2 OF 2023 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased pleased to vacate the Interim order dated 03-11-2023 passed in IA.No.1 of 2023 in WP.no.28861 of 2023 and pass Counsel for the Petitioner: 1. V SUDHAKAR REDDY Counsel for the Respondent(S): 1. GP FOR CIVIL SUPPLIES The Court made the following: 3 VS,J W.P.No.28861 of 2023 ORDER: The present Writ Petition came to be filed under Article 226 of the Constitution of India seeking the following relief:- “….to issue an order, direction or writ, more particularly one in the nature of writ of Mandamus declaring the action of the 3rd respondent in seizing 299.000 MTs of grade -A paddy, 5.300 MTs of raw rice, 7.000 MTs of discolored rice, 7.800 MTs of brokens and 500 empty jute bags from the mill of the petitioner under cover of panchanama, dt.11.06.2023 and further order of the 2nd respondent passed vide Rc.B2.172/2023, dt.17.10.2023 directing to sell the seized stock of 5.300 MTs of raw rice through public auction and directing the petitioner to furnish bank FDR for an amount of Rs.16,43,600/- for release of 299.000 MTs of grade -A paddy, 7.000 MTs of discolored rice and 7.800 MTs of brokens as illegal, arbitrary, without any authority of law or jurisdiction and violative of Articles 14 and 19(1)(g) of the Constitution of India and contrary to the provisions of the Essential Commodities Act, 1955 and the Orders made there under and set aside the order of the 2nd respondent dt.17.10.2023 and consequently direct the respondents to release the seized stocks to the petitioner and not to take any action in pursuance of the illegal seizure….” 2. The petitioner, M/s. J.K. Rice Traders, represented by its proprietor, is a registered trader of food grains such as paddy and rice holding certificate No.37CVMPK9211N1ZX. The petitioner, as a part of its business took „Sri Venkateswara New Modern Rice Mill‟ situated at Maddurupadu, Kavali mandal for lease and is running the said rice mill. 3. While so, on 11.06.2023, the 3rd respondent along with Vigilance and Enforcement officers, Nellore inspected the petitioner‟s mill and verified the physical stock with the B-Register. Alleging that the petitioner‟s mill contains PDS rice, the inspecting officials seized 299.000 metric tons of grade A Paddy, 4 VS,J W.P.No.28861 of 2023 5.300 metric tons of raw rice, 7.000 metric tons of discolored rice, 7.800 metric tons of brokens and 500 empty jute bags and registered a case under Section 6A of the Essential Commodities Act, 1955. 4. Upon such seizure, the petitioner approached the 2nd respondent by way of a petition on 26.07.2023 expressing his grievance, which was rejected by the 2nd respondent vide impugned proceedings dated 17.10.2023 whereby the 2nd respondent ordered sale of 8.800 metric tons of PDS rice worth Rs.3,25,600/-, through public auction and the Assistant Manager (Technical), O/o of the District Manager, APSCSCL, SPS Nellore was directed to obtain samples from MLS pint in-charge, Kavali and to send a report after analyzing the same. Further, the petitioner was directed to produce bank FDR for an amount of Rs.16,43,600/- for release of 1299.000 metric tons of Grade-A Paddy worth Rs.61,59,400/-, 7.000 metric tons of discolored rice worth Rs.2,59,000/- and 7.800 metric tons of brokens worth Rs.1,56,000/-, pending finalization of the proceedings under Section 6A of the Essential Commodities Act, 1955. Aggrieved by the proceedings dated 17.10.2023, the petitioner filed the present writ petition. 5. When the writ petition came up for hearing on 03.11.2023, this Court has passed the following interim order: “In view of the foregoing discussion, the 2nd respondent is hereby directed to release the Miller own stock without there being any securities, but stock as narrated in the impugned proceedings and also 5.300 MTS of alleged 5 VS,J W.P.No.28861 of 2023 PDS Rice out of the total seized PD Rice 8.800 MTs (claimed by the petitioner as Miller own stock) shall be released by accepting security of immovable property to an extent of 5.300 MTs of alleged PDS rice. Accordingly, there shall be an interim direction directing the 2nd respondent to release the stock after receiving the security or immovable property to the value of 5.300 MTs of PDS rice with immediate effect.” 6. The 2nd respondent filed a detailed counter affidavit, enclosed with a vacate stay petition, denying the contentions raised by the petitioner in the writ affidavit and further admitted that the petitioner filed a petition on 26.07.2023 and as variations were found when the physical stock was compared with B- Register, the inspecting officials seized the available stocks in the premises and booked a case under Section 6A of the Essential Commodities Act, 1955. It is further stated that the petitioner failed to produce proper B-Register, connected bills, invoices pertaining to the stock available at his premises during the course of inspection. As such, the impugned proceedings dated 17.10.2023 were passed as an interim measure as the petitioner violated clause 19(e), 19(f) of Andhra Pradesh State Targeted Public Distribution System (Control) Order, 2018 and clause 16 of Andhra Pradesh Rice Procurement (Levy) Order, 1984 read with G.O.Ms.No.26, CA, F&CS (CS.I) department, dated 13.10.2022. It is further stated that pursuant to issuance of the impugned order dated 17.10.2023, the petitioner was issued a show cause notice on the same day, but, without submitting a proper explanation, the petitioner has filed the present writ petition. 6 VS,J W.P.No.28861 of 2023 7. It is further stated in the counter affidavit that in pursuance of the interim order passed by this Court on 03.11.2023, the seized rice stock of 8.800 metric tons was not put for public auction, but, it is stated that the petitioner has not produced proper immovable property as security for release of 5.300 metric tons of alleged PDS rice. It is further stated that the remaining seized stock i.e. 299.00 metric tons of Grade-A Paddy, 7.000 metric tons of discolored rice, 7.800 metric tons of brokens were released to the petitioner vide order dated 28.11.2023. As a show cause notice was already issued to the petitioner and the petitioner is yet to submit his explanation, the 2nd respondent requested this Court to dismiss the writ petition. 8. Heard Sri. V. Sudhakar Reddy, learned counsel for the petitioner and learned Assistant Government Pleader for Civil Supplies. 9. Perused the entire material available on record. Undisputedly, on 11.06.2023, the 3rd respondent, along with officials of the Vigilance and Enforcement Department, Nellore, conducted an inspection over the petitioner‟s mill and verified the physical stock with the B-Register. Alleging that the petitioner‟s mill contains PDS rice, the inspecting officials seized 299.000 metric tons of Grade-A paddy, 5.300 metric tons of raw rice, 7.000 metric tons of discolored rice, 7.800 metric tons of brokens, and 500 empty jute bags, and registered a case under Section 6A of the Essential Commodities Act, 1955. Subsequently, the petitioner submitted a 7 VS,J W.P.No.28861 of 2023 representation to the 2nd respondent on 26.07.2023, expressing his grievance. However, the same was rejected by the 2nd respondent vide the impugned proceedings dated 17.10.2023, whereby the 2nd respondent, as an interim measure, ordered the sale of 8.800 metric tons of PDS rice valued at Rs.3,25,600/- through public auction. Further, the Assistant Manager (Technical), Office of the District Manager, APSCSCL, SPS Nellore, was directed to obtain samples from the MLS point in-charge, Kavali, and to submit a report after due analysis. Additionally, the petitioner was directed to furnish a bank FDR for a sum of Rs.16,43,600/- for the release of 299.000 metric tons of Grade-A paddy valued at Rs.61,59,400/-, 7.000 metric tons of discolored rice valued at Rs.2,59,000/-, and 7.800 metric tons of brokens valued at Rs.1,56,000/-, pending finalization of proceedings under Section 6A of the Essential Commodities Act, 1955. He was also directed to produce another bank FDR for an amount of Rs.87,500/- from a nationalized bank for a period of three year for release of the vehicle bearing No.AP 39 TG 6506. 10. It is the case of the petitioner that the seized stock is miller own stock and not PDS stock. As per the memo dated 09.04.2015 and the proceedings of Ministry of Consumer Affairs, Food and Public Distribution Department dated 27.03.2015 and G.O.Ms.No.22, dated 03.11.2015 and also the nonest clauses 3 and 4 of A.P. Rice Procurement (Levy Order), 1984, the petitioner is not under obligation to supply any levy rice to 1st respondent and also in obtaining any license as required under A.P. Rice Procurement (Levy Order), 8 VS,J W.P.No.28861 of 2023 1984. Considering the same, this Court has passed an interim order on 03.11.2023 directing the 2nd respondent to release the Miller own stock without there being any securities, but the stock to an extent of 5.300 metric tons of alleged PDS rice out of the total seized rice, shall be released by accepting security of immovable property to an extent of 5.300 metric tons of alleged PDS rice. It can also be observed from the record that pursuant to the said interim direction, 299.00 metric tons of Grade-A paddy, 7.000 metric tons of discolored rice, 7.800 metric tons of brokens were released to the petitioner vide orders dated 28.11.2023. 11. However, it appears that the case which is booked against the petitioner under Section 6A of the Essential Commodities Act, 1955 is still under pending. The truth or otherwise as to whether the rice seized from the petitioner‟s mill is PDS rice would be decided by the 2nd respondent after conducting a detailed enquiry. In view of the same, instead of going into the merits of the case, the respondent authorities are directed to conclude the pending proceedings against the petitioner herein under Section 6A of the Essential Commodities Act, 1955, as expeditiously as possible, preferably within a period of four (4) weeks from the date of receipt of a copy of this order. 12. Accordingly, with the above direction, this writ petition is disposed of. There shall be no order as to costs. 9 VS,J W.P.No.28861 of 2023 Consequently, Miscellaneous Petitions, if any, pending in this Petition shall stand closed. ____________________ JUSTICE V.SUJATHA 24.12.2025 Gss