Synopsis

The State of Gujarat challenged the order of the Additional Sessions Judge, Bhavnagar, which had set aside the Collector’s confiscation order of seized stock valued at Rs.1,85,000/-. The respondent (licensee) was found with various irregularities: excess storage capacity beyond licence limits, non-maintenance of display board, outdated stock registers, and conducting business at an unlicensed location. The Collector passed the confiscation order after issuing a show cause notice and hearing oral submissions. The Sessions Court set aside the order, holding that the Collector violated principles of natural justice by not recording or cross-examining independent witnesses, not discussing documentary evidence, and not providing adequate opportunity. The High Court dismissed the State’s revision, affirming that failure to maintain stock register or technical breaches, in the absence of allegations of black-marketing, do not warrant confiscation, and that natural justice must be strictly followed in punitive actions.

Court: High Court of Gujarat at Ahmedabad

Coram: Honourable Mr. Justice Hasmukh D. Suthar

Date of Judgment: 21st April 2026

Citation: R/Criminal Revision Application No. 591 of 2011 (unreported)

Core Law: Essential Commodities Act, 1955; Gujarat Essential Commodities (Regulation) Order, 1977; Solvent Refinance and Slop Order, 2000; Lubricating Oil and Greases Order, 1987; principles of natural justice; confiscation of goods

Reading Time: 3–4 minutes

2. Legal Framework

Major laws and provisions involved

• Essential Commodities Act, 1955 – provisions relating to confiscation of essential commodities

• Gujarat Essential Commodities (Regulation) Order, 1977 – Sections 3 and 9 (display board, maintenance of stock registers)

• Solvent Refinance and Slop (Purchase, Sale Stock and Prohibition of use in Automobiles) Order, 2000 – licence conditions

• Lubricating Oil and Greases (Processing Supply and Distribution) Order, 1987 – Section 3 (licence requirement)

• Code of Criminal Procedure, 1973 – Section 397/401 (revision ju

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