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  • provisions of the Criminal Procedure Code, particularly Section 537.
  • Section 260 in Chap. 22, Criminal P.C. (5 of 1898),
  • GOVERNMENT OF INDIA ACT
  • Section 13 read with Sections 9(2)(a)
  • Sections 35 and 537, Criminal P.C.,
  • Section 537, Criminal P.C.
  • Section 360, Criminal P.C.,
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Citation Codes
Equivalent Citations
citation codes
Case Number
Judges
Acts
  • provisions of the Criminal Procedure Code, particularly Section 537.
  • Section 260 in Chap. 22, Criminal P.C. (5 of 1898),
  • GOVERNMENT OF INDIA ACT
  • Section 13 read with Sections 9(2)(a)
  • Sections 35 and 537, Criminal P.C.,
  • Section 537, Criminal P.C.
  • Section 360, Criminal P.C.,
Smart Summary

Structured Summary of the Court Opinion: Munshi Lal (Revision Application)

Factual and Procedural Background

The application in revision was filed by Munshi Lal, who was convicted under Section 13 read with Sections 9(2)(a) and 17 of the Hoarding and Profiteering Prevention Ordinance, 35 of 1943. The trial Magistrate sentenced him to a fine of Rs. 1,000. On appeal the Sessions Judge upheld the conviction but reduced the fine to Rs. 750 and dismissed the appeal. A Single Judge of this Court referred the matter to a Bench with the specific question whether the Ordinance was ultra vires the Governor-General.

The substantive facts were that on 25 March 1945 two Deputy Magistrates, posing as purchasers, visited the iron and steel firm of Piarey Lal Har Ballabh Das in Aligarh. Munshi Lal, a proprietor present in the shop, refused to sell iron bars (sarias) to them, stating they were not in stock at shop or go-down but offering to supply after registering purchasers' names and addresses. Later, after obtaining sanction from the District Magistrate, the District Supply Officer with others searched Munshi Lal's godown and recovered 57 bars. Prosecution was sanctioned and the applicant was tried and convicted. The applicant's defence included that he had asked for names and addresses and that the bars were intended for construction of culverts on a cement road.

Procedurally, although after an amendment in 1944 the Ordinance required offences to be tried summarily ("shall"), this case proceeded by the ordinary warrant-case procedure. After prosecution evidence the prosecuting inspector applied for the case to be treated as summary; the applicant resisted on grounds of harassment; the Magistrate recorded that the accused had consented to the ordinary procedure and objected to summary trial, and therefore the ordinary procedure continued.

Legal Issues Presented

  1. Whether the trial ought to have been conducted summarily under the 1944 amendment to the Hoarding and Profiteering Prevention Ordinance, and if non-observance of that mandatory procedure rendered the trial illegal beyond the curative ambit of Section 537, Criminal Procedure Code.
  2. Whether the Hoarding and Profiteering Prevention Ordinance, 35 of 1943, was ultra vires the Governor-General for want of a prior proclamation or appropriate exercise of emergency power under the Government of India Act.
  3. Whether the two Deputy Magistrates who posed as purchasers were not bona fide purchasers (i.e., were acting in bad faith), such that the applicant was entitled to refuse to sell without offending the Ordinance.

Arguments of the Parties

Appellant's Arguments (as recorded in the opinion)

  • Counsel for the applicant (Mr. Misri Lal Chaturvedi) argued that after the 1944 amendment the Ordinance used the mandatory word "shall" for summary trial, leaving no option for an ordinary trial; therefore the trial in the ordinary procedure was illegal and could not be cured by Section 537, Criminal P.C.
  • The applicant's factual defence was that he had not refused to sell but had asked the magistrates for their names and addresses, and that the recovered bars were intended for bona fide public work (construction of culverts on the cement road).
  • The applicant also contended that the Ordinance was ultra vires the Governor-General because, so it was argued, there should have been a prior proclamation of emergency and a distinct compliance with the Government of India Act provisions rather than a mere reference to emergency within the text of the Ordinance.
  • The applicant contended the two Deputy Magistrates were not bona fide purchasers, relying on an authority (Santosh Das Gupta v. Emperor) to support the contention that refusal to sell to non-bona-fide purchasers could be lawful.

Respondent / Prosecution Arguments

The opinion does not contain a detailed account of the prosecution's legal arguments in adversarial form. The factual record shows the prosecution applied for the case to be treated as a summary case after prosecution evidence, and the District Magistrate had earlier sanctioned prosecution; beyond that, the text does not provide a full exposition of the prosecution's submissions.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Subrahmanya Ayyar v. Emperor ('02) 25 Mad. 61 Disregard of an express statutory provision as to the mode of trial is not a mere irregularity curable by Section 537, Criminal P.C.; trial by a procedure definitely barred by statute is illegal. Presented to the Court as authority for the proposition that a trial conducted by a barred procedure is not merely an irregularity. The Court considered this authority in the context of other Privy Council decisions and held that the distinction between illegality and irregularity is one of degree.
Rahman v. Emperor, 14 A.I.R. 1927 P.C. 44 Omission or irregularity unaccompanied by any probable suggestion of failure of justice may be cured by the curative provisions (Sections 535 and 537) of the Criminal P.C. Relied upon to support the view that an irregularity not causing failure of justice can be cured under Sections 535 and 537; used in assessing whether the non-summary trial was curable.
Kotayya v. King-Emperor, 34 A.I.R. 1947 P.C. 67 If a trial is conducted in a manner different from that prescribed by the Code it is bad; but if substantially in the prescribed manner with some irregularity, the irregularity can be cured by Section 537. Used to emphasize the distinction (one of degree) between an illegality and an irregularity; supported the Court's conclusion that a trial substantially in accord with procedural requirements can be cured for irregularities.
Emperor v. Bishan Sahai, 24 A.I.R. 1937 All. 714 Even where there is a violation of a statutory provision regarding mode of trial, the trial will be vitiated only if prejudice to the accused or a failure of justice is shown; for Section 537 there is no distinction between an illegality and an irregularity—the sole test is failure of justice. The Court relied on this decision to affirm that the present irregularity (non-summary trial) was curable under Section 537 because there was no show of prejudice or failure of justice.
Emperor v. Benoari Lal Sarma ('45) 32 A.I.R. 1945 P.C. 48 The Governor-General need not state in the text of an Ordinance that an emergency exists; if the Governor-General acts bona fide within statutory powers, courts should not challenge his view that an emergency exists. Applied conclusively to reject the argument that the Ordinance was ultra vires on the ground that the Governor-General had not separately proclaimed an emergency or described it in the Ordinance's text.
Santosh Das Gupta v. Emperor ('46) 34 A.I.R. 1947 Cal. 179 Authority concerning a notification permitting retail dealers to refuse sale of a spare gramophone part unless a used part was returned—dealt with the lawfulness of refusing to sell in the presence of a regulatory notification. The Court distinguished this Calcutta case from the present facts, holding that it was inapplicable because there was no similar notification or statutory scheme authorizing refusal to sell iron bars to persons who were not bona fide purchasers.

Court's Reasoning and Analysis

The Court proceeded in three parts corresponding to the main issues raised.

1. Procedure — summary trial vs. ordinary procedure: The Court acknowledged the 1944 amendment replacing "may" with "shall" for summary trials under the Ordinance, and noted the applicant's contention that this mandatory prescription made the ordinary warrant procedure illegal and incurable by Section 537, Criminal P.C. The Court examined earlier Privy Council authorities (Subrahmanya Ayyar, Rahman, and Kotayya) and concluded that those decisions emphasize whether a trial was conducted substantially in the manner prescribed; if it was, then irregularities may be cured by Section 537. The Court found that in the present case the ordinary procedure had been followed but that, crucially, the accused had objected to summary trial and consented to ordinary procedure. The prosecuting inspector moved for summary procedure only after prosecution evidence. On these facts the Court concluded that at worst there was an irregularity curable under Section 537 because there was no demonstration of prejudice or failure of justice. The Court fortified this conclusion by reference to Emperor v. Bishan Sahai, which treats illegality and irregularity as curable under Section 537 so long as no failure of justice occurred.

2. Validity of the Ordinance (ultra vires argument): The Court addressed the contention that the Governor-General should have first proclaimed an emergency or otherwise manifested compliance with the Government of India Act before promulgating the Ordinance. The Court relied on the Privy Council decision in Emperor v. Benoari Lal Sarma, which held that the Governor-General is not required to state the existence or nature of an emergency in the text of an Ordinance and, assuming bona fide exercise of statutory powers, courts should not question the Governor-General's view that an emergency exists. Applying that authority, the Court rejected the ultra vires challenge.

3. Bona fides of the purchasers (conduct of Deputy Magistrates): The Court considered the argument that because the two Deputy Magistrates were not bona fide purchasers, the applicant could lawfully refuse to sell. The applicant relied on Santosh Das Gupta v. Emperor. The Court held that Santosh Das Gupta was factually distinguishable (it concerned a specific notification authorizing refusal under particular conditions) and that the Hoarding and Profiteering Prevention Ordinance does not confine sale to bona fide purchasers. The Ordinance requires that a shopkeeper must truthfully state whether an article is available; if it is available and the shopkeeper refuses to sell, that refusal is an offence under the Ordinance. On that basis the Court rejected the bona fide purchaser defence.

Taking these analyses together, and finding no shown prejudice or failure of justice arising from the procedural irregularity, the Court concluded that the irregularity was curable and that the substantive conviction and ancillary orders needed no interference.

Holding and Implications

Holding: The Court DISMISSED the revision application.

Implications:

  • The conviction of Munshi Lal under the Hoarding and Profiteering Prevention Ordinance stands and the revision is dismissed; the appellate modification (reduction of fine from Rs. 1,000 to Rs. 750) was already made at the Sessions Judge level and the High Court did not disturb the conviction.
  • The Court upheld the forfeiture order of the iron bars that had been recovered from the applicant's godown, observing that such a forfeiture was not unduly harsh in the circumstances and that black marketing must be checked.
  • The decision applies the established principle that procedural irregularities in criminal trials may be cured by Section 537, Criminal P.C., where the trial has been conducted substantially in accordance with the prescribed mode and no prejudice or failure of justice is shown. The Court did not purport to lay down a new precedent; it relied upon and applied existing authorities.

This summary is confined strictly to the content and reasoning contained in the provided opinion and does not add or infer facts or holdings beyond the text of that opinion.

    Munshi Lal v. Emperor

    1. This application in revision has been filed by Munshi Lal who was convicted of an offence under Section 13 read with Sections 9(2)(a) and 17 of the Hoarding and Profiteering Prevention Ordinance, 35 of 1943. The learned Magistrate who convicted him passed a sentence of fine of Rs. 1000. In appeal the learned Sessions Judge upheld the conviction but reduced the sentence of fine from Rs. 1000 to Rs. 750 only. With this modification he dismissed the appeal. This application came up before a Single Judge of this Court who passed the following order:

    The sole question in this application is whether the Hoarding and Profiteering Prevention Ordinance of 1943 is ultra vires the Governor-General, let this application be laid before a Bench.

    2. In this Court, however, the arguments were not confined only to the point which was pressed before the learned Single Judge but certain other points were also raised to which we shall presently refer.

    3. The facts of this case are simple. On 25th March 1945, two Deputy Magistrates Messrs. C.B.L. Dube and Jagram Singh, who were stationed at Aligarh, went to certain shops in that city with a view to checking black marketing. They gave themselves out as purchasers of articles of necessity. Their real purpose, however, was, as mentioned above, to discover whether the shop-keepers were indulging in black marketing. They arrived at the firm of Piarey Lal Har Ballabh Das, Iron and Steel Merchants. At that time the applicant Munshi Lal, who happens to be one of the proprietors of the firm, was present and was himself conducting the sale. The two Magistrates demanded iron bars (sarias) from Munshi Lal who refused to sell the same to them. He said he did not have sarias in the stock either at his shop or in his go-down, but offered to supply the bars after the purchasers registered their names and addresses with him.

    4. Under the Ordinance every Magistrate of the 1st class was not authorised to search the premises of the shop-keepers. Therefore these two Magistrates went to the District Supply Officer, Mr. Bhagwan Sarup who along with Siddic Husain, head constable, and a Hoarding and Profiteering Inspector along with the two Magistrates went to the hop at about 6 or 7 in the evening. From the godown of the applicant they were able to recover 57 bars. Upon these facts the District Magistrate sanctioned the prosecution of the applicant.

    5. The defence set up by the applicant was that he had not refused to sell the bars but had asked the Magistrates for their names and addresses and that the bars that had been recovered from his go down were really meant for the construction of culverts on the cement road.

    6. The procedure adopted for the trial of this case was that o£ a warrant case although under the amendment of the Ordinance it should have been a summary trial unless otherwise authorised by the District Magistrate. The case for the prosecution was accepted by the learned Magistrate and he convicted the applicant and, as has been mentioned above, the conviction was upheld in appeal.

    7. The first point that has been taken in this Court is that the procedure followed in the trial should have been summary and not the usual procedure prescribed in the Criminal Procedure Code. The Ordinance of 1943 had the following provision before the amendment of 1944:

    Notwithstanding anything contained in Section 260 in Chap. 22, Criminal P.C. (5 of 1898), a Magistrate empowered to act under that section may try any offence punishable under this Ordinance in a summary way under the provisions of that chapter, unless the District Magistrate directs that the case should not be so tried.

    8. By Ordinance 53 of 1944 an amendment was made to this section and instead of the word "may" the word "shall" was substituted for trial of offences in a summary manner. Mr. Misri Lal Chaturvedi who appears for the applicant has emphasized the fact that inasmuch as the amendment of 1944 left no option to a Magistrate but to try a case summarily and inasmuch as the learned Magistrate in this case had not adopted that procedure, it was an illegality which could not be cared by any of the provisions of the Criminal Procedure Code, particularly Section 537. Thus, it was not necessary, in view of the mandatory nature of the provisions of the amending Ordinance, to examine the question whether or not there had been any prejudice to the applicant by the non-observance of the provisions of that Ordinance.

    9. Our attention was drawn to three judgments of their Lordships of the Privy Council, namely, Subrahmanya Ayyar v. Emperor ('02) 25 Mad. 61, Rahman v. Emperor 14 A.I.R. 1927 P.C. 44 and Kotayya v. King-Emperor 34 A.I.R. 1947 P.C. 67. Reliance was placed on the observations of their Lordships of the Privy Council in Subrahmanya Ayyar v. Emperor ('02) 25 Mad. 61 wherein it was laid down that the disregard of an express provision of law as to the mode of trial was not a mere irregularity such as could be remedied by Section 537, Criminal P.C., such a phrase as "irregularity" was not appropriate to the illegality in the trial of an accused person by a procedure which was definitely barred by the terms of the statute. This view was expressed after a consideration of the object behind the terms of S.234, Criminal P.C. This well known case has been considered on numerous occasioned by the Courts in this country as also, by their Lordships of the Privy Council, themselves.

    10. In Rahman v. Emperor 14 A.I.R. 1927 P.C. 44 their Lordships after considering the terms of Sections 35 and 537, Criminal P.C., and the authorities cited before them summed up the legal position to the effect that an omission on an irregularity unaccompanied by any probable suggestion of any failure of justice having been thereby occasioned, is not enough to warrant the quashing of a conviction which may be supported by the curative provisions of Sections 635 and 537. In Kotayya v. King-Emperor 34 A.I.R. 1947 P.C. 67 their Lordships expressed themselves on this subject in the following terms:

    When a trial is conducted in a manner different from that prescribed by the Code as in a Subrahmanya Ayyar v. Emperor ('02) 25 Mad. 61 the trial is bad, and no question of curing an irregularity arises; but if the trial is conducted substantially in the manner prescribed by the Code, but some irregularity occurs In the course of such conduct, the irregularity can be cured under Section 537, and nonetheless BO because the irregularity involves, as must nearly always he the case, a breach of one or more of the very comprehensive provisions of the Code. The distinction drawn in many of the cases in India between an illegality and an irregularity is one of degree rather than of kind This view finds support in the decision of their Lordships' Board in 5 Rang. 532 where failure to comply with Section 360, Criminal P.C., was held to be cured by Ss.535 and 537. The present case falls under Section 537, and their Lordships hold the trial valid notwithstanding the breach of Section 162.

    11. It would thus appear that their Lordships lay emphasis on the fact that if the trial is con-ducted substantially in the manner prescribed by the Code then the irregularity is curable and they have made it clear by pointing out that the distinction between illegality and irregularity is one of degree rather than of kind.

    12. In the circumstances of the present case it is clear that the irregularity, if any, was curable by Section 537, Criminal P.C. The trial was undoubtedly not a summary one. The ordinary procedure was adopted, but the circumstances in which the ordinary procedure was continued is worthy of notice. After the prosecution evidence had been given the Prosecuting Inspector made an application in the Court of the Magistrate praying that the procedure adopted in the case be summary as laid down by the amendment of 1944 to Ordinance 35 of 1943. This application was resisted on behalf of the applicant and his submission was that it would be unnecessary harassment for him to have the case tried de novo according to the procedure prescribed for the trial of summary cases. It is because of that apparently that the sanction of the District Magistrate was not obtained. The learned Magistrate who was trying the applicant in the course of the order made the following observations:

    As much of the proceedings have finished and the accused has Consented to the trial of the case according, to the ordinary procedure and objects to the trial of the case by summary procedure and the trial of the case under the ordinary procedure would neither prejudice the accused nor the prosecution and the case would now be finished, the trial of the case would continue under the t ordinary and the regular procedure.

    13. We are satisfied that at worst this is at case of irregularity and that the irregularity is curable by the provisions of 537, Criminal P.C. We are fortified in the view that we take by a decision of this Court in Emperor v. Bishan Sahai 24 A.I.R. 1937 All. 714, where it was laid down that even though there was a violation of statutory provision against a particular mode of trial, and the trial was illegal for misjoinder, it could be held to be vitiated only if it was found that the accused were prejudiced in their defence or there had been other-wise a failure of justice. For the purpose of Section 537, Criminal P.C., there is no distinction between an illegality and an irregularity; both are curable under that section, the sole criterion being whether the defect had or had not occasioned a failure of justice.

    14. The next point that was urged before us is that the Hoarding and Profiteering Provention Ordinance was ultra vires the Governor-General. The argument was advanced that it was necessary for the Governor-General first to proclaim that an emergency had arisen for the promulgation of an Ordinance. The Governor-General should then have proceeded to promulgate the Ordinance and the mere fact that mention was made of the emergency in the Ordinance itself was insufficient and did not comply with-the provisions of the Government of India Act. The answer to this argument is conclusive and is to be found in Emperor v. Benoari Lal Sarma ('45) 32 A.I.R. 1945 P.C. 48 wherein their Lordships of the Privy Council observed as follows:

    ....the paragraph does not require the Governor-General to state that there is an emergency, or what the emergency is, either in the text of the Ordinance: or at all, and assuming that he acts bona fide and in accordance with his statutory powers, it cannot rest with the Courts to challenge his view that the emergency exists.

    15. The third and the last point taken was that the two Magistrates who went to purchase the iron bars were not bona fide purchasers, and as such, the applicant was not bound to supply the goods to them. Reliance was placed on Santosh Das Gupta v. Emperor ('46) 34 A.I.R. 1947 Cal. 179. That is a Calcutta case where there was a Notification by the Controller General of Civil Supplies authorizing retail dealers to refuse to sell a spare part of a gramophone unless the intending purchaser returned a used part in its place. The intending purchaser had not brought the spare part of the gramophone and the dealer refused to sell the new part to him. That case is entirely different from the case before us. There is no order calling upon the dealers of iron bars to refuse to sell to unauthorized persons. The Hoarding and Profiteering Prevention Ordinance does not contemplate the selling of goods only to bona fide purchasers. Any one who goes to a shop and asks for a certain thing to be supplied to him must receive the proper answer, i.e., whether or not that article is available in the shop for sale. If the article is available and the shop-keeper refuses to sell, he would clearly be offending against the Ordinance aforesaid.

    16. Accordingly we dismiss this revision. It appears that the learned Magistrate had ordered the forfeiture of the iron bars that were re-covered from the godown of the applicant. Mr. Chaturvedi contended that that was a hard order considering that a substantial fine had been imposed. In our judgment the order was not hard especially because we consider that black marketing must be put down and sympathy with this class of people would be entirely misplaced.

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    Munshi Lal v. Emperor
    (Sep 23, 1947)