COLLECTOR OF GANJAM vs RAMESH CHANDER PANDHI

The Supreme Court addressed the interpretation of the second proviso to Section 6-A(1) of the Essential Commodities Act, 1955, clarifying that the fine imposed in lieu of confiscation must not exceed the market price of the essential commodity seized, rather than the market value of the vehicle used for transport. The Court held that the Collector's decision to impose a fine of Rs. 20,000 was improper as it did not adhere to this statutory limit. Consequently, the appeal was allowed, and the order of the Orissa High Court was upheld, directing the Collector to act in accordance with the provisions of the Act.