In this case, on the day on which the alleged offence was
committed, the offender could have been sentenced to
imprisonment under Section 16 of the PFA and under the FSSA,
he could have been directed to pay the penalty up to Rupees 3
lakhs. The punishment under PFA and the penalty under the
FSSA cannot be imposed on the violator for the same
misbranding because it will amount to double jeopardy, which
is prohibited under Article 20(2) of the Constitution of India.
Thus, when the penal action can be taken under both statutes,
the question is which will prevail. An answer to the said
question has been provided by Section 89 of the FSSA, which
reads thus:
“89. Overriding effect of this Act
over all other food related laws. –
The provisions of this Act shall have
effect notwithstanding anything
inconsistent therewith contained in
any other law for the time being in
force or in any instrument having
effect by virtue of any law other than
this Act.” {Para 17}
18. The effect of Section 89 is that if there is an inconsistency
between the provisions of the PFA and the FSSA, the provisions
of the FSSA will have an overriding effect over the provisions of
the PFA. When it comes to the consequences of misbranding,
the same has been provided under both the enactments, and
there is inconsistency in the enactments as regards the penal
consequences of misbranding. As pointed out earlier, one
provides for imposing only a penalty in terms of payment of
money, and the other provides imprisonment for not less than
six months. In view of the inconsistency, Section 89 of the
FSSA will operate, and provisions of the FSSA will prevail over
the provisions of the PFA to the extent to which the same are
inconsistent. Thus, in a case where after coming into force of
Section 52 of the FSSA, if an act of misbranding is committed
by anyone, which is an offence punishable under Section 16 of
PFA and which attracts penalty under Section 52 of the FSSA,
Section 52 of the FSSA will override the provisions of PFA.
Therefore, in such a situation, in view of the overriding effect
given to the provisions of the FSSA, the violator who indulges
in misbranding cannot be punished under the PFA and he will
be liable to pay penalty under the FSSA in accordance with
Section 52 thereof.
Reportable
IN THE SUPREME COURT OF INDIA
CRIMINAL APPELLATE JURISDICTION
CRIMINAL APPEAL NO. 3864 OF 2023
Manik Hiru Jhangiani Vs State of M.P.
Author: ABHAY S. OKA, J.
Citation: 2023 INSC 1078.
1. Leave granted.
FACTUAL ASPECTS
2. Various provisions of the Food Safety and Standards Act,
2006 (for short, ‘the FSSA’) were brought into force on different
dates. The Prevention of Food Adulteration Act, 1954 (for
short, ‘the PFA’) was repealed with effect from 5th August 2011,
as provided in sub-section (1) of Section 97 of the FSSA.
3. The appellant was, at the relevant time, a Director of M/s.
Bharti Retail Limited, (for short, ‘Bharti’), a company that is
engaged in the business of operating retail stores under the
name of ‘Easy Day’ having its outlets all over the country. A
Food Inspector appointed under the PFA visited a shop owned
by Bharti in Indore and purchased certain biscuit packets from
the shop. The visit was made on 29th November 2010. On the
next day, a panchnama was drawn, and the samples were sent
to the State Food Laboratory, Bhopal, for analysis and testing.
The report of the Public Analyst was received on 4th January
2011. On 4th August 2011, a notification was issued under subsection
(1) of Section 97 of the FSSA notifying 5th August 2011
as the date on which the PFA shall stand repealed. In Section
97, and in particular in sub-section (1), there is a provision that
notwithstanding the repeal of PFA, any penalty, forfeiture, or
punishment incurred in respect of any offences committed
under the PFA shall not be affected by the repeal. Moreover,
there is a sunset clause in the form of sub-section (4) of Section
97 which provides for a sunset period of three years from 5th
August 2011 for taking cognizance of the offences under the
PFA. On 11th August 2011, sanction was granted to the Food
Inspector to prosecute the Directors of Bharti under the
provisions of the PFA. The Food Inspector filed a charge sheet
on 12th August 2011, and on the same day, cognizance of the
offence was taken by the learned Judicial Magistrate, and a
bailable warrant was issued against the appellant. The
appellant filed a petition under Section 482 of the Code of
Criminal Procedure, 1973 (for short, ‘CrPC’) for challenging the
order of cognizance. By the impugned judgment, the High
Court dismissed the petition under Section 482 of CrPC. The
High Court noted that the offence alleged against the appellant
was of misbranding which had taken place prior to the repeal
of the PFA. Hence, within a period of three years from the date
of repeal, the learned Magistrate was empowered to take
cognizance in view of sub-section (4) of Section 97 of FSSA.
Being aggrieved by the said decision of the High Court, the
present appeal has been preferred.
SUBMISSIONS
4. The learned senior counsel appearing for the appellant
made detailed submissions. The learned senior counsel firstly
pointed out that Section 3 of the FSSA, which contains the
definition of ‘misbranded food’ in clause (zf) of sub-section (1)
thereof, was brought into force on 28th May 2008 and Section
52 of the FSSA, which provides for penalty for misbranding was
brought into force with effect from 29th July 2010. Secondly, he
pointed out that even Section 89 of the FSSA, which starts with
a non-obstante clause providing that the FSSA shall have
overriding effect notwithstanding anything inconsistent
contained in any other law for the time being in force, was
notified on 29th July 2010. He submitted that, therefore,
Section 52 of the FSSA, which provides for a penalty for
misbranding, would prevail over the relevant provisions of the
PFA, which make the misbranding an offence punishable with
imprisonment and a fine. He would, therefore, submit that
with effect from 29th July 2010, the FSSA will govern
misbranding and not the PFA.
5. The learned senior counsel also pointed out that the
Prevention of Food Adulteration Rules, 1955 (for short, ‘the PFA
Rules’) continued to remain in force till the repeal of the PFA.
He pointed out that corresponding rules under the FSSA,
namely, the Food Safety and Standards (Packaging and
Labelling) Regulations, 2011 came into force on 5th August
2011. He would, therefore, submit that Rule 32 of PFA dealing
with standards for labelling continued to operate till 5th August
2011. He submitted that only because the Rules corresponding
to Rule 32 of PFA Rules were not notified on the date of
commission of the offence, the appellant could not have been
prosecuted under the PFA for violation of a provision that was
eclipsed by Section 89 of FSSA. His submission is that after
29th July 2010, the regime under the PFA dealing with
misbranding will not apply.
6. He submitted that though Rule 32 of the PFA Rules, the
violation of which has been alleged along with other offences
under the PFA, was in force on the date on which the alleged
violation was committed, in view of Section 89 of FSSA, Rule
32 will have no application. Learned counsel pointed out that
Section 97 of the FSSA was brought into force with effect from
29th July 2010. He submitted that only because the Rules
corresponding to Rule 32 of the PFA Rules were not notified
under the FSSA regime, the respondent could not have
proceeded under the provisions of PFA in the light of Section
89 of the FSSA.
7. He relied upon a chart tendered across the Bar, which
contains a comparison of the provisions regarding misbranding
under both enactments. He pointed out that for violation of the
provisions regarding misbranding, under PFA, the violator
could be punished by imposing imprisonment of up to three
years. However, under the FSSA, there is a provision for a levy
of only a penalty up to Rupees 3 lakhs, as provided in Section
52. He submitted that when two statutes are operating in the
field prescribing a penalty for the same offence and when an
earlier statute contains a more stringent penalty or
punishment, the provision in the earlier statute will stand
repealed by necessary implication. He relied upon Clause (1)
of Article 20 of the Constitution of India. He relied upon
decisions of this Court in T. Barai v. Henry Ah Hoe & Anr.1
and Nemi Chand v. State of Rajasthan2. Lastly, he
submitted that the High Court committed an error by relying
upon the sunset clause under sub-section (4) of Section 97
since the same was not applicable in the facts of the case.
8. Learned counsel for the respondent- State firstly urged
that the acts or omission constituting the alleged offence took
place when the PFA was not repealed though the FSSA was
brought into force. Rule 32 of the PFA was also in force on that
date, the violation of which has been alleged by the respondent.
Learned counsel relied upon sub-section (4) of Section 97 of the
FSSA, which permits cognizance of an offence under the PFA
before the expiry of three years from the date of the
commencement of the FSSA. He would submit that considering
the principles laid down in sub-section (4) of Section 97, the
prosecution for violating the provisions of the PFA Act and the
PFA Rules will certainly be maintainable. He submitted that
1 (1983) 1 SCC 177
2 (2018) 17 SCC 448
after coming into force of the FSSA, all the provisions of PFA
and the PFA Rules continued to apply. Inviting our attention
to Section 52 of the FSSA, he submitted that even the Rules
under the FSSA were not brought into force on the date the
offence was committed. He would, therefore, support the
reasons recorded by the High Court in the impugned order. He
relied upon a decision of this Court in the case of Hindustan
Unilever Limited v. State of Madhya Pradesh3 in support of
his submissions that the criminal proceedings initiated under
the PFA before its repeal and the punishment to be imposed
under the PFA after its repeal have been protected by Section
97 of the FSSA. He would, therefore, submit that the view
taken by the High Court calls for no interference.
CONSIDERATION OF SUBMISSIONS
9. We have given careful consideration to the submissions.
The offence alleged against the appellant is under Section
2(ix)(k), read with Rule 32 of the PFA, which was made
punishable under Section 16(1)(a). In short, the allegation was
that the label on the food product of the appellant was not in
accordance with the requirements of the PFA and the Rules
framed thereunder. Therefore, the definition of ‘misbranded’
under Section 2 (ix) will apply. Clause (ix) of Section 2 of PFA
reads thus:
“(ix) “misbranded”—an article of food
shall be deemed to be misbranded—
(a) if it is an imitation of, or is a
substitute for, or resembles in a
3 (2020) 10 SCC 751
manner likely to deceive, another
article of food under the name of
which it is sold, and is not plainly and
conspicuously labelled so as to
indicate its true character;
(b) if it is falsely stated to be the
product of any place or country;
(c) if it is sold by a name which
belongs to another article of food;
(d) if it is so coloured, flavoured or
coated, powdered or polished that the
fact that the article is damaged is
concealed or if the articles is made to
appear better or of greater value than
it really is;
(e) if false claims are made for it upon
the label or otherwise;
(f) if, when sold in packages which
have been sealed or prepared by or at
the instance of the manufacturer or
producer and which bear his name
and address, the contents of each
package are not conspicuously and
correctly stated on the outside
thereof within the limits of variability
prescribed under this Act;
(g) if the package containing it, or the
label on the package bears any
statement, design or device regarding
the ingredients or the substances
contained therein, which is false or
misleading in any material
particular; or if the package is
otherwise deceptive with respect to
its contents;
(h) if the package containing it or the
label on the package bears the name
of a fictitious individual or company
as the manufacturer or producer of
the article;
(i) if it purports to be, or is
represented as being, for special
dietary uses, unless its label bears
such information as may be
prescribed concerning its vitamin,
mineral, or other dietary properties in
order sufficiently to inform its
purchaser as to its value for such
uses;
(j) if it contains any artificial
flavouring, artificial colouring or
chemical preservative, without a
declaratory label stating that fact, or
in contravention of the requirements
of this Act or rules made thereunder;
(k) if it is not labelled in accordance
with the requirements of this Act or
rules made thereunder;”
10. The corresponding provision under the FSSA is clause
(zf) of Section 3 which reads thus:
“(zf) “misbranded food” means an article of
food–
(A) if it is purported, or is represented to
be, or is being–
(i) offered or promoted for sale with false,
misleading or deceptive claims either;
(a) upon the label of the package,
or
(b) through advertisement, or
(ii) sold by a name which belongs to
another article of food; or
(iii) offered or promoted for sale under
the name of a fictitious individual or
company as the manufacturer or
producer of the article as borne on the
package or containing the article or the
label on such package; or
(B) if the article is sold in packages which
have been sealed or prepared by or at the
instance of the manufacturer or
producer bearing his name and address
but–
(i) the article is an imitation of, or is a
substitute for, or resembles in a
manner likely to deceive, another
article of food under the name of which
it is sold, and is not plainly and
conspicuously labelled so as to
indicate its true character; or
(ii) the package containing the article
or the label on the package bears any
statement, design or device regarding
the ingredients or the substances
contained therein, which is false or
misleading in any material particular,
or if the package is otherwise deceptive
with respect to its contents; or (iii) the
article is offered for sale as the product
of any place or country which is false;
or
(C) if the article contained in the package–
(i) contains any artificial flavouring,
colouring or chemical preservative and
the package is without a declaratory
label stating that fact or is not labelled
in accordance with the requirements
of this Act or regulations made
thereunder or is in contravention
thereof; or
(ii) is offered for sale for special dietary
uses, unless its label bears such
information as may be specified by
regulation, concerning its vitamins,
minerals or other dietary properties in
order sufficiently to inform its
purchaser as to its value for such use;
or
(iii) is not conspicuously or correctly
stated on the outside thereof within
the limits of variability laid down
under this Act.”
Sub-clause (A) (i) deals with food being offered or promoted for
sale with false, misleading or deceptive claims upon the
package's label.
11. Under Section 16 of PFA, penalties have been prescribed.
Under clause 1(i) of sub-section (1) of Section 16, misbranding
within the meaning of Clause (ix) of Section 2 is an offence
punishable with imprisonment for a term which may not be less
than six months, but it may extend to three years and with a
fine of the minimum amount of Rupees one thousand. The
procedure for taking cognizance is prescribed by Section 20.
12. As against this, Section 52 of FSSA provides for penalties
for misbranded food. FSSA does not prescribe any punishment
of imprisonment for misbranding, but the power under Section
52 is to impose a penalty, which may extend to Rupees 3 lakhs.
13. Thus, under the provisions of the PFA, for misbranding,
a person can be sentenced to imprisonment of a minimum six
months with a fine of Rupees one thousand and more.
However, for a similar violation under the FSSA, there is no
penal provision in the sense that there is no provision for
sentencing the violator to undergo imprisonment and to pay a
fine. Under the FSSA, only a penalty of up to Rupees 3 lakhs
can be imposed.
14. We must note here that Sections 4,5,6,7,8,9,10,87,88,91
and 101 were brought into force with effect from 15th October
2007. Section 3 of the FSSA which defines ‘misbranded food’
came into force on 28th May 2008. As noted earlier, Section 97
which provides for repeal of the PFA was brought into force on
5th August 2011. Thus, the penal provisions of the PFA were in
force till 5th August 2011. In this case, the alleged offence was
committed on 29th November 2010. Thus, on that day, Section
52 of FSSA was in force as also the provisions of the PFA and
the PFA Rules.
15. At this stage, we may refer to sub-section (4) of Section 97
of FSSA, a sunset clause. Sub-section (4) of Section 97 reads
thus:
“(4) Notwithstanding anything contained
in any other law for the time being in
force, no court shall take cognizance of
an offence under the repealed Act or
Orders after the expiry of a period of
three years from the date of the
commencement of this Act.”
16. Sub-section (4) provides that notwithstanding the repeal
of the PFA, cognizance of the offence committed under the PFA
can be taken within three years from the date of
commencement of the FSSA. The implication of sub-section (4)
of Section 97 is that if an offence is committed under the PFA
when the PFA was in force, cognizance of the crime can be taken
only within three years from the date of commencement of the
FSSA.
17. In this case, on the day on which the alleged offence was
committed, the offender could have been sentenced to
imprisonment under Section 16 of the PFA and under the FSSA,
he could have been directed to pay the penalty up to Rupees 3
lakhs. The punishment under PFA and the penalty under the
FSSA cannot be imposed on the violator for the same
misbranding because it will amount to double jeopardy, which
is prohibited under Article 20(2) of the Constitution of India.
Thus, when the penal action can be taken under both statutes,
the question is which will prevail. An answer to the said
question has been provided by Section 89 of the FSSA, which
reads thus:
“89. Overriding effect of this Act
over all other food related laws. –
The provisions of this Act shall have
effect notwithstanding anything
inconsistent therewith contained in
any other law for the time being in
force or in any instrument having
effect by virtue of any law other than
this Act.”
18. The effect of Section 89 is that if there is an inconsistency
between the provisions of the PFA and the FSSA, the provisions
of the FSSA will have an overriding effect over the provisions of
the PFA. When it comes to the consequences of misbranding,
the same has been provided under both the enactments, and
there is inconsistency in the enactments as regards the penal
consequences of misbranding. As pointed out earlier, one
provides for imposing only a penalty in terms of payment of
money, and the other provides imprisonment for not less than
six months. In view of the inconsistency, Section 89 of the
FSSA will operate, and provisions of the FSSA will prevail over
the provisions of the PFA to the extent to which the same are
inconsistent. Thus, in a case where after coming into force of
Section 52 of the FSSA, if an act of misbranding is committed
by anyone, which is an offence punishable under Section 16 of
PFA and which attracts penalty under Section 52 of the FSSA,
Section 52 of the FSSA will override the provisions of PFA.
Therefore, in such a situation, in view of the overriding effect
given to the provisions of the FSSA, the violator who indulges
in misbranding cannot be punished under the PFA and he will
be liable to pay penalty under the FSSA in accordance with
Section 52 thereof.
19. There are other arguments made by the learned senior
counsel appearing for the appellant. But we need not deal with
the same as the appellant must succeed on the abovementioned
grounds.
20. Reliance was placed on a decision of the Bench of three
Hon’ble Judges of this Court in the case of Hindustan Unilever
Limited3. In this case, an offence punishable under the PFA
was committed in February 1989. The Trial Court passed the
order of conviction of the accused on 16th June 2015. Relying
upon sub-clause (iii) of clause (1) of Section 97 of the FSSA, this
Court held that the repeal of the PFA will not affect any penalty,
forfeiture or punishment incurred in respect of any offences
committed under the PFA before its repeal. Thus, when the
offence was committed, the provisions of the FSSA were not on
the statute book. Therefore, the issue of conflict between the
penal provisions under the PFA and the FSSA did not arise
before this Court. That is the reason why this Court had not
adverted to Section 89 of the FSSA, which deals with a situation
where there is a conflict between the provisions of the PFA and
the FSSA. As noted earlier, we are dealing with a case where
the alleged act of misbranding was committed when the
relevant provisions of the FSSA, and in particular, Section 52
thereof, were already brought into force. Therefore, we are
dealing with a situation where the act of misbranding will
attract penal provisions both under the PFA and the FSSA.
Thus, Section 89 of the FSSA comes into the picture which did
not apply to the fact situation in the case of Hindustan
Unilever Limited3.
21. In paragraph 19 of the impugned judgment, the High
Court has committed an error by holding that there is no
inconsistency between the penal provisions relating to
misbranding under the PFA and FSSA. Hence, in our view, the
High Court ought to have quashed the proceedings of the
prosecution of the appellant under Section 16 of the PFA.
Accordingly, the impugned judgment and order dated 13th May
2016 is hereby set aside. The proceedings of Criminal Case No.
15830 of 2011 pending before the Special Judicial Magistrate,
Indore, are hereby quashed. However, this judgment will not
prevent the authorities under the FSSA from taking recourse to
the provisions of Section 52 thereof in accordance with the law.
22. The appeal is allowed on the above terms.
….…………………….J.
(Abhay S. Oka)
…..…………………...J.
(Sanjay Karol)
New Delhi;
December 14, 2023.
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