# STATE OF UTTAR PRADESH v. RAMAGYA SHARMA VAIDYA

- **Citation:** [1965] 3 S.C.R. 161
- **Court:** Supreme Court of India
- **Decided:** 1965-02-24
- **Case number:** Criminal Appeal No. 60 A of 1963
- **Bench:** K. N. W Anchoo, J. R. Mudholkar, S. M. Sjkri
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/state-of-uttar-pradesh-v-ramagya-sharma-vaidya-3389
- **Pages:** 7

## Headnote

Iron ·and Steel (Control) Order, 1956, ct 7--0btaining permit to
pu1·chase iron goods for specified purpose-Not using it for anu purpose, whether constitwtes contravention cl. 7.
The respondent obtained permits under the Iron and Steel
(Control) Order, 1956 on the representation that he wanted to purchase iron goods for the purpose of bwilding a temple and a dharamshala. '.fhe permits were obtained from .the auth~r.ities of Di~trict
Deoria m 11.P. At the back of the permit a cond1t1on W'as prmted
that "the materials required against the permit will be used only
for the purpose for which it was asked for and has been given". The
respondent was tried for the contravention of cl. 7 of the aforesaid
order on the allegation that he had not used the goods purchased
under the permits for the purpose for which they were issued. The
trial Magistrate found him guilty. In appeal. however, the Sessions
Judge acquitted him on the ground that the possitility of his retaining the iron at some other place was not entirely exclooed. The
High Court in appeal by the State confirmed the acquittal holding
that it had not been proved that the respondent had "used" the iron
which he had obtained on the basis of the permit. The High Court
further held that it was not possible to look into t!ie application in
order to see for what purpose the applicant took the permit and no
condition actually printed at the back of the permit had been broken.
By special leave the State appealed to the Supreme Court.
On behalf of the appellant it was urged: (1) the word "use" in
cl. 7 of the order includes "kept for eventual use for another purpose."
(2) The High Cou.rt erred in holding that the application cannot be
referred to for the purpose of construing the conditions appearing
in the permit.
HELD: The respondent could not be held guilty of a contravention of cl. 7 of the order.
(i) No doubt the legislative intent of the Iron & Steel (Con,trol)
G Order is that this essential commodity should be utilised in accordance
witli the conditions contained in the permit, but no clause in the
Control Order in question evinces a legislative intent that a mere
non-user is also prohibited and made punishable. fl65 Hl
The word 'use' must take its colour from the context in which
it is used. In cl. 7 the expression "use ... in accordance with the conditions contained" suggests something done positively e.g. utilisation
H or disposal. Mere "non-use" is not included in the word
"use".
fl65 Dl
(ii) The High Court was wrong in holding that it is not petrnissible to look at the application. to determine the purpose for which
permit is attained. However in the present case the applications
did not disclose· that the respondent wanted to build a temple or
dharamshala at any particular place. From the mere fact that the
applications were made to the authorities in Deoria District, or the
fact that in the applications ·it was mentioned that the goods were
not available in Deoria District, it did not necessarily follow that the
goods were intendPd to be used in that District. fl66 Hl
162
SUPREME
COURT
REPORTS
[1965) 3 S.C.R.

## Text

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161
STATE OF UTTAR PRADESH
v.
RAMAGYA SHARMA VAIDYA
February 24, 1965
[K. N. W ANCHOO, J. R. MUDHOLKAR AND S. M. SJKRI, JJ.]
Iron ·and Steel (Control) Order, 1956, ct 7--0btaining permit to
pu1·chase iron goods for specified purpose-Not using it for anu purpose, whether constitwtes contravention cl. 7.
The respondent obtained permits under the Iron and Steel
(Control) Order, 1956 on the representation that he wanted to purchase iron goods for the purpose of bwilding a temple and a dharamshala. '.fhe permits were obtained from .the auth~r.ities of Di~trict
Deoria m 11.P. At the back of the permit a cond1t1on W'as prmted
that "the materials required against the permit will be used only
for the purpose for which it was asked for and has been given". The
respondent was tried for the contravention of cl. 7 of the aforesaid
order on the allegation that he had not used the goods purchased
under the permits for the purpose for which they were issued. The
trial Magistrate found him guilty. In appeal. however, the Sessions
Judge acquitted him on the ground that the possitility of his retaining the iron at some other place was not entirely exclooed. The
High Court in appeal by the State confirmed the acquittal holding
that it had not been proved that the respondent had "used" the iron
which he had obtained on the basis of the permit. The High Court
further held that it was not possible to look into t!ie application in
order to see for what purpose the applicant took the permit and no
condition actually printed at the back of the permit had been broken.
By special leave the State appealed to the Supreme Court.
On behalf of the appellant it was urged: (1) the word "use" in
cl. 7 of the order includes "kept for eventual use for another purpose."
(2) The High Cou.rt erred in holding that the application cannot be
referred to for the purpose of construing the conditions appearing
in the permit.
HELD: The respondent could not be held guilty of a contravention of cl. 7 of the order.
(i) No doubt the legislative intent of the Iron & Steel (Con,trol)
G Order is that this essential commodity should be utilised in accordance
witli the conditions contained in the permit, but no clause in the
Control Order in question evinces a legislative intent that a mere
non-user is also prohibited and made punishable. fl65 Hl
The word 'use' must take its colour from the context in which
it is used. In cl. 7 the expression "use ... in accordance with the conditions contained" suggests something done positively e.g. utilisation
H or disposal. Mere "non-use" is not included in the word
"use".
fl65 Dl
(ii) The High Court was wrong in holding that it is not petrnissible to look at the application. to determine the purpose for which
permit is attained. However in the present case the applications
did not disclose· that the respondent wanted to build a temple or
dharamshala at any particular place. From the mere fact that the
applications were made to the authorities in Deoria District, or the
fact that in the applications ·it was mentioned that the goods were
not available in Deoria District, it did not necessarily follow that the
goods were intendPd to be used in that District. fl66 Hl
162
SUPREME
COURT
REPORTS
[1965) 3 S.C.R.
CRIMINAL APPELLATE JURISDICTION: Criminal Appeal No. 60
A
of 1963.
Appeal by special ieave from the judgment and order dated
August 24, 1962 of the Allahabad High Court in Government
· Appeal No. 1379 of 1962.
B. C. Misra and 0. P. Rana, for the appellant.
J. P. Goyal, for the respondent.
The Judgment of the Court was delivered by
Sikri, J. This appeal by special leave is directed against the
judgment of the_ Allahabad High Court dismissing the appeal of
the State against the judgment of the Sessions Judge allowing the
appeal of the respondent and acquitting him.
The respondent obtained permits .under the Iron and Steel
(Control) Order, 1956--hereinafter . referred to as the Control
Order-for about 28 tons of iron, including 6 tons of rods, 15!
tons of joints and 2 tons of G.C. Sheets. He is alleged to have
purchased these articles on the basis of the above permits between
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July 1957 and March 1958. The permits were obtained on three
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·applications made by the respondent.
Only two applications are
in the printed record. The first application is dated May 23, 1957.
and is addressed to the Provincial Iron and Steel Controller, Kanpur, through the District Magistrate, Deoria. In this application the
respondent stated that he was a political sufferer and he was constructing a public temple for which he required five tons of M.S.
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Round and eight tons of Girder. He further stated that the requirements were not available at Deoria and as such the application
should be considered and forwarded to the Controller for consideration and orders. It appears that this application was forwarded, duly recommended, by the District Supply Officer. Deoria,
and ultimately a permit was given to him by the Controller. He
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made another application dated September 7, 1957. Jn this application he again stated that he was a political sufferer and he was
constructing a public temple and dharamshala for which he requireed certain quantities of iron. He further stated that ,the requirements were not available at Deoria and as such the· application
should be forwarded to the Controller. This application was also G
recommended and forwarded and ultimately a permit was given
to him.
On January 2, 1958, the accused made another applica- .
tion (Ex. Ka 9-not available in the printed record) and a permit
was given to him by the District Supply Officer himself. We may
mention that the original permits are not printed in the record,
and, therefore, we have not been able to see for ourselves as to
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what are the exact conditions contained in the permits.
It is the case of the prosecution that the respondent after
obtaining the materials sanctioned to him under the permits did not
construct any temple or dharamshala building at Barhaj Bazar or
at any other place, We may mention that Barhaj Bazar is the
place where he lives and the applications which are in the record
also mention this address.
SfATE V. RAMAGYA SHARMA (Sikri, J.)
163
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Before the Magistrate who tried the case the respondent was
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pat the following question:
"It is alleged that the iron obtained under the permits
mentiond in questions 2. 3 and 4 wus not utilised for the
purpose for which it was taken. What have you to say
in this respect?"
The respondent's reply was:
"No. Whatever iron I got, I used it in the temple situate
in mauza, Tinhari, P. S. Madhuban, district AZamgarh,
which is my place of residence as .well."
Before the Magistrate the accused had admitted to have purchased about 17 tons cf iron. The Magistrate held it proved that
the accused had at!east purchased one ton more from one Mishri
Lal, P.W. 7. Thus, he came to the conclusion that the accused
had purchased at least 18 tons of iron. He further held that on
the evidence it was clear that only 3 / 4 ton of rods had been
utilised in the building comtructed at Tinhari, but as the building
D had been constructed between 1943-52, no portion of the iron
obtained by the accused had been utilised for the purpose for
which it was procured. He further held that the accused had disposed of the iron wrongfully at Kanpur and did not even bring
the same to B~.rhaj Bazar or Tinhar. Accbrdingly he held that
the respondent had contravened the provisions of cl. 7 of the ContE rol Order.
The respondent filed an appeal before the Sessions Judge.
The Sessions Judge held that barring a very ·small quantity of iron,
the remaining quantity that was received by the respondent had
not been util:;ed in the temple or dharamshala at Tinhari. DifferF
ing,fr~ the Magistrate, he held that it was not proved by any
evidence. that the respondent had actually sold the excess quantity
at Kanpur. He then observed that "in the absence of any such
evidence the possibility of the appellant retaining the iron at some
other place is not completely excluded." Then construing cl. 7
of the Control Order, he observed that "in the aforesaid section
G there is no mention that the iron purchased should be utilised at
any particular place or within a particular period. The condition
in the various permits granted to the appellant was simply this
that he should utilise the iron in erecting a temple or dharamshala
in the town of Barhai. It may be noted that the main purpose
was the-construction of a temple and dharamsha/a; the place
H where it was to be constructed does not appear to have much
significance. Further no time-limit is given during which the entire
quantity of iron should be ¥tilised." Accordingly he held that
there had been no contravention of cl. 7 of the Control Order.
The State appealed to the High Court. Srivastava, J., dismissed the appeal holding that there had been no· contravention
of cl. 7 of the Control Order.
According to him, two essentials
are netessary before there can be contravention of cl. 7. "In the
164
SuPREJ4E
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l\El'ORTS
[1965] 3 s.c.n.
first place the iron and steel should be 'used'; secondly it should A
be used otherwise than in accordance with the conditions contained or incorporated in the docwrient which was the authority for the
acquisition." He held that the first condition had not been fulfilled
because it had not been proved that the respondent had used the
iron which he had obtained on the basis of the permit. It appears
that the findings of the learned Sessions ludge, as well as the
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Magistrate, that he had not used or utilised the remaining portions
of the iron and steel at all were not questioned before him. According to him, if the remaining quantity of iron was still unutilised
or . unused, then the respondent could not be said to have done
anything contrary to cl. 7. He further held that the second condition had also not been fulfilled because the' permit itself contained
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only one condition printed on its back. This condition was "that
the materials required against the permit will be used only for the
purpose for which it was asked for and has been given." According to him, it is not permissible to refer to the application made
for the permit because the only document that can be looked at
is the permit. . He was, however, prepared to concede that "it is n
also open to the officer to mention in the permit that it is being
granted for the purpose mentioned in the application. That may
be a short-cut for avoiding the trouble of entering in the permit
the details of the purpose. In that case it may be permissible to
refer to the application." In spite of this concession, he concluded
that "when even that is not done in fact no condition is mentioned
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in the permit at all about the manner in which the iron or steel is
to be utilised it cannot be said that a condition of the permit has
been broken because the assurance given in the application has
not been carried out."
Mr, B. C. M°ISra, learned counsel for the appellant, has urged F
before us that on the facts found by the learned Sessions Judge. cl.
7 of the Control Order has been contravened. He says that the
word "use" in cl.· 7 includes "kept for eventual use for another
purpose." He says that if one stores iron and steel, one uses it
and the word "use" does not imply consumption only. Relying
on Maxwell on Interpretation of Statutes, Eleventh Edition, p. 266,
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he says that we should give a wide construction to the word "use"
in cl. 7.
Clause 5 and the relevant portion of cl. 7 of lli.e Control Order
are as follows:
"5. Disposals.
No person, who acquires iron or steel under clause 4,
or no producer shall dispose of or agree to dispose of or
export. or agree to export from any place to which this
Order extends any iron or steel, except in accordance with
the conditions contained or incorporated in a special or
general written order of the Controller.
H
STATE V. RAMAGYA SHAR)!A (Sikri, J.)
105
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7. Use of Iron and Steel to conform to conditions governing
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acquisition.
A person acquiring iron or steel in accordance with the
provisions of cl. 4 shall not use the iron or steel otherwise
than in accordance with any conditions contained or incorporated in the document which was the authority for
the acquisition ...... "
We are unable to accede to the aoove contentions. There is
no provision in the Control Order requiring that iron or steel
acquired under the Control Order should be utilised within a specie fied time. If it had been the intention to include keeping or storing within the word 'use' there would have been some provision
regarding the period during which it would be permissible to keep
or store the iron, for it is common knowledge that building operations take some considerable time and are sometimes held up for
shortage of material or other reasons. Further the word 'use' must
D take its colour from the context in which it is used. In cl. 7 the
expression "use .. .in accordance with the conditions contained"
suggests something done positively, e.g. utilisation or disposal.
Mere 'non-use', in our opinion, is not included in the word 'use'.
The passage relied on by the learned counsel in Maxwell is as
follows:
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"Wide Sense given to words:
The rule of strict construction, however, whenever
invoked, comes attended with qualifications and other
rules no less important, and it is by the light which each
contributes that the meaning must be determined. Among
them is the rule that the sense of the words is to be adopted which best harmonises with the context and promotes
in the fullest manner the policy and object of the legislature. The paramount object, in construing penal as well
as other statutes, is to ascertain the legislative intent, and
the rule of strict construction is not violated by permitting
the words to have their full meaning, or the more extensive of two meanings, when best effectuating the intention. They are, indeed, frequently taken in the widest
sense, sometimes even in a sense more wide than etymologically belongs or is popularly attached to them, in order
to carry out effectually the legislative intent, or, to use
Sir Edward Coke's words, to suppress the mischief and
advance the remedy."
But this passage does not warrant the giving of a meaning
. to a word apart from the context in which it is used. There is no
doubt that the legislative intent of the Control Order is that this
essential commodity should be utilised in accol'dance with the
conditions contained in the permit, but no clause in this Control
Order evinces a legislative intent that a mere non-user is also prohibited and made punishable.
166
SUPRE.-....IE
COURT
REPORTS
[1965] 3 s.c.R.
The learned counsel referred to London County Council v.
Wood('), but we do net derive any ass;stance from that case. The
head-note brings out the point decided in that case as follows:
"The Highways and Locomotives Act, 1878, provides
by s. 32 that "A country authority may ... make ... by-laws
for granting annual licences to locomotives. u.sed within
their country." And by a by-law made by the London
County Council under that section it was provided that
"No locomotive shall be used on any highway within
the county of London until an annual licence for the use
of the same shall have been obtained from the council
by the owner thereof" : -
.
Held, that a steam-roller which was not at the time
being employed in road-making, but was merely passing
through the county to a destination outside was being
"used within the country" within the meaning of the section and the by-law."
In the context, the word "used" was, with respect, properly construed.
Collins, J ., held that "the object of the Act was evidently.
to protect the highways, and the effect of a steam-roller upon the
highways may be just the same whether it be engaged in mending
lhe roads or not".
In conclusion we hold that it has not been established that
the respondent had used the iron acquired by him in contravention·
of cl. 7 of the Control Order.
The learne::I councel further urges that the High Court erred
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in holding that the application cannot be teferred to for the purF
pose of construing the conditions appeari.ng in the permit, the condition being that "the materials acquired against a permit will be
used only for the purpose for which it was asked for and has been
given." He says that the expression "the purpose for which it
was asked for" refers back to the application, and the expression
"has been given" refers back to the Order. There is some force in
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what he urges.
We are unable to sustain the fin,ding of the High
Court that ·it is not permissible to refer to the application and the
order to find out the purpose for which the iron was obtained.
But even if we look at the applications, which. are in the printed
record, the purpose mentioned is only construction of a temple,
in the application dated May 23, 1957, and temple and dharamH
shala·in the application dated September 7, 1957. These applications do not disclose that the respondent wanted to construct the
temple and dharamshala at any particular place. It is urged that
the sentence which occurs in both the applications, namely that
the requirements are not available at Deoria, shows that the purpose for which the iron and steel was required was for construction
(') [1897] 2 Qll 482.
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STATE t'. RAMAGYA SHARMA (Sikri, J.)
J 67
of a temple and dharamshala in the district of Deoria. This argument is sJught to be reinforced by asserting that a District Magistrate was not empowered to recommend applications for iron requird for works to be constructed outside the District, and therefore it must be held that the purpose was construction of a temple
and dharamshala in the district of Deoria. However, no orders
shJwing the j'lrisdiction of the District Magistrate in respect of this
matter has been shown to us, and we are unable to conclude from
the applications that the purpose was construction of a temple and
dharc.mslzala in the district of Deoria alone.
AccJrdingty we hold that the respondent has not contravened
cl. 7 of the Control Order. The appeal accordingly fails and is
dismissed
Appeal dismissed.