Essential Article, Notified Order, Undertaking
An Act to provide, in the interest of the general public, for the control of the production,
supply and distribution of, and trade and commerce in, certain articles.
Preamble.- WHEREAS it is expedient, in the public interest, to provide for the control of
the production, supply and distribution of, and trade and commerce in, certain articles;
BE it enacted in the Thirty-seventh Year of the Republic of India as follows:-
- Short title and commencement .-(1) This Act may be called the Kerala Essential
Articles Control Act, 1986.
(2) It shall be deemed to have come into force on the 11th day of March, 1982.
- Definitions .-In this Act, unless the context otherwise requires,-
(a) “essential article” means any article, not being an essential commodity as defined in
the Essential Commodities Act, 1955 (Central Act 10 of 1955), which may be declared
by the Government by notified order to be an essential article ;
(b) “notified order ” means an order notified in the Gazette ;
(c) “undertaking” means any undertaking by way of any trade or business and includes
the occupation of handling, loading or unloading goods in the course of transport.
- Power to control production, supply distribution, etc., of essential articles .- (1) If the
Government are of opinion that it is necessary or expedient so to do for maintaining or
increasing the supplies of any essential article or for securing their equitable distribution
and availability at fair prices, they may, by notified order, provide for regulating or
prohibiting the production, supply and distribution thereof and trade and commerce
(2) Without prejudice to the generality of the powers conferred by sub-section (1), an
order made thereunder may provide-
(a) for regulating by licences, permits or otherwise the production or manufacture of any
(b) for controlling the price at which any essential article may be bought or sold ;
(c) for regulating by licences, permits, or otherwise the storage, distribution, transport,
disposal, acquisition use or consumption of any essential article ;(d) for prohibiting the withholding from sale of any essential article ordinarily kept for
(e) for requiting any person holding in stock any essential article to sell the whole or a
specified part of the stock to the Government or to an officer or agent of the Government
or to such other person or class of persons and in such circumstances as may be specified
in the order ;
(f) for regulating or prohibiting any class of commercial or financial transactions relating
to any essential article, which, in the opinion of the authority making the order, are, or if
unregulated are likely to be detrimental to the public interest ;
(g) for collecting any information or statistics with a view to regulating or prohibiting any
of the aforesaid matters ;
(h) for requiring persons engaged in the production, supply or distribution of, or trade or
commerce in, any essential article to maintain and produce for inspection such books,
accounts and records relating to their business and to furnish such information relating
thereto as may be specified in the order;
(i) for regulating the processing of any essential article ;
(j) for exercising over the whole or any part of an existing undertaking, such functions of
control and subject to such conditions, as may be specified in the order ;
(k) for any incidental and supplementary matters including in particular the entering and
search of premises, vehicles, vessels and aircraft, the seizure by a person authorised to
make such search of any article in respect of which such person has reason to believe that
a contravention of the order has been, is being or is about to be committed, the grant or
issue of licences, permits or other documents, and the charging of fees therefor.
(3) Where any person sells any essential article in compliance with an order made with
reference to clause (e) of sub-section (2), there shall be paid to him the price therefor, as
(a) where the price can, consistently with the controlled price, if any, fixed under this
section, be agreed upon the agreed price ;
(b) where no such agreement can be reached, the price calculated with reference to the
controlled price, if any ;
(c) where neither clause (a) not clause (b) applies, the price calculated at the market rate
prevailing in the locality at the date of sale.
- Delegation of powers .-The Government may, by notified order direct that the power to
make orders shall, in relation to such matters and subject to such conditions, if any, asmay be specified in the direction, be exercisable also by such officer or authority
subordinate to the Government, as may be specified in the direction.
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