"Found Under Suspicious Circumstances, Police Authorised To Seize": Delhi High Court Denies Relief To Matrix Cellular Limited

Prima facie observing that the acts of Matrix Cellular Limited was in violation of Office Memorandum issued by Government of India, the Delhi High Court on Thursday denied relief in its plea seeking immediate release of oxygen Concentrators seized by Delhi Police after observing that the said items were "found under suspicious circumstances" and that the police was authorised in seizing the same.

A single judge bench comprising of Justice Yogesh Khanna observed thus:

"Thus, a conjoint reading of the FIR, invoices and receipts produced by the petitioner along with the fact that the seized oxygen concentrators were allegedly sold at a huge profit margins in contravention of laws, rules and executive orders pointed out above. The facts show the petitioner was engaged in selling untested oxygen concentrators to people desparate for these devices and at an exorbitant prices through false representations, especially, when the State and the whole country saw a unprecedented surge of covid-19 infections and sever lack of oxygen cylinders and/or concentrators."

However, the Court, while observing that the relief sought in the petition cannot be granted, clarified that  the concentrators so seized "be put an identification mark(s) and its coloured photographs be kept for future reference, by the respondent."

Observing that the seized items were found under suspicious circumstances where individuals were in alleged violation of the Covid-19 lockdown measures imposed at that time, the Court observed that the police was "authorised to seize the oxygen concentrators lying at the spot."

"The registration of the FIR was not mandatory for search and seizure under Section 102 CrPC." The Court held.

"Thus, to say that respondent acted arbitrarily, or their action has no legal backing is all wrong. The police official when got information about black marketing and hoarding of medical devices (concentrator) and of violation of the law / orders (supra) had acted and seized the material. Now, restricting the orders of the Hon'ble Division Bench in Venkateshwar Hospital (supra) and Bram Health Care Private Limited (supra) only to cylinders and not concentrators would be giving a too narrow interpretation to such order(s)." The Court held.

A plea was moved by Matrix Cellular Services Limited seeking immediate release of the stock seized from the alleged illegal seizure by Delhi Police. 

The plea moved through Advocate Samudra Sarangi stated that on account of the unfortunate covid 19 circumstances prevailing in the country, Matrix Cellular had been engaged in the procurement and distribution of COVID – 19 related products including hand sanitizers, N95 masks, thermal scanners, etc and in view of the acute shortage of oxygen being faced in the country,started importing, acquiring and distributing oxygen concentrators to its customers through an online application 'XFactor'.

In view of this, the petitioner company alleged that it had designated a restaurant namely 'Nege Ju' as a collection point for the oxygen concentrators and related equipment known as the "Collection Centre".

The plea stated that there was no basis for the "arbitrary, irresponsible, and highly capricious conduct" on part of the NCT of Delhi in seizing the essential commodities such as the oxygen concentrators and other allied products when the people in Delhi are in dire need of the same.

Analysing the facts of the case, the Court observed thus:

"Prima facie the act of the petitioner is in violation of an Office Memorandum, Ministry of Chemicals and Fertilizers, Government of India, of dated 29.06.2020 (supra) which had directed the petitioners and others like him, selling oxygen concentrators, to not increase prices of oxygen concentrators by more than 10% of the maximum retail price in a year of the Drugs Pricing Control Order, 2013."

Title: MATRIX CELLULAR (INTERNATIONAL) SERVICES LIMITED v. STATE (NCT OF DELHI)

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