Mandatory supervisory safeguards in compulsory purchase powers must be strictly followed, or the order becomes illegal and unsustainable.

A compulsory purchase order under section 28-AAA of the Karnataka Sales Tax Act was held unsustainable because the mandatory safeguards in rule 52 were not followed. The court treated the power to purchase goods on alleged undervaluation as a drastic power with serious civil consequences, requiring strict compliance with the statutory control and direction of the Joint Commissioner and Commissioner. As the record did not show prior approval, permission, or effective supervision, and post facto approval was insufficient, the purchase orders were quashed and the writ petitions were allowed.

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Issues: Whether the orders for compulsory purchase of goods under section 28-AAA of the Karnataka Sales Tax Act, 1957 were sustainable when the power was exercised without compliance with rule 52 of the Karnataka Sales Tax Rules, 1957.

Analysis: Section 28-AAA confers a drastic power to purchase goods on the basis of undervaluation, and rule 52 makes the exercise of that power subject to the control and direction of the Joint Commissioner and the Commissioner. The record did not show that the officers had obtained the required approval, permission, or supervision before passing the purchase orders; the purported post facto approval was insufficient. In the context of a power with serious civil consequences, safeguards prescribed by the statute and rules had to be strictly observed.

Conclusion: The purchase orders were invalid for non-compliance with rule 52 and were liable to be quashed. The writ petitions were allowed.

Ratio Decidendi: Where a statutory power of compulsory purchase is made subject to control and direction of superior officers, non-observance of that mandatory safeguard renders the exercise of power illegal and unsustainable.

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