Disposal of seized essential commodities requires recorded satisfaction on statutory prerequisites before distribution can be ordered.

The power to dispose of seized essential commodities under Section 6A(2) of the Essential Commodities Act arises only when the authority records satisfaction on two statutory conditions: a prima facie case to proceed under Section 6A and either speedy natural decay or expediency in public interest. That satisfaction must be apparent from the order and record, reflecting application of mind. Orders directing disposal and distribution of seized rice were unsustainable because they did not address the petitioner's explanation or the statutory prerequisites. As the rice had already been distributed, quashing would have had no practical effect, and the proceedings were directed to be completed at the earliest.

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Issues: Whether the orders directing disposal and distribution of the seized rice were sustainable in the absence of satisfaction regarding the existence of a prima facie case under Section 6A of the Essential Commodities Act and the necessity for disposal in public interest; and, if not, what relief should follow when the seized commodity had already been distributed.

Analysis: The power to dispose of a seized essential commodity under Section 6A(2) can be exercised only when the authority is satisfied on two foundational matters: first, that there is a prima facie case to proceed under Section 6A, and secondly, that the commodity is subject to speedy and natural decay or that disposal is otherwise expedient in public interest. This satisfaction must be discernible from the record and the order itself, so that application of mind is evident. As the impugned orders did not refer to the petitioner's explanation and did not show satisfaction on the statutory prerequisites, they were unsustainable. However, since the rice had already been distributed, quashing the orders would serve no practical purpose.

Conclusion: The orders were held unsustainable for non-compliance with the statutory prerequisites under Section 6A, but the petition was disposed of by directing completion of the proceedings under Section 6A at the earliest.

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