Delhi HC Quashes Summons Issued To H&M Over Alleged Violation Of 2011 Legal Metrology Rules

Recently, the High Court of Delhi, New Delhi bench led by Justice Amit Bansal quashed a summoning order against H&M Pvt. Ltd., situated at Select City Walk Mall, Saket for violating Section 13(3)(b) of the Legal Metrology (Packaged Commodities) Rules, 2011 [“2011 Rules”]. H&M Pvt. Ltd. is a multinational clothing company based in Sweden that focuses on fast-fashion clothing. Upon being inspected, the Legal Metrology Department wrongfully concluded that H&M Pvt. Ltd. had not followed the mandatory labelling requirements. The High Court held that the 2011 Rules are not applicable on ‘loose garments’. Hence, H&M Pvt. Ltd. was absolved of liability. Brief Facts: An inspection was conducted at H&M Pvt. Ltd. (“Petitioner”) retail store situated at Select City walk, District Centre, Saket, by an Inspector from the Legal Metrology Department (“Department”). According to the inspection report, it was noted that the petitioner’s store, the size of a cardigan was not labelled in meters. This led to an allegation that the petitioner's company had committed an offense under Rule 13(3)(b) of the Legal Metrology (Packaged Commodities) Rules, 2011 (“2011 Rules”). Following the inspection, an undated notice was dispatched to the petitioner on January 31st, 2016, asserting a violation of Rule 13(3)(b) of the 2011 Rules. The petitioner was instructed to remit a penalty along with fees amounting to Rs. 2000/-, as stipulated in Section 32 of the Legal Metrology Act, 2009. On February 24th, 2016, the petitioner submitted a representation to the Secretary of Consumer Affairs, seeking clarification that the aforementioned 2011 Rules do not apply to the petitioner's products, which are sold in an open condition. Subsequently, on May 2nd, 2016, the Department filed a complaint, leading to the issuance of summons against the petitioner on the same day. Aggrieved, the petitioner filed a petition in the High Court of Delhi, New Delhi (“High Court”) praying to set aside the aforementioned summoning order. The petitioner contended that the products sold by the petitioner are non ‘pre-packaged’ commodities and therefor, the 2011 rules are not applicable. To corroborate the contention, the petitioner cited an advisory issued by the Ministry of Consumer Affairs, Legal Metrology Division on 31st March 2017, wherein it was stated that loose garments which are sold would not constitute a ‘pre-packaged commodity’ in terms of the Legal Metrology Act, 2009. Observations of the Court: The High Court perused the definition of ‘pre-packaged’ commodity under the Legal Metrology Act, 2009 (“the Act”). A reference was also made to Section 13(3)(b) of the 2011 rules which mandates the statement of measure of a unit in meters. The High Court concluded that even a bare perusal makes it evident that the 2011 Rules are only applicable in respect of ‘pre-packaged’ commodities. Therefore, the mandatory labelling requirement for ‘pre-packaged commodities’ is not applicable to garments sold in loose form. The High Court also relied on the advisory issued by the Ministry of Consumer Affairs, Legal Metrology Division on 31st March 2017, as cited by the petitioner. The aforementioned advisory clearly stated that a loose garment that is sold after the consumer personally examines its style, tries it for fit, and touches it to assess the fabric, is not considered a pre-packaged commodity when delivered to the same consumer. The High Court further held that the items sold by the petitioner's company are in loose form and not packaged, so they don't fit into the 'pre-packaged commodity' category. Hence, it was concluded that the petitioner had not violated Section 13(3)(b) of the 2011 Rules. Consequently, the petition was allowed and the summoning order against the petitioner was quashed. Case: H&M Pvt. Ltd. vs Legal Metrology Department, Govt. of NCT of Delhi Citation: 2023 LiveLaw (Del) 684Advocate for the Petitioner: Mr N. Hariharan Advocate for the Respondent: Mr. Pradeep Gahalot Click Here To Read/Download Order

Delhi HC Quashes Summons Issued To H&M Over Alleged Violation Of 2011 Legal Metrology Rules

Smita Singh

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