LAW FOR ALL

A.P. Legal Metrology (Enforcement) Rules, 2011.-directed to apprise the Bullion traders to use only non-automatic weighing machines which are approved by the Government of India- Rule 9 of the Rules referred above reads as under: "Use of Bullion Weights, Carat Weights etc.- (1) No Weight other than a Bullion Weight as specified in the Legal Metrology (General) Rules, 2011 shall be used in any transaction in bullion including precious metals, pearls, ornaments or other articles made of gold or silver or platinum. (2) No weight other than a carat weight shall be used in any transaction in precious stones. (3) Only beam scale of class A or class B category or a non automatic weighing instrument of high accuracy class (class II) or special accuracy class (class I) having verification interval of 1 mg. or less than 1 mg. shall be used in any transaction referred to in sub-rules (1) and (2) (4) In every transaction in bullion, the user of weighing instruments shall mention purity of gold in terms of "karat" in such receipt along with net weight and amount for the net weight of precious metal and precious stones. (5) Legal Metrology Officer may inspect and test any karatage of bullion including precious metals using such method as may be specified, which is sold in any transaction in bullion. For the purpose of testing or inspection the Legal Metrology Officer may be supplied such equipment as may be necessary, by the Government. 13. From the aforesaid Rule, it is clear that no weight other than a Bullion weight as specified in the Legal Metrology (General) Rules, 2011 shall be used in any transaction in Bullion including precious metals, pearls, ornaments or other articles made of gold or silver or platinum. The word "transaction" as defined under Section 2(u) of the Act reads as under: "(i) any contract, whether for sale, purchase, exchange or any other purpose, or (ii) any assessment of royalty, toll, duty or other dues, or (iii)the assessment of any work done, wages due or services rendered;" = A reading of Rule 9 of the aforesaid Rules, coupled with the definition of "transaction" as defined under Section 2(u) of the Act, makes it clear that Bullion weight, as specified in the A.P. Legal Metrology (Enforcement) Rules, 2011, shall be used in any transaction in Bullion including precious metals, pearls, ornaments and other articles made of gold or silver of platinum. Further, the word "transaction" as defined is exhaustive and not inclusive, and it not only restricts sale and purchase, but also covers exchange or any other purpose in Bullion, including precious metals, pearls and ornaments and other articles made of gold, silver or platinum. - petitioner-company is keeping ornaments which are brought by the customers as security for the loans advanced, the business activity of the petitioner-company squarely falls within the meaning of Rule 9 of the said Rules and "transaction" as defined under Section 2(u) of the Act. The said provisions are to be read keeping in mind the objects of the very legislation, which is primarily intended to protect the interests of consumers. Therefore, this Court is of the firm view that the business of the petitioner-company falls within the scope of "transaction" in Bullion and it is governed by the provisions under the Legal Metrology Act, 2009, the Legal Metrology (General) Rules, 2011 and the A.P. Legal Metrology (Enforcement) Rules, 2011. - Consequently, this Court is of the considered opinion that the instructions issued in the impugned Memo are in conformity with the aforesaid Rules and are applicable to the business of the petitioner-company; as such there are no grounds to interfere with the impugned Memo. 16. Writ petition is devoid of merits and is accordingly dismissed. Consequently, WPMP No.45290 of 2012 stands closed. No order as to costs.