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1975 DIGILAW 11 (KAR)

APPAYYA SHANBHOGUE AND CO v. SECTY, AGRI PRODUCE MARKET COMMITTEE, MANGALORE

1975-01-22

K.J.SHETTY

body1975
( 1 ) IN these petitions under Art. 226, the question involved related to the regulated marketing of thq notified agricultural produce under the Karnataka agricultural Produce Marketing (Regulation) Act, 1966 (hereinafter referred to as the Act ). ( 2 ) BRIEFLY stated, the facts are these: The petitioners are dealers in s. Kanara Dist trading in paddy or rice, cashewnuts or ginger, pepper or jaggary, or chillies. Under S. 4 of the Madras Commercial Crops Markets act 1933, the area comprised within the limits of the Dist of S. Kanara had been declared as a 'notified area'. After tha repeal of the Madras Commercial crops Markets Act 1933, the said notified area has been held to be the market area under the Act. Thereafter, the Chief Marketing Officer by Notification d/17th Dec, 1968 declared that the Municipal limits of the city of Mangalore shall be the 'market' for the said market area and certain locality described with boundaries therein shall be the 'market yard' for the regulated marketing of the notified agricultural produce. Coconuts and its by-products, and arecanuts were the then notified agricultural produce. After the Act came into force the State Govt proposed to regulate the marketing of additional agricultural produce. The proposal to that effect was notified by the State Govt by a Notification d/. 17th April, 1972 inviting objections from tha public for marketing paddy, rice, cashewnut, ginger, pepper, jaggery, chillies, bananas, sweet potatoes, mango and livestock in the said area. After considering the objections received from the public, the Govt issued a Notification d/18th June, 1973 in exercise of the powers conferred by S. 5 of tha Act declaring that with effect from first july, 1973 the marketing of paddy, rice, cashewnut, ginger, pepper, jaggery, chillies, bananas, swest-potatoes, mangoes and livestock, shall be regulated in addition to the agricultural produce already regulated in the said are when the Agricultural Produce Market Committee, Mangalore sought to demand licence fee and collect market fee from the petitioners, on the sale of the said agricultural produce, the petitioners moved this Court with applications under Art. 226, challenging the validity of the demand made by the Market Committee. Their only contention is that the Chief Marketing Officer has not yet issued a Notification under S. 6 (2) (b) of the Act declaring a specified place in the market to be a market yard for the regulated marketing of the additional notified agricultural produce and without such Notification, the Market committee has no jurisdiction to demand licence fee and market fee. ( 3 ) THE question is whether it is imperative to issue a Notification under S. 6 (2) (b) of the Act, for the regulated marketing of the additional notified agricultural produce, where there is already a market yard. Tha following provisions of the Act have a material bearing on the question. S. 2 (18) defines 'market' to mean any notified area declared or deemed to ba declared to be a market under sub-sec (2) of S. 6. S. 2 (19) defines 'market area' to mean any area declared to be a market area under s. 4. S. 2 (23) defines 'market yard' to mean a specified place declared or deemed to be declared to be a market yard under sub-sec (2) of S. 6. S. 2 (28) defines 'notified agricultural produce'. It means, any agricultural produce which the State Govt has by Notification issued under Ss. 4 and 5 declared as an agricultural produce the marketing of which shall be regulated in the market area. Ss. 3 and 4 provide for issuing Notifications by the State Govt declaring its intention regulating the marketing of such agricultural produce, in such area, as may be specified in the Notification. Ss. 5 and 6 are more important for our purpose. S. 5 provides :"5. Alteration of market area and of items of regulated agricultural produce.-Subject to the procedure specified in Ss. 3 and 4, the state Govt may, at any time by Notification, exclude from any market area any area or include therein an additional area, or may declare that the regulation of the marketing of any agricultural produce in any market area shall cease, or that the marketing of any agricultural produce (hitherto not regulated) shall be regulated in such market area. "section 6 so far as it is relevant provides :" 6. "section 6 so far as it is relevant provides :" 6. Markets, market yards, market sub-yards, sub-markets and sub-market yards.- (1) (a) For every market area,- (i) there shall be a market, and (ii) there may be, one or more sub-markets; (b) for every market,- (i) there shall be a market yard, and (ii) there may be one or more market sub-yards; (c) for every sub-market there shall be a sub-market yard. (2) (a) The Chief Marketing Officer shall, as soon as possible aftsr the issue of a Notification under S. 4, by a Notification, declare any specified area in the market area to be a market. He may also by the same Notification or by any subsequent Notification declare any other specified area in the market area to be a sub-market. (b) The Chief Marketing Officer shall by a Notification under Cl (a) also declare a specified place in the market to be a market yard for the regulated marketing of the notified agricultural produce specified in the Notification. He may also by the same Notification or Notifications declare any other specified place or places as the case may be in the market to be a market sub-yard or sub-yards for the, regulated marketing of the notified agricultural produce specified in the notification. " ( 4 ) IT is seen that the power under S. 5 could be exercised for two purposes. In the exercise of that power, the State Govt may by Notification alter the area of the existing market. It may also issue Notification stopping the regulation of the marketing of any agricultural produce or directing that the marketing of any agricultural produce hitherto not regulated, shall be regulated in such market area. In the exercise of that power, the State Govt has issued the Notification d/12th June 1973, declaring that with effect from first July, 1973 the marketing of paddy, rice cashewnut, ginger, pepper etc, shall be regulated in addition to the agricultural produce already regulated in the said area, the ' said area' to mean, the area situated within the limits of the Dist of S. Kanara, i. e. , the market area of the said District. ( 5 ) THUS far it is all right. The next question is whether thei said notification by itself was sufficient for the regulated marketing of the notified agricultural produce in the existing market and market yard. ( 5 ) THUS far it is all right. The next question is whether thei said notification by itself was sufficient for the regulated marketing of the notified agricultural produce in the existing market and market yard. The rival contentions of the parlies, are both based on S. 6 (2) (b ). Therefore, it is better to have a close look at it. It provides that the Chief Marketing officer shall by a Notification under Cl (a) also declare a specified place in the market to be a market yard for the regulated marketing of the notified agricultural produce specified in the Notification. He may also by the same notification or Notifications declare any other specified place or places as the case may be, in the market to be a market sub-yard or sub-yards for the regulated marketing of the notified agricultural produce specified in the Notification. The contention urged for the respondent is that S. 6 (2), (b) is attracted only when a Notification is issued under Sec. 6 (2) (a), declaring a market and market yard, and in the instant case there is no necessity to issue such Notification since there is already an existing market yard for the Dist of S. Kanara. It is also urged that the Market Committee would be competent to regulate the marketing of the additional notified agricultural produce in the existing market yard. ( 6 ) PRIMA facie, the opening words of S. 6 (2) (b) support the above contention. But in substance, it runs counter to the scope of the section. Ss. 4, 5 and 6 form part of the scheme. The scheme appears to be this: For every market area there shall be a market and for every market there shall be a market yard. Under S. 4, the State Govt has to declare some area to be a market area. Thereafter, under S. 6, it is for the Chief Marketing officer to notify a market and market yard. It is again for the State govt under S. 4 or 5 by Notification tc declare that, thq marketing of any agrciultural produce shall be regulated in a given market area. The State govt has no power to declare that notified agricultural produce shall be regulated in any particular market or market yard. It is for the Chief marketing Officer to do by Notification issued under S. 6 (2) (b ). The State govt has no power to declare that notified agricultural produce shall be regulated in any particular market or market yard. It is for the Chief marketing Officer to do by Notification issued under S. 6 (2) (b ). He, may also by the same Notification or by further Notification declare a market yard or sub-yard, for the same purpose. The Notification under S. 6 (2) (b) may be in addition to or inclusive of the one issued under S. 6 (1) (a ). For, there is no presumption that all agricultural produce notified from time to time would be marketed in the same market yard. There may be different market yard and sub-yard for different agricultural produce. Therefore, even if any additional notified agricultural produce is intended to be marketed in the already existing market yard a Notification as required under S. 6 (2) (b), tc my mind, is absolutely necessary. ( 7 ) IN the result, rules issued in these petitions are made absolute. A writ of mandamus shall issue to the respondents to forbear from demanding licence and market fees from the petitioners in respect of the agricultural produce, notified by the Govt Notification dt. 18th June, 1973 until a Notification is issued under S. 6 (2) (b) of the Act. In the circumstances, I make no order as to costs. --- *** --- .