KADIDAL S. RAMAPPA GOWDA v. ADDL CHIEF MARKG OFFICER
1976-06-07
K.J.SHETTY
body1976
DigiLaw.ai
( 1 ) THE petitioner is a firm of Merchants and Commission Agents trading within the jurisdiction of the Agricultural Produce Market Committee, shimoga. The Market Committee, by its order dt. 13-8-1973, suspended the petitioner's licence, for a period ot one month, under S. 73 of tne Karnataka agricultural Produce Marketing (Kegulation) Act, 1966 (shortly, called 'the Act' ). The petitioner's appeal against tne said order was dismissed by the Chief Marketing Officer, Bangalore. Hence, this writ petition under Art. 227 of the Constitution. ( 2 ) THE facts leading up to the order of suspending the licence, as revealed from the records, sie tnese Respondent 3, Smbbrah Gowda is a younger brotner of Laxnuyi Gowda. They are agriculturists, having regular transactions with the petitioner in agricultural commodities. In Jauy, 1973, the petitioner paid Rs. 7,401 to Laxman Gowda as advance towards supply ot areca. in the same month, the petitioner received 8 bags ot areta which was credited to the account of Subbiah Gowda. The petitioner sold the said areca tor Rs. 1,684-24 P, which was also credited to the account of Subbiah Gowda,. The amount, however, was not paid to Subbiah gowda when demanded. The petitioner contended that they were instructed by Laxman Gowda not to make payment to Subbian Gowda since there was a dispute between tne brothers as to the division of their family properties. The petitioner also contended that they had opened account in the name of subbiah Gowda at the instructions from Laxman Gowda. ( 3 ) BUBBIAH Gowda, complaining non-payment of the sale proceeds Of areca, approached the Market Committee lor an investigation and renef. The Secretary oi the Market Committee called upon the petitioner to make payment to Subbiah Gowda. Tne petitioner, in their reply, explained the circumstances under which they have withheld the payment; but finally offered to pass on the said amount to the Secretary of the Market committee to make the payment to Subbiah Gowda with the risks attendant thereto. The Secretary, without accepting the offer, brought the matter before the Market Commutes and the Committee, by its Resolution dated 13-8-1973, suspended the trading licence of the petitioner for one month. ( 4 ) THE above action was taken under S. 73 of the Act.
The Secretary, without accepting the offer, brought the matter before the Market Commutes and the Committee, by its Resolution dated 13-8-1973, suspended the trading licence of the petitioner for one month. ( 4 ) THE above action was taken under S. 73 of the Act. The Section, so far as it is relevant, provides :" Power to cancel or suspend licences.- (1) Subject to the provisions of sub-sec (4), a Market Committee may, for reasons to be recor ded in writing, suspend or cancel a licence- (a) * * * (b) if the holder thereof or any servant or any one acting on his behalf with his express or implied permission, commits a breach of any of the terms or conditions of the licence. " ( 5 ) THE licence was issued in Form No. 36 under Rule 76 (4) of the karnataka Agricultural Produce Marketing (Regulation) Rules, 1968. It was issued subject to the conditions laid down in thq Act, Rules, Bye-laws and such other conditions as may be laid down by the Committee. ( 6 ) THE complaint against the petitioner was that they had contravened the provisions of Sec. 78 (2) (b) of the Act. The said sub-section provides :" (2) Every commission agent shaft be liable- (a) * * * (b) to pay the principal, as soon as the goods are sold, the price thereof, irrespective of whether he has or has not received the price from the buyer of such goods. " ( 7 ) PROM, the above provisions, it is seen that it is obligatory for the commission Agent to pay the principal, the sale proceeds, as soon as the goods are sold, irrespective of whether the Commission Agent has received the sale amount or not. The breach of this condition may be a gopd ground for suspending the licence under S. 73 (1) (b) of the Act. ( 8 ) IT seems to me that S. 73 of the Act was intended to 'protect' the interests of the growers or agriculturists. The principle behind the section appears to be that they should get their dues without delay, and should not be unnecessarily driven to litigation to recover the sale proceeds of their agricultural commodities. The Market Committee is charged with a duty to look into these, matters whenever a complaint is brought before it.
The principle behind the section appears to be that they should get their dues without delay, and should not be unnecessarily driven to litigation to recover the sale proceeds of their agricultural commodities. The Market Committee is charged with a duty to look into these, matters whenever a complaint is brought before it. But, while so, examining the complaint, it cannot constitute itself into a Civil court to decide difficult questions of civil, liabilities. The Market Commtittee may examine any dispute, advise the parties to settle their differences and if there is Unimpeachable evidence on the delaying tactics of the commission Agent, it may take appropriate action under S. 73. But, if there is serious dispute between the Commission Agent and the principal, or other claimant, on the question of payment, the Market Committee should not make it a ground to suspend or cancel the trading licence. In such cases, it is better that the parties are left to work out their rights by other means known to law. ( 9 ) IN the instant case, the fact remains that the petitioner did not pay the sale price of areca when demanded by Subbiah Gowda. But, the petitioner gave reasons why they were compelled to delay the payment. The Market Committee, appears to have not considered and rejected that explanation as frivolous or vexatious. It has not observed that the contention raised by the petitioner was ex facie untenable. At any rate, its order is silent over the matter and so also the order of the appellate authority. In the absence of such a finding, the Committee, in my view, was in error in suspending the licence of the petitioner. ( 10 ) IN the result, the rule is made absolute. A writ of certiorari shall go to quash the impugned orders. The matter stands remitted to the, market Committee for reconsideration of the entire matter, in the light of this order, with liberty to the parties to produce all the, materials. In the circumstances of the case, I make no order as to costs. --- *** --- .