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2003 Supreme(SC) 228
2003(2) Supreme 232
SUPREME COURT OF INDIA
(From Andhra Pradesh High Court)
M.B. Shah & Arun Kumar, JJ.
Agriculture Market Committee, Rajam & Anr. -Appellants
versus
Rajam Jute and Oil Millers Association, Rajam -Respondent
Civil Appeal No. 1495 of 1993
Decided on 25-2-2003
Counsel for the Parties :
For the Appearing Parties : Ms. K. Amreswari and R.F. Nariman, Sr. Advocates, T.V. Ratnam, K. Subba Rao, Ms. Anjani Aiyagiri, A.V. Rangam, A. Ranganadhan, Buddy A. Ranganadhan, Y. Prabhakara Rao, N. Sreedhar, K. Ram Kumar, Advocates.
IMPORTANT POINT
High Court was not right in its finding that market committee had failed to provide any services or amenities in the notified market area. Evidence shows that some services and amenities were already provided for in the notified market area which fully justified levy of market fee.
Headnote:Andhra Pradesh Agricultural (Produce and Livestock) Markets Act, 1966 -Market Committee levying fee or cess for providing facilities in notified markets-High Court-Setting it aside on the ground that Market Committee has failed to establish that they have provided necessary services and amenities-Appeal to Supreme Court-Apex Court finding that some services and amenities were provided-Whether Market Committee was not entitled to levy, demand and collect market fee till all the facilities and amenities are fully and completely in place?-Law stated-Appeal allowed.
Held after case law : In the case in hand, the levy of market fee by the market Committee was challenged only on the ground that no basic amenities or services were provided in the notified market area and therefore the Market Committee had no right to levy, demand and collect the market fee. We have noted from the evidence on record that the market Committee had made provision for certain services and facilities in the notified market area and efforts were being made for extending the services. The market committee had recently come into existence and completion of all the intended services and facilities takes time. It has clearly emerged from the evidence of DW 1 that steps were being taken for extending the services and facilities in the market area. The plaintiff has led no evidence to contradict the defendant s evidence. Whether particular services and amenities are available at a given place and the extent thereof are questions of fact which require to be proved or demolished on basis of evidence to be led by the parties concerned. Since the plaintiff has not led any evidence whether oral or documentary in support of its case, the Court is left with no option but to accept the evidence of defendant which shows that some services and facilities in the notified market area were already available while arrangements were being made for various other facilities and services. The foundation for the case set up by the plaintiff is not available on record. The law is well settled that though quid pro quo is required in relation to a fee which is charged and collected by a market committee, the quid pro quo cannot be in exact proportion to the fee levied. Mathematical proportions are not possible in such matters. We have accepted that some services and amenities were already provided for in the notified market area which fully justified the levy of market fee. We are thus unable to agree with the finding of the High Court that the market committee had failed to provide any services or amenities in the notified market area. The findings of the High Court are accordingly set aside. The appeal is allowed. As a result of this, the suit filed by the plaintiff, respondent herein, shall stand dismissed. There will be no order as to costs. (Para 23)
JUDGMENT
Arun Kumar, J.-The appeal is directed against the judgment dated 20th February, 1992 passed by the Andhra Pradesh High Court allowing the second appeal and decreeing the suit filed by the plaintiff-Association, respondent herein. Briefly, the facts are that respondent filed a suit for declaration and injunction in the court of Subordinate Judge, Rajam, District Srikakulam, Andhra Pradesh. The plaintiff sought a declaration to the effect that the defendant - Market Committee had no right to levy, demand and collect any market fee from the members of the plaintiff -Association. An injunction was also sought to restrain the defendant - Committee from collecting market fee from the members of the plaintiff - Association. The case set up by the plaintiff as per the plaint was that Rajam Sub-Taluk was under the jurisdiction of the Ponduru Agricultural Market Committee. On Rajam Sub-Taluk being upgraded as a Taluk, a separate Agricultural Market Committee was constituted for the Rajam Taluk with effect from 24th December, 1979. The Market Committee was constituted under the Andhra Pradesh Agricultural (Produce & Livestock) Markets Act, 1966 (hereinafter referred to as the Act ). The primary object of the Act is to establish a market within a notified area. The market committees which are constituted under the Act have to provide facilities like sheds, storage, accommodation, platforms, facilities for weighing and grading of the agricultural produce etc. The Committee has also to engage staff to supervise operations of the traders in the market area. The market committee is to ensure that transactions in the specified commodities are for the benefit of purchasers and sellers of such commodities. In the process the committees are supposed to regulate the purchase and sale of agricultural produce by providing a market place and all the facilities necessary for proper conduct of the trade in agricultural produce in the market place so as to eliminate the middleman and to ensure healthy trade practices. By eliminating the middleman the committee tries to protect the purchasers of such agricultural produce, live stock etc. from exploitation and to ensure to them a fair price for their produce.
2. According to the plaintiff, the Market Committee had failed to provide any facilities in the market area so much so even a market yard had not been set up, no services or amenities were being provided to the traders in the market area and therefore the Market Committee was not entitled to levy, demand and collect the market fee or cess from the members of the plaintiffs. In the written statement filed on behalf of the market committee, it was pointed out that the market committee was in its nascent stage, it had come into existence on the declaration of Rajam as a separate Taluk only on 24th December, 1979. It had already taken possession of the site comprising 8.50 acres on 28th November, 1981 for establishment of a market yard at Rajam by incurring an expenditure of about Rs. 28,000/-. The process was on for construction of godowns, weighing sheds, platforms etc. The Market Committee had appointed corporates to attend to the work of grading of the market produce. Supervising staff had been appointed to inspect the premises of the traders to ensure proper weighment. Thirteen persons had been licensed for the weighment job. Thus, according to the market committee, it had already started various services in the market area and the process for providing further services was already on. The levy, demand and collection of market fee by the defendant was sought to be justified on this basis. The defendant also raised a plea that the plaintiff - Association had filed a Writ Petition in the High Court challenging increase in the market fee. The Writ Petition had been dismissed. In view of the dismissal of the Writ Petition, an argument was raised by the learned counsel for the Market Committee that the suit was barred by the principles o
