Judgment

P. JAGANMOHAN REDDY, J.: - This Appeal is by Special Leave against the Judgment of the Mysore High Court dismissing the Writ Petition filed by the Appellants and Respondent Ho. 3 against Respondents 1 and 2, the Market Committee, Sirsi and the State of Mysore respectively, by which they challenged the Notification of the Government of Mysore No. DPC 206 CMD 64 (i) dated 5th January 1965. The Town of Sirsi in the North Canara which wee once part of the Bombay State is one of the leading markets for Areca, Cardamom and Pepper. The Appellants have been carrying on business in these 3 commodities on a large scale for many years in this town mainly in the localities comprising Channapattan Galli Basti Galli and Nadged Galli, while the Respondent 3 who is a dealer in the said commodities was carrying on business in Nadged Galli. In the Channapattan Galli there are nearly 20 Commission Agents who own shops and godowns who also deal in these commodities. It was stated that the three Gallis constitute the main market where wholesale business in the aforesaid commodities is being carried on for more than a century.

2. The Bombay Legislature had passed the Bombay Agricultural Produce Markets Act. 1939 (Act of 1939) and thereafter made rules under the Act known as Bombay Agricultural Produce Market Rules hereinafter referred to as the Act and Rules respectively. In 1951 under the provisions of Section 4 (1) of the Act the Government of Bombay declared the town of Sirsi and various surrounding villages, 59 in number, as a market area in respect of Areca, Pepper and Cardimom and by Notification dated 24th April 1951 had also declared the 3 Gallis referred to above as the Market Yard under the Act. In 1954 the Act was amended by the addition of Section 4-A to which a reference will be made presently. After the amendment of the said Act, on 31-8-1954 the Government of Bombay Notified the three Gallis of Channapattan, Basti and Nadged which previously had been declared as a Market Yard, as the Principal Market Yard of the said Market area under Section 4-A (2) proviso. After this declaration it is said the Appellants invested large amounts in buildings which are worth ten lacs of Rupees and improved their trade. Similarly in the Nadged Galli the properties of Commission Agents are worth about Rs. 5 lacs and in the Basti Galli the business premises are worth about Rs. 2 lacs.

3. It is alleged that Shri Hegde Kadve is a Congressman and as the Chairman of the Market Committee and also as the Chairman of the Sirsi Totgars Co-operative Society and President of the Taluka Board had considerable personal influence over the Congress Ministry and consequently prevailed on the Government to grant to the Market Committee free of cost land measuring about 10 acres and 37 gunthas for a market at a distance of more than a mile from the present market., which was divided into plots, on which he managed to get shops, godowns and offices constructed with the money secured by the Society as a loan from the Government at a very low rate of interest. The Market Committee disposed of eleven sites to private parties and also allowed the Co-operative Society to construct premises for a Rice Mill, but notwithstanding these constructions the new site for the Market has no amenities. The impugned Notification had the effect of prohibiting persons from carrying on business in the said three main commodities at the old market Yard, and has thus destroyed the business of traders including that of the Appellants. The new site it was said was only so declared with a view to confer on the Co-operative Society a monopoly in trade as it would not be possible for traders to invest money and construct new buildings and godowns for carrying on trade at the new market site. The Notification was thus challenged as being ultra vires of the provisions of the Act, illegal, arbitrary, capricious and discriminatory, violating Articles 14, 19 (1) (g) and 31 of the Constitution.

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