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1977 Supreme(SC) 23

S.MURTAZA FAZAL ALI, P.S.KAILASAM
State Of M. P. – Appellant
Versus
Galla Tilhan Vyapari Sanghs – Respondent


Advocates:
I.M.SHROFF, S.K.Gambhir

Judgment

FAZAL ALI, J. - In this appeal by special leave, on an application filed by the respondents before the High Court of Madhya Pradesh, the High Court struck down the constitutional validity of sub-s. (5) (a) of Sec. 37 of the Madhya Pradesh Krishi Upaj Mandi Adhiniyam, 1972 - hereinafter referred to as the Act (No. 24 of 1973). The impugned sub-section runs as follows:

"(5) Every commission agent shall be liable-

(a) to keep the goods of his principal in safe custody without any charge other than the commission payable to him : and"

The High Court thought that this statutory provision places unreasonable restriction on the commission agent and puts great burden on him for storing the goods given to him by the principal without charging the commission for its safe custody. The Act is a social piece of legislation and should have been liberally construed so as to advance the object of the Act and fulfil the aims to be achieved thereby. The main purpose of the Act is to secure a scientific method of storage, sale, distribution and marketing of agricultural produce and cut out as far as possible middle-mans profit. The Act, therefore, contains provisions of a beneficial nature prev







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