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1983 Supreme(SC) 266

SUPREME COURT OF INDIA
A.P. SEN, E.S. VENKATARAMIAH AND R.B. MISRA, JJ.
Sreenivasa General Traders and others etc., Petitioners
Versus
State of A.P. and others etc., Respondents.
Civil Appeal No. 2502 of 1981,
D/- 6-9-1983.
AND
Writ Petns. Nos. 2727, 2840-42, 2765, 2868, 2869, 2911, 3137, 3138, 3568-71, 3680, 7485-7580, 3817-20, 4190, 9018-62, 4553, 4554-55, 4690, 4773, 6617-6663, 4774, 6665-71, 4775, 6672-81, 4919, 4929, 7588-7606, 8824, 7039-96, 7129, 8285-8311, 8506-8653, 8654-8854, 7946-65, 9485 of 1981, 2642-84, 3584, 4114-22, 4409, 5485-5509 of 1982, 4246-72 of 1973, 5519-34, 5665-85, 6983-7000, 7252-60, 7478-7637, 7925-42, 8386, 9372-90, 9291-9440, 9605, 9804-9921, 9922-26, 9958-78, 9979-9994 of 1982, 199-318, 834-50, 2862-2893, 3644-48, 3660-3665, 2901-83 of 1983, 1286 & 1924-49 of 1973, 9383-9407, 8009-8046 of 1981, 1650-82, 1683-1704, 1763-88, 1789-1917, 1964-2113, 2287-91, 2461-78, 2846-49, 3107-27, 3128-48, 3637-55, 3707, 4650-4788, 4790-4919, 7093-7121, 8028 of 1982, 1174-80 4435-4565, 4838-4909, 4925-5074 of 1983 with Spl. Leave Petn. No. 728 of 1981 & Civil Appeal No. 4013 of 1982
Civil Appeals Nos. 1485, 2108, 2469 of 1972 & 10 of 1973
AND
AND
Uppalapeda Venkataramiah etc., Appellants
Versus
Dadi Venkataramiah etc., Respondents.
AND
Coromandal Agro Product and Oil Ltd., Appellant
Versus
Agricultural Market Committee, Chirala, Respondent.

Headnote:

Constitution of India, 1950 - Article 32 and 19(l)(g) - Andhra Pradesh (Agricultural Produce & Livestock) Markets Act, 1966 - Section , 16 (2) , 33 ,12 (1) and 4 - Andhra Pradesh (Agricultural Produce & Livestock) Markets Rules, 1969 - Rule 74(l) - Madras Commercial Crops Markets Act, 1933 - Bombay Agricultural Produce Markets Act, 1939 - Market committees – Livestock - Rate of market fee - Constitutional validity of sub-section (6) of Section 7 of Act which prohibits carrying on of any transaction of purchase or sale of notified agricultural produce, livestock or products of livestock in a notified market area or outside market in that area as violative of Art. 19(l)(g) of Constitution - As to power of market committees to levy market fee under sub-s. (1) of Section 12 of Act at rupee one per hundred rupees of aggregate amount for which such agricultural produce, livestock or products of livestock are purchased or sold outside their markets but within their respective notified market areas - Civil Appeal No. is directed against judgment of Andhra Pradesh High Court dated upholding levy of market fee at 50 paise per hundred rupees on cotton seeds by an agro-based industry engaged in business of manufacture and sale of cotton seed oil - It appears that initially in year bye-laws of all market committees throughout State provided for levy of market fee @ 25 paisa for every hundred rupees of aggregate amount for which notified agricultural produce, livestock or products of livestock was purchased or sold - Held, It is no doubt true that this would result in the market committees being deprived of power to levy market fee on several items of notified agricultural produce, livestock or products of livestock shown separately in Schedule II of Rules, but that is a consequence which cannot be avoided language of R. 74(1) - Exemption from payment of market fee under R. 74(l) on any notified agricultural produce, livestock or products of livestock brought into notified market area of another market committee for purposes mentioned therein is however claimable only on production of such evidence as may be prescribed in bye-laws about payment of market fees to market committee from where it was brought - Burden of establishing necessary facts to attract exemption would lie on petitioners - Question as to constitutional validity of sub-s. (6) of Section 7 of Act and sub-s. (1) of Section 12 of Act which is common to Writ Petition No. 1286 of 1973, Civil Appeal No. 2108 of 1972 and Civil Appeal No. 4013 of 1982 stands disposed of - Question regarding validity of the notification issued by State Government declaring rice to be a notified agricultural produce under Section 2(i) of Act and that declaring notified market area of Kothavalasa Market Committee for district under sub-s. (4) of Section 4 of Act has not been pressed at hearing - Arguments in these mattters were more or less same and they have been dealt with in judgment - Writ petitions dismissed.

Judgment

SEN, J.:- These petitions under Article 32 of the Constitution principally lay a challenge to the constitutional validity of the increase in the rate of market. fee levied by the market committees in the State of Andhra Pradesh under sub-s. (1) of Section 12 of the Andhra Pradesh (Agricultural Produce & Livestock) Markets Act, 1966 (Act for short) from 50 paisa to rupee one on every one hundred rupees of the aggregate amount for which the notified agricultural produce, livestock or products of livestock are purchased or sold in their respective notified market areas on the ground that there was no quid pro quo i.e. there was no correlation between the increase in the rate of market fee and the service rendered.

2. There are also certain subsidiary questions raised in these petitions viz.: (1) The constitutional validity of sub-section (6) of Section 7 of the Act which prohibits the carrying on of any transaction of purchase or sale of notified agricultural produce, livestock or products of livestock in a notified market area or outside the market in that area as violative of Art. 19(l)(g) of the Constitution. (2) As to the power of the market committees to levy market fee under sub-s. (1) of Section 12 of the Act at rupee one per hundred rupees of the aggregate amount for which such agricultural produce, livestock or products of livestock are purchased or sold outside their markets but within their respective notified market areas and (3) Whether under R. 74(l) of the Andhra Pradesh (Agricultural Produce & Livestock) Markets Rules, 1969 (Rules for short) if purchase or sale of paddy has suffered market fee in the hands of a rice miller, whether subsequent purchase or sale of rice by a miller to a trader, or by a trader to a trader, can be subjected to payment of market fee again.

3. Writ Petition No. 1286 of 1973 questions the validity of a notification issued by the State Government being G. O. M. S. No. 2095 dated October 29, 1968 declaring rice to be a notified agricultural produce under Section 2(i), and the notification issued by the State Government of Andhra Pradesh under sub-sec. (4) of S. 4 of the Act being G.O.M.S. No. 971 dated July 16, 1971 declaring an area of 20 kms. around Kothavalasa to be the notified market area of the Kothavalasa Agricultural Market Committee for the district of Visakhapatnam, as well as the constitutional validity of sub-section (6) of Section 7 of the Act and sub-section (1) of Section 12 of the Act. Civil Appeal No. 1485 of 1972 is directed against the judgment of the Andhra Pradesh High Court dated July 7, 1971 upholding the constitutional validity of sub-section (6) of Section 7 of the Act and sub-section (1) of S. 12 of the Act. Civil Appeal No. 2108 of 1972 is directed against the judgment of the Andhra Pradesh High Court dated July 27, 1971 upholding the increase in the rate of market fee from 13 paisa per quintal to 25 paisa per hundred rupees by the Agricultural Market Committee, Guntur in the year 1970 on the ground that there was no quid pro quo i.e. there was no correlation. between the service and the increase in the rate of market fee. Civil Appeal No. 2502 of 1981 is directed against the judgment of the Andhra Pradesh High Court dated April 21, 1981 upholding the levy of market fee at 50 paise per hundred rupees on cotton seeds by an agro-based industry engaged in the business of manufacture and sale of cotton seed oil. Civil Appeal No. 4013 of 1982 is directed against the judgment of the Andhra Pradesh High Court dated September 17, 1982 upholding the increase in the rate of market fee from 50 paise per hundred rupees to rupee one by the Agricultural Market Committee, Guntur upon the basis that there need be no quid pro quo to justify the levy of such market fee.

4. It appears that initially in the year 1970 the bye-laws of all the market committees throughout the State provided for the levy of market fee @ 25 paisa for every hundred rupees of the aggregate amount for w













































































































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