Judgment

KULDIP SINGH, J.:- This appeal by the State of Madhya Pradesh is directed against the order dated April 8, 1987 of Indore Bench of the Madhya Pradesh High Court, wherein the expression "Trader" under Section 2(p) of the Madhya Pradesh Krishi Upaj Mandi Adhiniyam, 1972 (the Act) has been interpreted to include an agriculturist.

2. Sub-sections (b), (e) and (p) of Section 2 which are relevant are reproduced hereunder :-

"(b) agricu1turist means a person whose main source of livelihood is wholly dependent on agricultural produce and who cultivates land on ones own accounts -

(i) by ones own labour: or

(ii) by the labour of either spouse; or

(iii) under the personal supervision of oneself or any member of ones family referred to in sub-clause (ii) above by hired labour or by servants on wages payable in cash or kind but not as crop share, but does not include a trader, commission agent, processor, broker, weighmen or hammal of agriculture produce although such trader, commission agent, processor, broker, weigh-men or hammal may also be engaged in the production of agriculture produce;"

(e) Commission agent means a person who on behalf of his principal trader and in consideration of a commission or percentage upon the amount involved in such transaction buys agricultural produce and makes payment in cash keeps it in his custody and delivers it to the principal trader in due course or who receives and takes in his custody agricultural produce sent for sale within the market area or from outside the market area, sells the same in the market area and collects payment therefor, from the buyer and remits the sale proceeds to his principal trader.

(By the Amending Act (No. 24 of 1986) in the aforesaid definition, after the word principal the word trader has been inserted.)

(p) Trader means a person who in his normal course of business buys or sells any notified agricultural produce and includes a person engaged in possession of agricultural produce."

The appellant issued directions dated December 9, 1986 (Annexure P-7) restraining the agriculturists from selling their produce through the Commission Agents (Adatiyas). It was further directed that action would be taken against the Commission Agents for violating the said instructions. Respondents 1 and 2 who were Commission Agents challenged the instructions (Annexure P-7) on the ground that they were contrary to the provisions of the Act and in any case the agriculturists being traders under the Act the Commission Agents are entitled to sell/ purchase the agricultural produce on their behalf in consideration of a commission or percentage. The High Court posed the following questions for its consideration :-

"The short question raised in this petition, therefore, has been whether the petitioners can be prohibited from acting as Commission Agents on behalf of the seller namely agriculturist and whether the agriculturist, who thus sells his produce is a trader ".

3. On the interpretation of the provisions of the Act reproduced above, the High Court allowed the writ petition and quashed the Government instructions impugned before it on the following reasoning:-

"The definition of a trader cannot be interpreted to mean, as urged by the learned counsel for the respondents, that it excludes agriculturist/ cultivator. In the definition of trader the words used are buys or sells. Therefore, any person who in his normal course of business either buys or sells any notified agricultural produce and includes a person engaged in processing of agricultural produce is a trader. Therefore, it is difficult to agree with the submission made by the learned counsel for these respondents that the business of an agriculturist is only to sell his produce and that too once in a year. The agriculturist-cultivator is at liberty to sell his agricultural produce in one lot or different lots and at intervals according to the market conditions. Therefore, the normal course of business of an agriculturist/cultivator is to