JUDGMENT

SAWANT, J.-

The respondent-Orient Paper Mills (for short Mills) purchases bamboos as raw material under a contract with the State Government which holds monopoly in regard to bamboos as a forest produce in view of the provisions of the M.P. Van Upaj (Vyapar Viniyaman) Adhiniyam, 1969 (No. 9 of 1969). The bamboos are supplied to the respondent-Mills by the Forest Department of the State Government at various forest depots established for the purpose. After taking delivery from the forest depots, the Mills transports the same to its factory situated in Amlai in the district of Shahdol (M.P.). It is not disputed that forest depots from which the Mills purchases the bamboos fall within the market area of the appellant-Krishi Upaj Mandi Samitis (for short Committees) and the factory of the Mills also falls within the market area of Krishi Upaj Mandi Samiti, Budhar (M.P.).

2. Under Section 3 of the M.P. Krishi Upaj Mandi Adhiniyam, 1973 (for short the Act), the State Government is empowered to declare by a notification its intention to establish a market for regulating the purchase and sale of such agricultural produce and in such area as may be specified in the notification, and