Judgment

GOSWAMI

( 1 ) BY the above writ applications under Article 32 of the Constitution the validity of the Uttar Pradesh Krishi Utpadan Mandi Adhiniyam, 1964 (U. P. Act No. XXV of 1964 as amended by U. P. Act No. 10 of 1970) (briefly called the Act) and the rules made thereunder are challenged on the ground of violation of Article 14 and Article 19 (1) (g) of the Constitution.

( 2 ) THE petitioners in all the above cases are traders or commission agents dealing in agricultural produce.

2a. The following submissions are made on behalf of the petitioners:-

(1) The constitution of the Market Committee under Section 13 of the Act is highly prejudicial to their interests and of the traders in general since it will have a perpetual majority of producers.

(2) The enstrustment of licensing to such a Market Committee instead of to any impartial authority is unfair and an unreasonable restriction on the right to trade.

(3) The Act in the matter of grant of licences gives no guidance at all and even under rule 70 (4) two vague criteria have been laid down in the matter of issue of licences under the Act.

(4) The petitioners are required to provide a storage space to the producers for their agricultural produce going to the market and this obligation is also an unreasonable restriction on the fundamental right of the petitioners.

(5) Rule 76 (1) is invalid and ultra vires Section 40 of the Act and has also placed unreasonable restrictions on the right to carry on trade or business.

( 3 ) BEFORE we deal with these submissions, we may turn our attention to the Act. As the preamble shows the Act has to provide for the regulation of sale and purchase of agricultural produce and for the establishment, superintendence, and control of markets therefor in Uttar Pradesh. The Statement of Objects and Reasons gives a clear picture of the evils sought to be remedied by this legislation and a portion therefrom may be extracted below:-

"the present chaotic state of affairs as obtaining in agricultural produce markets is an acknowledged fact. There are innumerable charges, levies and exactions which the agricultural producer is required to pay without having any say in the proper utilisation of the amount so paid by him. In matters of dispute between the seller and the buyer, the former is generally put at a disadvantage by being given arbitrary awards. The producer is also denied a large part of his produce by manipulation and defective use of weights and scales in the market. The Government of India and the various committees and commissions appointed to study the condition of agricultural markets in the country have also been inviting the attention of the State Government from time to time towards improving the conditions of these markets. . . The Planning Commission stressed long ago that legislation in respect of regulation of markets should be enacted and enforced by 1955-56. "

IT is also mentioned that legislation in the State was first proposed in 1938 but lapsed. It also appears that most of the other States have already passed legislation in this respect. It is, therefore, clear that the principal object of this Act is to come in aid of the producers who are generally illorganised and are by far and large the exploited party in the bargain between unequals.

( 4 ) SECTION 2 contains the definitions. By Section 2 (a) "agricultural produce means such items of produce of agriculture, horticulture, viticulture, apiculture, sericulture, pisciculture, animal husbandry or forest as are specified in the schedule, and includes admixture of two or more of such items, and also includes any such item in processed form, and further includes gur, ram, shakkar, Khandsari and jaggery". By Section 2 (f) " committee means a Committee constituted under this Act. " By Section 2 (k) " market Area means an area notified as such under section 6 or as modified under Section 8". by Section 2 (p) " producer means a person who, whether by himself or through hired labour