JUDGMENT

S.B. SINHA, J.

1. Levy of market fee on Zafrani Zarda in terms of the provisions of the U.P. Krishi Utpadan Mandi Adhiniyam, 1964 (for short, ‘the Act’) is in question in these appeals which arise out of a common judgment and order dated 21st July, 2003.

2. The Act was enacted 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. 2

3. Before embarking on the question, we may notice some of the relevant provisions of the Act. Section 2(a), 2(d), 6, 8, 17(iii)(b) read as under:

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, rab, shakkar, Khandsari and jaggery;

2(a-1) “Board” means the State Agricultural Produce Markets Board constituted under Section 26-A;

2(d) “Central Warehousing Corporation” means the Central Warehousing Corporation established or deemed to be established under the Warehousing Corporations Act, 1962;

2(d-1) “Collector”, in relation to a Committee for a Market area means the Collector of the District where the principal Market Yard of that Market Area is situated, and includes such other officer as may be authorized by him in that behalf;

6. Declaration of Market Area.-On the expiry of the period referred to in Section 5, the State Government shall consider the objections received within the said period and may thereupon declare, by notification in the Gazette, and in such other manner as may be prescribed, that the whole or any specified portion of the area mentioned in the notification under Section 5 shall be the Market Area in respect of such agricultural produce, and with effect from such date as may be specified in the declaration.

8. Alteration of Market Area and Modifications of the List of Agricultural produce.

(1) The State Government, where it considers necessary or expedient in the public interest so to do, may, by notification in the Gazette, and in such other manner as may be prescribed and with effect from the date specified in the notification,-

(a) include any agricultural produce in, or exclude any agricultural produce from, the list of agricultural produce specified in the notification under Section 6;

(b) include any area in, or exclude any area from, the Market Area specified in the notification under Section 6;

(c) divide a Market Area specified in the notification under Section 6 into two or more separate Market Areas;

(d) amalgamate two or more Market Areas specified in the notification under Section 6 into one Market Area; or

(e) declare that a Market Area specified in the notification under Section 6 shall cease to be such area:

Provided that before action under this sub-section is taken, the State Government shall invite and consider, in the prescribed manner, objections, if any, against the proposed action.

(2) When during the term of a Market Committee the limits of the Market Area for which it is established are altered under clause

(b) clause (c) or clause (d) of sub-section (1), the following consequences shall, with effect from the date specified in the notification, follow:

(a) the Market Committee shall stand dissolved and its members shall vacate their offices as such members;

(b) a new Market Committee shall be constituted for the modified or newly created Market Area in accordance with the provisions of Section 13;

(c) all property and assets, all rights, liabilities and obligations of the dissolved Market Committee in respect of civil or criminal proceedings, contracts, agreements or other matter or thing arising in relation to any part of the Market Area of a dissolved Market Committee shall be vested in and stand transferred to the new Market Commi