JUDGMENT

Dr. B.S. Chauhan, J. —

1. This appeal has been preferred against the judgment and order dated 14.7.2003 passed by the High Court of Judicature at Allahabad in C.M.W.P. No. 12372 of 2003 by which the High Court allowed the writ petition holding that respondent no.1 was not required to take licence under Section 9 of the Uttar Pradesh Krishi Utpadan Mandi Adhiniyam, 1964 (hereinafter called ‘the Act 1964’).

2. Facts and circumstances giving rise to present appeal are as under:

A. Respondent no. 1 is a company registered under the Indian Companies Act, 1956 and manufactures Ayurvedic medicines including Chawanprash at Naini, Allahabad. For that purpose, the respondent no. 1 has obtained a licence under the Drugs and Cosmetics Act, 1940. For manufacturing Chawanprash the said respondent purchases certain agricultural produce e.g. Gur, Amala and Ghee etc. and use the same as raw material.

B. The appellants served a notice dated 17.3.1999 calling upon the respondent no. 1 for taking a licence under section 9 of the Act 1964 as it was purchasing and processing the aforesaid agricultural produce in its ordinary course of business. Respondent no. 1 submitted reply to the said notice on 31.3.1999 pleading that it was not required to take licence as the said respondent was not doing any business in the sale or purchase of agricultural produce. The appellant found the explanation furnished by respondent no. 1 unsatisfactory and, thus, sent another notice dated 2.12.2000 calling upon respondent no.1 to take a licence failing which legal proceedings could be initiated against it. Similar notices were subsequently sent to respondent no. 1 on 3.12.2000 and 16.12.2000 but respondent no. 1 did not pay any heed to the said notices. The appellant issued notice dated 14.2.2001 to respondent no. 1 for personal appearance and furnishing the explanation as to why the licence under Section 9 of the Act 1964 was not required. The respondent no. 1 did not comply with the said notice, thus the appellant filed complaint Case No. 480 of 2002 in the court of Special Judicial Magistrate, Allahabad against the respondent no. 1, alleging violation of the statutory provisions of the Act 1964.

C. Being aggrieved, the respondent no. 1 approached the High Court by filing Writ Petition No. 12372 of 2003 for quashing of the complaint Case No. 480 of 2002. The High Court vide impugned judgment and order dated 14.7.2003 allowed the writ petition holding that the said respondent had been using the agricultural produces after buying for internal purpose i.e. for consumption in its factory for manufacturing the end product and not for further transferring the agricultural produces to someone else and thus, the respondent no. 1 was not required to take licence under Section 9 of the Act 1964.

Hence, this appeal.

3. Smt. Shobha Dikshit, learned senior counsel appearing for the appellant, has submitted that respondent no. 1 is manufacturing Ayurvedic medicines and purchases Amla, Gur and Ghee etc. from the market area established under the Act 1964, which are admittedly agricultural produce. Therefore, being a trader, the respondent no. 1 is required to take a licence so far as the purchase of specified agricultural produce from the market area is concerned and also pay requisite market fee and any violation of the provisions of the Act 1964 would attract penal consequences i.e. prosecution under Section 37 of the Act 1964. The use of the aforesaid agricultural produce for manufacturing of the medicines cannot be termed as domestic consumption. The word ‘domestic’ means required for personal use of the family and this term cannot be interpreted in such wide terms as to include manufacturing of a different commodity at commercial level in an industry. The High Court erred in defining the term ‘domestic’ giving a very wide interpretation i.e. meant for supplying the end product in the country and not for export. Even otherwise, in view of the fact that an adequate a