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2013 Supreme(SC) 1355

SUPREME COURT OF INDIA
G.S. Singhvi, V. Gopala Gowda, JJ.
Agricultural Produce Market Committee - Appellant
Versus
Biotor Industries Ltd and another - Respondent
C.A. No. 4860 of 2009.
Decided On : 29-11-2013

Headnote:

Constitution of India – Articles 14, 19, 21 and 226 – Gujarat Agricultural Produce Markets Act, 1963 – Sections 28A and 59 – Gujarat Agricultural Produce Markets (Amendment) Act, 2007 – Section 28 – Sale of Goods Act – Sections 19 to 22 – Gujarat Agricultural Produce Markets Rules, 1965 – Rule 48 and 49 – Market Committee to levy – Revisional Authority – Legality and Validity – Questions of Law – Appellant-APMC had filed Special Civil Application learned single Judge of High Court impleading Respondent-Company and State of Gujarat as parties seeking relief for issue of writ of certiorari or any other appropriate writ order or direction, to set aside order passed in Revision Application by Respondent State and further sought for declaratory relief to declare that APMC is entitled to levy market fee on Respondent-Company for purchase of castor seeds as per demand notices given to Respondent-Company – Held, High Court to place the matter before the roster of learned single Judge to examine the validity of Rule 48 (2) of Rules, as questioned with reference to amended provision and the impugned order of the Revisional Authority – Appellant may also approach the State Government to amend Rules by deleting Rule 48(2) of the Rules – Appellant to either press Special Civil Application to be decided on merits with regard to the validity of Rule 48(2) and also examine impugned order of levying market fees on goods purchased by Respondent-Company on the basis of facts and material evidence or to make revision application to State Government-seeking for deletion amending Rules with above said observation – Civil Appeal is accordingly allowed.

JUDGMENT :

G.S. Singhvi and V. Gopala Gowda, JJ. - This matter is connected to the Civil Appeal Nos. 3130-3131 of 2008 upon which we have pronounced the judgment today.

2. The Appellant-APMC herein challenged the correctness of the judgment dated 10.2.2009 passed by the Division Bench of Gujarat High Court in Letters Patent Appeal No. 1383 of 2008 in Special Civil Application No, 9705 of 2008 with Civil Application No. 13651 of 2008 whereby it has dismissed the Special Civil Application holding that the same lacks merit and also vacated interim relief granted by the learned single Judge of High Court. Being aggrieved, the APMC filed this Civil Appeal framing certain questions of law and urging grounds in support of the same, praying to set aside the impugned judgment and order and to pass such other order as may be deemed fit and proper in the circumstances of the case.

3. The brief necessary facts for the purpose of examining the legality and validity of the impugned order are stared herein:

The Appellant-APMC had filed Special Civil Application No. 9705 of 2008 under Articles 14, 19, 21 and 226 of the Constitution of India before the learned single Judge of the High Court impleading the Respondent-Company and the State of Gujarat as parties, seeking relief for the issue of writ of certiorari or any other appropriate writ, order or direction, to set aside order dated 30.6.2008 passed in Revision Application No. 69 of 2008 by Respondent No. 2-the State (Revisional Authority) and further sought for declaratory relief to declare that the APMC is entitled to levy market fee on the Respondent-Company for purchase of castor seeds as per the demand notices dated 5.3.2008 and 15.4.2008 given to the Respondent-Company. Further, by way of amendment to the prayer column, it has sought for declaratory relief to declare Rule 48(2) of the Gujarat Agricultural Produce Markets Rules, 1965 (for short "Rules") as ultra vires of Sections 28A and 59 of the Gujarat Agricultural Produce Markets Act, 1963 (hereinafter referred to as "the Act") urging various facts and legal grounds. The amended Sections were added to the Act vide the Gujarat Agricultural Produce Markets (Amendment) Act, 2007.

4. The learned single Judge of the High Court after hearing the learned Counsel for the parties passed an interim order on 13.11.2008 in Special Civil Application No. 9705 of 2008 referring to Section 28(1) of the Act and amended Section 28(2)(a), (b), (c), (d) & (e) of the Act and issued Rule to examine the correctness of Rule 48(2) in view of the amendment to the Act incorporating Section 2(a) to Section 28 of the Act and directed the Respondent-Company by giving directions, particularly direction Nos. 2 and 3 which are extracted hereunder:

    "(2) Respondent No. 2 deposits 50% of the outstanding market fees with this Court and furnishes an undertaking before this Court for the remaining 50% of the amount to the effect that they shall pay up the remaining market fees with interest as and when it is so ordered by this Court. Such amount shall be invested, if deposited, by the Registrar in the FDR initially for a period of two years, renewable further with the State Bank of India, Gujarat High Court Branch, Ahmedabad.

    "(3) Respondent No. 2 shall be at liberty to comply with either of the conditions within two months from the date of intimation and calculation of the Market Fees recoverable by the Market Committee from Respondent No. 2. Further, at paras 14 and 15 of the order dated 13.11.2008 of learned Single Judge, certain observations were made, which read thus:

    "14. It is also observed and directed that it would be open to the Petitioner to make representation to the State Government, which is Rule Making Authority, for amendment of the Rule 48 in light of the amended provisions of Section 28 of the Agriculture Produce Market Committee. If such representation is made, the pendency of this petition, shall not operate as a bar to the Rule Making Authority for bringing

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