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2024 Supreme(SC) 193

SUPREME COURT OF INDIA
SUDHANSHU DHULIA, S.V.N. BHATTI, JJ.
Sangam Milk Producer Company Ltd. – Appellant
Versus
The Agricultural Market Committee & Ors. – Respondents
Civil Appeal No. 6493 of 2014 With C.A. No. 6494 of 2014, C.A. No. 6495 of 2014, C.A. No. 6496 of 2014, C.A. No. 6497 of 2014, C.A. No. 6498 of 2014
Decided On : 05-03-2024

Advocates appeared:
For the Appellant(s) : Mr. Rupesh Kumar, AOR Ms. Pankhuri Shrivastava, Adv. Ms. Neelam Sharma, Adv. Mr. Aryaman Sharma, Adv. Mr. Ajit Bhasme, Sr. Adv. Mr. Mukesh Kumar Pandey, Adv. Mr. Parth Sarathi, Adv. Ms. Himani Bhatnagar, Adv. Mr. Sanjay Kumar Visen, AOR Mr. Byrapaneni Suyodhan, Adv. Mr. Kumar Shashank, Adv. Mr. Bharat J Joshi, Adv. Ms. Tatini Basu, AOR
For the Respondent(s): Mrs. D. Bharathi Reddy, AOR Mr. Guntur Prabhakar, AOR Mr. Sahil Bhalaik, AOR Mr. Tushar Giri, Adv. Mr. Siddharth Anil Khanna, Adv. Mr. Sewa Singh, Adv. Ms. Gulshan Jahan, Adv.

Headnote:

ghee - The Andhra Pradesh (Agricultural Produce and Livestock) Markets Act, 1966 - Section 2(v), Section 2(xv), Section 3, Section 4 - The court discussed the definition of livestock and products of livestock under the Act, the procedure for notification of agricultural produce, livestock, and products of livestock in notified areas, and the establishment of market committees and notified market areas. The court also analyzed the validity of the 1994 notification declaring 'ghee' as a livestock product and its implications on market regulation and fee collection.

Fact of the Case:

The case involved the determination of whether 'ghee' is a 'product of livestock' under The Andhra Pradesh (Agricultural Produce and Livestock) Markets Act, 1966 and the validity of the 1994 notification declaring 'ghee' as a notified product of livestock for market regulation.

Finding of the Court:

The court found that 'ghee' is a product of livestock and upheld the validity of the 1994 notification under Section 4 of the Act. The court also ruled that the market fee for 'ghee' should be paid, but allowed the appellants to deposit the accumulated fee in four equal instalments within two years.

Issues: The issues involved the classification of 'ghee' as a product of livestock, the procedural compliance for notification under the Act, and the collection of market fees for 'ghee' prior to the High Court judgment.

Ratio Decidendi: The court held that 'ghee' is a product of livestock based on the definition of livestock and products of livestock under the Act. It also determined that the 1994 notification was valid under Section 4 of the Act and that the market fee for 'ghee' should be paid, allowing the deposit in instalments.

Final Decision: The court dismissed the appeals, upheld the majority decision of the Andhra Pradesh High Court, and vacated the interim orders restraining the collection of market fees prior to the High Court judgment.

JUDGMENT :

Sudhanshu Dhulia, J.

1. Two questions arise in these appeals for our determination. The first question is whether “ghee” is a “product of livestock” under the provisions of The Andhra Pradesh (Agricultural Produce and Livestock) Markets Act, 1966 (hereinafter referred to as “the Act”) and the second would be whether the Government notification (G.O. Ms. No.286 dated 05.07.1994), which inter alia notifies “ghee” as one of the products of livestock for the purpose of regulation of purchase and sale of “ghee” in all notified market areas was published after due compliance of the procedure contemplated under the provisions of the Act?

2. In the erstwhile State of Andhra Pradesh, the above Act was brought with the purpose to consolidate and amend the laws regulating the purchase and sale of agricultural produce, livestock and products of livestock, along with establishment of markets in connection therewith. The aim was to secure effective and remunerative price of commodities by bringing producers and traders face to face thereby eliminating middlemen and do away with some other earlier unethical trade practices, which were exploiting agriculturists and farmers. In other words, it was a farmer friendly legislation. The commodities which were to be regulated were not only agricultural produce but also livestock as well as products of livestock. Whereas livestock has been defined under Section 2(v) and products of livestock has been defined under Section 2(xv). Both the Sections are reproduced below :

(v) 'livestock' means cows, buffaloes, bullocks, bulls, goats and sheep, and includes poultry, fish and such other animals as may be declared by the Government by notification to be livestock for the purposes of this Act;

(xv) 'products of livestock' means such products of livestock as may be declared by the Government by notification, to be products of livestock for the purposes of this Act.

3. Under sub-Section (1) of Section 3 of the Act, the Government has to initially publish a draft notification declaring its intention of regulating purchase and sale of proposed notified agricultural produce, livestock or products of livestock in an area. It is only after hearing objections from public, it finally publishes its notification under sub-Section (3) of Section 3 declaring the area to be a ‘notified area’ in respect of such agricultural produce, livestock and products of livestock. Under Sub-Section (4) of Section 3 the Government also has a power to exclude from a notified area, any area earlier included in it.

4. After a notification is made under Section 3, there comes the process of notification under Section 4 of the Act. Under Section 4 (1) of the Act, a process is given wherein the Government further notifies a market committee for every notified area. Under Sub Section (3) of Section 4, the market committee is empowered to establish markets for the purchase and sale of any notified agricultural produce, livestock or products of livestock. After the establishment of markets by the market committee under Section 4 (3), the Government declares by a notification under Section 4 (4),1[Section 4 (4) stands omitted vide the Andhra Pradesh (Agricultural Produce and Livestock) Markets (Amendment) Act, 2015.], the ‘notified market area’ for the purposes of the Act in respect of the notified products.

In short, the above provisions provide that first there will be a larger physical unit called “notified area” wherein the market committee shall establish markets and thereafter, through a notification u/s 4 (4), the Govt. declares a “notified market area” in respect of the notified products.

5. In the year 1968, the State of Andhra Pradesh had issued a notification u/s 3 (3) of the Act declaring “notified areas” in the State where “ghee” was included in Schedule II of the said notification as a livestock product. Thereafter, in the year 1971, a notification u/s 4 (4) was published, which declared the ‘notified market areas’ in respect of

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