B. K. SOMASEKHARA, J.

( 1 ) THE petitioner No. 1 is a Gram Panchayat of Velpur, Atchampet Mandal, Guntur District and Petitioner No. 2 is a successful bidder in the auction conducted by Petitioner No. 1 for the cattle shandy or weekly bazaar to be held from 1-4-1997 to 31-3-1998. The 1st respondent is the Assistant Director of Marketing, Guntur, 2nd respondent is the person-incharge of Agricultural Market Committee, Krosur Mandal, Guntur District and 3rd respondent is a member of Zilla Parishad Territorial Constituency Krosur Mandal. It is pleaded that Velpur Gram Panchayat had been running cattle shandy within the Gram Panchayat area for the last 20 years or more by holding public auction. It is contended by the petitioners that by virtue of Section 104 of A. P. Panchayat Raj Act (for short the Act ) all the public markets vest in the Gram Panchayat and it is the duty of the Gram Panchayat to provide places for use as public markets and further more the Panchayat is entitled to collect fees on animals brought for sale and sold in such markets by virtue of Section 104 (2) (d) of the Act. Several other provisions are also pointed out from the Act to show the powers of the Gram Panchayat to collect the licence fee and the power to prevent sale in or on open public roads etc. It is also contended that all the income accruing from such above mentioned sources of Gram Panchayat revenue form part of Gram Panchayat funds. It has been the practice to sell the right to have public markets by public auction by granting licences for a period of one year from 1st April to 31st March and accordingly it was done in favour of the 2nd petitioner. It appears that by virtue of such public auction, the Petitioner No. 2 became successful bidder, paid the bid amount, the bid was accepted by the Gram Panchayat by its resolution on 25-3-1997 and proceedings No. ROC1/97 dated 25-3-1997 were passed permitting the 2nd petitioner to collect the fee for the period from 1-4-1997 to 31-3-1998. He paid Rs. 19,500. 00 towards the total bid amount and therefore he is entitled to have the weekly shandies in that Gram Panchayat area

( 2 ) IT appears that Respondent No. 3 made a representation to the Hon ble Minister for Panchayat Raj and Rural Division and his representation was sent to Respondent No. 1 who in turn forwarded it to Respondent No. 2 directing the petitioner-Gram Panchayat not to conduct auction for the period from 31-3-1997 and therefore, Respondent No. 2 issued the impugned orders in Rc. No. 31/97 dated 27-3-1997 which was served on the Petitioner No. 1 on 29-3-1997 directing him not to conduct auction for cattle shandy for the subsequent period beyond 31-3-1997 and also to shift the cattle shandy presently functioning at Velpur Gram Panchayat to the Market yard at Krosur.

( 3 ) IT is contended that by virtue of the provisions of the A. P. (Agricultural Produce and Livestock) Markets Act (for short agricultural Markets Act ) and by virtue of specific provisions of Section 7 (6), unless all the steps are gone into, no market can be held within a particular area of the Gram Panchayat and therefore in view of the rights of the 2nd petitioner to hold cattle shandy as per the public auction and the resolution of the Panchayat, such proceedings issued by 2nd respondent are said to be illegal, arbitrary and cannot be enforced. It is also contended that the impugned proceedings are outcome of the malice in law and malice in fact. It is also contended that such proceedings are issued without notice or opportunity to the petitioners and therefore violative of the principles of natural justice. It is also contended that the impugned proceedings are violative of Articles 14, 19 (1) (G) and 300 (A) of the Constitution of India Therefore, the petitioners have sought for appropriate directions in the nature of mandamus or any other order to declare the impugned proceedings dated 27-3-1997 as null and void and to set aside the same.

( 4 ) ON behalf of the respo

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