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1992 Supreme(AP) 403

Andhra Pradesh High Court
Judges : A.LAKSHMANA RAO, D.REDDAPPA REDDY
Pan Merchants Wholesale Commission Agents Association.Hyderabad - Appellant
Versus
Mandal Revenue Officer, Musheerabad, hyderabad - Respondent
W.P.No.2813/89 etc.
Decided On : 08-14-92
Advocates Appeared :
Sri. E. Ayyapu Reddy, Sri. G.V.L. Narasimha Rao, Sri. I. Venkatanarayana, Sri. D. Sethurami Reddy

Headnote:AP AGRICULTURAL (Produce and Live Stock) MARKET ACT, 1966, Secs 2 (i) and 4 (iii) - "Agricultural Produce" and Market - Meaning of - Commission agents carrying on business of selling Betel leaves as commission agents of the growers in "Gyan Bagh" a Private Market, Hyderabad for which agricultural market committee not so far established nor notified as Market under the provisions of Act - No services rendered by Agricultural Market Committee for sale or purchased of Betel leaves - Market fees cannot be levied on the Betel leaves being sold in Gyan Bagh area

       HELD: No market has been established by the Hyderabad Agricultural Market Committee within the notified area of Hyderabad Urban and Hyderabad East Taluks for the sale or purchase of betel leaves and when no market has been established, question of providing facilities in the market does not arise When no service whatsoever is rendered by the Agricultural Market Committee by providing facilities in anyone of the market established by if for the sale or purchase of betel leaves, it cannot levy market fees Therefore, having regard to the various decisions referred to above and the provisions of the Act, the rules and byelaws made thereunder, it is held that the market fees cannot be levied on the betel leaves being sold in "Gyan Bagh" by the petitioners as commission agents of the growers till the statutory requirements under Section 4(3) of the relating to the establishment of a market Act in the notified area of Hyderabad Urban and Hyderabad East Taluks for sale or purchase of betel leaves and declaration of the notified market area under Section 4(4) of the Act are fulfilled

( 1 ) IN all these writ petitions, the power of the Agricultural Market Committee, hyderabad to levy and collect market fees from the petitioner herein, the commission agents who carry on business of selling betel leaves as commission agents of the growers in "gyan Bagh", Hyderabad, a private market owned by them is questioned.

( 2 ) THE members of the "pan Merchants Wholesale Commission Agents association, "hyderabad are licenced commission agents carrying on the trade of selling betel leaves on behalf of the growers in the private market "gyan bagh" situated in Sitarampet, Hyderabad. They plead that the private market "gyan Bagh" is owned by them, that they have been carrying on the trade in betel leaves as commission agents in that market from time immemorial and that no facilities whatsoever have been provided so far in that market by the agricultural Market Committee, Hyderabad. It is further stated that "gyan bagh" has not been so far established as a market proper under sub-section (3) of Section 4 of the Andhra Pradesh Agricultural (Produce and Livestock) Markets act, 1966 (for short the Act ).

( 3 ) IN exercise of the powers conferred by clause (i) of Section 2 of the Act, the state Government declared betel leaves to be agricultural produce for the purpose of the Act in G. O. Ms. No. 323 Food and Agriculture (Agri-IV) Department, dated February 15, 1968. "agricultural Produce" is defined in Section 2 (i ). It "means anything produced from land in the course of agriculture or horticulture and includes forest produce or any produce of like nature either processed or un-processed and declared by the Government by notification to be agricultural produce for the purposes of this Act. " The validity of the notification declaring betel leaves to be agricultural produce was upheld by this Court by the judgment dated October 20, 1975 in W. P. No. 5221 of 1973, which was filed by the petitioner herein.

( 4 ) IN exercise of the powers conferred by sub-section (3) of Section 3 of the act, the State Government declared in G. O. Ms. No. 2095 Food and Agriculture (Agri-IV) Department, dated October 29, 1968 the notified area consisting of all villages and area under Hyderabad Urban and Hyderabad East Taluks in respect of agricultural produce, livestock and products of livestock mentioned in Schedule II to the G. O. , including the betel leaves. Thereafter, Agricultural market Committee, Hyderabad has been constituted by the State Government for the said notified area.

( 5 ) IN exercise of the powers conferred by sub-section (4) of Section 4 of the act, the State Government declared by notification in G. O. Ms. No. 867 Food and agriculture (Agri-IV) Department, dated June 30,1971 the market area and the notified market area with reference to the market "hyderabad". This notification was amended by a subsequent notification issued by the State Government in g. O. Ms. No. 123 Food and Agriculture (Agri-IV) Department, dated February 12,1976, the relevant portion of which reads as follows:

Name of the Market Established Under Sec. 4 (3) (a) and (b)

Market Area

Notified Agricultural Produce, Livestock and Products of Livestock

Notified Market Area


Hyderabad

Area comprised Within the limits of Municipal Corporation of Hyderabad Excluding the Areas comprising of Chandraingutta And Shamsheer Gunj of Ward No. 18 of Municipal Corporation of Hyderabad.

All Agricultural Produce & Ghee as notified in G. O. Ms. No. 223 F&adt. l5-2-1968 and G. O. Ms. No. 1894 F & A dt. 10-9-1979.

15 kms. radius around the office of the Agricultural Market Committee, Hyderabad excluding the market area of Chandraingutta Market, within the notified area of the Market committee.


( 6 ) THE main, contention advanced by Sri. E. Ayyapu Reddy, the learned counsel for the petitioners is that in the notified area declared under sub-section (3) of Section 3, by the notification in G. O. Ms. No. 2095 Food and Agricultuion (Agri-IV) Department, dated October 29,1968 comprisi















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