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2009 Supreme(Bom) 1462

IN THE HIGH COURT OF BOMBAY
D. D. Sinha and Prasanna B. Varale, JJ.
SHIVRAM s/o SONBAJI GIRHIPUNJE and others Petitioners.
Versus
STATE OF MAHARASHTRA and others Respondents.
W. P. No. 4298 of 2008 decided on 30-9-2009. (Nagpur)

Advocates:
Advocate Appeared
For petitioners: A. M. Ghare
For respondent Nos. 1 to 3: N. W Sambre, Government Pleader
For respondent No.4: Subhash Paliwal
For caveator: C. S. Kaptan

Headnote:Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963 - Section 44 - Bifurcation of APMC - Writ petition challenging order of respondent-3, District Deputy Registrar under Section 44 of Act dividing APMC into two APMC’s - Contention, District Deputy Registrar violated provisions of Section 44 of Act, bifurcated APMC, r espondent-4 - Held - Proposal of bifurcation of APMC as per reports/communications not consistent with provisions of Section 44 of Act - Action of bifurcation taken by ignoring reports and communications issued by Authorities - Impugned order of District Deputy Registrar quashed and set aside - Petition allowed. - The perusal of the minutes of the meeting of the Marketing Board which had taken place on 15.9.2008, demonstrate that the State Marketing Board had taken into consideration the communications sent by the Assistant Registrar, Co-operative Societies as well as DDR and prima facie found that if the APMC, Lakhni is bifurcated into two in that event the expenditure would be more than the income which would be generated by the Market Committees. However, since the powers to take a decision of bifurcation are delegated to DDR, it is for him to consider these aspects as well as the decision of the High Court if any and to take a decision in this regard. The Minutes of State Marketing Board unfortunately demonstrate complete non-application of mind and whole consultative process was reduced to empty formality. The Marketing Board being a responsible body is required to be consulted for taking major decisions of amalgamation or bifurcation of APMCs in the larger interest of the farmers and, therefore, Court expects that such body should discharge their duties effectively so that the objectives of the provisions of the Act will be achieved. In the instant case, the Marketing Board did not give its opinion one way or the other except reproduce the opinion already expressed by the Assistant Registrar and the DDR and, therefore, the entire consultative process was a mere farce. However, the fact remains that the proposal of bifurcation of APMC as per the reports communications issued by Assistant Registrar as well DDR show that it was never economically viable proposition and, therefore, the said proposal, in Court’s view, was not consistent with the provisions of Section 44 of the Act.

       The respondent No. 2 - Director of Marketing, way back on 26.6.2008, informed the State Government that the bifurcation of APMC, Lakhni would not be financially viable proposition and same fact has been repeated by the Assistant Registrar Co-operative Societies on 26.8.2008, by DDR on 20.8.2008, by Divisional Joint Registrar, Co-operative Societies on 28.8.2008 and also reflected in the minutes of meeting of the State Marketing Board which was held on 15.9.2008, Court fails to understand on what basis the DDR can justify that the bifurcation of respondent No. 4-APMC is an action taken by him which is financially viable in the larger interest of the farmers. On the other hand, action of bifurcation is taken by ignoring the reports and the communications issued by the various authorities of Co-operative Department and in gross violation of provisions of Section 44 of the APMC Act and, therefore, in Court’s view cannot be sustained in law.

       For the reasons stated hereinabove, the order dated 22.9.2008 passed by the District Deputy Registrar, Bhandara under Section 44 of the Agricultural Produce Marketing (Development and Regulation) Act, 1963 is hereby quashed and set aside. Rule is made absolute in aforesaid terms. No order as to costs.

ORAL JUDGMENT

D. D. SINHA, J. :- Heard Shri A.M. Ghare, the learned Counsel for the petitioners, Shri N.W. Sambre, the learned GP for the respondent Nos. 1 to 3, the respondent Nos. 5 and 6 are Assistant Registrars, Co-operative Societies (at present discharging their duties as Administrators), Shri Subhash Paliwal, the learned Counsel for the respondent No.4 and Shri C. S. Kaptan, the learned Counsel for the caveator.

2. Rule, Rule is made returnable forthwith. Heard finally by consent of the parties. Shri N.W. Sambre, the learned Government Pleader waives notice on behalf of the respondent Nos. 1 to 3, Shri Subhash Paliwal, the learned Counsel waives notice .on behalf of the respondent No.4 and Shri C. S. Kaptan, the learned Counsel waives notice on behalf of the caveator.

3. The present writ petition is directed against the order dated 22nd September, 2008 passed by the respondent NO.3-District Deputy Registrar, Cooperative Societies, Bhandara under section 44 of the Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963 whereby APMC, Lakhni was divided into two APMCs i.e. APMC, Lakhni and APMC, Sakoli.

4. Shri A. M. Ghare, the learned Counsel for the petitioners has submitted that on 23-1-2001, the respondent No.3 issued notification under section 4 of the APMC Act whereby APMC of Lakhni is carved out and since then APMC Lakhni is in operation. On 28-12-2003, the term of the office of Board of Directors of APMC, Lakhni was expired. However, the respondent No. 1/State continued the said body by granting extension to the said Board from time to time on one reason or the other. On 8-4-2008, the Member of Legislative Assembly of the State of Maharashtra, Sakoli Constituency has given letter to the State Marketing Board for bifurcation of respondent No. 4-AMPC. On 17-62008, a meeting of the Executive Committee of the State Marketing Board was held and this aspect was discussed and it was noticed that there was no such proposal received by the Board regarding the bifurcation of the respondent No. 4 APMC. The office of the respondent Nos. 2 and 3 was requested to forward the proposal of bifurcation, if they so desire, to the office of the Board.

5. The learned Counsel for the petitioners further contended that on 22-7-2008, the respondent No.3 published election programme of APMC, Lakhni, and declared the election of the Board of Directors. Voting of the said election was scheduled on 21-9-2008. On 26-6-2008, the respondent No.2 informed the respondent No. 1/State that considering the income and expenditure of APMC, Lakhni, the proposal of bifurcation was neither feasible nor financially viable and election of the Board of Directors of AMPC, Lakhni be held.

6. The learned Counsel for the petitioners further contended that on 16-82008, the Assistant Registrar, Co-operative Societies, Lakhni, submitted the report to the respondent No.3 and gave details about the sale and purchase and other financial aspects of APMC, Lakhni and also gave his opinion that the bifurcation of respondent No. 4-APMC was not financially viable. It is contended that on 28-8-2008, the respondent No. 3-DDR, Bhandara sent a communication whereby the respondent No.2 was informed that bifurcation of respondent No. 4 APMC, Lakhni was not financially viable. Similarly, the Divisional Joint Registrar, Co-operative Societies, Nagpur, vide communication dated 26-8-2008 also informed respondent No.2 that bifurcation of respondent No. 4-APMC was not financially viable proposition.

7. Shri Ghare, the learned Counsel for the petitioners further contended that on 28-8-2008, the Ex Chairman of respondent No. 4-APMC and one of the Ex Directors, namely, Shri Vasant Shivankar and Shri Jagannath Rahagadale respectively filed Writ Petition No. 3755 of 2008 before this Court, challenging the publication of election programme of Board of Directors of respondent No. 4 APMC and prayed for stay of the election programme and/for appointment of Administrator till













































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