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2012 Supreme(Bom) 893

In the High Court of Bombay at Nagpur
B.P. DHARMADHIKARI & A.P. BHANGALE
Shree Shyambaba Cotton Company
Versus
Agricultural Produce Market & Others
WRIT PETITION NO.1681 OF 2012
Decided On : 27-04-2012

Advocates:
Advocate Appeared:
For the Applicants:R.S. Parsodkar, Advocate.
For the Respondent:R1. N.R. Patil, Advocate. R2 & R3. T.H. Khan, A.G.P.

Headnote:MAHARASHTRA AGRICULTURAL LANDS ACT, 1964 - Section 7 - Requirement for grant of licence. Applicant, seeking licence, required to prefer an application in prescribed format accompanied with prescribed fees in accordance with Rules and Bye-Laws framed under Act.

       MAHARASHTRA AGRICULTURAL LANDS ACT, 1964 - Section 7, Proviso - "Deemed licence". Omission to avail of prescribed procedure under Act, disentitle petitioner to claim "deemed licence". Petitioner never made any sincere and appropriate application in the prescribed format accompanied with fees and information, as required in the prescribed format and as essential under the Act and Rules framed thereunder nor supplied the documents as required by the APMC under the Rules.

       The proviso of the "deemed license", would not come into play unless it is shown that the petitioner had submitted the appropriate application in prescribed format accompanied with the fees and necessary information furnished as to his solvency, cash security, good conduct Certificate etc. as required by law. Omission to avail of the prescribed procedure disentitles the petitioner to claim "deemed license".

       MAHARASHTRA AGRICULTURAL LANDS ACT, 1964 - Section 7, Proviso - Grant of licence. Since Agricultural Produce Marketing Committee required to take decision about licence within a period of 60 days hence if no action is taken, it must be construed as "deemed licence".

Judgment :-

A.P. Bhangale, J.

1. Rule. Taken up for final hearing by consent. Heard submissions at the bar.

2. By this Petition, the petitioner claims that the petitioner-company is deemed to have secured license for the purposes of purchasing cotton for processing of pressing & ginning under Section 7(1) of the Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963 and has prayed to quash and set aside the seizure notice dated 17/03/2012 issued by respondent no.1/Market Committee.

3. The facts, briefly stated, are thus :-

That the Petitioner, a businessman and proprietor of Shree Shyam Baba Cotton Company, had purchased the land Gat No.286/3, admeasuring 2.25 acres situated at Karambhad in taluka Parseoni, District Nagpur with a view to establish Cotton Ginning and Pressing Factory. The Shed was constructed in the month of November/December, 2011 to establish the Cotton Ginning and Pressing Factory at the cost of Rs.4 crores. On or about 28/09/2011, the petitioner applied for license to purchase Cotton. We have perused the communication dated 28/09/2011 addressed to the Chairman from Shree Shyam Baba Cotton Co., Saoner. The petitioner addressed thus -

Marathi letter dated 28/09/2011 is reproduced below :

“HINDI”.

The above letter is translated in English thus :

Date: 28/9/2011.

Hon'ble Chairman Saheb,

Krishi Utpanna Bazar Samitee,

Parseoni.

Subject :- In respect of cotton purchase permission & getting of license .

Applicant :- Shree Shyam Baba Cotton Company, Naik Layout, Saoner, District Nagpur

Respected Sir,

With reference to the above subject, application is presented that my own Gin factory is situated at Khasra no. 283/3 at Karambhad. Application is submitted to purchase cotton and for license of cotton at the land at Karambhad. Terms and conditions for the license shall be approved.

Yours Sd/- Signature

4. Prima facie, the above communication appears to be a mere casual, vague or flippant communication in the form of a letter and not with a sincere application of mind for grant of license in obedience to law. It can not be considered in the prescribed format in accordance with the relevant provisions of the Act, Rules and bye-laws. The letter do not refer to any resolute declaration as to solvency of the applicant, details of cash security, license fees required to be tendered and the essential declaration as to commodity to be traded. The letter do not specify the market area - to be specific in the said ginning and pressing factory, as required under the Provisions of the Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963 (Mah. Act XX of 1964) (hereinafter referred as “ the Act”), which came into force with effect from 25/05/1967. The Authorities under the Act are obliged to act upon application if it is complete in all necessary particulars. Section 6 makes it obligatory for any person to comply with the terms and conditions of the license as prescribed by the Market Committee as to use of specific place in the market area for marketing of the declared agricultural produce. Terms and condition may vary according to the status of the licensee in the capacity as a trader, commission agent, broker, processor, warehouseman etc. Making the Application for grant of a license is not an empty formality as the Market Committee is required to decide the application by making a lawful inquiry resulting in a reasoned and written decision to grant, refuse or renew the license as contemplated under Section 7 of the Act. The petitioner also claimed that he had communicated by reminder letters dated 02/12/2011, 08/12/2011 and 26/12/2011 and requested for immediate License. According to the petitioner, the District Deputy Registrar, Co-operative Societies also issued a communication dated 28/12/2012 to the Chairman of APMC for grant of license to the petitioner.

5. Further, according to the petitioner, the APMC did not take any action on the letters sent from the petitioners fo












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