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2018 Supreme(Bom) 61

IN THE HIGH COURT OF JUDICATURE AT BOMBAY BENCH AT AURANGABAD
T.V. NALAWADE, S.K. KOTWAL, JJ.
The Divisional Manager, Jalgaon Division, The Maharashtra State Co-operative Cotton Growers' Marketing Federation Ltd. & Another – Appellant
Versus
The Agricultural Produce Market Committee, Jalgaon, Through its Secretary & Another – Respondents
Letters Patent Appeal No. 37 of 2008 in Writ Petition No. 3235 of 2007
Decided On : 11-01-2018

Advocates Appeared:
For the Appellant :Shivaji T. Shelke, Advocate.
For the Respondent:G.V. Wani, Advocate, S.B. Pulkundwar, Assistant Government Pleader.

Headnote:

Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 196 - Section 31(1) - Appellant to challenge order - Market fees and supervision fees - Appellant is Chief Agent of State Government an institution created for procurement of raw cotton - Institution is created to implement scheme of State Government and through appellant State Government purchases raw cotton from market - Object behind scheme was to see that farmers of this State are not exploited and they get reasonable price of cotton - Government also wanted to see that farmers get minimum support price due to such purchase by agent of State Government - Agricultural Produce Market Committee is created under APMC Act - Committee has power to levy and collect fees from every purchaser of agricultural produce marketed in market area - Appellant was expected to purchase cotton in market area of Market Committee - As per provision of APMC Act purchaser is required to make payment of cases fees to Market Committee and for purchasing raw cotton from market appellant was expected to pay fees to Market Committee - Held, learned Single Judge of this Court has considered provision of section 31 of APMC Act - learned Single Judge has held that bye-laws were framed by Market Committee on basis of previous notification and so as per bye-laws the present appellant was liable to pay fees - Section 31 has put restriction on power of Market Committee to levy and recover fees and so Market Committee cannot recover fees at higher rate on the basis of notification which was issued for previous year - Provision of section 31 shows that the power is kept with the State Government to fix the fees and that power includes the power to change fees also - In view of the restriction given by section of APMC Act it was not possible for the Market Committee to recover the fees at higher rate - As per practice also State Government was issuing notification for every year season - Appeal is allowed.

JUDGMENT :

T.V. Talawade, J.

1. The appeal is filed against the decision given by the learned Single Judge of this Court by which Writ Petition No.3235/2007 is dismissed. The writ petition was filed by the present appellant to challenge the order dated 9-5-2007 passed by the Tribunal constituted under the provisions of the Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963 (for short, "the APMC Act"). Application No.1/2007 was filed before the Tribunal by respondent No.1, Market Committee, Jalgaon and it was allowed by the Tribunal. Present appellant was directed by the Tribunal to pay Rs.49,78,656/- as market fees and supervision fees to the Market Committee, respondent No.1. Both the sides are heard.

2. The appellant is the Chief Agent of the State Government, an institution created for procurement of raw cotton. The institution is created to implement the scheme of the State Government and through the appellant, the State Government purchases raw cotton from market. The object behind the scheme was to see that the farmers of this State are not exploited and they get reasonable price of cotton. The Government also wanted to see that the farmers get minimum support price due to such purchase by the agent of the State Government.

3. Agricultural Produce Market Committee Jalgaon is created under the APMC Act. The Committee has the power to levy and collect fees from every purchaser of agricultural produce marketed in the market area. The appellant was expected to purchase the cotton in the market area of the Market Committee Jalgaon. As per the provision of the APMC Act, the purchaser is required to make payment of cess, fees to the Market Committee and for purchasing the raw cotton from market the appellant was expected to pay fees to the Market Committee, Jalgaon.

4. In view of the provisions of Section 31 of the APMC Act, the minimum and maximum fees can be fixed by the State Government by issuing notification in the official gazette. As per this provision, the Market Committee can levy and recover the fees within the limits fixed by the State Government. The provision of section 31(1) of the APMC Act runs as under:

"31 - Power of Market Committee to levy fees and rates of commission (adat) :

(1) It shall be competent to a market committee to levy and collect fees in the prescribed manner at such rates as may be decided by it (but subject to the minimum and maximum rates which may be fixed by the State Government by notification in the Official Gazette, in that behalf), from every purchaser of agricultural produce marketed in the market area."

5. Every year the State Government was issuing notification as per section 31 of the APMC Act to fix the fees in respect of raw cotton. By notification dated 10-11- 2003 the State Government had informed the decision that for the year 2003-2004 the fees was increased from 50 paisa per hundred rupees to Re. 1 per hundred rupees. Direction was given to the appellant to start purchasing the cotton in that notification from 10-11-2003. Thus, for the year 2003-2004 the State Government had allowed to levy fees of Re.1 per hundred rupees of the purchase price. As per the definition given in section 2(f) of the Maharashtra Raw Cotton (Procurement, Processing and Marketing) Act, 1971, "cotton season" means the period from the 1st day of July of any year to the 30th day of June of the next year (both days inclusive). As per the practice, the appellant was to start purchase of the cotton only after receiving direction from the State Government.

6. For the year 2004-2005 the State Government issued notification on 21-9-2005 and fixed the aforesaid fees as 50 paise per hundred rupees. The appellant paid the fees to the Market Committee Jalgaon at this rate for the year 2004-2005.

7. In the meeting dated 11-11-2004 the Market Committee Jalgaon had passed resolution to levy and recover the fees at the rate of Re.1 per hundred rupees in view of the previous notification of the ye




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