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1987 Supreme(Pat) 274

PATNA HIGH COURT
S.B.Sinha and . JJ.
Kailash Roller Flour Mills
Versus
State Of Bihar
Civil Writ Jurisdiction Case No. 407 of 1983 ;
Decided On : AUGUST 26, 1987

A statutory authority, statutorily enjoined to discharge its function, must act within the four corners of the statute. If a person who associates himself in deliberations with some persons while discharging some statutory functions is incapable of doing so in terms of the provisions of the statute or otherwise, the decision of the entire body becomes vitiated.

Headnote:

BIHAR AGRICULTURAL PRODUCE MARKET ACT, 1960 - SEC. 9(5), 18, 19, 27, 27-A - VALIDITY OF ORDER OF ASSESSMENT - ORDER PASSED BY SPECIAL OFFICER AND SECRETARY OF MARKET COMMITTEE - HELD: ORDER IS INVALID AS SPECIAL OFFICER CANNOT ASSOCIATE WITH ANY OTHER PERSON WHILE DISCHARGING STATUTORY FUNCTIONS.

Fact of the Case:

The petitioners challenged an order of assessment dated 5/2/1983 passed by the Special Officer and Secretary of the Market Committee under Sec. 27-A of the Bihar Agricultural Produce Market Act, 1960 (the Act), assessing them for a sum of Rs.2,98,674.85 as market fee for Ata, Sujji, and Maida for the period 1-4-1981 to 30-9-1981. The petitioners contended that the order was invalid as it was passed by the Special Officer along with the Secretary of the Market Committee, which was not permissible under the Act.

Finding of the Court:

The court held that the order of assessment was invalid as the Special Officer, who was appointed by the State Government to perform the functions of the Market Committee under Sec. 9(5) of the Act, could not associate with any other person while discharging such functions. The court relied on the provisions of Sec. 9(5) of the Act, which clearly indicated that the authority nominated by the State Government would exercise all the powers and perform all the duties of the Market Committee under the Act and the rules framed thereunder.

Issues: Whether the order of assessment passed by the Special Officer and Secretary of the Market Committee was valid.

Ratio Decidendi: The court held that a statutory authority, statutorily enjoined to discharge its function, must act within the four corners of the statute. In the instant case, the Special Officer was the only person authorized to perform the functions of the Market Committee and its sub-committees, and he could not associate with any other person for discharging such functions. The court also held that if a person who associates himself in deliberations with some persons while discharging some statutory functions is incapable of doing so in terms of the provisions of the statute or otherwise, the decision of the entire body becomes vitiated.

Final Decision: The court allowed the writ petition and quashed the order of assessment. However, it observed that the Market Committee must have been reconstituted by now and the assessment sub-committee constituted in terms of Sec. 27-A of the Act. The court also held that the assessment sub-committee would be entitled to reopen the order of assessment, subject to the condition that the petitioners would be entitled to raise all other objections in relation thereto.

Judgment

S. B. Sinha, J.

1. This writ petition is directed against an order of assessments dated 5/2/1983 as contained in Annexure-4 to the writ petition which was made in terms of the provisions of Sec.27-A of the Bihar Agricultural Produce market Act, 1960 (hereinafter referred to as the Act ).

2. By reason of the aforementioned order of the assessment the petitioner have been assessed for a sum of Rs.2,98,674.85 by way of market fee in respect of Ata, Sujji and Maida for the period 1-4-1981 to 30-9-1981. Although, in the writ petition, many points have been raised for the purpose of showing that the petitioners are not liable to pay the market fee on Ata, Sujji and Maida under the provisions of the aforementioned Act, at the time of hearing of this application Mr. G. C. Bharuka, the learned counsel appearing on behalf of the petitioners confined his submission only to the validity of the order of assessment on the ground that the same has been passed by the Special Officer in his capacity as an administrator alongwith the secretary of the Market Committee.

3. In this connection he drew my attention to the provisions of Sec.9 (5) of the Act. By reason of the provisions of the said Act, on the expiry of the term of three years of the Committee if an election is not held within the period of six months thereafter the Committee constituted shall be deemed to be dissolved and its duties and functions shall be performed by such person nominated as such by the State Government. On perusal of the order of assessment itself it would appear that the order of assessment has been signed by the Special Officer who was appointed by the State Government in terms of the aforementioned provisions of Sec.9 (5) of the aforementioned Act alongwith the Secretary of the market Committee.

4. From a perusal of the aformentioned provisions of section 9 (5) of the act it would further be evident that the same clearly indicates that the authority nominated by the State of Bihar will exercise all the powers and perform all such duties of the Market Committee under the said Act and the rules firmed thereunder. The powers of the Market Committee, admittedly are prescribed under section 18 of the aforementioned Act. In terms of Sec.19 of the Act, the market committee is empowered to appoint amongst its member a sub-committee and is further empowered to delegate such of its power and duties as it may think fit in favour of such committee.

5. A sub-committee, in terms of Sec.27-A of the Act, is constituted for the purpose of making an assessment with regard to the liablity of a trader relatating to the payment of fee leviable in terms of Sec.27 thereof on the basis of the return furnished by him or otherwise.

6. There is no doubt that in law when a statutory functionary is enjoined with the duties and functions are to be performed by him under a statute, the same is required to be done in the manner laid down in the statute or not at all. The market committee which includes the duties and function of it is also well settled principles of law that statutory authority, statutorily enjoined to discharge its function must act within the four corners of the said statute.

7. By reason of Sec.9 (5) of the Act, the duties and the functions of all such sub committees which may be constituted in terms of the provisions of the Act and as referred to hereinbefore have to be performed by such authority who is appointed as such by the State Government in terms of the provisions of section 9 (5) of the said Act. Such functions of the market committee/or any of the sub-committee, therefore, have to be performed only by the person so appointed by the State Goverment and not by any other persons. Even while discharging such a function a statutory authority is not, in may opinion, entitled to have the advice and to receive recommendetions of any person who does not have such function to perform under the provisions of such statute.

8. Tn the instant case, evidently only the S





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