PATNA HIGH COURT
N.P.Singh and Sachchidanand Jha JJ.
Syed Ajaj Ahmad
Versus
State Of Bihar
Civil Writ Jurisdiction Case No. 2749 of 1990 ;
Decided On : AUGUST 1,1990
BIHAR AGRICULTURAL PRODUCE MARKET ACT, 1960 - SECTION 31, 38 - SETTLEMENT OF HAT FOR COLLECTION OF MARKET FEE - PUBLIC AUCTION - DISPUTE REGARDING DATE OF AUCTION - ORDER FOR FRESH AUCTION - CHALLENGE TO ORDER - WRIT PETITION - JURISDICTION OF MANAGING DIRECTOR OF BOARD - POWER TO EXAMINE PROCEEDINGS OF MARKET COMMITTEE - STAY OF EXECUTION OF DECISION OR ORDER OF MARKET COMMITTEE.
Fact of the Case:
Petitioner challenged an order cancelling the settlement in his favor to collect market fee within a Hat, alleging that the auction was properly held and he was the highest bidder. Respondent No.6 claimed that the auction was not properly held and a fresh auction was ordered.
Finding of the Court:
The court found that there were disputed questions of fact regarding the date of auction and the execution of the agreement in favor of the petitioner. It also noted that the petitioner should have approached the Managing Director of the Board instead of invoking the writ jurisdiction of the court.
Issues: 1. Whether the auction was properly held and the petitioner was the highest bidder? 2. Whether the agreement in favor of the petitioner was validly executed? 3. Whether the petitioner should have approached the Managing Director of the Board instead of filing a writ petition?
Ratio Decidendi: The court held that the Managing Director of the Board had the power to examine the proceedings of the Market Committee and pass orders thereon, including a stay of execution of the decision or order of the Market Committee. It also held that the petitioner should have approached the Managing Director of the Board instead of filing a writ petition.
Final Decision: The court directed the Managing Director of the Board to examine the proceedings of the Market Committee and pass a reasoned order within one month, after giving an opportunity to the petitioner and respondent No.6. It also directed the petitioner to appear before the Managing Director of the Board on or before a specified date.
N. P. Singh, J.
1. This writ application has been filed on behaf of the petitioner for quashing an order dated 2-4-i 990 passed by the Assistant director, Marketing Board, Purnea (Respondent No.3), cancelling the settlement in favour of the petitioner to collect market fee within the bairgaohhi Hat in the district of Araria.
2. It appears that initially 7-3-1990 was fixed as the date for holding a public auction in respect of settlement of the aforesaid Hat for collection of market fee. That date was changed into 15-3-1990, according to petitioner. It is the, case of the petitioner that on that day an auction WAS held in which the petitioner was the highest bidder in respect of the aforesaid Hat. It is the stand of the petitioner that on that day five other Hats were also put on auction.
3. The petitioner having made the requisite deposit an agreement was executed on 20-3-1990. The Secretary, Agricultural Market Committee, araria, executed the said Agreement in favour of the petitioner. Later on application was filed by respondent No.6, Mohamad Khali Nadim before the Assistant Director, Agriculture Marketing Board on 8-4-1990 alleging that the auction was not properly held in respect of the Hat in question. He also stated in the said petition that 17-34990 had been fixed as the date for holding the auction but the auction was specially held on 15-3-1990 without information to persons concerned including the said respondent. On that very application, the Assistant Director passed an order saying that fresh auction be held for settlement of the Hat aforesaid,
4. We are informed that pursuant to the said order, public auction was held on 21-4-1990 in which, respondent No.5 being the highest bidder, order has been passed to make settlement in his favour on behalf of the petitioner. It has been stated that the public auction was held in respect of the Hat on 21-4-1990 inspite of the order of stay passed by the Chairman of the Bihar State Agriculture Marketing Board on 15-4-1990.
5. At the stage of admission itself, notice was issued to the concerned respondents including respondent No, 6. We are informed that a counter-affidavit has been served on the Counsel for the petitioner on behalf of respondent No.6 But neither any appearance is on the record of this case nor any such counter-affidavit has been field on behalf of respondent No.6. However, Mr. Manu Shankar Mishra has appeared for the Secretary, Marketing committee.
6. After hearing the Counsel for the parties and perusing the records of the case it appears that initially a printed notice had been issued in the name of Shri Prem Kant Jba. Sub-divisional Magistrate, who is the Chairman of the said Market Committee, fixing 7-3-1990 as the date of holding auction. That date was charged to 15-3-1990.17-3-1990 and 27-3-1990. According to petitioner, the auction in respect of the Hat in question was held on 15-3-1990, whereas, according to respondent No.6, it was held on 17-3-1990, as already stated above.
7. We also do not understand aa to how an agreement in favour of the petitioner was executed on 20-3-1990 when the settlemeat in favour of the petitioner was approved by the Assistant Director, Marketing Board, Purnea on 26-3-1990.
8. It has been rightly pointed out during bearing of this writ application that, in view of Sec.31 of the Bihar Agricultural Produce Market act, 1960 (hereinafter referred to 88 the Act), every contract required to be entered into by the Market Committee shall be in writing and signed on behalf of the Market Committee by the Chairman. Vice-Chairman and secretary of the Committee. Sub-section (2) of that section says that no contract other than a contract executed as provided in sub-section (i) shall be binding on the Market Committee. We do not understand as to how the agreement aforesaid was executed only by the Secretary which was approved by the Assistant Director, Bihar Agriculture Marketing Board.
9. Mr. Manu Shankar Mishra appearing for th
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