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1992 Supreme(Pat) 176

PATNA HIGH COURT
S.B.Sinha, J.
Swagat Stores
Versus
State Of Bihar
Civil Writ Jurisdiction Case No. 1423 of 1992 ;
Decided On : MAY 9, 1992

Headnote:Bihar Agricultural Produce Markets Act, 1960, Sections 3, 4, 5 (2), 9 & 39 - Scope and object of the Act - the Act was enacted for better regulation of buying and selling agricultural produce in the State - sub sec. (1) of sec. 4 provides for declaration of market area and sec. 5 provides for declaration of market yards - constitution of second and subsequent market committee is governed by sec. 9 and sec. 37 empowers the Board to make arrangement for duties and functions of the market Committee - power u/s 37 can be exercised when a Committee is in existence - in absence of the Committee the Board had no power to issue notification u/s 4 - the petitioners who are licensed traders, after issuance of notification u/s 5 (2) can not carryon any business at a place other than the principal maker yard - however in absence of the market Committee the petitioners could not be directed to shift their places of business - 1991 (1) PLJR 446 rel. on, 1990 PLJR 32 (SC). AIR 1962 SC 1517, AIR 1980 SC 1124 ref (Paras 9, 18, 19, 20, 22, 24 & 25)

       Bihar Agricultural Produce Markets Act, 1960 Sec. 15 & Rule 94 - upper limit of quantum on sale in second schedule appended to the rule - validity of - Sec. 15 puts a complete embargo on carrying on trade other place than the principal market yard or sub-market yard subject to exemption - Sec 15 (1) and rule 94 postulate grant of exemption in terms of quantity of the agricultural produce and not in terms of monetary value - portion of the rule containing the words "or Rs. 1000/- which ever is less" is ultravires sec. 15 (1) of the Act - 1991 (1) PLJR 446, AIR 1962 SC 1517, 1976 BBCJ 453, ref. (Paras, 7, 10, 11 & 13)

       Bihar Agricultural Produce Markets Act, 1960, Sec. 2 (w) Rule 94 and Bihar Trade Articles (Licences Verification) order, 1984, clauses 2 (p), 2 (R) & 9 & 10 - quantity prescribed for retail sale are different than mentioned in the second schedule - the Act and Essential Commodities Act operate in different fields and the definition of traders is different than whole sale trader and retail trader of the unification order - provisions of the Act is not repugnant to any order made under Essential Commodity Act - although there may not be power to make corrections in the sites of business in the licences in terms of clause 9 but such direction is permissible under condition no 10 of the licence - such a residuary power has been preserved for its exercise in appropriate cases and licensing authority can exercise power under clause 10 - 1988 PLJR 830, 1976 BBCJ 453, 1979 BLJR 560, 1990 PLJR 32 (SC) ref. (Paras 14, 15, 16, 20, 14 & 25)

       

Judgment

S.B.SINHA, J.

1. The petitioners, who are said to be retail traders and carry on business in the town of Gaya, in this writ application, have questioned the legality and/or validity of the directions which are contained in memo No. 226/C, dated 19/01/1992, as contained in Annexure 1 series to the writ application, whereby they have been directed by respondent No. 2 to shift their place of business to the market yard at Chandauti, as also the letter dated 7-2-1992, issued by respondent No. 3, as contained in Annexure 2 series to the writ application, whereby the petitioners have been asked to get the shops allotted in the name of the aforesaid market yard, as also sought for declaration that the provisions of Bihar Agricultural Produce Market Act, 1960 (hereinafter referred to as the said Act have no application in relation to the retail dealers and Schedule II of the Bihar Agricultural Produce Markets Rules, 1975 (hereinafter referred to as the said Rules) and/or R. 94 thereof are ultra vires S. 15(1) of the said Act as also Arts. 14, 19(1)(g) and 265 of the Constitution of India.

2. According to the petitioners, they hold retail licences under the Bihar Trade Articles (Licences Unification) Order, 1984, and deal with food grains etc. The town of Gaya being a Class B town the retail dealers in terms of the provisions of the said Order are entitled to hold stock of different commodities in the following manner : Foodgrains- 100 quintals. Edible Oilseeds- 150 quintals. Edible Oil- 15 quintals. Sugar- 5 quintals. Khandsari- 5 quintals. The petitioners by reason of the impugned orders have been directed to shift their respective places of business in the newly constructed market yard by the respondent No. 2 and have further been directed by respondent No. 3 to get shops allotted in their favour failing which it has been threatened that legal action would be taken against them and their respective licences would be cancelled.

3. The petitioners have, inter alia, contended that the respondents 2 and 3 are not the authorities and have no role to play in the matter of enforcement of the provisions of the said Act and the Rules framed thereunder and, as such, the impugned orders, as contained in Annexure 1 series and Annexure 2 are wholly illegal and without jurisdiction. It has further been contended that at present no agricultural produce market committee exists and in that view of the matter too, the direction of the respondents as contained in Annexure 1 series and Annexure 2 series must be held to be illegal and without jurisdiction.

4. In this case a counter affidavit and a supplementary counter affidavit have been filed on behalf of the respondent-market committee. In the said counter affidavit it has been asserted that the State of Bihar in exercise of its power conferred upon it under S. 37 of the said Act has appointed Shri K. K. Pathak, Deputy Development Commissioner, Gaya, to exercise all the powers and carry out all functions of the Market Committee and its sub-committees by a Notification dated 20/11/1991, as contained in Annexure A to the counter affidavit. It has been further asserted that by a Notification dated 31-12-86. Chandauti within Gaya Market Area has been declared to be the principal market yard in respect of food grains, pulses, oil seeds and edible oils. It has been further asserted that the petitioners have been granted licences under the provisions of the said Act and in terms of Cl. II thereof, they are bound to carry out all instructions as may be given by the authorities under the said Act from time to time. It has further been contended that all facilities have been provided in the principal market yard, Gaya, and the petitioners are under a legal obligation to shift their places of business in the newly constructed principal market yard.

5. Mr. Tara Kant Jha, learned counsel appearing on behalf of the petitioners has principally raised three contentions in support of this application. The lea







































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