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1992 Supreme(Pat) 112

PATNA HIGH COURT
B.C.Basak and Aftab Alam JJ.
Delhi Cloth And General Mills, Co.Ltd
Versus
Agricultural Produce Market Committee
Civil Writ Jurisdiction Case No. 432 of 1983 ;
Decided On : MARCH 30, 1992

Judgment

B.C.BASAK, J.

1. :-

These series of 28 writ petitions involve similar facts and common questions of law so far as the main submissions are concerned and for this reason they have been heard together and are being disposed of by this common judgment. In some of these writ petitions some additional points are urged which were special to them. These writ petitions relate to the following "agricultural produce", namely, (1) Wheat and wheat products e.g., Atta, Maida, Suji and bran, (ii) oil seeds, edible oil mustard oil, (iii) sugar and (iv) Vanaspati.

2

(a) C.W.J.C. Nos. 3920/85, 1201/86, 3930/86, 1222/87, 1228/87, 1272/87, 1273/87, 1333/87, 1926/87, 3810/87, 4278/87, 4289/87, 5831/87, 2354/88, 3863/88, 4497/88, 4623/88, 4803/88, 7912/88, 8705/88 and 5187/89. Excepting in CWJC 3920/85 all these applications are at the instance of flour mills which have been set up either by a Company incorporated under the Companies Act or by a partnership firm. They carry on the business of manufacturing different products, namely, Atta, Maida, Suji etc. (b) CWJC Nos. 3920/85, 5974/88, 7502/88, 7508/88 and 7510/88. Three of these applications (CWJC Nos. 7502/88, 7508/88 and 7510/88) are on behalf of several partnership firms manufacturing edible oil from oil seeds. CWJC Nos. 3920/85, 3920/85 and 5974/88 are on behalf of either proprietary firm or a partnership firm carrying on wholesale business in edible oil/mustard oil. (c) CWJC Nos. 432/83, 3914/85 and 5159/87. These three petitions concern Vanaspati. In this group of three, the first two are on behalf of the petitioners who are manufacturers of this commodity. In the third case of this group, the petitioner is a proprietary concern, carrying on business in Vanaspati. (d) CWJC Nos. 3920/85 and 5974/88. These two petitions are at the instance of the petitioners carrying on business in sugar.

3. These cases arise out of the enforcement of the provisions of the Bihar Agricultural Produce Markets Act, 1960 (hereinafter referred to as the State Act) which is challenged in these proceedings. Before we deal with the respective contentions raised in support of these petitions, it would be fit and proper if we set out the relevant provisions relating to the State Act and some Central Acts, viz. the Industries (Development and Regulation) Act, 1951 (hereinafter referred to a the IDR Act), the Essential Commodities Act, 1955 (hereinafter referred to as the E. C. Act), the National Oilseeds and Vegetable Oils Development Board Act, 1983 (hereinafter referred to as the "NOSVODB Act) and the Vegetable Oils Cess Act, 1983. A. The State Act Statement of Objects and Reasons

"The importance of properly organised markets of agricultural and allied commodities, though long recognised, has once again been emphasised by the Planning Commission. They have recommended that all the States which have not done so should review the present position and draw up suitable programmes for regulating all important wholesale markets during the Second Plan. The need for legislation for regulating markets is all the greater in Bihar where the agriculturists have to depend in a large measure on the mercy of middlemen to whom they are obliged to sell their produce as soon as the harvesting season is over. The Arhatiyas and wholesale buyers enter into a secret understanding to exploit the unwary agriculturists and they prevent him from having correct information as to the current sale prices of agricultural produce with the result that the agriculturist seldom gets a fair share of the price paid by the consumer for his produce. The main object of having regulated markets is to secure to the cultivator better prices, fair weightment and freedom from illegal deductions. A fair deal for his produce is a good incentive for an agriculturist to adopt improved agricultural programme. The question of regulation of markets was first taken up in Bihar in 1939. A Bill called the Bihar Market and Dealers Bill, 1939 was introduced in th
















































































































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