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1965 Supreme(Raj) 250

DAVE, KAN SINGH
Bhanwarlal Sohanlal – Appellant
Versus
State – Respondent


Advocates Appeared:
M.B.L. Bhargava, G.M. Lodha, C.M. Lodha, M. Mridul, B. Arora, R.S. Khejriwal, Bajranglal, Ram Bilas and, J.K. Jain, for Petitioners; G.C. Kasliwal, Advocate General, M.M. Vyas, Govt. Advocate, Sampatraj Singhvi, R.N. Surolia, R. N. Bishnoi, R. R. Vyas and

Judgement Key Points

Certainly. Based on the provided legal document, here are the key points summarized:

  1. Delegation of Power: The law grants the State Government discretion in selecting specific areas and agricultural produce for regulation. This discretion is guided by the purpose of the Act and is not unbridled or arbitrary, as the Government is best positioned to make detailed inquiries and decisions [Para 13].

  2. Purpose of the Act: The primary aim is to improve facilities for marketing agricultural produce, not to generate revenue. The fees or charges imposed are correlated with services rendered and are not intended as a source of revenue, thus qualifying them as proper fees rather than taxes [Paras 16, 21].

  3. Power to Fix Fees and Cess: The Act authorizes the fixation of fees and cess, but these must be connected to specific services or purposes. Fees are to be prescribed within maxima set by the Government, ensuring they are not excessive and maintain the essential feature of a fee [Paras 16, 21].

  4. Definition and Scope of "Agricultural Produce": The term includes all relevant produce, and any inclusion beyond this scope must be connected to the purpose of the Act. The law’s provisions are to be applied in accordance with the underlying objectives, and unconnected items may be struck down [Paras 11, 17].

  5. Rules and Regulations: Rules made under the Act come into force immediately but must be laid before the Legislative Assembly for a specified period. Non-compliance with this requirement does not automatically invalidate the rules, but the Government is directed to place them before the Assembly to uphold democratic accountability [Paras 24-25, 17019660710018-17019660710024].

  6. Validity of Licensing and Licensing Rules: The rules concerning licensing of traders, brokers, weighmen, and other operators are generally within the authority of the law. However, rules that go beyond the powers conferred—such as those regulating licenses in areas rather than markets, or those imposing restrictions based on participation in strikes—are invalid [Paras 70-74, 17019660710070-17019660710077].

  7. Discrimination and Fairness: The law provides for reasonable distinctions, such as consultation requirements for municipalities but not for other local bodies, which are justified by the different contexts and existing market structures. Such distinctions are not deemed unconstitutional [Paras 131-132].

  8. Prohibition of Unauthorized Levy: The law restricts the levying of cess or fees to those authorized by the Act. Any levy beyond what is prescribed—such as unauthorized cess—is invalid and cannot be enforced [Paras 37-38, 17019660710036].

  9. Effect of Non-Compliance: Rules that are not laid before the Legislature as mandated do not automatically become invalid but are considered bad in law. The Court emphasizes the importance of transparency and legislative oversight, directing the Government to place the rules before the Assembly in future sessions [Paras 24-25, 17019660710018-17019660710024].

  10. Overall Conclusion: The Court upheld the validity of most provisions but struck down certain rules that exceeded the powers conferred by the Act, such as those related to licensing in areas and the levy of cess without statutory authority. The Court also restrained authorities from enforcing rules that were invalid or not properly laid before the Legislature [Paras 138-139].

Please let me know if you need further elaboration or specific legal advice based on these points.


KAN SINGH, J.—This bunch of 185 writ petitions before us raises identical questions about the vires of some provisions of the Rajasthan Agricultural Produce Markets Act, 1961 (Act No. 38 of 1961), hereinafter to be referred as the "Act", and of the rules and bye-laws made thereunder, and therefore it can conveniently be disposed of together.

2. The Act was passed by the Rajasthan State Legislature and came into force on 24.11.61, when it was first published in the Rajasthan Gazette. In exercise of its powers under sec. 36 of the Act, the State Government made the Rajasthan Agricultural Produce Markets Rules, 1963, hereinafter to be referred as the Rules which came into force on 6.2.64, on being published in the Gazette. The bye-laws were made by the various market committees in exercise of their powers under sec. 37 of the Act. In 1964, one Bhikamchand and other traders questioned the validity of the Act, the rules and the bye-laws by 9 writ petitions various grounds, such as, that the Act was unconstitutional being in contravention of the fundamental rights of the traders under Art.19 (1) (g) of the Constitution, that the notifications that were issued by the Government under sec.











































































































































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