ORDER :

G.R. Swaminathan, J.

1. A Division Bench of this Court vide order dated 30.11.2018 made in W.A. No. 2295 of 2018 etc., referred the following questions for determination by a Larger Bench:

"(i) Whether the provisions of the Tamil Nadu Specified Commodities Markets (Regulation of Location) Act, 1996, in particular, Section 21 authorise the authorities, namely, the Market Committee to lock and seal the premises which are otherwise in lawful occupation of the appellants and dispossess the persons who are otherwise in lawful occupation thereof for contravention of the provisions of the Act? and

(ii) Whether the determination of the factual question is as to whether the appellants are carrying on wholesale trade is left to the domain of the Market Committee or it should be preceded by a criminal prosecution as contemplated under Section 47 of the Act?"

Pursuant to the order of reference, the Hon'ble Chief Justice constituted this Full Bench for answering the same.

What led to the reference?

2. In George Town area in Chennai, wholesale trade in various commodities was carried on. Badrian Street was known for wholesale trade in flowers. Even the jurisdictional police station is known as Flower Bazaar Police Station. With rapid growth of population and commercial activities, the place became crowded leading to traffic congestion and gave rise to host of civic issues. Therefore, the Tamil Nadu Specified Commodities Markets (Regulation of Location) Act, 1996 (Tamil Nadu Act 24 of 1996) (hereinafter called as "the Act") was enacted to deal with the situation not only in Chennai but also in other parts of Tamil Nadu. Vide G.O (Ms) No. 523, Housing and Urban Development Department, dated 17.12.1996, the Government of Tamil Nadu notified Koymbedu Market Complex as the wholesale market area. George town which includes Badrian street became out of bounds for wholesale business in perishable items such as flowers. Though a number of wholesale merchants shifted to Koyambedu Market Complex, there were many who continued to do wholesale business in flowers in Badrian street. This led to institution of number of proceedings by both the parties. At the instance of the wholesale traders in flowers based at Koyambedu, the Commissioner of Corporation of Chennai initiated action in the year 2002, Earlier, they had filed WP No. 9633 of 1999 before the Madras High Court seeking direction for removal of shops put up by wholesale flower merchants in Badrian street. The matter was eventually dealt with by the Hon'ble Division Bench in W.A. No. 1990 of 2001. The Division Bench by order dated 04.10.2001 held that if a person is engaged in retail trade, he can continue to do so in George town area. But one cannot engage in wholesale trade in specified commodities such as flowers outside the Koyambedu market complex. If they did, action can be taken. Pursuant to the direction from the Hon'ble Division Bench, the Commissioner of Corporation of Chennai issued proceedings dated 18.01.2002 rejecting the request of Badrian street traders to continue to sell perishable items at Badrian street.

3. The said order was set aside in WP No. 1272 of 2002 on 14.11.2003 on the ground of violation of principles of natural justice. The Commissioner of Chennai Corporation was directed to hold enquiry and give a specific finding as to whether what is being carried on in Badrian street is retail business or wholesale business. The Koyambedu wholesalers filed WP No. 26053 of 2004 for directing the authorities to stop the wholesale trade in perishable goods in Chennai Metropolitan Area except in Koyambedu Wholesale Market Complex. The said writ petition was disposed of by directing the Chennai Metropolitan Development Authority (hereinafter called as "CMDA") to consider the representation made by the Koyambedu wholesalers. Thereupon, the Member-Secretary, CMDA issued order dated 07.10.2004 directing the Badrian street traders to stop wholesale trade in perishable items and shift to