1. This order shall dispose of aforementioned bunch of two sets of Regular Second Appeals i.e. some filed by the defendants against the judgment and decree whereby the claim of interest on the amount of fee payable under the Punjab Rural Development Fund Act, 1987 was set aside (hereinafter referred to as the 'defendant - Market Committee') and some arising out of the judgment and decree, whereby the suits filed by the plaintiffs disputing the claim of interest on the amount of fee payable under the Rural Development Fund Act, 1987 were dismissed (hereinafter referred to as 'the plaintiff-dealers'). Since the issue in both the sets of appeals is common i.e. jurisdiction to claim interest on the amount of fee payable under the Punjab Rural Development Act, 1987, therefore, the same are taken up for hearing together. However, for the facility of reference, the facts are taken from RSA No. 2074 of 1999. Punjab Rural Development Act, 1987 (for short 'the Act') contemplates levy of fee with a view to accelerate rural development, augment agricultural production, to improve facilities to the dealers and purchasers of agricultural produce and to provide for relief for loss of agricultural produce due to natural calamities. Section 3 of the Act contemplates constitution of Punjab Rural Development Board, whereas Section 5 imposes levy on ad valorem basis in respect of agricultural produce, bought or sold in the notified market area. The relevant provisions as originally enacted read as under :

"3. Establishment of Board, its constitution, powers and duties - (1) The State Government may, by notification, for exercising powers conferred on and performing the functions and duties assigned to the Board by or under this Act, establish the Punjab Rural Development Board.

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5. Levy and collection of fee - (1) Subject to the rules made under this Act, there shall be levied for the purposes of this Act, a fee on ad valorem basis, at the rate of rupee one for every one hundred rupee, in respect of the agricultural produce, bought or sold or bought for processing in the notified market area;

Provided that except in case of agricultural produce brought for processing no fee shall be leviable in respect of any transaction in which delivery of the agricultural produce bought or sold is not actually made.

(2) The fee levied under sub-section (1) shall be paid by the dealer in such manner as may be prescribed and to such person or officer, as may be appointed or designated by the Board in this behalf;

Provided that the burden of the fee shall be passed on by the dealer by adding it to the purchase price recoverable by him from the next purchaser of the agricultural produce or the goods pressed or manufactured out of it.

(3) The arrears of fee levied under sub-section (1) shall be recoverable as arrears of land revenue."

2. However, the Act was amended vide Punjab Act No. 4 of 1994, when The Punjab Rural Development (Amendment) Act, 1993 (for short 'the amended Act') was enacted, whereby sub-section (2) was substituted, whereas sub-section (2-A) was inserted in Section 5 of the Act. Sub-section (2-A) of Section 5 of the Act reads as under :

"(2-A) If any dealer fails to pay the amount of the fee levied under subsection (1), he shall, in addition to the amount of fee be liable to pay interest on the amount of fee due from him at the rate of eighteen per cent per annum from the date of default."

3. The levy of fee under the Act was challenged by the dealers before this Court by way of writ petitions. The said writ petitions were dismissed by this Court on 09.03.1990 in a judgment reported as M/s. Subbhash Chander Kamlesh Kumar v. State of Punjab & others, 1990(2) R.R.R. 227 : AIR 1990 Punjab and Haryana 259 (F.B.). Thereafter, the Collector, Sangrur passed an order for recovery of the amount of fee as arrears of land revenue. Aggrieved against the said order, the plaintiff-dealer filed a civil suit against the State of Punjab and the Assist