##PAGE1##

- 1 -

NC: 2026:KHC:17475 WP No. 6132 of 2026

HC-KAR

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 26^TH DAY OF MARCH, 2026

BEFORE THE HON'BLE MRS. JUSTICE K.S. HEMALEKHA

WRIT PETITION NO.6132 OF 2026 (APMC)

BETWEEN:

M/S. JANATHA TRADERS NO.20/1, 2^ND MAIN ROAD, MARKET YARD, YESHWANTHPURA,

BENGALURU-560 022, REPRESENTED BY ITS PROPRIETRIX, SMT. D. MAMATHA.

…PETITIONER (BY SMT. SHILPA RANI, ADVOCATE)

AND:

1. STATE OF KARNATAKA, REPRESENTED BY ITS PRL. SECRETARY, DEPARTMENT OF AGRICULTURAL MARKETING,

VIKASA SOUDHA, BENGALURU-560 001.

2. THE DIRECTOR OF AGRICULTURAL MARKETING, Digitally signed by NO.16/11, RAJABHAVANA ROAD, MAHALAKSHMI B M BENGALURU-560 001.

Location: HIGH COURT OF KARNATAKA 3. THE AGRICULTURAL PRODUCE MARKET COMMITTEE,

YESHWANTHPUR, TUMAKURU ROAD, BENGALURU-560 022 REPRESENTED BY ITS SECRETARY.

…RESPONDENTS (BY SMT. RASHMI RAO, HCGP FOR R-1 & R-2;

SRI NANDA KISHORE, ADVOCATE FOR R-3)

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE OFFICIAL MEMORANDUM DATED 13.02.2026 BEARING NO. KruHuMaSa(Bem)

##PAGE2##

- 2 -

NC: 2026:KHC:17475 WP No. 6132 of 2026

HC-KAR

NiYaVi/5113/2025-26 ISSUED BY THE RESPONDENT NO.3 AS PER ANNEXURE-D.

THIS PETITION COMING ON FOR ‘ORDERS’, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

CORAM: HON'BLE MRS. JUSTICE K.S. HEMALEKHA

ORAL ORDER

The petitioner has called in question the Official

Memorandum dated 13.02.2026 issued by respondent No. 3 - Agricultural Produce Market Committee (‘APMC’ for short), whereby the licence granted to the petitioner under the provisions of Karnataka Agricultural Produce Marketing (Regulation and Development) Act, 1966 (‘APMC Act’ for short) has been cancelled on the ground of repeated violations relating to payment of sale consideration to

farmers.

BRIEF FACTS

2. The petitioner is a licenced commission agent

under Section 73 of the APMC Act, operating in APMC market yard. It is the case of the respondents that multiple complaints were received from farmers alleging

##PAGE3##

- 3 -

NC: 2026:KHC:17475 WP No. 6132 of 2026

HC-KAR

delayed payment of sale consideration in respect of agricultural produce, particularly onions. Based on such complaints and verification of the records, the market committee, in its meeting dated 30.01.2026, resolved to cancel the licence and consequently issued the impugned Official Memorandum dated 13.02.2026. It is the case of the petitioner that the amounts were subsequently paid and the complaints for withdrawal by the farmers and

therefore, no further action could have been taken. 3. Learned counsel for the petitioner contends that,

(i) The impugned order is in violation of Section 73 sub-clause (4 ) of the APMC Act, which mandates that no licence shall be suspended or cancelled

without affording an opportunity to show cause.

(ii) No effective opportunity of hearing was provided

prior to passing of the impugned order.

##PAGE4##

- 4 -

NC: 2026:KHC:17475 WP No. 6132 of 2026

HC-KAR

(iii) The complaints relied upon by the respondents were subsequently withdrawn and the dues were

settled along with interest.

(iv) Once the grievances of the farmers stood resolved, the very basis of cancellation of licence

ceased to exist.

(v) The action of cancellation is disproportionate and arbitrary, offending Article 14 and 19 (1) (g) of the

Constitution.

4. Per contra, learned counsel for respondent No. 3

submits that,

(i) The petitioner is a habitual defaulter in making

timely payment to farmers.

(ii) Under Section 78 (2) sub-clause (c) of the Act, a commission agent is under a statutory obligation to remit the sale proceeds immediately after sale, irrespective of whether the payment is received from

the buyer.

##PAGE5##

- 5 -

NC: 2026:KHC:17475 WP No. 6132 of 2026

HC-KAR

(iii) The delays in the present case are substantial, extending up to several months thereby violating the

statutory mandate.

(iv) Subsequent payment or withdrawal of complaints do not cure the initial statutory violation as the

provisions are intended to protect far

Click Here to Read the rest of this document