Only licensed auctioneers and dealers may conduct primary sales of cardamom; secondary trading is permitted if not explicitly prohibited by law.

COMMON JUDGMENT

(By G.R.SWAMINATHAN, J.)

These writ appeals are directed against the order dated 28.04.2025 made in W.P.(MD)Nos.27727 and 26544 of 2024.

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2.The writ petitioners are licensed auctioneers of Spices Board. They filed the aforesaid writ petitions to direct the Board to forbear Vandamedu Spices Trading LLP, Kerala Cardamom Trading Company and other persons from conducting private on-line e-auction of cardamom produces. The learned Single Judge after examining the relevant provisions of the Spices Board Act, 1986 and the rules framed thereunder allowed the writ petition. As a result, the appellants herein and other private entities came to be prohibited from conducting e-auctions privately in cardamom produces in future in any manner. Secondary sales of cardamom after having procured from licensed dealers also stood banned. Assailing the said order, this writ appeal has been filed.

3.The learned Senior Counsel appearing for the appellants reiterated all the contentions set out in the memorandum of grounds and called upon this Court to set aside the order of the learned Single Judge and grant relief as prayed for.

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4.Per contra, the learned counsel for the contesting respondents submitted that the order of the learned Single Judge is well reasoned and that it does not call for interference.

5.We carefully considered the rival contentions and went through the materials on record. The Spices Board Act, 1986 is the statute governing the field. This Act provides for constitution of a Board for the development of export of spices and for the control of cardamom industry including the control of cultivation of cardamom and matters connected therewith. The Spices Board serves as a regulatory authority. Its prime role is to safeguard the interest of farmers by ensuring that they receive fair price for their produces. To achieve fair pricing and eliminate the exploitation of middle men, the Spices Board conducts e-auctions which ensure that farmers secure better returns. The statute is divided into seven chapters. It is not necessary to refer to its various provisions as they are not material for the present purposes.

6. Section 38 of the Act empowers the Central Government to make rules to carry out the purposes of the Act. In exercise of the said power, the Central Government issued the Cardamom (Licensing and Marketing) Rules, 1987. Rules 2, 3 and 4 of the cardamom (Licensing and Marketing) Rules, 1987 are as follows:-

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“Rule 2.Definitions.- In these rules, unless the context otherwise requires :

(a)"Act" means the Spices Board Act, 1986 ;

(b)"auctioneer" means a person engaged in the business of

(c)"Dealer" means a person engaged in the business of purchasing and selling of cardamom but does not include any auctioneer or exporter ;

(d)"Form" means a form appended to these rules ;

(e)"Person" means an individual and includes company, firm, society and any other association or body of individuals, whether incorporated or not.

“Rule 3.Conditions to carry on business in cardamom:

(1) No person shall carry on business as auctioneer or dealer of cardamom except under and in accordance with the terms and conditions of a licence issued under these rules and such other instructions as may be issued, from time to time, by the Board for the development of the cardamom industry.

(2) No producer of cardamom shall sell his produce otherwise than through a Licensed auctioneer or to a dealer licensed to purchase cardamom from producers:

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Provided