HIMACHAL PRADESH AGRICULTURAL PRODUCE MARKETS ACT, 1969

Act No. 09 of 1970

An Act to consolidate and amend the law relating to the better regulation of the purchase, sale, storage and processing of agricultural produce and the establishment of markets for agricultural produce in Himachal Pradesh.

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S.1 Short title, extent and commencement

(1) This Act may be called the Himachal Pradesh Agricultural Produce Markets Act, 1969.

(2) It extends to the whole of Himachal Pradesh.

(3) It shall come into force at once.

S.2 Definitions

In this Act, unless there is anything repugnant in the subject or context,--

• (a) "Agricultural produce" means all produce whether processed or not, of agriculture, horticulture, ' animal husbandry or forest as specified in the schedule to this Act;
• (b) "Board" means the Himachal Pradesh Marketing Board constituted under section 3;
• (c) "broker" means an agent who in consideration of a commission, fee or reward merely negotiates and brings about a contract for the purchase or sale of notified agricultural produce on behalf of his principal but does not receive, deliver, transport, pay for the purchase of, or collect the payment for the sale of the notified agricultural produce;
• (d) "committee" means a market committee established and constituted under sections 9 and 10;
• (e) "Director" means the Director of Agriculture for Himachal Pradesh and includes any officer appointed by the State Government to perform all or any of the functions
  

S.3 Himachal Pradesh Marketing Board

(1) The State Government may, for exercising the powers conferred on, and performing the functions and duties assigned to, the Board by or under this Act, establish and constitute a Himachal Pradesh Marketing Board consisting of 15 members of whom 5 shall be officials and 10 non-officials to be nominated by the State Government in the following manner:--

• (a) the official members shall include the Director, the Marketing Officer and 3 other officials as nominated by the State Government;
• (b) of the non-official members,--
  • (i) two shall be producer members of the committees;
  • (ii) four shall be other progressive producers of Himachal Pradesh;
  • (iii) three shall be from among such persons licenced under section 8 who are members of the committees;
  • (iv) one representing co-operative societies.

(2) The Director and the Marketing Officer shall respectively be the ex-officio Chairman and the Secr

S.4 Declaration of notified market area

(1) After the expiry of the period specified in the notification under section 3 (19) and after considering such objections and suggestions as may be received before the expiry of the specified period, the Board may, by notification and in any other manner that may be prescribed, declare the area-notified under section 3 or any portion thereof to be notified market area for the purposes of this Act in respect of the agricultural produce notified under section 3 or any part thereof.

(2) The Board, if satisfied that in any notified market area, a committee is not functioning or two such areas or a part of any such areas is to the amalgamated with another such areas or is to be constituted into a separate notified market area may, by notification, denotify any market area notified under sub-section (1) or any part thereof and, when the whole of such area is denotified, cancel a committee and transfer all the assets of that committee which remain after satisfaction of all its li

S.5 Declaration of market area

(1) For each notified market area, there shall be one principal market yard and one or more sub-market yards as may be necessary.

(2) The Board may, with the prior approval of State Government, by notification, declare any enclosure, building, locality or other area in any notified market area to be principal market yard for the area and other enclosures, buildings, localities or other areas to be one or more sub-market yards for the notified market area.

S.6 No Private Market To Be Opened In Or Near Places Declared to Be Markets

On and after the date on which the Board has, by a notification under section 5, declared any place to be a principal or sub-market yard no person or municipal committee, district board, panchayat or any local authority, notwithstanding anything contained in any enactment relating to such municipal committee, district board, panchayat or local authority shall be competent to set up, establish or continue or allow to be continued any place within the limits of such market or within a distance thereof to be notified in the Official Gazette in this behalf in each case by the State Government for the purchase, sale, storage and processing of agricultural produce:

Provided that a producer shall not be deemed to set up, establish or continue or allow to be continued a place as a market for the purpose of the purchase, sale, storage or processing of agricultural produce if he sells his own agricultural produce outside the premises set apart by the committee for the purpose of purch

S.7 Authority to whom applications for grant of licences are to be made

The Secretary of the Board or any officer authorised by the Chairman in writing in this behalf, shall be an authority for granting licences required under section 4(3).

S.8 Applications for licences, fees to be paid and cancellation or suspension of licences

(1) Any person may apply to the authority specified in section 7 for a licence which shall be granted for such period, in such form, on such conditions and on payment of such fees not exceeding Rs. 100, as may be prescribed:

Provided that if any person carrying on any business of the nature specified in sub-section (3) of section 4 in a notified market area fails to apply for a licence on or before such date as the Board may, by notification, appoint in respect of that area, the licensing authority may refuse to grant him a licence until after the expiry of such period not exceeding three years as it may think fit:

Provided further that the Board may, in its discretion, issue a licence to such person and may, before issuing such licence, impose such penalty not exceeding two thousand rupees as it may think fit.

(2) The Board or its Chairman or Secretary or any other officer authorised by the Board may, on being satisfied that there has been a breach of any of t

S.9 Establishment of market committee

The Board shall, by notification, establish a market committee, for every notified market area and shall specify its headquarters.

S.10 Constitution of the committee

(1) A market committee shall consist of nine or sixteen members as the Board may, in each case, determine.

(2) Of these members, one may be appointed by the Board from amongst the salaried servants of the Government by virtue of his office.

(3) The remaining members shall be appointed by the Board out of a panel of names equal to twice the number of vacancies to be filled in the manner provided hereunder, that is to say--

• (a) if the committee is to consist of nine members, there shall be appointed:--
  • (i) five members from the producers of the notified market area; and
  • (ii) three members from the persons licensed under section 8 from the notified market area;
• (b) if the committee is to consist of sixteen members, there shall be appointed:--
  • (i) nine members from the producers of the notified market area; and
  • (ii) six members from the persons licensed under section 8 from the n
    

S.11 Duties and powers of committees

(1) It shall be the duty of the market committee and Secretary, market committee--

• (a) to enforce the provisions of this Act and the rules and bye-laws made thereunder in the notified market area and, when so required by the Board, to establish a market therein providing such facilities for persons visiting it in connection with the purchase, sale, storage, weighment, and processing of agricultural produce concerned as the Board or Chairman of the Board may, from time to time, direct;
• (b) to control and regulate the admission to the market, to determine the conditions for the use of the market and to prosecute or confiscate the agricultural produce belonging to person trading without a valid licence;
• (c) to bring, prosecute or defend or aid in bringing, prosecuting or defending any suit, action, proceeding, application or arbitration, on behalf of the committee or otherwise when directed by the Board or the Chairman of the Board; and
• (d) to g
  

S.12 Term of office of members

Subject to the provisions of section 15, every member shall hold office for a period of three years from the date of his appointment, and if, when such period expires, no person has been appointed to succeed him, such member shall, unless the Board otherwise directs, continue to hold office until his successor is appointed.

S.13 Removal of members

The Board may, at any time during the period of his office, remove, by notification, any member, if such member has, in its opinion, been guilty of misconduct or neglect of duty or has lost the qualifications on the strength of which he was appointed, provided that before the Board notifies the removal of a member under this section, the reasons for his proposed removal shall be communicated to the member concerned and he shall be given an opportunity of tendering an explanation in writing.

S.14 Election of Chairman and Vice-Chairman

(1) Every market committee shall elect from among its members a Chairman and a Vice-Chairman.

(2) The committee may, by a majority of two-third of the total members at a meeting specially convened for the purpose, pass a resolution for the removal of any of the office bearers and any resolution so passed shall be subject to confirmation by the Board.

S.15 Filling of vacancies

(1) If through death, resignation, retirement, transfer or removal, in accordance with the provisions of section 13, any vacancy occurs, the Board may appoint a member to fill such vacancy in accordance with the provisions of section 10:

Provided that the term of office of the member so appointed shall expire on the same date as the term of office of the vacating member would have expired had the latter held office for the full period allowed under section 12.

(2) Should the Board decide to raise the number of members of an existing committee from 9 to 16, the additional vacancies shall be filled in accordance with the provisions of sub-section (1) and the term of office of the additional members appointed shall expire with the existing members of the committee.

S.16 Incorporation of committee

Every market committee shall be a body corporate as well as local authority by such name as the Board may specify in the notification establishing it, shall have perpetual succession and a common seal, may sue and be sued in its corporate name and shall, subject to the provisions of section 28, be competent to acquire and hold property both movable and immovable, to lease, sell or otherwise transfer any movable or immovable property which may have become vested in, or been acquired by it, and to contract and to do all other things necessary for the purposes for which it is established:

Provided that no committee shall permanently transfer any immovable property except in pursuance of a resolution passed at a meeting specially convened for the purpose by a majority of not less than three-fourth of the members of the committee and with the prior approval of the Chairman of the Board.

S.17 Appointment of sub-committee, joint committee and delegation of powers

The market committee may appoint two or move of its members to be a subcommittee or to be a joint committee for the conduct of any work or to report on any matter and may delegate to such committee or to any two or more of its members such of its powers or duties as it thinks fit.

S.18 Appointment and salaries of officers and servants of committee

(1) Every market committee shall have a Secretary deputed by the State Government from amongst the trained Agricultural Inspectors (Marketing) on the recommendation of the Chairman of the Board on such terms and conditions as may be prescribed.

(2) With the previous approval of the Chairman of the Board, a market committee may employ such officers and servants as may be necessary and proper for the management of the market and may pay such officers and servants salaries as fixed by the Board for different cadres:

Provided that where the basic pay of an employee is less than 50 rupees, the previous approval of the Chairman of the Board for appointment will not be necessary.

(3) Every officer or servant against whom an order of punishment has been made by a committee shall be entitled to appeal to the Board within a period of thirty days from the date of the order appealed against:

Provided that the appellate authority may, for sufficient cause, entertain

S.19 Persons who are public servants within the meaning of section 21 of Indian Penal Code

Every member and officer or servant of the Board and of a market committee shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code (45 of 1860).

S.20 Execution of contracts

(1) Every contract entered into by a market committee shall be in writing and shall be signed on behalf of the market committee by the Chairman or if, for any reason he is unable to act, by the Vice-Chairman and two other members of the committee and shall be sealed with the common seal of the committee.

(2) No contract other than a contract executed as provided in sub-section (1) shall be binding on a market committee.

S.21 Levy of fee

The market committee shall levy, on ad valorem basis, fees on agricultural produce bought or sold by licensees in the notified market area at the rate not exceeding one rupee for every one hundred rupees as may be fixed by the Board:

Provided that--

• (a) no fee shall be leviable in respect of any transaction in which delivery of the agricultural produce bought or sold is not actually made; and
• (b) a fee shall be leviable only on the parties to a transaction in which delivery is actually made.

S.22 Octroi not payable on certain agricultural produce

Notwithstanding anything to the contrary contained in the Himachal Pradesh Municipal Act, 1968 (19 of 1968) the State Government may, by notification, direct that in respect of such agricultural produce, notified under section 4, brought or received within a notified market area as may be specified in the notification, no octroi shall be payable by any person to a municipal committee from such date as may be specified therein.

S.23 Himachal Pradesh Marketing Board Fund

(1) All receipts of the Board shall be credited into a fund to be called the Himachal Pradesh Marketing Board Fund. All expenditure incurred by the Board shall be defrayed out of the said fund which shall be jointly operated upon by the Chairman and the Secretary or any officer authorised by them.

(2) This fund shall be utilised for the following purposes:--

• (i) better marketing of agricultural produce;
• (ii) marketing of agricultural produce on co-operative lines;
• (iii) collection and dissemination of market rates and news;
• (iv) grading and standardisation of agricultural produce;
• (v) general improvement in the markets or their respective notified market area;
• (vi) maintenance of the office of the Board and construction and repair of its office buildings, rest house and staff quarters;
• (vii) giving aid to financially week committees in the shape of loans and grants;
• (viii) payment of salary, leave al
  

S.24 Market Committee Fund

(1) All moneys received by a market committee shall be paid into a fund to be called the "Market Committee Fund". All expenditure incurred by the market committee under or for the purposes of this Act shall be defrayed out of the said fund, and any surplus remaining after such expenditure has been met, shall be invested in such manner as may be prescribed by rules.

(2) (a) Every market committee shall, out of its fund, pay to the Board, 20 per cent of the moneys received by it on account of the Board office expenses and such other expenses incurred by it in the interest of the marketing committee generally and also pay to the Government the cost of any special or additional staff employed by the Government in consultation with the committee for giving effect to the provisions of this Act in the notified market area.

(b) The Government shall determine the cost of such special or additional staff and shall, where the staff is employed for the purposes of more market com

S.25 Purposes for which the market committee fund may be expended

Subject to the provisions of section 24, the market committee fund shall be expended for the following purposes:--

• (i) the acquisition of a site or sites for the market;
• (ii) the maintenance and improvement of the market;
• (iii) the construction and repair of buildings which are necessary for the purposes of such market and for the health, convenience and safety of the persons using it;
• (iv) the provision and maintenance of standard weights and measures;
• (v) the pay, leave allowances, gratuities, compassionate allowances, and contributions towards leave allowances or provident fund of the persons employed by the market committee;
• (vi) the collection and dissemination of information regarding all matters relating to crop statistics and marketing in respect of the agricultural produce concerned and propaganda in favour of agricultural improvement;
• (vii) providing comforts and facilities such as shelter, shade, parking
  

S.26 No trade allowance permissible except as prescribed by rules or bye-laws

No trade allowance, other than allowance prescribed by rules or bye-laws made under this Act, shall be paid or received in a notified market area by any person in any transaction in respect of the agricultural produce concerned and no civil court shall, in any suit or proceeding arising out of any such transaction, recognise any trade allowance not so prescribed:

Provided that all market charges shall be paid by the buyers.

S.27 Bar of suit or absence in notice

(1) No suit shall be instituted against the Board or a committee or any member or employee thereof or any person acting under the direction of any such body or member or employee for anything done or purporting to be done under this Act, until the expiration of two months next after a notice in writing, stating the cause of action, the name and place of abode of the intending plaintiff and the relief which he claims, has been, in the case of a Board or committee delivered to him or left at its office, and in the case of any such member, employee or person as aforesaid, delivered to him or left at his office or usual place of abode, and the plaint shall contain a statement that such notice has been delivered, or left.

(2) Every such suit shall be dismissed unless it is instituted within six months from the date of the accrual of the cause of action.

S.28 Power to borrow

(1) The market committee may, with the previous sanction of the Board, raise the money required for carrying on the purposes for which it is established on the security of any property vested in and belonging to the market committee and of any fees leviable by the market committee under this Act.

(2) The market committee may, for the purpose of meeting the initial expenditure on lands, buildings, and equipment required for establishing the market, obtain a loan from the Government on such conditions and subject to such rules as may be prescribed.

(3) A committee may, with the previous approval of the Chairman of the Board, obtain loans from other committees on such conditions, and subject to such rules, as may be prescribed.

S.29 Acquisition of land for the Board and committees

(1) When any land is required for the purposes of this Act, the State Government may, on the request of the Board or a committee requiring it, proceed to acquire it under the provisions of the Land Acquisition Act, 1894 (1 of 1894), and on payment by the Board or committee of the compensation awarded under that Act and of all other charges incurred by the State Government on account of the acquisition, the land shall vest in the Board or committee.

(2) The Board or a committee shall be deemed to be a local authority for the purposes of the Land Acquisition Act, 1894 (1 of 1894).

S.30 Supersession of market committees

(1) If, in the opinion of the Board, a market committee is incompetent to perform or persistently makes default in performing the duties imposed on it by or under this Act, or abuses its powers, the Board may, by notification, supersede such committee:

Provided that before issuing a notification under this sub-section, the Board shall give a reasonable opportunity to the market committee for showing cause against the proposed supersession and shall consider the explanations and objections, if any, of the market committee.

(2) Upon the publication of the notification under sub-section (1) superseding a market committee, the following consequences shall ensue:--

• (a) all the members including Chairman and Vice-Chairman of the market committee shall, as from the date of such publication, be deemed to have ceased to be members of the committee;
• (b) all the assets of the committee shall vest in the Board and it shall be liable for all the legal liabili
  

S.31 Emergency power

If at any time the State Government is satisfied that a situation has arisen in which the purposes of this Act cannot be carried out in accordance with the provisions thereof, it may, by notification,--

• (a) declare that the functions of the market committee shall, to such extent as may be specified in the notification, be exercised by the Board or such person or persons as the State Government may direct;
• (b) assume to itself all or any of powers vested in, or exercisable by, a committee; and such notification may contain such incidental and consequential provisions as may appear to the State Government to be necessary or desirable for giving effect to the objects of the notification.

S.32 Penalties

(1) Any person who contravenes any of the provisions of section 4 or section 6 or section 26 or the rules or bye-laws made thereunder shall, on conviction, be punishable with simple imprisonment which may extend to 90 days, or with fine which shall not be less than fifty rupees but may extend to five hundred rupees, or with both, and in the case of a continuing contravention, with a fine which, in addition to such fine as aforesaid, may extend to thirty rupees for every day after the date of first conviction during which the contravention is continued.

(2) Any person who contravenes any of the provisions of this Act or the rules or bye-laws made thereunder, except the provisions of section 4 or section 6 or section 26, shall be punishable with fine which may extend to Rs. 200 and in the cases of continuing contravention, with a further fine of Rs. 20 for every day subsequent to the date of first conviction for which the contravention has continued.

S.33 Power to make rules

(1) The State Government may, make rules, consistent with this Act, for carrying out all or any of the purposes of this Act.

(2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for:--

• (i) the appointment of members of the Board and market committees;
• (ii) the powers to be exercised and the duties to be performed by the market committee or the Board, their officers and servants;
• (iii) the election of the Chairman and Vice-Chairman of market committee, their powers and term of office;
• (iv) the filling of casual vacancies in the office of members or in the office of Chairman or Vice-Chairman of the market committee;
• (v) the time, place and manner in which a contract between buyer and seller is to be entered into and the money is to be paid to the seller;
• (vi) generally for the guidance of the market committees;
• (vii) management of the market, maximum fees whic
  

S.34 Bye-laws

(1) Subject to any rules made by the State Government under section 33, the Board may, in respect of the notified market area, make bye-laws for:--

• (i) the regulation of business;
• (ii) the conditions of trading;
• (iii) the appointment and punishment of its employees and the employees of the market committees;
• (iv) the payment of salaries, gratuities and leave allowance to such employees; and
• (v) the delegation of powers, duties and functions to the sub-committee, if any, provided by section 17,

(2) No bye-law shall take effect until it has been published for information and notified in the Rajpatra, Himachal Pradesh.

S.35 Power of State Government to amend schedule

[(1)] The State Government may, by notification, add to the schedule to this Act any other item of agricultural produce or amend or omit any item of such produce specified therein.

[(2) Notwithstanding anything contained in sub-section (1), the State Government may, wherever it is expedient to do so in the public interest, by notification, add to the schedule to this Act any other item of agricultural produce or amend or omit any item of such produce specified-therein, subject to such conditions as it may deem fit to impose, in its application to a market committee or committees and thereupon the schedule in its application to that/those market committee/committees shall be deemed to have been amended accordingly.]

S.36 Trial of offences

(1) No offence made punishable by this Act or any rule or bye-law made thereunder shall be tried by a court inferior to that of a Magistrate of the first class.

(2) Prosecutions under this Act may be instituted by the Chairman, Secretary or, in their absence, by any other person duly authorised by a resolution passed by the Board or a committee in this behalf.

(3) All fines received from an offender shall be credited to the Government revenues and grant equivalent to such fines, shall be paid to the market committee.

S.37 Appeal

(1) An appeal against the order passed under section 8 shall lie to the Board in the manner prescribed.

(2) Any person objecting to the order passed by the Board may appeal to the State Government whose decision in the matter shall be final.

S.38 Recovery of sums due to State Government from market committee

(1) Every sum due from a committee to the State Government or the Board shall be recoverable as an arrear of land revenue.

(2) Every sum due to a committee from any person shall be recoverable as an arrear of land revenue.

S.39 Revision

Notwithstanding anything contained in this Act, the State Government shall have the power of reversing or modifying any order of the Board or any of its officers passed or purporting to have been passed under this Act, if it considers it to be not in accordance with this Act or the rules or bye-laws made thereunder.

S.40 Power to write off irrecoverable fees etc

Whenever it is found that any amount due to the Board or a committee is irrecoverable or should be remitted, or whenever any loss of the Board's or a committee's money or stores or other property occurs through the fraud or negligence of any person or for any other cause and such property or money is found to be irrecoverable, the facts shall be reported to the Board or committee, as the case may be, and the Board, with the approval of the Government, and the committee, with the approval of the Board, may order the amount or value of the property to be written off as loss irrecoverable or remitted, as the case may be, provided that in case of a committee, if in any case the amount due or the value of such property is in' excess of two hundred rupees, such order shall not take effect without the approval of the State Government.

S.41 Power to compound offences

(1) With the previous approval of the Chairman of the Board, a committee or, with the authorisation by a resolution of a committee, its Chairman, may accept from any person against whom a reasonable suspicion exists that he has committed an offence under this Act or any rule or bye-law made thereunder, a sum of money by way of composition for such offence.

(2) On the payment of such amount of money to the committee or to its Chairman, as the case may be, no further proceedings shall be taken against the suspected person, who, if in custody, shall be discharged.

S.42 Power of entry and search

Subject to such restrictions as may be prescribed, the Secretary of the market committee or any other officer authorised by the committee in this behalf, may, for carrying out any of the duties imposed on the market committee by or under this Act, at all reasonable times, enter and search any place, premises or vehicles.

S.43 Liability of member or employee of committee or the Board

(1) Every person shall be liable for the loss, waste or misapplication of any money or other property belonging to committee, if such loss, waste or misapplication is proved, to the satisfaction of the Board, to be the direct consequence of his neglect or misconduct in the performance of duties as a Chairman, Vice-Chairman, member or an employee of the committee and he may, after being given an opportunity by a written notice to show cause why he should not be required to make good the loss, be surcharged with the value of such property or the amount of such loss by the Board, and if the amount is not paid within one month from the expiry of the period of appeal prescribed by sub-section (3) shall be recoverable as arrears of land 'revenue:

Provided that no such person shall be called upon to show cause after the expiry of a period of one year from the occurrence of such loss, waste or misapplication or after the expiry of one year from the time of his ceasing to be a member

S.44 Repeal and savings

The Punjab Agricultural Produce Markets Act, 1961 (23 of 1961), as in force in the areas added, to Himachal Pradesh under section 5 of the Punjab Re-organization Act, 1966 (31 of 1966), and the Patiala Agricultural Produce Markets Act, 2004 BK., as in force in the areas comprised in Himachal Pradesh immediately before 1st November, 1966, are hereby repealed:

Provided that such repeal shall not affect:--

• (a) the previous operation of any Act so repealed or anything duly done or suffered thereunder;
• (b) any right, privilege, obligation or liability acquired or incurred under any Act so repealed;
• (c) any penalty, forfeiture or punishment incurred in respect of any offence committed against any Act so repealed; or
• (d) any investigation, legal proceeding or remedy in respect of any such right, privilege, obligation, liability, penalty, forfeiture or punishment as aforesaid;

and any such investigation, legal proceeding or remed