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CHHANGANLAL MANSUKHLAL & ANR. versus K. K. BHATT & ANR.

Citation: [1981] 2 S.C.R. 761 · Decided: 05-02-1981 · Supreme Court of India · Bench: A.D. KOSHAL · Disposal: Case Partly allowed

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Judgment (excerpt)

761 
CHHANGANLAL MANSUKHLAL & ANR. 
A 
v. 
K. K. BHATT & ANR. 
February 5, 1981 
[A. D. KOSHAL, V. BALAKRISHNA ERADI AND R. B. MISRA, JJ.) 
B 
Guiarat Agricultural Produce Markets Rules 1965-Rules 48 and 49-
.Scope of. 
The parties are agreed that the provisions of Rule 49 are not attracted and 
no fee1 are payable under it at the stage of entry into a market area if the 
agricultural produce in question is covered by sub-rule(2) of Rule 48, i.e., 
when inch produce fulfils either of the following conditions :-
(i) It is brought from outside the market area thereinto for use therein 
by the industrial concerns situated therein or for export and 
in 
respect thereof a declaration has been made and a certificate has been 
obtained in Form V. 
(ii) The sale or purchase of such produce comes within the purview of 
sub-section (3) of section 6 of the 
Gujarat Agricultural Produce 
Markets Act. 
Th.it interpretation of Rules 48 and 49 which flows directly from the language 
employed therein is correct. Rule 49 will have no a,pplication to any case which 
c 
D 
falls within the ambit of sub-rule (2) of Rule 48. [763 D-E] 
E 
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 1967 of 1975. 
Appeal by Special Leave from the Judgment and Order dated 
30-10-74/1-11-1974 of the Gujarat High Court in 
Special 
Civil 
Application No. 766/71. 
F 
Soli !. Sorabji, Vimal Dave, Subhash Parikh and Gopal Subharii-
maniyan for the Appellants. 
S. H. Sheth, M. V. Go,rwami, Ambrish 
Kumar 
and 
Mukesh 
-Goswami for Respondent No. 1. 
!. L. Nain, M. N. Shroff and S. C. Patel for Respondent No. 2. 
The Judgment of the Court was delivered by 
KosHAL, J.-Rule 49 of the Gujarat Agricultural Produce Mar-
keti Rules, 1965, the vires and the reasonableness of 
which have 
G 
been the main points of challenge in this appeal, runs thus : 
H 
"49. ( 1) The fees on agricultural produce shall be pay-
able as soon as it is brought into 
the principal market 
A 
B 
c 
D 
G 
H 
762 
SUPREME COURT REPORTS 
(1981] 2 5.C.R. 
yard or sub-market yard or market proper or market area 
as may be specified in the bye-laws : 
Provided that the fees so paid shall be refunded-
{i) on production of sufficient proof that such pr6duce 
was not sold within the limits of the market area; or 
(ii) if such produce is brought from outside the market 
area into the market area for use therein by the industrial 
concerns situated in the market area or for export and in 
respect of which a declaration has been made and a certi-
ficate has been obtained in Form V subject to the proviso 
to sub-rule (2) of rule 48. 
(2) The licence f~es payable under rule 56 or 57 shall 
be paid alongwith the application for licence but in case the 
market committee refuses the grant or renewal of a licence 
the fees recovered shall. be refunded to the applicant." 
In order to interpret this Rule it is also necessary to set ont the 
provisions of Rule 48. They are : ยท 
"48. ( 1) The market committee shall levy and collect 
fees on agricultural produce bought or sold in the llllliket 
area at such rate as may be specified in the byelaws sub-
ject to the following minima and maxima viz. 
(1) rates when levied ad valorem shall not be less than 
10 paise and shall not exceed 40 paise per hundred rupees. 
( 2) rates when levied in respect of cattle, sheep 
or 
goat shall not be less than 10 paise per animal and shall 
not exceed Rs. 2 per animal. 
Explanation :-For the purposes of this rule a sale of 
agricultural produce shall be deemed to have taken place in 
a market area if it has been weighed or measured or sur-
veyed or delivered in case of cattle in the market area far 
the purpose of sale, notwithstanding the fact that the pro-
perty in the agricultural produce has by reason of such 
sale passed to a person in a place outside the market area. 
( 2) No fees shall be levied on 
agricultural 
produce 
brought from outside the market area into the market area 
for use therein by the industrial concerns situated in the 
market area or for export and in respect of which declara-
tion has been made and a certificate has been 
obtained 
in Form V: 
.\ 
'
' 
' ' 
\ 
i ' ;, 
. iJ. 
CHHANGANLAL v. K. K. BHATT (Koshal, !.) 
Provided that if such agricultural produce brought in-
to the market area for export is not exported or removed 
therefrom before the expiry of twenty days from the date 
on which it was so brought, the market committee shall 
levy and collect fees on such agricultural produce from 
the p

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