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KRISHI UTPADAN MANDI SAMITI versus ASHOK KUMAR DINESH CHANDRA AND ANR. ETC. ETC.

Citation: [1996] SUPP. 5 S.C.R. 352 · Decided: 29-08-1996 · Supreme Court of India · Bench: M.M. PUNCHHI, SUJATA V. MANOHAR · Disposal: Appeal(s) allowed

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Judgment (excerpt)

A 
KRISHI UTPADAN MANDI SAMITI 
v. 
ASHOK KUMAR DINESH CHANDRA AND ANR. ETC. ETC. 
AUGUST 29, 1996 
B 
(MADAN MOHAN PUNCHHI AND SUJATA V. MANOHAR, JJ.] 
Constitution of India, 1950. 
Art. 226-W!it petition claiming that Mandi Samitis not providing 
C services and so no market fee is chargeable-Mandi Samitis claimed that 
certain services were rendered and some more services are likely to be 
rendered in further--High Cowt remitted the matter back to the Mandi 
Samitis to adjudicate upon the claim of the w1it petitioners-On appeal held, 
the High Cowt should have gone into the question itself as to whether the 
claim of the Samitis in rendeling se1vices was authentic or not, or else should 
D have gone by the word of the Sa mi tis that they were rendeling such ser-
vices-Not to have remitted the matter t_o the Mandi Samitis thereby opening 
flood-Gates of never-ending disputes : counter-productive _to the good objects 
sought to be achieved by the concemed enactment-Market fee-Mandi 
E 
F 
Samitis. 
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 1678 of 
1982 Etc. Etc. 
From the Judgment and Order dated 21.5.81 of the Allahabad High 
Court in W.P. 2109 of 1977. 
E.C. Agrawala, (T. Mahipal) for Pradeep Misra, Girish Chandra, 
H.K. Puri and M.K. Garg for the appearing parties. 
The following Order of t~e Court was delivered : 
By the impugned common judgment, the High Court has remitted 
G the matter back to the Mandi Samitis concerned to adjudicate upon the 
claim of the writ petitioners/respondents herein, that no market fee is 
chargeable from them as no service is rendered. This direction was made 
despite the averment made by the Mandi Samitis in the counter affidavits 
that they were rendering some services like arrangement for electric light, 
H water, scavenging, other amenities in the marketyards, provision of tents, 
352 
KRISHI UTP ADAN MANDI SAMIT! v. ASH OK KR. DINESH CHANDRA 353 
urinals, culverts and construction of link roads. Besides the existing services A 
being rendered, infrastructure of future services likely to be rendered had 
been disclosed inasmuch as the process was said to be going on for 
acquisition of land for construction of marketyards, market complexes 
consisting of godowns, post-offices, banks, warehouses, shelters and rest-
houses etc. The High Court in taking that step has put the Mandi Samitis B 
into a war of wits between them and the traders; the Samitis contending 
that they have provided some facilities and are likely to provide more in 
future and the traders contending that no such facilities have been provided 
and none were expected to be provided in the future. This controversy has 
been enlivened on the supposition that on the principle of quid pro quo, 
there should be near- balance of the fee demanded and services rendered. 
That, in our view, is not the correct approach. The High Court should not 
have left the matter at large with the Mandi Samitis who in the nature of 
things, would have to be Judges in their own cause; something undesirable. 
c 
This Court in M.C.D. and Others v. Mohd. Yasin and A11othe1; [1983] D 
3 sec 229 at 235 summing up the judge-made law on the point, observed 
as follows : 
" ...... Though a fee must have relation to the services rendered, or 
the advantages conferred, such relation need not be direct, a mere 
casual relation may be enough. Further neither the incidence of E 
the fee nor the service rendered nei:;d be uniform. That others 
besides those paying the fees are also benefitted does not detract 
from the character of the fee. In fact, the special benefit or 
advantage to the payers of the fees may even be secondary as 
compared with the primary motive of regulation in the public p 
interest. Nor is the court to assume the role of a cost accountant. 
It is neither necessary nor expedient to weigh too meticulously the 
cost of the services rendered etc. against the amount of fees 
collected to as to evenly balance the two. A broad co-relationship 
is all that is a necessary quid pro quo in the strict sense is not the 
one and only true index of a fee; nor is it necessarily absent in a G 
tax." 
This view has been constantly followed in later decisions. The ele-
ment of quid pro quo in its strict sense is not always a sine qua non for a 
fee. See in this connection City Corporation of Calicut v. 11iachambalath H 
354 
SUPREME COURT REPORTS [1996) SUPP. 5 S.C.R. 
A 
Sadali11a11 and Others, [1985) 2 SCR 1008 wherefrom the following pa

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