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MOHAMMADBHAI KHUDABUX CHHIPA AND ANOTHER versus THE STATE OF. GUJARAT AND ANOTHER(AND CONNECTED. PETITIONS)

Citation: [1962] SUPP. 3 S.C.R. 875 · Decided: 15-03-1962 · Supreme Court of India · Bench: P.B. GAJENDRAGADKAR, A.K. SARKAR, K.N. WANCHOO, K.C. DAS GUPTA, N. RAJAGOPALA AYYANGAR · Disposal: Dismissed

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Judgment (excerpt)

3 S.C.R. 
SUPREME COURT REPORTS 
875 
have been smuggled. The story subsequently men• 
tioned by the appellant about his journey to Tata- , 
nagar which has been disbelieved brings into bold 
belief the purpose which the appellant had in mind 
in travelling without a ticket. After-all, when we 
are dealing with a question as to whether the belief 
in the mind of the officer who effected the seizure 
was reasonable or not, we are not sitting in appeal 
over the decision of the said officer. 
All that we 
can consider is whether there is ground which prima 
facie justifies the said reasonable belief. That being 
so, we do not think there is any substance in the 
argument that the seizure was effected without a 
reasonable belief and so is outside section l 78A. 
In the result, the appeal fails and is dismissed' 
with costs. 
· 
Appeal di8missed. 
MOHAMMADBHAI KHUDABUX CHHIPA 
AND ANOTHER 
1!. 
THE STATE OF. GU,TARAT AND ANOTHER 
(And connected. petitions) 
(P. B. GA.JENDRAGADKAR, A. K. SARKAR, K. N. 
WANCHoo, K. C. DAS GuPI'A and N. RA.TA-
GOPALA AYYANGAR, JJ.) 
Agricu.lturaf Produc'! ]Jfarkets-Market committees-Levy 
of fees-Notijication-Validzt1;-A clas8 and B class traders-
licences-Discrimination-Ruz;s. declared invalid-S1tbsequent 
amendments to ena_ctment-Validzty of rules-Doctrine of eclipse 
. -Saurashtra .Ag~icultural Produce Mai·kets (Gujarat Amend-
ment and Va~1dating Provisions) Ordinance, 1961 (1of1961)-
Bombay Agricultural Produce Market.s Ar;t, 7939 (Bam, 22 of 
.793.'J),_ 
a.~ am,ended, 8s.5A, 11, 2.<J.B, rr. 58, Ct/, 65; G6, fJ7-
Constitutwn of India, Art.,.u, (.11)(1), 2G5, 
Consequent on the decision in Gula.m Mohammad v, The 
Jtate ~!Bombay, (1962] 2 S.C.R. 659, by 'l'hich rr. 53, 65, 611 
1962 
Pukhraj . 
y, 
D. R;Kohli 
Qajendtagadkar J 
1062 
March 15. 
1962 
JI oh""'1!14d6ha; 
Irhud•bwt Ohhipa 
v. 
Tht Stott of Gujorol 
876 SUPREME COURT REPORT5 [1982] SUPP. 
and 67, f~amed under the Bombay Agricultural 
Produce 
Markets Act, 1939, were held to he ultra. 11irr.s the provisions of 
ss. 6A and 11 of the Act, the State nf Gnjarat amended r.5'.l 
by a notification dated June 23, 1%1, and also promulgated 
an Ordinance on June 26, 1901, by which amendments were 
made in certain sections of the Act and a ne\v s 29 B was 
inserted in the Act \'aJidating certain acts or things <lone 
prior 
to 
the 
promulgation of the 
Ordinance. 
The 
petitioners, some of v.rhom \Vf!re \vholcsale dealers and the re.::t 
retail dralr.rs, filed petitions under Art. 32 of thr. Constit11tion 
of India for certain reliefs on the ground, (I) that the notifica· 
tion dated June 23, 1961, was discriminatory and thus offended 
Art. 14 because under it a rnarkct r.on1mittec could Jcvy fee.s 
on agricultnral produce by different modes, (2) that s. 29-Jl 
was insufficient to validate the defects noticed in the earlier 
decision of the Supreme Court inasmuch a'i the rclevcnt pro-
visions of the Act and the Rules \Yerc not retrospectively 
amended, (3) that undr.r the bye-laws .\class traders '''ere 
charged 
much 
higher fees 
than n class 
traders 
an<l, 
further, B class traders , .. ·ere allo\ved to sell to consumers 
any, ... ·hcre in the market area ,,·hercas 1\ class trader~ wrre not 
so al1ov.·ed, and this amonntecl to dic;crimination, (4) that the 
main provisions of tho Act had been amende<l by the Ordi-
nancr. and, ther~forc, the basis on ,,•hich the Suprr.mc Court 
upheld the Act no lon!(er existed, (o) that rr. 65, 6G and fi7 
which had been declared to be ultra vin• had neither been 
rc·framcd no validated hy the Ordinance and, therefore, it \.\.·ac;; 
not open to the market committr.e to issue licences 1111dt;r those 
rules, and (6) thats. 29-ll was had in so far as it prevented 
refund of her.nee fees collrcted before the Ordinance camr. 
into force in view of Art.31 (I) of the Constitution. 
Held, that: (I) the notification dated .June 23, 1961, by 
itself could not Uc said to .Ue discriminatory because imposi. 
tion of the f('C,; WiLS made only lJy the bye-Ja.vs framed by the 
market committee under the power conferred on it by s. 11 
subject to thr. maxima prescribed in the notification; if a byc-
la\Y prescrihcd rates of fees in two modes in such a \\'ay as to 
result in discrirnination then such a byc·la\Y ,,·ould have to 
be struck down. 
(2) the fact that un<ler r.5'.{ the rnarket com1nittr.e might 
levy fees by one metho<l on one agricuhural produce and liy 
another method on another agricultural produce, \\

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