RAMESH CHANDRA ETC versus STATE OF U.P. ETC.

Citation: [1980] 3 S.C.R. 104 · Decided: 25-03-1980 · Supreme Court of India · Bench: Y.V. CHANDRACHUD · Disposal: Case Partly allowed

Cited by 9 judgment(s) · cites 4 · see the full citation network in Lexace

Judgment (excerpt)

A 
B 
104 
RAMESH CHANDRA ETC. 
v. 
STATE OF U.P. ETC. 
March 25, 1980 
[Y. V. CHANIJRACHUD, C.J., V. R. KRISHNA IYER, N. L. UNTWALIA, 
P. N. SHINGHAL AND A. D. KosHAL,. JJ.] 
Uttar Pradesh Krishi Utpadan Mandi Adhiniyam, 1954 (U.P., Act XXV 
of 1964), Ss. 2 (a), (p), (y), (k), 6, 17, and Uttar Pradesh Krishi 
Utpadan 
Mandi Niyamawalli 1965, Rules 66, 67 and 68-Levy of market fee by market 
· 
C 
Committees in Uttar Pradesh on transactions relating to agricultural produce 
--A' 
D 
E 
, 
G 
H 
--11alidity of-Declaration of big areas as n1arket area-Whether offends the 
law. 
Market Committees-To be constituted in a regular manner and on a per-
nianent baiis-Machinery to be evolved for setting dz'sputes. 
The Uttar Pradesh Krishi Utpadan Mandi Adhiniyam, 1964 (U.P. Act 
XXV of 1964) provides for the regulation of sale and purchase of agricultµra! 
produce and for the establishment superintendence and control Of ma .. kets in 
Uttar Pradesh. 
The enactment Was passed for the development of new market 
areas and for efficient data collection and processing of arrivals in the Mandies 
to enable the World Bank to give a substantial help for the establishment of 
various markets in the State of Uttar Pradesh. It led to the establishment of 
Market Areas, Principal Market Yards and Sub-Market Yards and levying of 
the fee in relation to transactions of certain commodities in the State ·of 
Uuar Pradesh. 
Various Macket Committees were formed known 
as 
Mandi 
Samitis. Jn order to give effect to the working of the Act the Uttar Pradesh 
Krisbi Utpadan Mandi Niyamawalli 1965, being Rules under the Act were 
made by the Governor. The Act was amended several times but the Rules 
were not accordingly amended as and when required to make them uptodate 
in accordance with the amended Act. 
"Agricultural Produce" has been defined in clause (a) of s. 2 of tho Act to 
mean:-
"Such items of produce Olf 
agriculture, horticulture. viticulture, 
apiculture, sericulture, pisci-culture, 
animal husbandry or forest 
as 
are specified in the Schedule, and includes a mixture of two or more 
of such items, and also includes any such item 
in processed form, 
and further includes gur, rab, shakkar, khandsari and 
jaggery." 
·while Clause (e) defines "commission agent" or "Arhatiya" to mean:-
"a , person who, in the ordinary course of 1 business, makes or 
offers to make, a purchase or sale of agricultural produce, on behalf 
of the owner or seller or purchaser of agricultural produce, for 
Arhat or commission". 
( 
·~ 
/ 
/ 
RAMESH CHANDRA V. U. P. STATE 
105 
under clause (p), 
""producer" 
means 
a 
person who, 
whether 
by 
himself or 
through hired labour, produces, rears or catches, any agricultural 
produce, not being a prOOucer who also works as a trader, broker 
or Dalal, commission agent or Arhatiya or who is otherwise ordi-
narily engaged in the business of storage of agricultural produce". 
Cause (y) defines a "trader" to mean :-
"a person who in the ordinary course of business is enga8ed in 
buying or selling agricultural produce as a principal or as a duly 
authorised agent of one or ni.ore principals and includes a person, 
engaged in processing of agricultural produce. n 
Under Clause (k), 'Market Area' means an area notified as such under 
Section 6, or as modified under Section 8, while 'Principal Market Yard' has 
been defined under clause (o) to mean, the ponion of a Mark,1 Area, dec-
lared as such under Section 7, and 'Sub Market Yard' under clause (w) means a 
portion of a Market Area, declared as such under Section 7. 
'Ibe State Goverment under s. 8 has got the power to alter any market 
area and modify the list of agricultural produce. Section 9 provides for the 
effects of declaration of Market Area. Chapter IIl of the Act deals with the 
establishment, incorporation and constitution 
of, 
the> Market Committees, 
section 17 provides for the power of the Committee. Clause (i) authorises 
a Committee to issue or renew licences under the Act on such terms and 
conditions and subject to such restrictions as may be prescnOed. 
Clause (iii) 
authorises a Committee to levy and collect (a) such Fees as may be pres-
cribed for the issue or renewal of licences, and (b) market fee at the rate 
and in the manner provided therein. [Though clause (b) of section 17 (iii) 
had undergone drastic changes from time to time, the Rules Were not corres-
pondingly amended.] 
Section 19 provides for the Market Committee Fund 
and its utilis

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