RATHI KHANDSARI UDYOG ETC. versus STATE OF U.P. AND ORS. ETC.

Citation: [1985] 2 S.C.R. 966 · Decided: 22-02-1985 · Supreme Court of India · Bench: S. MURTAZA FAZAL ALI · Disposal: Dismissed

Cited by 2 judgment(s) · cites 3 · see the full citation network in Lexace

Judgment (excerpt)

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P66 
RATHI KHANDSARI UDYOG ETC. 
v. 
STATE OF U.P. AND ORS. ETC. 
February i2, 1985. 
[S. MURTAZA FAZAL ALI, A. VAJIADARAJAN AND M.P. 
THAKKAR, JJ.J 
Constitution of India, 1950-Artic/es 14, 19(1) ( f) and (g), 31, 265 
a•d 301. 
U.P. Erlshl Utpadan Mnndl Adhinlyam Act, 1964, ss. 2 (al, 2(p), 17 
(Ill), and Rule 67 of the Rules made under s. 40 of the Act-S. 2(a)-Agricul· 
turo/ Produce-Amendment thereof by U.P. Kri>hi Utpada11 Mandi (Amendment 
and Validation) Act 1970-"Khandsari Sugar" manufactured by open pan 
proress-Whethtr different from "Khandsarl" 
produced by agriculturists 
ind/genous/y-S. 2 (p)-'Producer'-Whether excludes the article produced by 
the petitioners from the coverage of the A.ct-S. 17 (Ui)-Market Commiltee 
(Mandi Samlti)-Whether competent to levy and collect Market fee-Rule 
67-Whether petlrloners liable to obtain licence and pay licence fee-Protec. 
tion of producers from exploitation-Whether principal object of the Act. 
I 
Essential Commodities Act, 1955, s.3-U.P. Khandsarl Man,facruring 
F 
H 
Orrier, 1975-CI. 2(f)-"Khandsari Sngar"-Scope of. 
Section 2(a)-Validity of-Whet%er violative of Arts. 14, 19(]) <fl and 
(g), 31, 265 and 301 of the Constitution. 
An Ordinance, U.P. Krishi Utpadan Mandi Adbiniyam, 1964 (Amend~ 
ment and Validation Ordinance No. 1969) passed on November 5, 
1969 
amended the definition of "'agricultural producen embodied ins. 2(a) of tbe 
UP. Krishi Utpadan Mandi Adhiniyam Acit 1964 and 'gur, rab, shakkar, 
khandsari and jaggery' were included in the amended definition. 
This 
Ordinance was subsequently converted into U .P. Krishi Utpadan Mandi 
(Amendment an:J Validation) Act 1970. 
Thus 'Kbandsari' stood covered 
by the definition of s. 2 (a) or the Aci so amended. 
The petitioners, who are owner& of Kbandsari factories, have alleged 
that what they produce is "Khandsari Sugar" and not 'Kbandsari', which 
is covered by the definition of rragricuhural produce". 
It was contended; 
(1) that they are not liable to obtain a licence under Rulo 67 of the Rules 
framed under s. 40 of the Act or to pay the licence fees (Rs. 100 per 
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RATH! KHANDSARI v. U. P. STATE 
961 
annum) payable for such licence; (2) that the Market Committee (Mandi 
Samiti) constitutrd under s. 12 of the Act caooot lcvv and collect market 
ree of l % of the value, under s. I 7(iii) of the Act, on the transactions in 
respect of what they produce, from the traders who purchase the product 
from them ; and (3) that s. 2 (a) of the Act is discriminatory and violative 
of Article J 4 of the Constitution. 
Dismissing the petitions, 
HELD ; (Per Ma}otiry) 
1. 
The definition e1nbodied ins. 2(a) of the Act is an inclusive 
one. It io terms provides that 'Khandsari' is included within the coverage 
of •ragricultural produce". 
The Act, however, does not define the term 
~Khandsari'. It is not sufficient to contend that what the petitioners 
produce is "Khandsari Sugar" and not 'Kbandsari'. 
It has also to be 
shown by them that what they produce is popularly or commercia11y known 
as "Khandsari Sugar" and not as "Khandsari". 
And thus they have faiJed 
to establish. 
It is not shown that "Khandsari Sugar" is the nomenclature 
employed in the world of trade and commerce in respect of their product. 
Neither the traders, nor the consumers are shown to have done so in their 
day-to·day dealings. [989F.H; 990A] 
2. 
The term ''Khandsari Sugar" owes its origin to U .P. KHAND-
SARI SUGAR M~NUFACTURING ORDER of 1977 issued under s. 3 
of the ESSENTIAL COMMODITIES ACT, 
1955. 
"Khaosari 
Sugar" 
was defined by cl. 2(f) of the said Order as meaning ''sugar containing more 
than 90% sucrose and manufactured by open pan process including beJs." 
It is a statutory defi11ition enacted for the rpurpose of the aforesaid Control 
Order which uses the expression "Khandsari Sugar". 
Jt has nothing lo do 
with the mc-aning and content of the term 'Kbandsari' as used by the trade 
in U .P. [9908.C] 
2. (i) 
It is unnecessary for the present purpose to cite all the deci· 
sions. 
Or to undertake a journey through the factual hinterland of each 
decision. 
Or to turn the beadli1hts on the observations made in each of 
the decisions. 
For, the principle, though garbed in different apparel, is 
simply this. 
In legislations pertaining to the world of business and 
commerce, the dictionary to refer to is the dictionary of the inhabitant' of 
tOat world. 
What they understand by the term 'Khandsari

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