THE BELSUND SUGAR CO. LTD. ETC. ETC. versus THE STATE OF BIHAR AND ORS. ETC.

Citation: [1999] SUPP. 1 S.C.R. 146 · Decided: 10-08-1999 · Supreme Court of India · Bench: A.S. ANAND · Disposal: Disposed off
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Judgment (excerpt)

• 
A 
THE BELSUND SUGA~ CO. LTD. ETC. ETC. 
v. 
.. 
THE ST A TE OF BIHAR AND ORS. ETC. 
AUGUST 10, 1999 
B 
[DR. A.S. ANAND, CJ., S.B. MAJMUDAR, SUJATA V. MANOHAR, 
K. VENKATASWAMI AND V.N. KHARE, JJ.] 
Constitution of India, 1950 : 
c 
Articles 19(/)(g) and 19(6)-Bihar Agricultural Produce Markets Act, 
I 960-Providing for regulation of transactions of sale and purchase of 
agricultural produce in market areas-Held, is not unconstitutional. 
Seventh Schedule, List II, Entries 26 to 28-List III, Entries 33 and 47-
List I, Entry 52-'Markets and Fairs' and 'Trade and Commerce '-Market 
D fee-Regulation of transactions of purchase and sale of agricultural produce 
within market area under the Bihar Agricultural Produce Markets Act, 
1960-Held, transactions of purchase of sugarcane by sugar factories are 
covered under the specific provisions of Bihar Sugarcane ·(Regulation of . 
Supply and Purchase) Act, 1981 and Sugarcane (Control) Order, 1966 and, 
~
E 
therefore, are excluded from the general sweep of the Market Act-Similarly 
transactions of sale and purchase of sugar are covered under Sugar(Control) 
Order, 1966 and other Orders issued under s.3 of the Essential Commodities 
Act, 1955, and. transactions of sale and purchase of molasses are covered 
under Bihar Molasses (Control) Act, 1947 and, are, therefore, excluded from 
general sweep of the Market Act-Wide sweep of general notification under 
F s.3 of Market Act will have to be read down with regard to these three 
commodities-Doctrine of occupied field-Doctrine of reading down. 
. 
/ 
Transactions of sale and purchase in the market area of wheat, and 
wheal products i.e. Atta, Maida, Suji, Bran etc., paddy and rice, edible oils 
and packed lea-Held, are not outside the sweep of regulatory provisions of 
G Markel Act-Sale or purchase of any product resulting after processing 
'> • 
basic agricultural produce wheat is not covered by Industries (Development 
>-, 
and Regulation) Act, 1951-The various Orders with regard to edible oils 
issued u/s. 3 of Essential Commodities Act, 1955 do not deal with sale and 
purchase of vegetable oils-Neither Tea Act, 1953 nor various Tea (Control) 
H 
Orders framed uls.30 thereof provide/or regulating sale of purchased roasted 
146 
BELSUND SUGAR CO.LTD. v. ST ATE 
147 
tea leaves after they are subjected to manufacturing process of blending and A 
are brought in market area for sale as packed tea. 
Article 142-Refund/Collection of market fee under Bihar Agricultural 
Produce Markets Act, 1960 on transactions of purchase and sale of sugarcane, 
sugar and molasses-Held, Act is not applicable to these commodities-The 
judgment will have only prospective operation-Jn view of peculiar facts and B 
circumstances market fee paid in past shall not bs refunded and market fee 
not collected in past shall not be collected-Doctrine of unjust enrichment. 
Bihar Agricultural Produce Markets Act, 1960/Bihar Agricultural 
Produce Market Rules, 1975: 
C 
Ss. 2(1) (a), 3, 15 and 27 Rule 82-'Agricultura/ Produce'-Sale and 
purchase of in market areas-Regulation of-Wheat and wheat products i.e. 
Atta, Maida, Suji, Bran, 'Edible Oils', Paddy, rice and packed tea-Held, are 
agricultural produce-Definition of agricultural produce would include not 
only primary produce of agriculture but also any other commodity processed D 
or manufactured out of such primary agricultural produce-Inclusion of 
these items in the Schedule enacted under s.2(J)(a) cannot be found fault 
with-Sale and purchase of these agricultural produce will attract regulatory 
provisions of the Act. 
E 
Ss.2(J}(a),3,15,27 and 42-Sugarcane, sugar and molasses-Purchase 
and sale in market area-Regulation of -Notification No. S. 0. 550 dated 
22.3.1976 issued by state of Bihar exempting all sugar mills in the State from 
application of provisions of s. 15 with regard to their sale and purchase of 
agricultural produce -Held, though sugarcane, sugar and molasses are 
agricultural produce as per s.2(J)(a), but sale and purchase of these F 
commodities being regulated by Bihar Sugarcane (Regulation of Supply and 
Purchase) Act, 1981; Sugarcane (Control) Order, 1966 and Sugar (Control) 
Order, 1966 and Bihar Molasses (Control) Act, 1947, they are outside the 
purview of s. 15 of Market Act-Consequently, entire regulatory machinery 
and infrastructural facilities to be made available by marke( committees for O 
regulating sale and purchase of such agricultural produce would get totally 
ex
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