STATE OF BIHAR Vs. ASHOK INDUSTRIES

JUDGEMENT

(1.) In these appeals, by special leave, the short question that. falls for decision is as to how Explanation to S. 2(p)(i) inserted by the Bihar Agricultural Produce Markets (Amendment) Act, 1982, should be read with the Explanation to S. 27 also inserted by the same Act. Before the High Court, the vires of Explanation to S. 2(p)(i) was challenged on the ground that. it encroached upon entry 42 of list I of the Seventh Schedule. The Division Bench of the High Court after considering the various authorities dealing with the concept of sale refrained from declaring the Explanation bad but read it down and held that it should be read in harmony with the Explanation to S. 27 and directed the marketing committee concerned to make assessment of fees after giving the petitioners an opportunity as provided in the Explanation to S. 27.

(2.) In this judgment, we do not propose to go into the question whether sale as explained in the Explanation to S. 2(p)(i) would include inter-State trade, etc., and on that reasoning strike down the Explanation. We propose to consider the scope of the two Explanations to see whether they can co-exist.

(3.) The original Act was called the Bihar Agricultural Produce Markets Act, 1960, (for short the Act). This Act was enacted to regulate the buying and selling of crops by providing suitable and regulated markets, to eliminate middlemen and to help the cultivators and the buyers in the disposal of the commodities. The Act enabled the marketing committee to levy a fee for transactions taking place in the market area. To get at persons who manage to escape the levy of market fee by ingenious transactions, the Act was amended by inserting a new definition S. 2(p)(i) along with an Explanation and also adding an Explanation to S. 27. What we have to decide in this case is as to how these two Explanations have to be construed. In other words whether one Explanation excludes the other or whether one is the compliment of the other.