KEWAL KRISHAN PURI BHARAT ICE AND GENERAL MILLS SANGHA GUPTA RICE AND GENERAL MILLS PRAHLAD RAI DWARKA DASS SHARDA COTTON GINNING AND PRESSING FACTORY HANS RAJ MATA D Vs. STATE OF PUNJAB:STATE OF HARYANA

JUDGEMENT

(1.) In these groups of Civil Appeals and Writ Petitions, Broadly speaking, the question which falls for determination is the validity of certain provisions of the Punjab Agricultural Produce Markets Act, 1961 (Punjab Act No. 23 of 1961), hereinafter referred to as the Act, and the Rules framed by the States of Punjab and Haryana under the said Act as also the validity of the fixation of market fees from time to time by the various Market Committees in the States aforesaid under the direction of the Punjab State Agricultural Produce Marketing Board and the Haryana State Agricultural Produce Marketing Board. All these cases have been heard together and are being disposed of by a common judgment.

(2.) In the erstwhile composite State of Punjab the Act was passed in the year 1961 to consolidate and amend the law relating to the better regulation of the purchase, sale, storage and processing of agricultural produce and the establishment of markets for agricultural produce in the State. Under Section 3 of the Act the State Agricultural Marketing Board was constituted for the entire area of the composite State, which later, in the year 1966 came to be bifurated into the States of Punjab and Haryana. Under the various provisions of the Act, which will be noticed shortly hereinafter, market areas and market yards were declared putting restriction on the traders to carry on their trade under a licence granted by the various Market Committees established and constituted in accordance with Sections 11 and 12, within the specified boundaries or areas. The traders were required to take out licences on payment of a licence fee. Under Section 23 of the Act a Market Committee was required and authorised to levy on ad valorem basis fees on the agricultural produce bought or sold by licensees in the notified market area at a rate not exceeding the rate mentioned in Section 23 from time to time for every one hundred rupees.

(3.) In the composite State of Punjab and even after the bifurcation of the States for about a period of three years the maximum rate of market fee which could be levied under Section 23 was 50 paise for every one hundred rupees. Various Market Committees levied a fee of 50 paise per hundred rupees and no dealer made any murmur or grievance of it. In the bifurcated State of Punjab by Act 25 of 1969 the rate of 50 paise was raised to Re. 1/-. It was further raised to Rs.1.50 by Act 28 of 1973, Thereafter by Ordinance 4 of 1974 which was replaced by Act 13 of 1974 the rate was raised to Rs.2.25. Several dealers filed a number of Writ Petitions in the High Court of Punjab and Haryana challenging the increase in the rate of market fee from time to time, the last one being by Act 13 of 1974. Similarly in the State of Haryana the rate of 50 paise was raised to re. 1 by Haryana Amendment Act 28 of 1969. It was further raised to Rs. 1.50 br Act 21 of 1973. By Ordinance 2 of 1974 which was replaced by Act 17 of 1974 in the State of Haryana the fee was raised to Rs. 2/- for every one hundred rupees, as against the rise of Rs, 2.25 in the State of Punjab. Several dealers of the State of Haryana also challenged in the High Court the levy and increase of market fee from time to time. All the Writ Petitions were heard together. The increase and levy of fee up to Rs. 2/- by the various Market Committees in the State of Haryana was upheld and the writ petitions of the Haryana dealers were dismissed while those of the Punjab dealers were allowed and the increase of rate brought about by Ordinance 4 and Act 13 of 1974 to the extent of Rs. 2.25 was struck down. This decision of the High Court is reported in M/s. Hanuman Dall and General Mills, Hissar v. State of Haryana AIR 1976 Punj and Har 1. The date of the decision is November 8, 1974. In Punjab by Amendment Act 14 of 1975 Section 23 of the Act was again amended authorising the imposition of market fee at a rate not exceeding Rs. 2.25 per hundred rupees. Telegraphic instructions were issued by the Punjab Board to the various Market Committees directing them to charge Rs. 2/- only with effect from August 23, 1975 after the passing of the Act 14 of 1975 on August 8, 1975. The increases in the rates of fee, the last one being in August, 1975, were again challenged in the High Court. But the full bench which finally heard the writ petition upheld the increase by its judgment delivered on January 28, 1977, which is reported in Kewal Krishan Puri v. State of Punjab AIR 1977 Punj and Har 347. Civil Appeal 1083 of 1977 has been preferred in this Court from the said judgment of the High Court.