VINAYAKRAO Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) The petitioners in these three petitions, who are members of various Agricultural Produce Market Committees constituted under the Maharashtra Agricultural Produce Marketing (Regulation) Act, 1963 (hereinafter referred to as 'the Act'), challenge the validity of cl.(k) of sub-rule(1) of R.41 of the Maharashtra Agricultural Produce Marketing (Regulation) Rules, 1967 (hereinafter referred to as 'the Rules') as they stand disqualified under that clause. These three petitions, therefore, can be disposed of by a common judgment.

(2.) In order to appreciate the controversy involved in these petitions, it would be convenient at this stage to refer to relevant provisions of the Act and the Rules. The preamble of the-Act states that it has been enacted "to regulate the marketing of agriculture and certain other produce in market areas, and markets to be established therefor in the State and to confer powers upon Market Committees to be constituted in connection with or acting for purposes connected with such markets and to establish Market Fund for purposes of the Market Committees and to provide for purposes connected with the matters aforesaid". Under section 11, the State Government has to establish a Market Committee for each market area for regulating the marketing of different kinds of agricultural produce. Section 29 defines the powers and duties of such committees. Sub-section (1) of Section 13 lays down the constitution of Market Committees. Clauses (a), (b) and (c) of that sub-section specify categories of elected members and the mode of their election. They show that elected members of the Market Committee consist, amongst others, of ten agriculturists residing in the market area, seven of whom shall be elected by members of the managing committees of the agricultural credit societies and multipurpose co-operative societies within the meaning of the Maharashtra Co-operative Societies Act, 1960, and the rules made thereunder, functioning in the market area and three shall be elected by members of village panchayats functioning therein". Besides this, three members are elected by traders and commission agents holding licences to operate as such in the market area. The Chairman of the Co-operative Society doing business of processing or marketing of agricultural produce in the market area is one of the members. In his absence its representative has to be elected by its managing committee. In case there are more than one such co-operative societies functioning in the market area, the Chairman of anyone of them or in his absence a representative elected by the managing committees of such societies, becomes a member. Rest of the members of the Market Committee are ex-officio members. Sub-section(1) of S.14 provides that the members shall be elected in the manner prescribed by rules. It further states that such rules may provide also for the determination of constituencies, the preparation and maintenance of the list of voters, persons qualified to be elected, disqualifications for being chosen as, and for being a member, the right to vote, the payment of deposit and its forfeiture, the determination of election disputes and all matters ancillary thereto including provisions regarding election expenses. Section 60 confers powers on the State Government to make rules for carrying into effect the purposes of the Act. Clause (d) of sub-section(2) of Section 60, in particular, empowers the State Government to make rules under section 14 for prescribing the manner in which members may be elected including all matters referred to in that section. In exercise of the powers conferred by Sub-sections(1) and (2) of Section 60 of the Act, the State Government framed the rules called Maharashtra Agricultural Produce Marketing (Regulation) Rules, 1967. Rule 41 thereof, which appears to have been added on 5th August 1971, was in the following terms before clause (k) was added to it:

(3.) Apart from contending that cl.(k) cannot disqualify the existing members since they had no opportunity to pay dues of the co-operative societies concerned to save themselves from being disqualified the petitioners contend that the addition of the clause itself is illegal and beyond the rule making power of the State Government. It is submitted that the rule making power conferred on the State Government by the Act must be exercised in consonance with and in conformity with the provisions thereof and in keeping with the very object and scheme of the Act. It is contended that the Act has been, as seen above, put on the Statute Book with the avowed object of regulating the marketing of agriculture and certain other produce in market areas and for other ancillary purposes and any rule which is made under the power conferred by the Act must subserve this object and purpose and cannot travel beyond it. It is urged that the fact that a member of the Market Committee is in default to any co-operative society in respect of any loan, advances or dues from him can have no bearing whatsoever on his discharging his duties as a member of the Market Committee and cannot conflict with his function as such. It is argued that if non-payment of dues of local authorities or Government is not taken as disqualification for being member of the Market Committee, there is absolutely no reason why mere non-payment of dues of a co-operative society should be made disqualification for being such member. It is submitted that the provision incorporated in the clause under challenge is not only arbitrary but unreasonable and travels beyond the rule making power conferred on the State Government by the abovesaid provisions of the Act. Sub-section (1) of S.14 confers powers on the State Government to make rules, amongst others, for providing disqualifications for being chosen as, and for being a member of the Market Committee. Sub-section (1) of S.60 lays down that the State Government may, by notification in the Official Gazette, make rules for carrying into effect the purposes of the Act. Sub-section (2) specifies the matters in particular in respect of which the State Government may make rules without prejudice to the generality of the provision contained in sub-section (1). As seen above, the purpose of the Act, as indicated by the preamble and the various provisions and scheme of the Act, is to regulate the marketing of agricultural and certain other produce in market areas and markets to be established in the State. It would, therefore, appear that any rule which may be made by the State Government has to conform to the purpose and scheme of the Act. The legislature has delegated the power to the State Government to make rules. The power is not so wide as to include making any rule which do not subserve the purpose of the Act. Sub-section (1) of S.60 specifically confers the power to make the rules "for carrying into effect the purposes of" the Act. Hence any rule effect the purposes of the Act. Hence any rule made by the State Government in the purported exercise of the rule making power will have to be adjudged for its validity, keeping in view the object and purpose of the Act. As held by the Supreme Court in Board of Directors of Andhra Pradesh Co-operative Central Land Mortgage Bank Ltd. v. Chittor Primary Co-operative Land Mortgage Bank Ltd., AIR 1974 SC 1692, the rule making power conferred on the Government for carrying out all or any of the purposes of the Act must be confined to such of the purposes as are enumerated or indicated in the preamble or in any of the provisions of the Act. In Kerala State Electricity Board v. Indian Aluminium Co. Ltd., AIR 1976 SC 1031, the Supreme Court has gone on record to say that notwithstanding the subordinate legislation being held on the table of the House of Parliament or the State Legislature and being subject to such modification, annulment or amendment as they may make, the subordinate legislation cannot be said to be valid unless it is within the scope of the rule-making power provided in the statute. Hence before a rule is held valid, it must answer the test as to whether it is made for carrying out the purposes of the Act.