KANCHERLA KRISHNA RAO Vs. GOVT OF A P

JUDGEMENT

(1.) This writ petition is filed for a writ of mandamus restraining the respondents from enforcing the provisions of the Andhra Pradesh (Agricultural Produce and Livestock) Markets Act, 1966 (for short 'the Act').

(2.) The case of the petitioners as stated in the affidavit filed in support of the writ petition is that the petitioners are having starch mills forthe manufacture of starch and the material used for the said manufacture is Tapioca, which is treated as vegetable under the notification issued by the Government -1st respondent under the Act. Petitioners approached various growers of Tapioca and purchased from them during the harvesting season. The further case of the petitioners is that before the scheme of the Act is made applicable, declaration must be made for the notified areas under Section 3 of the Act. Initially, the Government must publish a draft notification declaring their intention to regulate purchase and sale of agricultural produce in the area, as notified. Particular time should be given for objections and finally notification has to be issued declaring the areas specified in the draft notification. Government has accordingly issued the notification covering taluks, as separate notified areas which is as follows: Name of the Notified area Agricultural Market Committee Notified area 1. Ramachandrapuram Ramachandrapuram Taluk 2. Pithapuram Pithapuram Taluk 3.Kakinada Kakinada Taluk 4. Peddapuram Peddapuram Taluk and Prathipadu taluk As per the notification each one of them has been constituted as a separate notified area. Section 4 of the Act authorizes the Government to constitute by notification a market committee for every notified area which has been given the power to enforce the provisions of the Act apart from establishing markets in the notified area and it is also incumbent on the committee to declare by notification the limits of every market established by the committee. It is not merely sufficient to have a market by virtue of G.O.Ms.No.719 dated 27-12-1979 issued by the State Government, facilities have to be provided in the market. The aforesaid G.O. was considered by this court in the case of Agricultural Market Committee, Anantapur v. Kolluri Subbi Reddy and others (AIR 1984 A. P. 391). The contention of the petitioners is that it is incumbent on the part of the Market Committee to not only locate market, but facilities which are required, should also be provided. It is also stated that the Market Committee cannot insist the petitioners or any others who are carrying on business to shift to the so called market and it may be noticed that when the Market Committee is not rendering any service in the market, no levy can be made and the Committee is under obligation to provide those facilities before requiring the traders to shift to the market and take out a licence and pay fee, which is the scheme of the enactment. Whenever such facilities are not being provided, the Market Committee is not entitled to insist for payment of market fee and for obtaining licence. it is stated that the petitioners were asked to take out licences from the Agricultural Market Committee, Peddapuram, when there is no market at all. Therefore, in the absence of any market, the question of petitioners paying licence fee does not arise. With these averments, the petitioners sought for exemption from payment of market fee and obtaining licence.

(3.) A detailed counter has been filed by the respondent - Market Committee, denying the allegations of the petitioners. It is stated that the object and purpose of the Act is to regulate purchase and sale of agricultural produce, livestock and products of livestock and the establishment of the markets in connection therewith. The intention of the Legislature is to eliminate the middleman in notified agricultural produce and to protect the producers of such agricultural produce from exploitation and to ensure them a fair price for their produce. It is stated that the Government issued G.O.Ms.No.674, Food and Agricultural (Agri-IV) Dept. dated 7-7-1976 exercising the powers conferred by sub-section (4) (c) read with sub-sections (1) and (2) of Section 3 of the Act and issued notification declaring their intention to separate the areas comprising within the taluks of Ramachandrapuram, Pithapuram, Kakinada Peddapuram and Prathipadu from the notified areas of Agricultural Market Committee, Rajahmundry and Tuni and to declare them as separate areas for constitution of Agricultural Market Committees. It is stated that the notification was published in the A.P. Gazettee dated 14-7-1977 declaring the establishment of the markets under Section 4(3)(a) and (b) and then market areas under Section 4(3)(c) of (1) Peddaputam (2) Kirlampudi (3) Yeleswaram. By virtue of Government Order dated 22-9-1976, a notification was issued under clauses (a) and (b) of subsection (3) of Section 4 of the Act, directing the Agricultural Market Committees to establish markets. By virtue of this notification, the markets have been established at (1) Peddapuram (2) Kirlampudi and (3) Yeleswaram by Peddapuram Agricultural Market Committee. Further by G.O.Ms. No.597 dated 17-8-1977, by exercising the power conferred by sub-section (4) of Section 4 of the Act market areas were declared and market areas of Peddapuram, Yeleswaram and Kirlampudi, were notified. It is the notification issued under Section 4(4) of the Act, specifying market areas and notifying agricultural produce. The market area of Peddapuram is entire area within the Municipal limits of Peddapuram town. It is stated that when once the declaration is made as required by lawfixing the boundaries of the market area, the petitioners are bound to obtain a licence and pay the market fee under the provisions of the Act. It is also stated that the Peddapuram Market Committee is constituted with its Head quarters at Kirlampudi. It is stated that A.P. Market Committee of Peddapuram is having its Head office at Kirlampudi where a market yard is established and the same was under Section 7(6) of the Act. It is stated that the market yard is located in an area of Acs. 13.00, which was purchased for Rs.4,00,000/- and that various facilities were provided. The case of the respondents is that when once the notification is given under the provisions of the Act, notifying the market area, the petitioners are bound to pay the market fee and obtain licence and they cannot ask for any exemption.