LAWS(ORI)-1960-4-16

HRUDANANDA SAHU Vs. STATE OF ORISSA

Decided On April 27, 1960
HRUDANANDA SAHU Appellant
V/S
STATE OF ORISSA Respondents

JUDGEMENT

(1.) BY these several applications the constitutional Validity of the Orissa Agricultural Produce Markets Act, 1956 (Orissa Act 3 of 1957) was challenged by the respective petitioners. The point involved was common to all the petitions. Accordingly, they were heard together and are governed by the common Judgment.

(2.) IN order to provide for the better regulation of buying and selling of agricultural produce and for the establishment of suitable markets therefor inside the State of Orissa, Orissa Act III of 1957 (hereinafter referred to as "the Act") was passed and came into force on February 8, 1957. Under Section 3 of the Act the State Government issued a notification declaring its intention of regulating the purchase and sale of certain agricultural commodities including Jute and subsequently issued a notification under Sub-Sec. (i) of Sec. 4 of the Act bearing No. 10744-NI-N4/59 (D) dated 26th/27th May, 1959, declaring an area around Kendupatna to be a market area within which the purchase and sale of jute amongst other agricultural produce is to be regulated. Thus, by virtue of this notification no one within the market area or within a distance thereof to be notified in the gazette in this behalf (since notified) could set up, establish, or allow to be set up, established or continued any place for the purpose of sale of any agricultural produce so notified except under a license granted by the State Government. A market committee was established under Sec. 5 of the Act by the State Government within the aforesaid market area. Under Sec. 12 of the Act, this market committee was to issue licenses to traders, Adtyas, brokers and the like for carrying on their occupation within the market area. The Market Committee also had the power to renew, suspend and cancel such licenses. The petitioner contended that by virtue of the aforesaid notification his right to carry on freely a trade in jute and his right to sell the same grown by him as a producer in a greater competitive market has been infringed, thus encroaching upon his fundamental right to carry on the trade or business under Article 19(1)(g) of the Constitution of INdia. The State Government had also framed certain rules known as the Orissa Agricultural Produce Markets Rules, 1958, by which the market committee has been empowered to collect the license fee from the traders, commission agents, brokers, weighmen, measurers, surveyors and other person operating in the market area according to rates specified. Thus, the rules framed are repugnant to Art. 301 of the Constitution as interfering with the freedom of trade within the territory of INdia. It was further contended by the petitioners that Sec. 12 which confers on the Market Committee an unlimited and uncontrolled discretion to grant or refuse licenses is void. Thus the main operative Sections 4 and 12 of the Act being void, the whole Act is ultra vires the Constitution.

(3.) THUS the law on this behalf having been clearly laid down by the Supreme Court in AIR 1959 SC 300 in holding the Madras Act XX of 1933, which is pari materia with impugned Orissa Act to be intra vires the Constitution, there does not appear to be any force at all in the contentions raised by the petitioner. In the result, these petitions are bound to be dismissed with costs. Hearing fee Rs. 50 in each case. Petitions dismissed.