PARKASH INDUSTRIES Vs. THE MARKET COMMITTEE

JUDGEMENT

(1.) THIS order shall dispose of aforementioned bunch of two sets of Regular Second Appeals i.e. some filed by the defendants against the judgment and decree whereby the claim of interest on the amount of fee payable under the Punjab Rural Development Fund Act, 1987 was set aside (hereinafter referred to as the 'defendant - Market Committee') and some arising out of the judgment and decree, whereby the suits filed by the plaintiffs disputing the claim of interest on the amount of fee payable under the Rural Development Fund Act, 1987 were dismissed (hereinafter referred to as 'the plaintiff -dealers'). Since the issue in both the sets of appeals is common i.e. jurisdiction to claim interest on the amount of fee payable under the Punjab Rural Development Act, 1987, therefore, the same are taken up for hearing together. However, for the facility of reference, the facts are taken from RSA No. 2074 of 1999. Punjab Rural Development Act, 1987 (for short 'the Act') contemplates levy of fee with a view to accelerate rural development, augment agricultural production, to improve facilities to the dealers and purchasers of agricultural produce and to provide for relief for loss of agricultural produce due to natural calamities. Section 3 of the Act contemplates constitution of Punjab Rural Development Board, whereas Section 5 imposes levy on ad valorem basis in respect of agricultural produce, bought or sold in the notified market area. The relevant provisions as originally enacted read as under :

(2.) HOWEVER , the Act was amended vide Punjab Act No. 4 of 1994, when The Punjab Rural Development (Amendment) Act, 1993 (for short 'the amended Act') was enacted, whereby sub -section (2) was substituted, whereas sub -section (2 -A) was inserted in Section 5 of the Act. Sub -section (2 -A) of Section 5 of the Act reads as under :

(3.) In the written statement, the filing of the writ petition challenging the vires of levy of rural development fund amount was admitted and also the fact that the plaintiff has paid seven installments out of eight installments and that notice was sent to the plaintiff to pay interest as damages at the rate of 18% per annum from the date the stay was granted by the High Court. It was also asserted that the defendant is entitled to claim interest at the rate of 18% per annum in terms of the provisions of the Interest Act, 1978.