M/S. ASHOK INDUSTRIES AND ORS. Vs. THE STATE OF BIHAR & OTHERS AND THE SECRETARY, AGRICULTURAL PRODUCE MARKET COMMITTEE & ANOTHER

JUDGEMENT

(1.) In all these applications the validity of the explanation to Sec. 2(p)(i) as inserted by the Bihar Agricultural Produce Markets (Amendment) Act, 1982, which came into force with effect from 30th April, 1982, has been challenged. Hence, all these applications have been herad together and this judgment will govern them all. The Bihar Agricultural Produce Markets Act, 1960, (hereinafter called the Markets Act) was enacted to provide for the better regulation of buying and selling of agricultural produce and the establishment of markets for agricultural produce in the State of Bihar and for matters connected therewith. Long time back it was found that cultivators suffer from many handicaps. They are usually illiterate and in general ignorant of prevailing prices in the markets and the most helpful solution for the cultivators marketing difficulties seemed to lie in the improvement of communications and the establishment of regulated markets. The Act, therefore, is the result of a long exploratory investigation by experts in the field and is conceived and enacted to regulate the buying and selling of crops by providing, suitable and regulated market, and by eliminating middlemen and bringing face to face the producer and the buyer to enable them to meet on equal terms. This would, if not completely eradicate, at least reduce the scope of exploitation in dealings. This legislation, rules and, the bye -laws framed thereunder have a long arm target of providing a net work of markets wherein facilities of correct weighment are ensured, storage accommodation is provided and equal powers of bargaining ensured as well. The market fee which is to be realised, is to be spent over the facilities to be provided in such markets and, as such, the State Legislature is competent to legislate over those. matters under Entry 28 of List II of the Seventh Schedule of the Constitution. The Act provides for markets and includes a market yard and sub -market yard or yards and the market area means any area declared to be a market area under Sec. 4 of the Act. A market committee has to be established under Sec. 6 and provision has also been made for assessment of sale and for levying of fee thereon. A licensee means a person or association, firm or company granted a license under the. Act. Sec. 27 is the charging Sec. which provides that the Market Committee shall levy and collect market fees on the agricultural produce bought or sold in the market area, at a rate provided therein. Although the fee is payable by the buyer but for the sake of convenience of collection it has to be collected and paid by the licensee. A proper machinery has been devised for the realisation of fees to avoid evasion.

(2.) If the trader behaves with candour, no problem arises. However, if he is shifty, his crafts and outwitting shuffles pose the problem of peering through them and plumbing them. One such provision is the explanation added to Sec. 27 of the Act which, so far as is relevant to mention here, provides that all notified agricultural produce leaving a. market area, shall unless the contrary is proved be presumed to have been bought or sold in such area The purpose is that normally if the goods have been consigned from the market to a different place, then, under the legal fiction, he is not to be heard to say that there has been no sale of goods in the market. It would be assumed that there has been such a sale which he has suppressed and the explanation introduces a presumption or legal fiction as a piece of evidence relevant for finding out whether there has -been a buying or selling in the market. It is, of course, open to the trader to disprove the fact entitling him to be absolved of the liability.

(3.) Not satisfied with the above provision, by the Amending Act of 1982, for the first time by engrafting in it Sec. 2(p)(i), the definition of 'Sale' was provided for. It reads thus: - -