Arun Kumar, J. - (1.) This appeal is directed against the judgment dated 20th February, 1992 passed by the Andhra Pradesh High Court allowing the second appeal and decreeing the suit filed by the plaintiff-Association, respondent herein. Briefly, the facts are that respondent filed a suit for declaration and injunction in the Court of Subordinate Judge, Rajam, District Srikakulam, Andhra Pradesh. The plaintiff sought a declaration to the effect that the defendant-Market Committee had no right to levy, demand and collect any market fee from the members of the plaintiff-Association. An injunction was also sought to restrain the defendant-Committee from collecting market fee from the members of the plaintiff-Association. The case set up by the plaintiff as per the plaint was that Ranjam Sub-Taluk was under the jurisdiction of the Ponduru Agricultural Market Committee. On Rajam Sub-Taluk being upgraded as a Taluk, a separate Agricultural Market Committee was constituted for the Rajam Taluk with effect from 24th December, 1979. The Market Committee was constituted under the Andhra Pradesh Agricultural (Produce and Livestock) Markets Act, 1966 (hereinafter referred to as the Act). The primary object of the Act is to establish a market within a notified area. The Market Committees which are constituted under the Act have to provide facilities like sheds, storage, accommodation, platforms, facilities for weighing and grading of the agricultural produce etc. The Committee has also to engage staff to supervise operations of the traders in the market area. The Market Committee is to ensure that transactions in the specified commodities are for the benefit of purchases and sellers of such commodities. In the process the committees are supposed to regulate the purchase and sale of agricultural produce by providing a market place and all the facilities necessary for proper conduct of the trade in agricultural produce in the market place so as to eliminate the middleman and to ensure healthy trade practices. By eliminating the middleman the committee tries to protect the purchasers of such agricultural produce, live stock etc. from exploitation and to ensure to them a fair price for their produce.
(2.) According to the plaintiff, the Market Committee had failed to provide any facilities in the market area so much so even a market yard had not been set up, no services or amenities were being provided to the traders in the market area and therefore the Market Committee was not entitled to levy, demand and collect the market fee or cess from the members of the plaintiffs. In the written statement filed on behalf of the Market Committee, it was pointed out that the Market Committee was in its nascent stage, it had come into existence on the declaration of Rajam as separate Taluk only on 24th December, 1979. It had already taken possession of the site comprising 8.50 acres on 28th November, 1981 for establishment of a market yard at Rajam by incurring an expenditure of about Rs. 28,000/-. The process was on for construction of godowns, weighing sheds, platforms etc. The Market Committee had appointed corporates to attend to the work of grading of the market produce. Supervising staff had been appointed to inspect the premises of the traders to ensure proper weighment. Thirteen persons had been licensed for the weighment job. Thus, according to the Market Committee, it had already started various services in the market area and the process for providing further services was already on. The levy, demand and collection of market fee by the defendant was sought to be justified on his basis. The defendant also raised a plea that the plaintiff - Association had filed a Writ Petition in the High Court challenging increase in the market fee. The writ petition had been dismissed. In view of the dismissal of the writ petition, an argument was raised by the learned counsel for the Market Committee that the suit was barred by the principles of res judicata. Although the issue raised in the writ petition was only with respect to enhancement of the market fee, yet it was submitted that the plaintiff could have agitated the question of levy of market fee in the said petition and since it failed to do so, the principle of constructive res judicata would come into play. It would be deemed that the point which was available to the plaintiff-Association for being raised at that stage, was given up. The said question therefore, could not be agitated in the present suit. The learned counsel for the plaintiff did not have any convincing reply to this argument. However, while going through the record, we find that the earlier writ petition being W.P. No. 1184/78 was filed when Rajam was under the erstwhile Ponduru Agricultural Market Committee. It is possible that the argument regarding non-availability of facilities and amenities in the market area was not available then because Ponduru Agricultural Market Committee which had jurisdiction over Rajam Sub-Taluk, might have been in existence since long and the requisite facilities in the notified market area were possibly available. Since there is no material on record, in this connection, we are not inclined to non-suit the plaintiff on this ground. The only question left for decision in the present appeal is as to whether there has to be a quid quo for the levy of fee in the sense that services and facilities ought to be available in the market area before a fee can be levied and if so the extent to which such services and amenities be available. In other words, it is to be decided as to whether the fee levied by a Market Committee in pursuance of power conferred on it under the relevant statute i.e., A.P. Agricultural (Produce and Livestock) Markets Act, 1966, is to commensurate with or in proportion to the services and facilities provided by the Market Committee to the traders and purchasers in the market area. To facilitate consideration of this question, it will be appropriate to notice relevant provisions of the Act.
(3.) Section 2(vi) defines market to be a market established under sub-section (3) of Section 4 and includes market yard and any building therein.;