SEN - (1.) THESE petitions under Article 32 of the Constitution principally lay a challenge to the constitutional validity of the increase in the rate of market. fee levied by the market committees in the State of Andhra Pradesh under sub-s. (1) of Section 12 of the Andhra Pradesh (Agricultural Produce and Livestock) Markets Act, 1966 ('Act' for short) from 50 paisa to rupee one on every one hundred rupees of the aggregate amount for which the notified agricultural produce, livestock or products of livestock are purchased or sold in their respective notified market areas on the ground that there was no quid pro quo i.e. there was no correlation between the increase in the rate of market fee and the service rendered.
(2.) THERE are also certain subsidiary questions raised in these petitions viz.: (1) The constitutional validity of sub-section (6) of Section 7 of the Act which prohibits the carrying on of any transaction of purchase or sale of notified agricultural produce, livestock or products of livestock in a notified market area or outside the market in that area as violative of Art. 19(l)(g) of the Constitution. (2) As to the power of the market committees to levy market fee under sub-s. (1) of Section 12 of the Act at rupee one per hundred rupees of the aggregate amount for which such agricultural produce, livestock or products of livestock are purchased or sold outside their markets but within their respective notified market areas and (3) Whether under R. 74(l) of the Andhra Pradesh (Agricultural Produce and Livestock) Markets Rules, 1969 ('Rules' for short) if purchase or sale of paddy has suffered market fee in the hands of a rice miller, whether subsequent purchase or sale of rice by a miller to a trader, or by a trader to a trader, can be subjected to payment of market fee again. Writ Petition No. 1286 of 1973 questions the validity of a notification issued by the State Government being G. O. M. S. No. 2095 dated 29/10/1968 declaring rice to be a notified agricultural produce under Section 2(i), and the notification issued by the State Government of Andhra Pradesh under sub-sec. (4) of S. 4 of the Act being G.O.M.S. No. 971 dated 16/07/1971 declaring an area of 20 kms. around Kothavalasa to be the notified market area of the Kothavalasa Agricultural Market Committee for the district of Visakhapatnam, as well as the constitutional validity of sub-section (6) of Section 7 of the Act and sub-section (1) of Section 12 of the Act. Civil Appeal No. 1485 of 1972 is directed against the judgment of the Andhra Pradesh High Court dated 7/07/1971 upholding the constitutional validity of sub-section (6) of Section 7 of the Act and sub-section (1) of S. 12 of the Act. Civil Appeal No. 2108 of 1972 is directed against the judgment of the Andhra Pradesh High Court dated 27/07/1971 upholding the increase in the rate of market fee from 13 paisa per quintal to 25 paisa per hundred rupees by the Agricultural Market Committee, Guntur in the year 1970 on the ground that there was no quid pro quo i.e. there was no correlation. between the service and the increase in the rate of market fee. Civil Appeal No. 2502 of 1981 is directed against the judgment of the Andhra Pradesh High Court dated 21/04/1981 upholding the levy of market fee at 50 paise per hundred rupees on cotton seeds by an agro-based industry engaged in the business of manufacture and sale of cotton seed oil. Civil Appeal No. 4013 of 1982 is directed against the judgment of the Andhra Pradesh High Court dated 17/09/1982 upholding the increase in the rate of market fee from 50 paise per hundred rupees to rupee one by the Agricultural Market Committee, Guntur upon the basis that there need be no quid pro quo to justify the levy of such market fee. It appears that initially in the year 1970 the bye-laws of all the market committees throughout the State provided for the levy of market fee @ 25 paisa for every hundred rupees of the aggregate amount for which the notified agricultural produce, livestock or products of livestock was purchased or sold. Subsequently in 1972 the rate of market fee as increased to 50 paisa per hundred rupees of the value of such agricultural produce, livestock or products of livestock. The State Advisory Board at its meeting held on January 27 and 28, 1976 resolved to recommend the enhancement of the existing rate of market fee to rupee one per hundred rupees so as to enable the market committees to build up adequate finance to meet the increasing cost towards acquisition Of land and establishment of markets with modern infrastructure facilities. The Director of Marketing accordingly addressed a letter dated 16/02/1976 to all the agricultural market committees in the State inviting their attention to the resolution of the Advisory Board and requesting them to place the proposal for the enhancement of the existing rate of market fee from 50 paisa to rupee one before the market committees and communicate their consent for levy of the enhanced rate of market fee under sub-section (1) of Section 12 of the Act read with bye-law No. 24(i) of the concerned market committee bye-laws. Accordingly, all the market committees throughout the State accepted the recommendation of the Advisory Board and resolved to enhance the market fee from 50 paise to rupee one requesting the Director to forward the amended bye-law No. 24(i) to the State Government for their approval. The State Government of Andhra Pradesh by notification dated 1/01/1978 published in the Andhra Pradesh Gazette dated 23/02/1978 accorded their approval to the amended by law. In pursuance of the impugned notification the market committees throughout the State began to levy market fee @ rupee one per hundred rupees.
(3.) SOME of the petitioners challenged the increase in the rate of levy of market fee from 50 paisa to rupee one by filing petitions under Art. 226 of the Constitution before the Andhra Pradesh High Court. All these writ petitions were disposed of by the High Court by its judgment in Sri Vijaya Cotton Traders v. State of Andhra Pradesh by which it negatived many of the submissions advanced before us. Aggrieved by the decision of the High Court, the petitioners applied to this Court for grant of special leave under Art. 136. After hearing learned counsel appearing for them at considerable length, the Court dismissed the special leave petitions by its order dated 1/05/1981. Undaunted by the dismissal of the special leave petitions, these petitioners along with others have now filed petitions under Art. 32 of the Constitution and secured a rule nisi on the pretext that similar questions were involved in Civil Appeal No. 21M of 1972 and Writ Petition No. 1286 of 1973. The pattern of working of the market committees in the State is more or less the same although the circumstances in which each market committee is placed may differ. Facts as far as they can be gleaned from some of the writ petitions where counters have been filed may be briefly stated. The Malakpet Agricultural Market Committee, Hyderabad has in its counter in Writ Petition No. 2911 of 1981 furnished sufficient material to show the nature of services rendered by the Market Committee. It has established and has under its control various markets in the twin cities of Hyderabad and Secunderabad viz. (i) Osmanganj Market for the purchase and sale of foodgrains and other notified agricultural produce,(ii) Jambagh Market for sale of fruits (iii) Miralam Mandi and Sabzi Mandi for the sale of vegetables in Hyderabad, and Hissamgunj Market in Secunderabad for the purchase and sale of foodgrains and vegetables. In all these markets, the Committee is providing necessary facilities to the traders and producers of agricultural produce. The Market Committee during the financial year 1981-82 incurred an expenditure of Rs. 8,28 crores for the construction of. godowns, shops, platforms, formation of internal roads, approach roads, construction of press buildings etc. So far as the Malakpet area is concerned, the Osmanganj Market was not sufficient for regulating the transactions of sale and purchase of agricultural produce. The Market Committee therefore permitted the traders of Malakpet to carry on their business from their respective licensed premises, subject to the supervision and, control of the functionaries of the Market Commitee. Due to the location of the present markets in busy and congested places, it was not possible to extend the market areas any further. The Committee therefore acquired an area of 41 acres 22 guntas a Malakpet on a permanent lease from the Andhra Pradesh Housing Board in April 1980. It also applied for acquisition of 20 acres 20 guntas at Bahadurpura. 70 acres at Mansoorabad and 50 acres at Kukatpally. The aforesaid construction work for expansion of the markets vas in progress when the writ petitions were filed. It appears from the statement of income and expenditure for the years 1978-79, 1979-80 and 1980-81 that the income from the market fee even after its increase from 50 paise to rupee one is not sufficient to meet the expenditure of the Market Committee.;