SAWANT - (1.) THE Judgment of the court was delivered by
(2.) THE respondent-Orient Paper Mills (for short 'Mills') purchases bamboos as raw material under a contract with the State government which holds monopoly in regard to bamboos as a forest produce in view of the provisions of the M.P. Van Upaj (Vyapar Viniyaman) Adhiniyam, 1969 (No. 9 of 1969. THE bamboos are supplied to the respondent-Mills by the Forest Department of the State government at various forest depots established for the purpose. After taking delivery from the forest depots, the Mills transports the same to its factory situated in Amlai in the district of Shahdol (M.P.). It is not disputed that forest depots from which the Mills purchases the bamboos fall within the market area of the appellant-Krishi Upaj Mandi Samitis (for short 'Committees') and the factory of the Mills also falls within the market area of Krishi Upaj Mandi Samiti, Budhar (M.P). Under Section 3 of the M.P. Krishi Upaj Mandi Adhiniyam, 1973 (for short 'the Act'), the State government is empowered to declare by a notification its intention to establish a market for regulating the purchase and sale of such agricultural produce and in such area as may be specified in the notification, and invite objections for the same. Under Section 4 thereof, after the expiry of the period specified in the notification and after considering the objections and suggestions as may be necessary, the State government is authorised to establish by another notification a market, for the areas specified in the notification issued under Section 3 or in any portion thereof. Under Section 5, in every market area, there has to be a market yard and there may be more than one sub-market yards. For every market yard or sub-market yard, there has to be a market proper. On the establishment of market under Section 4, Section 6 prohibits local authorities from setting up or establishing or continuing or using or allowing to be set up, established, continued or used, any place in the market area for the 658 marketing of any notified agricultural produce. Likewise, no person is permitted to use any place in the market area for the marketing of the notified agricultural produce or operate in the market area any market function otherwise than in accordance with the provisions of the Act. The exception to this prohibition is in favour of (a) a person who himself is a seller of the product concerned, and whose sale does not exceed four quintals at a time to a person who purchases it for his own domestic consumption, (b) produce which is brought by head loads, (c) produce which is purchased or sold by petty traders, (d) produce which is imported from outside India, (e) produce which is purchased by various fair price shop dealers from the Food Corporation of India, the Madhya Pradesh State Commodities Trading Corporation or any other agency or institution authorised by the State government for distribution of essential commodities through the public distribution system, and (f) the transfer of the agricultural produce to a cooperative society for the purpose of securing an advance therefrom. The Samitis or Market Committees are established under Section 7 of the Act. Under Section 19(1 of the Act, the Committees have been given power to levy market fees on notified agricultural produce brought for sale or sold in the market area under their jurisdiction at such rate as may be fixed by the State government from time to time subject to the minimum rate of fifty paise and a maximum rate of two rupees for every one hundred rupees of the price in the manner prescribed. Under Section 19(2, the market fees are payable by the buyer of such produce and is not to be deducted from the price payable to the seller. It is only if the buyer of the produce cannot be identified that all fees are payable by the seller or by the person who brought the produce for sale in the market area. Provided further that in case of a commercial transaction between the traders in the market area, the market fees are to be collected and paid by the seller. Section 19(6 provides that no notified agricultural produce or any product processed therefrom shall be removed out of the market proper except in accordance with a permit issued by the market committee. Ss. (7 thereof provides that the market committee may levy and collect entrance fee on vehicles plying on hire, which may enter into market area at such rate as may be specified in the bye-laws.
(3.) SECTION 31 prohibits any person from operating in the market area in respect of the notified agricultural produce as commission agent, trader, broker, weighman, hammal, surveyor, warehouseman, owner or occupier of processing or pressing factories or as other market functionary except in accordance with the provisions of the Act and the rules and the bye-laws made thereunder. SECTION 32 requires every person specified in SECTION 31 who desires to operate in the market area to apply to the market committee for the grant of a licence. The application has to be accompanied by such fees as the Director of Marketing appointed by the State government may subject to the minimum, prescribe in this behalf. Under SECTION 33, the market committee is given power to cancel or suspend the licence for reasons and under the procedure laid down therein. SECTION 38 provides for the 659 constitution of a Market Committee Fund in which all the moneys received by the market committee are paid and from which all expenditure incurred by the committee is defrayed. SECTION 39 lays down the purposes for which the Market Committee Fund is to be expended. They are: "39. Application of market committee fund. Subject to the provisions of SECTION 38, the market committee fund may be expended for the following purposes only, namely (i) the acquisition of a site or sites for the market yards; (ii) the maintenance and improvement of the market yards; (iii) the construction and repairs of buildings necessary for the purposes of the market and for convenience or safety of the persons using the market yard; (iv) the maintenance of standard weights and measures; (v) the meeting of establishment charges including payments and contributions towards provident fund, pension and gratuity of the officers and servants employed by a market committee; (vi) the payment of interest on the loans that may be raised for the purpose of the market and provisions of sinking fund in respect of such loans; (vii) the collection and dissemination or information relating to crops statistics and marketing of agricultural produce; (viii) (a) the expenses incurred in auditing the accounts of the market committee; (b) payment of honorarium to Chairman, travelling allowance of Chairman, Vice-Chairman and other members of the market committee and sitting fees payable to members for attending the meeting; (c) contribution to State Marketing Development Fund; (d) meeting any expenditure for carrying out order of the State Government and any other work entrusted to market committee under any other Act; (e) contribution to any scheme for increasing agriculturists in the market area; (f) to develop necessary infrastructure within a radius of one kilometer from the market yard/sub-market yard for facilitating the flow of notified agricultural produce with the prior sanction of the Director and with the prior permission of the local authority concerned for using their land for this purpose; (g) to provide for development of agricultural produce in the market area; (70 payment of expenses on elections under this Act. 660 (ix) any other purpose whereon the expenditure to the market committee fund is in the public interest, subject to the prior sanction of the State government." Section 43 provides for the constitution of a Market Development Fund and every market committee is required to pay every three months, to the Marketing Board constituted under the Act such percentage not exceeding 50 per cent of its gross receipts comprising of licensing fees and market fees as the State government may by notification declare from time to time. All expenditure incurred by the Board according to the object sanctioned by it has to be defrayed out of the said fund.;