P. N. Bhagwati, J. - (1.) This appeal, by special leave raises a very short question of construction of certain provisions of the Andhra Pradesh Agricultural Produce and Live-Stock Markets Act. 1966 (hereinafter referred to as the Act). The narration of a few facts giving rise to the appeal would help to appreciate the question which arises for determination, but it would be convenient first to refer to the relevant provisions of the Act before we recapitulate the facts.
(2.) The Act is a species of legislation which has now been enacted in almost all States of India with a view to providing satisfactory conditions for the growers of agricultural produce to sell their produce on equal terms and at reasonable prices. Section 2 gives definitions of the various terms used in the Act while Section 3 provides for issue of notification by the Government declaring a specific area "to be a notified area for the purposes of this Act in respect of any agricultural produce, livestock and products of livestock." Then comes Section 4, which says in sub-section (1), which is the only sub-section material for our purpose: "The Government shall constitute, by notification, a market committee for every notified area from such date as may be specified in the notification and the market committee so constituted shall be a body corporate by such name as the Government may specify in the said notification, having perpetual succession and a common seal with power to acquire, hold and dispose of property and may, by its corporate name, sue and be sued." The composition of market committee is laid down in Section 5. Sub-section (1) of that section provides; "Every market committee shall consist of such number of members, being not less than twelve and not more than sixteen, as may be fixed for it by the Government and shall be constituted in the following manner:- (i) not less than one -half of the members, to be appointed by the Government, after consultation with the Director of Marketing, from among the growers of agricultural produce and the owners of livestock and products of livestock in the notified area: (ii) one non-official from the notified area, to be elected by the members of the local cooperative marketing societies; or in the absence of such societies to be elected as specified in clause'(iv); (iii) (a) one representative, having jurisdiction over the notified area, of the Agricultural Department or the Animal Husbandry Department, to be appointed by the Government: (b) two representatives, one each, of the municipality within which the office of the market committee is located and of the gram panchayats comprised in the notified area, to be elected by the members of the municipality and the gram panchayats respectively:or in the absence of such municipality both representatives to be elected by the members of the gram panchayats:or in the absence of a gram panchayat, only one representative to be elected by the municipality; (iv) the remaining members, to be elected in the prescribed manner by the persons licensed under sub-section (1) of Section 7 in the notified area from among themselves: Provided that where a market committee is constituted in any notified area for the first time, the Government shall appoint the members under this clause from out of a panel of traders of the notified agricultural produce, livestock or products or livestock in the notified area, furnished by the Director of Marketing to the Government." Sub-section (2) says that every market committee shall elect two of its members other than those mentioned in clause (iii) of sub-section (1), to be respectively Chairman and Vice-Chairman, and subsection (3) enacts that save as otherwise provided in the Act, the term of office of the members appointed or under sub-section (1) shall be three years from the date of the election of the Chairman. The other sub-sections of Section 5 are not material and we need not refer to them, Sub-section (2) of Section 6 empowers the Government to extend the term of office of the members of the market committee for a period not exceeding and year subject to the proviso that no such extension shall be given for a period exceeding six months at a time. What is to happen on the expiration of the term of the office of the members of the market committee, whether original or extended, is set out in sub-section (1) of Section 6. That sub-section says that on the expiration of the term of the office of the members of the market committee, the Government shall reconstitute the market committee. Then follow certain other sections which have no bearing on the controversy before us and we may, therefore, straight go to Section 22 which deals with supersession of market committee. That section is very material and we may reproduce it in extenso: "Supersession of market committees.- (1) If in the opinion of the Government a market committee is not competent to perform or persistently makes default in performing the duties imposed on it by or under this Act, or abuses its powers, they may, by notification, supersede such committee for a period not exceeding one year in the first instance and may by order, extend, from time to time the period of supersession so however that the total period of supersession in the case of any market committee shall not exceed two years: Provided that before issuing a notification under this sub-section, the Government shall give to the market committee an opportunity of making representation on the action proposed and shall consider the explanation or objection, if any of the market committees thereon. (2) As from the date of publication of a notification under sub-section (1), superseding a market committee, the following consequences shall ensue- (a) all the members as well as the Chairman and Vice-Chairman of the market committee shall be deemed to have vacated their offices: (b) all the assets vested in the market committee shall, subject to all its liabilities, vest in the Government, (3) Where a market committee has been superseded (a) the Government may, by order, appoint a suitable person or persons to exercise the powers and perform the functions of the market committee during the period of its supersession and transfer to such person or persons the assets and liabilities of the superseded market committee as on the date of such transfer and (b) the Government, may at any time before the expiration of the period of supersession, constitute a new market committee under sub-section (1) of Section 4 and transfer thereto the assets and liabilities of the superseded market committee as on the date of such transfer." Bearing in mind these relevant provision of the Act, we may now turn to the facts leading up to the present appeal before us.
(3.) The Government, by a notification issued under Section 3, sub-section (3) of the Act, declared the area comprised in Machilipatnam, Badar and Divi taluks to be notified area for the, purposes of the Act. This was followed by a notification dated 30th October, 1969, constituting a Market Committee for the notified area under Section 4, sub-section (1) of the Act. The Market Committee was to consist of twelve members to be appointed in the manner set out in Section 5, sub-section (1) of the Act. Six out of these twelve members were nominated by the Government from among the growers of Agricultural produce and owners of livestock under Section 5, subsection (1), clause (i), two were nominated by the Government from among traders under the proviso to Section 5, Subsection (1), clause (iv) and the Agriculture Extension Officer. Movva was nominated by the Government as departmental representative under Section 5, subsection (1), clause (iii) (a). It does not appear from the record whether the other three members were appointed as contemplated by Section 5, sub-section (1). clauses (ii) end (iii) (b). The Chairman of the Market Committee was elected on 24th January, 1970 and the term of office of the members of the Market Committee was, therefore, three years from that date as provided in Section 5, sub-section (3).;