Punchhi, J. - (1.) In Civil Appeals Nos. 4064 and 4065 of 1995, the common appellant is the State of Rajasthan and in Civil Appeals Nos. 4066 and 4067 of 1995, its ally, the Krishi Upaj Mandi Samiti, Jaipur is the common appellant. The grievance voiced herein by them is common and hence disposal of these appeals by a common order.
(2.) These appeals are directed against order dated 3-7-1990 passed by a Division Bench of the Rajasthan High Court, Jaipur Bench, allowing two writ petitions preferred by the respective respondents herein. Facts giving rise thereto would require no elaboration, except reference to the barest minimal. The respondents claim themselves to be engaged in the business of purchasing and selling seeds. One of them, M/s. Hindustan Lever Limited, in particular raises and sells Bajra seeds, as claimed. According to the respondents, seeds cannot be termed to be agricultural produce for the purposes of the Rajasthan Agricultural Product Markets Act, 1961 and its Schedule, as amended from time to time by the state Government in exercise of powers under Section 40 enabling it to add, amend or cancel any of the items of agricultural produce specified in the Schedule. It is maintained that seeds are a processed item and coated by insecticides, chemicals and other poisonous substances whereby the grains employed lose their use and utility as foodgrains and become unfit for human or animal consumption or for extraction therefrom for such consumption. Since, as claimed, these were outside the ambit of the expression "agricultural produce" as defined in Section 2(1)(i) of the Act; a definition inclusive in nature applying to produce whether of agriculture, horticulture, animal husbandry or otherwise (emphasis supplied) as specified in the schedule, the demand of the appellants in requiring the respondents to obtain licences for engaging in the trade of purchase and sale of seeds was uncalled for, as well as the threatened prosecutions, in the event of failure. The challenge posed by the respondents before the High Court was answered by the appellants maintaining that foodgrains of all sorts, as mentioned in the Schedule, were seeds per se, the only exception carved out from the items mentioned in the schedule being those relating to blue tagged certified seeds and white tagged certified foundation seeds; such exceptions having been notified on May 16, 1980 by way of amendment to the Schedule, in exercise of the State Government's power under Section 40 of the Act.
(3.) The High Court on consideration of the entire matter, took the view that when foodgrains of particular varieties were treated and subjected to chemical process for preservation, those grains become commercially known as "seeds". Reservation was kept however by the High Court to its statement afore-referred that in case a dealer was found dealing in foodgrains under the garb of seeds, the appellants, were not precluded from prosecuting the offender in a Criminal Court. In sum, it was ordered that the appellants stand precluded from requiring the respondents to take licences under the provisions of the Act in relation to their business of dealing in seeds of Bajra or any other foodgrains, as well as restrained from realising or recovering market fees in respect thereof. Sequelly, it was ordered that no licence under the Act was required for sale of such seeds. This is how these appeals are before us.;