KRISHI UTPADAN MANDI SAMITI ALIGARH Vs. HEINZ INDIA LIMITED
LAWS(ALL)-2002-4-158
HIGH COURT OF ALLAHABAD
Decided on April 24,2002

KRISHI UTPADAN MANDI SAMITI, ALIGARH Appellant
VERSUS
HEINZ INDIA LIMITED Respondents

JUDGEMENT

G.P. Mathur, J. - (1.) This appeal has been preferred by the defendant-respondents against the judgment and order dated 24.1.2002 of Civil Judge (Sr. Division), Allgarh, in O. S. No. 233 of 2000 by which the application 7C for grant of temporary injunction moved by the plaintiff under Order XXXIX, Rules 1 and 2 read with Section 151, Code of Civil Procedure was allowed. By the impugned order, temporary injunction was granted whereby it was directed that if the plaintiff transferred stock from its factory situate within the mandi area of Aligarh to its godown outside the mandi area by way of stock transfer, neither any gate pass would be required nor any mandi fee would be charged and the plaintiff would furnish Bank guarantee for the amount of mandi fee which it is liable to pay on each stock transfer in favour of the defendant.
(2.) The plaintiff, M/s. Heinz India Limited, filed the suit against the Krishl Utpadan Mandi Samiti, Aligarh and two others, praying that defendant Nos. 1 to 3 and their subordinate employees be restrained by means of prohibitory injunction from imposing and recovering any mandt fee on all those transactions of the plaintiff by which it transfers its stock of ghee to its various godowns/depots located in and outside the State of U. P. at the said places through their appointed C and F Agents which are not within the territorial jurisdiction of defendant No. 1 and, defendant Nos. 1 to 3 be further directed to issue gate passes to plaintiff on all such transactions of stock transfers without payment of any mandi fee.
(3.) The case set up by the plaintiff in the plaint, in brief, is as under : "The plaintiff is a company registered under the Companies Act and is engaged in manufacture of milk foods, weaning foods, energy beverages including ghee under the brand name "Sampriti" in its factory at Aligarh. The head office of the company including its marketing department is located at Bombay. The ghee manufactured at factory in Aligarh is weighed, packed and loaded from the factory premises and sent to its various godowns maintained by C and F Agents all over the country by way of stock transfers on self-to-self basis and in this manner, the stock of ghee is maintained in the godowns outside the State of U. P. The stock is not sent from Aligarh factory in compliance of any prior order of sale received either by the C and F Agents located outside the State of U. P. or by the plaintiff at Aligarh. The C and F Agents are appointed for receiving, handling and delivery of stocks of ghee under the supervision of the marketing staff located at the various places all over the country and the C and F Agents are required to carry out all procedures for realisation of sale proceeds in the name of the plaintiff company. After the stocks of ghee are received at godowns located outside the State of U. P. prospective purchasers contact the marketing staff, and negotiate the sale. The plaintiffs factory at Aligarh has no role to play with regard to sale of ghee to various parties located outside the State of U. P. and there is no nexus between the transfer of stocks of ghee from the plaintiffs factory at Aligarh and the purchase thereof by the various purchasers. The plaintiffs factory at Aligarh does not enter into any kind of contract with regard to sale of ghee with the party or parties outside the State of U. P. or any city of U. P. Ghee conies within the purview of U. P. Krishi Utpadan Mandi Adhinlyam, 1964 (hereinafter referred to as the Act), and the plaintiff has obtained a licence as required under Section 7 of the aforesaid Act from Mandi Samlti, Aligarh. Section 17 of the Act provides for levy of market fee on the sale of scheduled agricultural produce within the market area of a Mandi Samiti and Explanation to Section 17 (iii) provides that unless the contrary is proved, any specified agricultural produce taken out or proposed to be taken out of a market area by or on behalf of a licensed trader shall be presumed to have been sold within such area and is liable to the imposition of market fee. In paragraph 16 of the plaint, the details of the documents which the plaintiff furnishes at the time of seeking a gate pass are given and in paragraph 17 details of the documents which the plaintiff furnishes after the completion of Sale outside the State of U. P. are given. The plaintiff informed the Mandi Samlti, Aligarh, vide its letter dated 4.1.1995 about the procedure of transfer of stock to other locations with a view to seek exemption as provided in Explanation to Section 17 (iii) of the Act. However, the Mandi Samiti vide their office order No. 1777, dated 22.2.1995, demanded market fee in advance at the time of issuing gage pass. The suit was accordingly filed for the relief mentioned above.";


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