K.N. Singh, J. - (1.) By means of this petition under Art. 226 of the Constitution the petitioners challenge the validity of establishment of Mainpuri Market Area and also the validity of the enforcement of U.P. Krishi Utpadan Mandi Adhiniyam, 1964 and the levy and collection of market fees.
(2.) The State Government issued requisite notifications under Sections 5, 6 and 7 of the U.P. Krishi Utpadan Mandi Adhiniyam (hereinafter referred to as the Act) establishing market area, market yard and sub-market yard in the town of Mainpuri. A market committee known as Mandi Samiti has been constituted under the Adhiniyam to discharge functions and powers conferred on it by the Adhiniyam and the rules framed thereunder. No trader or producer is entitled to carry on transaction of sale or purchase in the specified agricultural produce except in accordance with the provisions contained in the Adhiniyam and the rules framed thereunder. Section 9 of the Adhiniyam lays down that after the declaration of the market area no person shall carry on business for sale, purchase, storage or weighment in specified agricultural produce except under and in accordance with the conditions of a licence granted by the Market Committee established under the Act Section 17 confers power on the Market Committee to grant licence and charge fee for the same. It further empowers the Committee to levy and collect fees in granting licence and market fees on transactions of sale or purchase of specified agricultural produce in the Principal Market Yard and Sub-Market Yard from such persons at such rates as may be prescribed. Rule 66 framed under the Adhiniyam prescribes the rate of market fee and laid down that it shall be payable by the seller. Rule 68 further lays down that the market fee shall be realised from the seller viz., the agricultural producer, but for the sake of convenience the market fee could be realised from the purchaser though he was entitled to charge the market fee from the seller.
(3.) The Adhiniyam was amended by the Presidents Act No. 13 of 1973. Section 9 of the Amending Act amended Section 17 (iii) (b). The amended section lays down that market fee shall be payable by purchasers on transactions of sale of specified agricultural produce in the Principal Market Yard or Sub-Market Yard at such rates being not less than one per centum and not more then one and a half per centum of the price of agricultural produce so sold as the State Government may specify by notification in the Gazette. It is noteworthy that under the unamended Section 17(iiii) (b) the market fee was payable by sellers on the transaction of sale of specified agricultural produce and thus in practice the agricultural producers who brought his agricultural produce in the principal market yard or sub-market yard for sale of the same was liable to pay market fees. But after the amendment, obligation to pay market fee has been placed on the purchaser and not on the agricultural producers. In pursuance of the amended section the State Government issued a notification on 24-9-1973 prescribing a uniform rate of market fee for all the Mandis of the State viz., one percentum on the price of specified agricultural produce. In view of this development and change in law the petitioners who carry on their business within the market area of Mainpuri were required to pay market fee on the transaction of purchase of agricultural produce. The petitioners have challenged the validity of imposition of market fee and realisation of the same from them.;