KRISHI UTPADAN MANDI SAMITI Vs. U P INDUSTRY FELICITATION COUNCIL
LAWS(ALL)-2008-5-82
HIGH COURT OF ALLAHABAD
Decided on May 23,2008

KRISHI UTPADAN MANDI SAMITI Appellant
VERSUS
U P Industry Felicitation Council Respondents

JUDGEMENT

- (1.) HEARD Shri B. D. Mandhyan, Sr. Advocate assisted by Shri Satish Mandhyan for the petitioner. Shri P. N. Saxena, Sr. Advocate assisted by Shri Uma Nath Pandey, Advocate appear for M/s. An Ads Chowk Bazar, Bulandshahr - respondent No. 2. Learned Standing Counsel appears for respondent No. 1. With the consent of the parties, all the writ petitions were heard and are being finally decided.
(2.) IN all these writ petitions Krishi Utpadan Mandi Samitis have prayed for writ, order or direction in the nature of certiorari quashing the proceedings in claim petitions filed by M/s. An Ads Chowk Bazar, Bulandshahr, and the award given by the Commissioner and Director of Education U.P. (Facilitation Council) Kanpur on references made by M/s. An Ads Chowk Bazar, Bulandshahr under S.6 (2) of the Interest on Delayed Payments to Small Scale Ancillary Undertaking Act, 1993 as amended by Act No. 23 of 1998 (in short the Act) awarding the sums claimed with interest at the rate of 5% above floor rate charged by the scheduled banks on credit limit on the grounds; (a) there was no agreement between the claimant and the Mandi Samitis and that there was no arbitration clause agreed between the parties to refer the dispute to the Facilitation Council under the Act; (b) S.4 of the U.P. Krishi Utpadan Mandi Adhiniyam, 1964 (Act No. 25 of 1964), which received the assent of the President on 28-10-1964 and was published in U.P. Extraordinary Gazette on 10-11-1964, the provisions of the Act shall have effect notwithstanding anything in consistent therewith contained in any law, custom, use or agreement. The alleged agreement was not entered into in accordance with Mandi Adhiniyam, 1964 and thus the Act does not give the jurisdiction to the Facilitation Council to enter into the dispute for arbitration and for making award; (c) though the jurisdiction of the Facilitation Council under the Act is not admitted, the Facilitation Council did not decide the objections raised by the Krishi Utpadan Mandi Samiti, before it, regarding exclusive application of the Mandi Adhiniyam under S.4 and on the question of jurisdiction of the Facilitation Council, alleging that there was no agreement between parties to allow Facilitation Council to enter into arbitration; and (d) a writ petition against the award made without jurisdiction for quashing award is maintainable under Art. 226 of the Constitution of India. Briefly stated the facts giving rise to this writ petition are that M/s. An Ads Chowk Bazar. Bulandshahr made an application to the Director. State Agriculture Produce Market Board. U.P. Lucknow on August 12th 1996 for installations and supply orders of the hoarding and display boards in the market yards, and market areas of the Market Committee of the State on the rates given in the letter. The then Director, Rajkiya Krishi Utpadan Mandi Parishad by his letter dated 10-10-1996 informed all the Regional Deputy Directors (Admn.) forwarding a copy of the proposal given by M/s. An Ads Chowk Bazar, Bulandshahr and for utilizing their services in accordance with law as and when they are required. The Director clarified on 16-1-1997 in pursuance to letter written by M/s. Classical and Marketing. Lucknow that he has come to know about an order on the talk of proposal given by M/s. An Ads Chowk Bazar, Bulandshahr, that the headquarters has not approved any firm or rates and that any arrangement made by the concerned departments will be according to their own needs at the specified rates. If any orders have been made contrary to this arrangement, the same shall be modified and that the financial control may be maintained. By earlier orders issued on 13-12-1984 of the Director, Mandi Parishad, it was clarified that the Mandi Samiti will select the place for placing the hoardings. The firm will be given the required material if it is to be printed on the hoarding after receiving 50% conservation money by bank draft. With regard to expenses on the allotted hoardings the Mandi Samiti will make the expenses from its own income according to the administrative instructions.
(3.) IT is contended that at no point of time any directions were issued by the Rajya Krishi Utpadan Mandi Parishad or the Mandi Samiti for the purposes of supply of hoardings and display boards to M/s. An Ads Chowk Bazar, Bulandshahr (the firm).;


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