JUDGEMENT
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(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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