Tarun Agarwala, J. - (1.) HEARD Shri Ashok Khare, the learned senior counsel for the petitioner and Shri B.D. Mandhyan, the learned senior counsel for the Mandi Parishad.
(2.) THE question which arises for consideration in the present petition is, whether the certified seeds is an agricultural produce or not? The facts giving rise to this petition is, that the Uttar Pradesh Krishi Utpadan Mandi Adhiniyam, 1964 (hereinafter referred to as the Adhiniyam) was enacted to regulate the sale and purchase of agricultural produce and for establishment of a market in Uttar Pradesh. Section 2(a) of the Adhiniyam defines "agricultural produce" as under: 2 (a) "agricultural produce" means such items of produce of agriculture, horticulture, viticulture, apiculture, sericulture, pisciculture, animals hubandary, or forest as are specified in the Schedule, and includes admixture of two or more of such items, and also includes any such item in processed form, and further includes gur, rab, shakkar, khandsari and jaggery. The Schedule appended to the Adhiniyam provides a list of agricultural produce, which includes wheat, gram and peas. These agricultural produce are involved in the present controversy. The petitioner is a partnership firm registered under the Partnership Act and is engage in the business of production, processing and distribution of certified seeds of wheat, gram and vegetable peas, namely, Arkel, Azad P -1 and Azad P -3. The firm is registered with the U.P. State Seeds Certification Agency, Alambagh, Lucknow under the Seeds Act, 1966 (hereinafter referred to as the Seeds Act).
(3.) THE modus operandi for the purpose of production of certified seeds, as given by the petitioner, is that it purchases breeder seeds from agricultural research institutes in order to produce certified seeds. The petitioner enters into an arrangement with the agriculturists and supply breeder seeds to these agriculturists for production of certified seeds. The breeder seeds are sown and germinated in the fields, of the agriculturists under the supervision of the seeds certification agency which has been set up under the Seeds Act, 1966. Upon the full growth of the breeder seeds, the same is taken back by the petitioner and subjected to processing, which involves the use of chemicals, and thereafter, the same is inspected by the seeds certification agency, and thereafter, certified to be sold as certified seeds. It is stated that only such quantity of seeds which are found fit for certification by the seed certification agency is retained by the petitioner and those which are found unfit for certification by the agency is returned to the agriculturists. In this manner, the petitioner submits that the produce obtained from the agriculturists are not agricultural produce, but are certified seeds, which does not come under the purview of the Mandi Adhiniyam.;