COMMISSIONER OF INCOME TAX Vs. MARKET COMMITTEE DHARIWAL
LAWS(P&H)-2007-3-390
HIGH COURT OF PUNJAB AND HARYANA
Decided on March 14,2007

COMMISSIONER OF INCOME TAX Appellant
VERSUS
MARKET COMMITTEE DHARIWAL Respondents

JUDGEMENT

J.S.KHEHAR J. - (1.) A market committee is incorporated in terms of the provisions of s. 18 of the Punjab Agricultural Produce Markets Act,
(2.) 1961 (hereinafter referred to as the Markets Act). A market committee, incorporated under the Markets Act, has a perpetual succession and a common seal. Such a committee may sue and can also be sued in its corporate name. A market committee is also authorised to acquire and hold property, movable as well as immovable, subject to the provisions of s. 32 of the Markets Act.
(3.) THE duties of a market committee have been laid down in s. 13 of the Markets Act, which is being reproduced hereunder : "13. Duties and power of committee. - -(1) It shall be the duty of a committee, - - (a) to enforce the provisions of this Act and the Rules and the Bye -laws made thereunder in the notified market area and, when so required by the board, to establish a market therein providing such facilities for persons visiting it in connection with the purchase, sale, storage, weighment and processing of agricultural produce concerned as the board may from time to time direct; (b) to control and regulate the admission to the market, to determine the conditions for the use of the market and to prosecute or confiscate the agricultural produce belonging to person trading without a valid licence; (c) to bring, prosecute or defend or aid in bringing, prosecuting or defending any suit, action, proceeding, application or arbitration, on behalf of the committee or otherwise when directed by board. (2) Every person licensed under s. 10 or s. 13 and every person exempted under s. 6 from taking out licence, shall on demand by the committee or any person authorised by it in this behalf furnish such information and returns, as may be necessary for proper enforcement of Act or the Rules and Bye -laws made thereunder. (3) Subject to such rules as the State Government may make in this behalf, it shall be the duty of a committee to issue licences to brokers, weighmen, measurers, surveyors, godown keepers and other functionaries for carrying on their occupation in the notified market area in respect of agricultural produce and to renew, suspend or cancel such licences. (4) No broker, weighman, measurer, surveyor, godownkeeper or other functionary shall, unless duly authorised by licence, carry on his occupation in a notified market area in respect of agricultural produce : Provided that nothing in sub -ss. (3) and (4) shall apply to a person carrying on the business of warehouseman who is licenced under the Punjab Warehouses Act, 1957 (Punjab Act No. 2 of 1958)." A perusal of s. 13 of the Markets Act reveals that it is the duty of a market committee to establish a market in a market area. It is also the duty of a market committee to provide facilities for the sale and purchase of agricultural products, besides the weighment and processing thereof. A market committee is also vested with the responsibility of issuing licences to persons authorised to function as brokers, weighmen, measurers, surveyors, godown keepers, and such like other activities in the market area. In other words, a market committee provides facilities to persons who come to a market area, whether for sale or for purchase, of agricultural products.;


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