PUNJAB MANDI BOARD Vs. STATE OF PUNJAB
LAWS(P&H)-2008-4-94
HIGH COURT OF PUNJAB AND HARYANA
Decided on April 07,2008

PUNJAB MANDI BOARD Appellant
VERSUS
STATE OF PUNJAB Respondents

JUDGEMENT

M.M.KUMAR,J - (1.) THIS petition filed under Article 226 of the Constitution prays for quashing order dated 27.9.2004, passed by the Additional Secretary to Government of Punjab, Department of Agriculture, Chandigarh (P-7), whereby the revision petition filed by the Food Corporation of India-respondent No. 2 (for brevity, 'the Corporation'), under Section 42 of the Punjab Agricultural Produce Markets Act, 1961 (for brevity, 'the Act'), has been allowed by setting aside order dated 18.7.2003 (P-6), passed by the Appellate Authority i.e. Secretary, Punjab State Agricultural Marketing Board, Chandigarh (for brevity, 'the Board'). The Appellate Authority, vide its order dated 18.7.2003 (P-6), while allowing the appeal preferred by the Corporation under Section 40 of the Act affirmed Resolution No. 96, dated 16.1.2002, passed by the Market Committee, Khanouri, District Sangrur, raising demand of Rs. 28,43,664.50 paise on account of demurrage charges from the Corporation for non-lifting of wheat stock by it during Rabi Season 2000-01, which remained lying in the main yard of the Market Committee, Khanauri.
(2.) BRIEF facts of the case are that under Section 3 of the Act, the State of Punjab has constituted the Board to regulate purchase, sale, storage and processing of various agricultural produce and for establishment of markets for agriculture produce. Similarly, under the provisions of Sections 11 and 12 of the Act, various Market Committees within the State of Punjab including Market Committee, Khanouri, District Sangrur, have been established. The Corporation also deals with the procurement, storage and distribution of food grains throughout the country. During Rabi 2000, the Khanauri Mandi, under the jurisdiction of Market Committee, Khanauri, District Sangrur, was allotted to the Corporation for effecting purchases. It is claimed that from 11.4.2000 to 8.5.2000, the Corporation purchased 7,21,237 bags of wheat from the Khanouri Mandi, however, the same was not lifted within the stipulated period of time which resulted in violation in violation of bye-law 11(7) of the Punjab Market Committee Bye-laws, 1963 (for brevity, 'the Bye-laws'). On 20.4.2000 and 26.5.2000 (P-1 and P-2), the Market Committee issued notices to the District Manager, Food Corporation of India, Sangrur, that the produce was to be lifted within 72 hours after its purchase and by not doing so, the Corporation has violated the provisions of Bye-law 11(7) of the Bye-laws. On 5.7.2000, another recovery notice under Bye-law 11(7) of the Bye-laws was issued to the Corporation calling upon it to deposit an amount of Rs. 28,43,664.50 paise towards demurrage charges for not lifting produce in due course of time. It was mentioned in the said notice that during year 2000, the Corporation has purchased 360618.50 quintals of wheat from 11.4.2000 to 4.5.2000 (P-3), details whereof were also attached with the said notice (P-4).
(3.) FEELING aggrieved against notice dated 5.7.2000, the Corporation approached this Court by filing C.W.P. No. 10021 of 2001, which was disposed off vide order dated 29.11.2001, granting liberty to the Corporation to make necessary application under the provisions of the Bye-laws. A further direction was issued to dispose of such an application by passing a speaking order within one month. On 16.1.2002, the Marketing Committee, Khanauri, passed Resolution No. 96, wherein letter dated 27.11.2001, received from the Corporation was considered. The Corporation took the stand that on 6/7.5.2000 and 12.5.2000 there were heavy rains due to which wheat bags could not be lifted. However, rejecting the said defence, the demand of Rs. 28,43,684.50 paise was sustained by the Marketing Committee, Khanauri (P-5).;


Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.