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PETITIONER: CHHANGANLAL MANSUKHLAL & ANR.

       Vs.

RESPONDENT: K. K. BHATT & ANR.

DATE OF JUDGMENT05/02/1981

BENCH: KOSHAL, A.D. BENCH: KOSHAL, A.D. ERADI, V. BALAKRISHNA (J) MISRA, R.B. (J)

CITATION:  1981 AIR 1102            1981 SCR  (2) 761  1981 SCC  (2) 418        1981 SCALE  (1)426

ACT:      Gujarat Agricultural  Produce Markets  Rules 1965-Rules 48 and 49-Scope of.

HEADNOTE:      The parties  are agreed  that the provisions of Rule 49 are not  attracted and  no fees  are payable under it at the stage of  entry into  a  market  area  if  the  agricultural produce in  question is  covered by  sub-rule(2) of Rule 48, i.e., when  such produce  fulfils either  of  the  following conditions:-           (i)   It is  brought from  outside the market area                thereinto for  use therein  by the industrial                concerns situated  therein or  for export and                in respect  thereof a  declaration  has  been                made and  a certificate  has been obtained in                Form V.           (ii) The  sale or  purchase of  such produce comes                within the  purview  of  sub-section  (3)  of                section 6 of the Gujarat Agricultural Produce                Markets Act.      This interpretation  of Rules  48 and  49  which  flows directly from the language employed therein is correct. Rule 49 will  have no  application to any case which falls within the ambit of sub-rule (2) of Rule 48. [763 D-E]

JUDGMENT:      CIVIL APPELLATE JURISDICTION : Civil Appeal No. 1967 of 1975.      Appeal by  Special Leave  from the  Judgment and  Order dated  30-10-74/1-11-1974  of  the  Gujarat  High  Court  in Special Civil Application No. 766/71.      Soli J.  Sorabji, Vimal  Dave, Subhash Parikh and Gopal Subharamaniyan for the Appellants.      S. H.  Sheth, M.  V. Goswami,  Ambrish Kumar and Mukesh Goswami for Respondent No. 1.      J. L. Nain, M. N. Shroff and S. C. Patel for Respondent No. 2.      The Judgment of the Court was delivered by

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    KOSHAL, J.-Rule  49 of the Gujarat Agricultural Produce Markets Rules,  1965, the  vires and  the reasonableness  of which have been the main points of challenge in this appeal, runs thus:           "49. (1) The fees on agricultural produce shall be      payable as  soon as  it is  brought into  the principal      market 762      yard or sub-market yard or market proper or market area      as may be specified in the bye-laws:      Provided that the fees so paid shall be refunded-           (i) on  production of  sufficient proof  that such      produce was  not sold  within the  limits of the market      area; or           (ii) if  such produce  is brought from outside the      market area into the market area for use therein by the      industrial concerns  situated in the market area or for      export and  in respect  of which a declaration has been      made and  a certificate  has been  obtained in  Form  V      subject to the proviso to sub-rule (2) of rule 48.           (2) The  licence fees  payable under rule 56 or 57      shall be paid alongwith the application for licence but      in case  the market  committee  refuses  the  grant  or      renewal of  a  licence  the  fees  recovered  shall  be      refunded to the applicant."      In order to interpret this Rule it is also necessary to set out the provisions of Rule 48. They are:           "48. (1)  The  market  committee  shall  levy  and      collect fees  on agricultural produce bought or sold in      the market area at such rate as may be specified in the      byelaws subject to the following minima and maxima viz.           (1) rates when levied ad valorem shall not be less      than 10 paise and shall not exceed 40 paise per hundred      rupees.           (2) rates  when levied in respect of cattle, sheep      or goat  shall not be less than 10 paise per animal and      shall not exceed Rs. 2 per animal.           Explanation:-For the  purposes of this rule a sale      of agricultural  produce shall  be deemed to have taken      place in  a market  area if  it  has  been  weighed  or      measured or  surveyed or delivered in case of cattle in      the   market    area   for   the   purpose   of   sale,      notwithstanding the  fact  that  the  property  in  the      agricultural produce  has by reason of such sale passed      to a person in a place outside the market area.           (2)  No  fees  shall  be  levied  on  agricultural      produce brought  from outside  the market area into the      market area  for use therein by the industrial concerns      situated in  the market  area  or  for  export  and  in      respect of  which  declaration  has  been  made  and  a      certificate has been obtained in Form V: 763           Provided that if such agricultural produce brought      into the  market area  for export  is not  exported  or      removed therefrom before the expiry of twenty days from      the date  on  which  it  was  so  brought,  the  market      committee  shall   levy  and   collect  fees   on  such      agricultural  produce  from  the  person  bringing  the      produce into  the market  area at  such rates as may be      specified in  the bye-laws  subject to  the maxima  and      minima specified in sub-rule (i):           Provided that no fee shall be payable on a sale or      purchase  to   which  sub-section   (3)  of  section  6      applies."      Learned counsel  for the  parties are  agreed that  the

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provisions of  Rule 49  are not  attracted and  no fees  are payable under it at the stage of entry into a market area if the agricultural  produce in question is covered by sub-rule 2 of  Rule 48,  i.e. when such produce fulfils either of the following conditions:           (1)  It is  brought from  outside the  market area                there into  for use therein by the industrial                concerns situated  therein or  for export and                in respect  thereof a  declaration  has  been                made and  a certificate  has been obtained in                Form V.           (2)  The sale  or purchase  of such  produce comes                within the  purview  of  sub-section  (3)  of                section 6 of the Gujarat Agricultural Produce                Markets Act.      After hearing  learned  counsel  for  the  parties,  we accept this  interpretation of  Rules 48  & 49  which  flows directly from  the language  employed therein, and hold that Rule 49  will have  no application  to any  case which falls within the ambit of sub-rule (2) of Rule 48.      Mr. Sorabjee  does not press any other point in support of the  appeal which  is accepted to the extent of the above interpretation of  Rules 48  & 49 but is otherwise dismissed with no order as to costs. P.B.R.                                Appeal partly allowed. 764