Full Judgment Text
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PETITIONER:
SECRETARY, AGRICULTURAL PRODUCEMARKETING COMMITTEE, D.K.DIS
Vs.
RESPONDENT:
VARADARAYA SHENOY AND ANR.
DATE OF JUDGMENT07/03/1995
BENCH:
ANAND, A.S. (J)
BENCH:
ANAND, A.S. (J)
FAIZAN UDDIN (J)
CITATION:
1995 SCC (3) 276 JT 1995 (3) 460
1995 SCALE (2)113
ACT:
HEADNOTE:
JUDGMENT:
DR.ANAND, J.:
1.On 10.5.1993, while condoning the delay in the filing of
the special leave petition, special leave was granted
limited to the question "whether the Secretary, Agricultural
Produce Marketing Committee is competent to file the
complaint?
2.The Karnataka Agricultural Produce Marketing (Regulation)
Act, 1966 (hereinafter referred to as ’the Act’) was
promulgated with a view to provide for better regulation of
marketing of agricultural produce and the establishment and
administration of markets for agricultural produce and
matters connected there with in the State of Karnataka. The
Act also provides for the constitution of marketing
committees which are empowered to regulate the market of
notified agricultural commodities in the notified market
areas. In the case of violation of the provisions of the
Act and/or the Rules framed thereunder, penal action and
punishments have been provided under the Act. In order to
answer the question noticed above, it is desirable to first
notice some of the relevant provisions of the Act and the
Rules framed thereunder.
3.Section 2(20) defines "marketing committee" or "committee"
to mean a market committee constituted for a market area
under this Act. A market functionary under Section 2(21)
includes a broker, commission agent, an exporter, a ginner,
an importer, a presser, a processor, a stockist, a trader,
and such other person as may be declared under the rules or
the bye-laws to be a market functionary. Section 2(39) d
defines the "Secretary" to mean the Secretary of the market
committee and includes, Additional Secretary or Assistant
Secretary of the marketing committee and any other officer
who is authorised by the Director of Agricultural Marketing
to exercise the powers and perform the functions and duties
of the Secretary. Section 58 deals with the appointment of
the Secretary and the technical staff of the marketing
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committee.
4.Section 9 provides for the establishment of the marketing
committee and its incorporation and lays down that save as
provided for in Chapter IX, for every market area, there
shall be a marketing committee having jurisdiction over the
entire market area. Sub-section (2) thereof inter alia pro-
vides
(2) "Every market committee established
under this Act shall be a body corporate by
such name as the State Government may by
notification specify. It shall have perpetual
succession and a common seal and may sue and
be sued in its corporate name and shall,
subject to such restrictions as are imposed by
or under this Act, be competent to contract
and to acquire,
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hold, lease, sell or otherwise transfer any
property and to do all other things necessary
for the purpose for which it is established :
5. Sub-Section (3) of Section 9 declares that
notwithstanding anything contained in any law for the time
being in force, every market committee shall, for all
purposes, be deemed to be a local authority.
6. The powers, functions and duties of the Secretary have
been provided in Section 56 of the Act and the relevant
parts of the Section lay down:
56. Powers, functions and duties of the
Secretary. Subject to the powers of the
Chairman under Section 46 and the other
provisions of this Act or the rules, the
Secretary shall be the chief executive officer
and the custodian of all the records and
properties of the market committee, and shall
exercise and in addition to such other duties
as may be specified in this Act, the rules or
bye-laws, namely:-
(i) convene in constitution with the
Chairman the meetings of the market
committee and of the sub-committees, if any,
and maintain the minutes of the proceedings
thereof;
(iv)furnish to the market committee such
returns, statements, estimates, statistics and
reports as the market committee may from time
to time require including reports. (a)
regarding the fines and penalties levied on,
and any disciplinary action taken against th
e
members of the staff and the market
functionaries and others. (b) regarding over-
trading by traders; (c) regarding
contraventions of the Act, the rules, the bye-
laws of the standing orders by any person; (d)
regarding the suspension or cancellation of
licences by him or by the Chairman or the
Director of Agricultural Marketing; (e)
regarding the administration of the market
committee and the regulation of the marketing;
(x) report to the Chairman and the Director
of Agricultural Marketing immediately in
respect of fraud, illegal acts, embezzlement,
theft or loss of market committee funds or
property;
(ix) prefer complaints in respect of pros-
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ecutions to be launched on behalf of the
market committee and conduct proceedings,
civil or criminal on behalf of the market
committee.
7. Rule 50 deals with the powers and duties of the
Secretary and inter alia provides
50. Duties and powers of the Secretary-
(1) Subject to the provisions of the Act,
the Secretary shall be the Chief Executive
Officer of the Committee and shall carry out
the resolutions and directions of the
Committee from time to time.
.................................
...............................
(4) The Secretary shall maintain records of
all disputes which come up for decision before
the arbitrators and the Disputes Committee in
the form prescribed in the bye-laws.
................................
................................
(11) The Secretary shall furnish to the
Committee particulars of the contraventions if
any of the provisions of the Act,
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the rules or the bye-laws by a market
functionary and the action, if any, taken
thereon as soon as may be after such con-
travention.
8. Section 63 the Act deals with the powers and duties of
the market committee and the relevant portion thereof reads
as follows:
63. Powers and duties of market committee. -
(1) Subject to the provisions of this Act, it
shall be the duty of a market committee -
(i) to implement the provisions of Act, the
rules and bye-laws made thereunder in the
market area;
(ii) to provide such facilities for transport and
marketing of agricultural produce therein as
the State Government may from time to time
direct;
(iii) to do such other acts as may be required
in relation to the superintendence, direction
and control of markets or for regulating
marketing of agricultural produce in any place
in the market area, and for purposes connected
with the matters aforesaid;
and for that purpose may exercise such powers
and discharge such functions as may be
provided by or under this Act.
(2) (a)....................
(2) (b) A market committee may
(i) regulate the entry of persons and ve-
hicular traffic into die yard vesting in the
market committee;
(ii) prosecute persons for violating the pro-
visions of this Act, the rules and the bye
laws and compound such offences;
(iii)acquire, hold and dispose of any movable
or immovable property for the purpose of
efficiently carrying out its duties;
(iv) impose penalties on persons who con-
travene the provisions of this Act, the rules
or the bye-laws or the orders or directions
issued under this Act, the rules or the bye-
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laws by the market committee its Chairman or
by any officer duly authorised in this behalf,
(v) institute or defend any suit, action,
proceeding, application or arbitration and
compromise such suit, action, proceeding,
application or arbitration;
(vi)...........................
...........................................
9. A conjoint reading of the aforesaid provisions of the
Act and the Rules framed thereunder goes to show that the
Secretary of the Market Committee is an officer of the
marketing committee, who is a Government servant, and is
appointed by the Government and_functions as the chief ex-
ecutive officer of the committee generally to carry out the
resolutions and the directions of the committee from time to
time. His powers, functions and duties have been specified
under the Act and the Rules.
10. Section 56(xi) (supra)requires the secretary of the
marketing committee to prefer complaints in respect of the
prosecutions to be launched on behalf of the marketing
committee and conduct proceedings, civil or criminal on
behalf of the.arketing committee. Under Section 63(2) (b)
(ii) (supra) the power "to " prosecute persons for violating
the provisions of the Act, the rules and the bye-laws and to
compound such offences " vests and rests with the market
committee itself Therefore, it
465
is only after a decision is taken by the market committee to
prosecute an offender under the Act that the Secretary is
assigned the function to institute the complaint on its
behalf and conduct the proceedings. Thus, without a
resolution or an authorisation from the market committee,
the Secretary by himself can not file any complaint against
any person subject to the provisions of the Act for
violating the provisions of the Act, Rules and the bye-laws.
Thus, whereas the power to launch a prosecution vests with
the market committee, the_functions in respect thereof are
required to be carried out by the Secretary on behalf of the
market Committee. Since, every market committee is a body
corporate having perpetual succession which may sue or be
sued in its corporate name, the Act provides for the
delegation of different functions to various officers
including the Secretary under the Act. The functions of
filing the complaint etc. against the offenders under the
Act have been specifically vested in the Secretary. The
powers of the, committee and the_functions of the Secretary
in the matter of prosecuting the offenders are independent
and cannot be confused nor the distinction between the
powers of the committee and the functions and duties of the
Secretary be overlooked. There appears to be sound logic in
not vesting the power in the Secretary to launch
prosecutions against the alleged offenders and to vest that
power in the market committee itself Since, the marketing
committee consists largely of the elected representatives,
elected in the manner provided under the Act, there is col-
lective responsibility of the Market Committee to the
functionaries of the marketing committee and therefore any
prosecution which is required to be launched would need to
be scrutinised and considered by the market committee itself
because, the launching of prosecution, exposes the violator
not only to face a trial but on conviction may be also
subjected to penal consequences. The framers of the Act
therefore specifically left the power to authorize
prosecution, in the marketing committee while providing for
delegation of the functions to prosecute on behalf of the
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marketing committee, to the Secretary of the committee.
11. From an analysis of the provisions of the Act and the
Rules as hereinabove noticed, we are of the opinion that it
is for the marketing committee to decide whether or not
prosecution is required to be launched against an alleged
violator and it is only after such a decision is taken that
the Secretary of the market committee can be authorised by a
resolution or otherwise, to file the complaint and conduct
the proceedings against the offenders for and on behalf of
the market committee in the appropriate forum. In the
absence of any resolution or authorisation from the market
committee, the Secretary does not have any power to
independently prefer or file any complaint or launch a
prosecution for the alleged violation of the Act, Rules or
the bye-laws against the alleged violator.. We, therefore,
answer the question posed in the opening part of this
judgment and hold that the Secretary agricultural produce
marketing committee is not competent to file a complaint or
launch prosecution on his own, without a resolution or
authorisation of the marketing committee concerned. His
power is limited to conduct the proceedings, after he has
been so authorised for and on behalf of the Market
Committee.
12. On the facts of this case, we find from
466
the record that the appellant as the Secretary of the
agricultural produce marketing committee, Dakshin Kannada
District Karnataka filed a complaint before the IInd Addl.
Chief Judicial Magistrate, Mangalore against the
respondents without being authorised by the market
committee to do so and without any decision of the market
committee to prosecute the respondents for the alleged
violation of the provisions of the Act and the Rules. An
objection was raised before the Trial Court against the
competence of the appellant to file the complaint without
prior permission or authorisation from the marketing
committee and thus, on the maintainability of the complaint
itself by the respondent. The Trial Court upheld the objec-
tion and vide its order dated 27.10.1987 dismissed the
complaint as not maintainable and acquitted the respondents.
The order of the Trial Court was unsuccessfully challenged
in an appeal before the High Court of Karnataka, which
concurred with the view of the Trial Court and by its order
dated 9.10.1992 held, after consideration of the provisions
of the Act, that
"it is the committee which must take a
decision to prosecute persons for any
violation alleged and in the absence decision
by the marketing committee the Secretary could
not have filed the complaint."
In view of, the opinion that we have expressed above
regarding the power and functions of the Secretary the view
of the High Court upholding that of the Trial Court, is the
correct view and calls for no interference. We find no
merit in this appeal and dismiss the same. There shall,
however be no order as to costs.
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