Full Judgment Text
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PETITIONER:
KISHAN LAL AND ORS.
Vs.
RESPONDENT:
STATE OF RAJASTHAN & ORS.
DATE OF JUDGMENT23/03/1990
BENCH:
SAHAI, R.M. (J)
BENCH:
SAHAI, R.M. (J)
SHETTY, K.J. (J)
CITATION:
1990 AIR 2269 1990 SCR (2) 142
1990 SCC Supl. 742 JT 1990 (1) 553
1990 SCALE (1)555
ACT:
Rajasthan Agricultural Produce Markets Act, 1961:
Section 40 and Schedule--Market fee--Levy of--On Khandsari,
Shakkar, Gur and Sugar as agricultural produce--Validity of.
Constitution of India, 1950: Articles 14, 19, 301, 304,
246, 254(2), Seventh Schedule, List I Entry 52, List H
Entries 28, 66 and List 111 Entry 33--Market Fee--Levy
of--On Khandsari, Shakkar, Gur and Sugar as agricultural
produce--State Legislature--Competency of--Rajasthan Agri-
cultural Produce Markets Act, 1961 Section 40 and
Schedule--Repugnancy and validity of.
Words and Phrases: ’Sugar’--’Agricultural produce’--Meaning
of.
HEADNOTE:
In the Writ Petition flied in this Court, the validity
of Rajasthan Agricultural Produce Markets Act, 1961, levying
market-fee on sale and purchase of agricultural produce was
challenged for lack of legislative competence, and arbitrary
inclusion of Khandsari, Shakkar, Gur and Sugar as agricul-
tural produce in the Schedule. It was contended that inclu-
sion of sugar was arbitrary inasmuch as it being a declared
commodity of public importance under Entry 52 of List I of
Schedule VII, the State Legislature was precluded from
legislating on it and that being a mill or factory produce,
it could not be deemed to be agricultural produce, which was
basically confined to produce of or from soil.
Dismissing the Petitions, this Court,
HELD: 1.1 Sugar is one of the items which was included
in the Schedule to the Rajasthan Agricultural Produce Mar-
kets Act, 1961, statutorily, right from the inception. Such
inclusion is found in many States. Whether it was subse-
quently deleted or re-included or regrouped or was added
later was immaterial, as Section 40 of the Act empowered
State Government to amend or include any item in the Sched-
ule of agricultural produce. Existence of such delegated
power is
143
usual feature of the statutes. No illegality or infirmity
could be pointed out in it. Any challenge, therefore, round-
ed on excessive delegation of legislative power was miscon-
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ceived. [144H, 145A-B]
1.2 The definition of the word "agricultural produce" in
the Act includes all produce whether agricultural, horticul-
tural, animal husbandry or otherwise as specified in the
Schedule. The legislative power to add or include and define
a word even artificially, apart, the definition which is not
exhaustive but inclusive, neither excludes any item produced
in mill or factories nor it confines its width to produce
from soil. Nor switch over from indigenous method of produc-
ing anything to scientific or mechanical method changes its
character. To say, therefore, that sugar being produced in
mill or factories could not be deemed to be agricultural
produce is both against the statutory language and judicial
interpretation of similar provisions of the Act in statutes
of other States. [145C-D, F]
Kewal Krishan Puri v. State of Punjab, [1979] 3 SCR
1217; Ramesh Chandra v. State of U.P., [1980] 3 SCR 166;
Rathi Khandsari Udyog v. State of U.P., [1982] 2 SCR 966;
Sreenivisa General Traders v. State of Andhra Pradesh, AIR
1983 SC 1264; Ramesh Chandra v. U.P. State [1980] 3 SCR 194
and State of U.P. v. Ganga Das Mill, [1985] SCR 87-88, re-
ferred to.
Halsbury’s Law of England, Vol. I and Paragraph 1845, re-
ferred to.
2. In view of the settled position of law that sugar
legislations are within the scope of Entry 33 of Concurrent
List, no further discussion on clash between Entry 52 of
List I of Vllth Schedule and Entry 28 of List II is neces-
sary. There is no repugnancy in the Central and State legis-
lation. Even if there would have been any, the Act having
received assent of the President is fully protected by
Article 254(2) of the Constitution. [146B-D]
Choudhary Tika Ram and Others v. State of U.P., [1956]
SCR 393, followed.
JUDGMENT:
ORIGINAL APPELLATE JURISDICTION: Writ Petition No. 1555
of 1979 etc. etc.
(Under Article 32 of the Constitution of India).
144
D.N. Dwivedi and Sarwa Mitter for the Petitioners.
Dr. L.M, Singhvi, B.D. Sharma, Shri Narain, Sandeep
Narain, Shrid Rizvi and D.K. Singh for the Respondents.
The Judgment of the Court was delivered by
R.M. SAHAI, J. Validity of Rajasthan Agricultural Pro-
duce Markets Act, 1961 (for brevity the Act) levying
market-fee on sale and purchase of agricultural produce in
market-yard or sub-marketyard was challenged by dealers for
lack of legislative competence, violation of Articles 14,
19, 30 1 and 304 of Constitution, absence of any quid pro
quo in the fee paid and service rendered, illegal and arbi-
trary inclusion of manufactured articles such as Khandsari,
Shakkar, Gur and Sugar as agricultural produce in the sched-
ule etc.
Acts of other States, for instance, Punjab and Haryana
and U.P. were also assailed for similar infirmities. Whether
these petitions, which appear to be identical, are reproduc-
tion of any of those petitions, which were pending in this
Court from before is not relevant but various group of
petitions of Punjab and Haryana dealers challenging consti-
tutionality and legality of Act and its provisions including
Gut, Khandsari and Shakkar as agricultural produce in the
schedule of Punjab Act have been dismissed by different
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benches presumably because of decisions in Kewal Krishan
Puri v. State of Punjab, [1979] 3 SCR 1217; Ramesh Chandra
v. State of U.P., [1980] 3 SCR 166; Rathi Khandsari Udyog v.
State of U.P., [1982] 2 SCR 966 and Sreenivisa General
Traders v. State of Andhra Pradesh, AIR 1983 SC 1264.
Despite these decisions spelling out basic principles
for determining validity of marketing legislations dealing
with agricultural produce the petitioners were not willing
to take it lying down probably because none of these deci-
sions dealt with sugar. It was urged that inclusion of sugar
in the Schedule of the Act was arbitrary., primarily because
it being a declared commodity of public importance under
Entry 52 of List I of Schedule VII the State legislature was
precluded from legislating on it. Its inclusion in the
Schedule was also assailed as it being a Mill or Factory
produce it could not be deemed to be agricultural produce
which is basically confined to produce of or from soil.
Sugar is one of the items which was included in the
Schedule to the Act, statutorily, right from its inception.
Such inclusion is found in
145
Maharashtra, Gujarat, West Bengal, Bihar etc. Whether it was
subsequently deleted or re-included or re-grouped or it was
added later was immaterial as Section 40 of the Act empow-
ered State Government to amend or include any item in the
Schedule of agricultural produce. Existence of such delegat-
ed power is usual feature of the statutes. No illegality or
infirmity could be pointed out in it. Any challenge, there-
fore, rounded on excessive delegation of legislative power
was misconceived.
Inclusion of sugar in the Schedule was urged to be
arbitrary as it was not produced out of soil the basic
ingredient of agricultural produce. Fallacy of the submis-
sion is apparent as it was in complete disregard of defini-
tion of the word "agricultural produce" in the Act which
includes all produce whether agricultural, horticultural,
animal husbandry or otherwise as specified in the Schedule.
The legislative power to add or include and define a word
even artificially, apart, the definition which is not ex-
haustive but inclusive neither excludes any item produced in
mill or factories nor it confines its width to produce from
soil. If that be the construction then all items of animal
husbandry shall stand excluded. It further overlooks expanse
of the expression "or otherwise as specified in the Sched-
ule." Nor switch over from indigenous method of producing
anything to scientific or mechanical method changes its
character. Khandsari sugar, which is produced by open pan
process and is not different from sugar produced by vacuum
pan process except in composition, filterability and conduc-
tivity as held in Rathi Khandsari Udyog, (supra) was held to
be agricultural produce in some decisions. No distinction
was made on method of production, namely, by modern plant
and machinery. To say, therefore, that sugar being produced
in mill or factories could not be deemed to be agricultural
produce is both against the statutory language and judicial
interpretation of similar provisions of the Act in statutes
of other States. Rice or dal produced in mills have been
held to be agricultural produce in Ramesh Chandra v.U.P.
State, [1980] 3 SCR 194 and State of U.P. v. Ganga Das Mill,
[1985] SCR 87-88. Even in Halsbury Law of England,’ Vol. I
the word agricultural produce for purpose of agricultural
marketing schemes is understood as, ’including any product
of agriculture or horticulture and any article of food or
drink wholly or partly manufactured or derived from any such
product and fleeces (including all kinds of wool) and the
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skins of animals’. In the same volume products covered by
the provisions of EEC Treaty as to agriculture (classified
according to the Brussels Nomenclature of 1965) are men-
tioned in paragraph 1845. Sugar is one of them.
146
Another legalistic challenge regarding inhibition of
State to legislate on sugar or of repeated argument of
occupied field was more attractive than of any substance.
Reliance on Article 246 of the Constitution was academic
only. As far back as 1956 Constitution Bench of this Court
in Choudhary Tika Ram and others v. State of U.P., [1956]
SCR 393 examined the matter in detail and held sugar legis-
lations to be within the scope of Entry 33 of concurrent
list. It was observed that all ’Acts and the notifications
issued thereunder by the Centre in regard to sugar and
sugarcane were enacted in exercise of concurrent jurisdic-
tion’. Effect of it was described thus, ’The Provincial
Legislature as well as the Central Legislature would be
competent to enact such pieces of legislation and no ques-
tion of legislative competence would arise’. Any further
discussion on clash between Entry 52 of List I of VII Sched-
ule with Entry 28 of List II in the circumstances is unnec-
essary. As regards the submission of occupied field suffice
it to say that there is no repugnancy m the Central and
State legislation. At least none was made out. Even if there
would have been any the Act having received assent of the
President it is fully protected by Article 254(2).
For these reasons these petitions fail and are dismissed
with costs.
N.P.V. Petitions dismissed.
147