IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) MONDAY, THE TWENTY EIGHTH DAY OF JUNE TWO THOUSAND AND TEN PRESENT THE HON'BLE MR JUSTICE C.V.NAGARJUNA REDDY
WRIT PETITION No.12901 of 2007
Between:
Sri Venkata Sai Traders & others.
… Petitioners And Director of Marketing, A.P., Hyderabad & others.
… Respondents Counsel for the Petitioners: Ms. Shilpa for Sri V. Srinivas Counsel for respondent No.1: AGP for Agriculture Counsel for respondents 2-61: Sri K. Madhava Reddy SC for Agriculture Market Committee The Court made the following:
THE HON'BLE MR JUSTICE C.V.NAGARJUNA REDDY WRIT PETITION No.12901 of 2007 ORDER:
This writ petition is filed for a Mandamus to declare the action of the respondents in insisting on payment of market fees on the petitioners in respect of Bengal Gram and Dun Peas purchased by them outside the State while they are in transit through the respondents’ market committees to their mills, as illegal, arbitrary and unconstitutional. The petitioners sought for a consequential direction to the respondents not to insist on payment of market fees from them in respect of Bengal Gram and Dun Peas purchased by them from outside the State.
I have heard Ms. Shilpa representing Sri V. Srinivas, learned counsel for the petitioners and Sri K. Madhava Reddy, learned Standing counsel appearing for respondent Nos.2 to 61.
The petitioners are the traders, who claim to be engaged in purchase of Bengal Gram and Dun Peas (Batani) and process them in their mills situated at Allagadda, Kurnool District. They further stated that it is only the processed products that they sell in the State and that the raw materials like Bengal Gram and Dun peas are purchased by them by way of import from Australia and Pakistan. The petitioners further averred that the said goods arrive at the ports of Chennai, Vizag, Kakinada, Tutikori and also at Nagpur and that from there the goods are transported by lorries to their mills. The grievance of the petitioners is that though no part of these goods is purchased within the areas of any of respondent Nos.2 to 101 market committees, the said respondents have been insisting on payment of market fees, as if the transactions have taken place within their respective market areas. No counter affidavits are filed on behalf of any of the respondents.
At the hearing, Sri K. Madhava Reddy, learned Standing counsel has fairly conceded that under the provisions of the Andhra Pradesh (Agricultural Produce and Livestock) Markets Act, 1966, the market committees are entitled to collect market fees on the notified agricultural commodities provided they are purchased within their market areas. He further submitted that in respect of the commodities, which are purchased out side the State of A.P., the petitioners are not liable to pay market fees, if they are able to show the proof that the said transactions have taken place outside the respondents’ market areas. The learned counsel further conceded that the issue raised in this writ petition is squarely covered by the Division Bench of this Court in Modern Nutrition Company, Hyderabad vs. Agricultural Market Committee, Nirmal[1] and that following the said judgment several writ petitions are being allowed by this Court.
Having regard to the above submissions of the learned Standing counsel, the writ petition is allowed in terms of the judgment of the Division Bench (supra). It is further made clear that if the petitioners are able to furnish evidence at the check post or at any other place where the goods are intercepted that the transactions of the goods under transit have taken place outside the respondents’ market areas, the respondents shall not intercept transportation of such goods or in any way interfere with the business of the petitioners.
As a sequel to disposal of the writ petition in the manner indicated above, WPMP.No.16105 of 2007 filed by the petitioners for interim relief is disposed of as infructuous.
C.V.NAGARJUNA REDDY, J Date: 28.06.2010. ES
[1] 1996 (4) ALD 801