The petitioners are registered brokers in the Krishi Utpadan Mandi Samiti, Maudaha, Hamirpur. The petitioners claim to carry out the work of brokers or dalals. According to them, in the ordinary course of business, they arrange contracts for the purchase or sale of agricultural produce on behalf of their principals against the payment of commission or remuneration, whether in cash or kind as specified under Section 2(b) of the U.P. Krishi Utpadan Mandi Adhiniyam, 1964. On 10/13 December, 2013, the Additional District Magistrate (Finance and Revenue), Hamirpur, passed an order requiring persons in the food business to be registered under the provisions of the Food Safety and Standards Act, 2006. The petitioners submitted their objections on 13 January 2014. By the impugned order dated 16 January 2014, the objections have been rejected and it has been held that all traders such as the petitioners situated within the precints of the Mandi Samiti would have to obtain licences/registration by 4 February 2014.
Section 31(1) of the Food Safety and Standards Act provides that no person shall commence or carry on any food business except under a licence. The expression food business is defined in Section 3(1)(n) as follows;
"(n) "food business" means any undertaking, whether for profit or not and whether public or private, carrying out any of the activities related to any stage of manufacture, processing, packaging, storage, transportation, distribution of food, import and includes food services, catering services, sale of food or food ingredients."
The expression 'food business' is defined to mean any undertaking, whether public or private and whether for profit or not, carrying out any of the activities related to any stage of manufacture, processing, packaging, storage, transportation, distribution of food, import and includes, inter alia, the sale of food or food ingredients. The expression related to is an expression of the widest import. So long as the activities relate to manufacture, processing, package, storage, transportation and distribution of food or the sale of food or food ingredients, it would classify as a food business. The petitioners have stated that they are commission agents who negotiate on behalf of their principals, within the area of the Mandi Samiti, against the payment of commission for the purchase or sale of agricultural produce. The activities of the petitioners hence fall within the description of those activities which are related to the sale of food ingredients. Moreover, so long as the activities are related to any stage of manufacture, processing, packaging, storage, transportation and distribution of food, the definition of the expression 'food business' would be attracted. The expression 'food' is defined in Section 3(1)(j) to mean any substance, whether processed, partially processed or unprocessed, which is intended for human consumption. Moreover, Section 3(1)(j) also includes primary food to the extent defined in clause (zk). Clause (zk) defines 'primary food', to mean an article of food, being a produce of agriculture or horticulture or animal husbandry and dairying or aquaculture in its natural form, resulting from the growing, raising, cultivation, picking, harvesting, collection or catching in the hands of a person other than a farmer or fisherman. The expression 'ingredient' is also defined in Section 3(1)(y) as follows:
"(y) "ingredient" means any substance, including a food additive used in the manufacture or preparation of food and present in the final product, possibly in a modified form."
These definitions are of a comprehensive nature.
The Food Safety and Standards Act 2006 was enacted to consolidate the law relating to food and, inter alia, to regulate the manufacture, storage, distribution, sale and import and to ensure availability of safe and wholesome food for human consumption and for matters incidental thereto.
Having regard to the underlying object and principles, Parliament has broadly defined the expressions, 'food', 'food business' and 'ingredients'. In this view of the matter, the order of the District Magistrate requiring registration does not suffer from any error. The petition is, accordingly, dismissed.
Order Date :- 3.3.2014 VMA (Dr. D.Y. Chandrachud, C.J.) (Dilip Gupta, J.)