1981 INSC 0068
                                      Chhaganlal Mansukhlal and Another

                                                           Vs

                                              K. K. Bhatt and Another

                                          Civil Appeal No. 1967 of 1975

                                    (A.D. Koshal, V.B. Eradi, R.B. Misra JJ)

                                                      05.02.1981

                                                     JUDGMENT

KOSHAL, J. -

1. Rule 49 of the Gujarat Agricultural produce Markets rules, 1965, the vires ad 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 yard or sub-marker yard or marker 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 marker 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 ad declaration has been made an a certificate has been obtained in
                  From 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 along with the
                  application for licence but in case the marker committee refuses the grant or renewal
                  of a licence the fees recovered shall be refunded to the applicant.

2. 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
                  brought or sold in the marker area at such rate as may be specified in the bye-laws
                  subject to the fallowing minima and maxima, viz.,

                  (i) rates when lived ad valorem shall not be less than 10 paise and shall not exceed 40
                  paise per hundred rupees;

                  (ii) 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.

                  Exploration.-For the purposes of this rule a sale 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 an a
                  certificate has been obtained in form V :

                  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 or 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.

3. Learned counsel for 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 fulfills either or the
following condition :

                  (1) it is brought from outside the market area thereunto for use therein by the
                  industrial concerns situated therein or for export and in respect thereof 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.

4. After hearing learned counsel for the parties, we accept this interpretation of Rules 48 and 49
which flows directly from the language employed therein, and hold that rule 39 will have no
application to any case which falls within the admit of sub-rule (2) of Rule 48.

5. 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 and 49 but is otherwise with no order as to costs.

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