Bombay High Court Dismisses Petition Challenging SIT Investigation into Market Committee Affairs. Government Order Appointing Special Investigating Team for Inquiry into Alleged Irregularities in Agricultural Produce Market Committee Upheld as Valid Exercise of Statutory Power.

High Court: Bombay High Court Bench: NAGPUR In Favour of Prosecution
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Case Note & Summary

The petitioners, who were executive committee members of the Agricultural Produce Market Committee, Nagpur, challenged a Government order dated 18/07/2025 appointing a Special Investigating Team (SIT) to investigate certain issues relating to the functioning of the Market Committee. The petitioners were elected in October 2021, and the petitioner No.1 became Chairman. The Market Committee is a statutory body under the Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963. The State Government, suspecting irregularities, appointed the SIT. The petitioners argued that they were not heard before the order and that the order was arbitrary. The court examined the provisions of the Act, particularly Section 44A, which empowers the government to appoint an investigating team. The court held that the appointment of SIT is an administrative act and does not require a prior hearing. The SIT was only to investigate and submit a report, and no final determination of rights was involved. The court found no merit in the petition and dismissed it, upholding the government order.

Headnote

A) Administrative Law - Power to Appoint Investigating Team - Section 44A of Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963 - The State Government has the power to appoint a Special Investigating Team to inquire into the affairs of a Market Committee. The court held that the appointment of SIT is an administrative act and does not require a prior hearing to the committee members. The order was passed to investigate allegations of irregularities and was not punitive in nature. (Paras 10-15)

B) Natural Justice - Right to Hearing - Applicability to Administrative Orders - The principle of audi alteram partem does not apply to the appointment of an investigating team as it is a preliminary step and does not determine any rights. The court held that no prejudice was caused to the petitioners as the SIT was only to investigate and submit a report. (Paras 16-20)

C) Cooperative Societies - Investigation - Scope of Judicial Review - The court held that the government order was within the statutory framework and not arbitrary or mala fide. The petition was dismissed as the challenge lacked merit. (Paras 21-25)

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Issue of Consideration

Whether the State Government's order appointing a Special Investigating Team (SIT) to investigate the affairs of the Agricultural Produce Market Committee is valid and whether the petitioners were entitled to a hearing before the issuance of such order.

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Final Decision

The writ petition is dismissed. The Government order dated 18/07/2025 appointing the Special Investigating Team is upheld.

Law Points

  • Statutory interpretation
  • Power of State Government to appoint SIT
  • Maharashtra Agricultural Produce Marketing (Development and Regulation) Act 1963
  • Section 44A
  • Natural justice
  • Right to hearing before appointment of SIT
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Case Details

2025 LawText (BOM) (09) 210

Writ Petition No. 3841 of 2025

2025-09-10

Anil S. Kilor, Vrushali V. Joshi

2025:BHC-NAG:9029-DB

Sunil Manohar, Sr. Advocate a/b A.M. Ghare, Advocate for Petitioners; D. V. Chauhan, Sr. Advocate & G.P. a/b N.S. Rao, AGP & Chaitanya J. Dhruv, Advocate for respondent Nos.1 to 4; A.S. Akbani, Advocate for Respondent No.5

Shri Ahmed Karim Bhai Sheikh and Shri Kishor S/o. Keshavrao Palandurkar

State of Maharashtra, The Divisional Joint Registrar, Co-operative Societies, Nagpur, The District Deputy Registrar, Co-operative Societies, Nagpur, The Special Investigation Team, through its Chairman, Collector, Nagpur, The Agricultural Produce Marketing Committee, Nagpur

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Nature of Litigation

Writ petition challenging the validity of a Government order appointing a Special Investigating Team to investigate the affairs of the Agricultural Produce Market Committee.

Remedy Sought

Quashing of the Government order dated 18/07/2025 appointing the SIT.

Filing Reason

The petitioners, being executive committee members of the Market Committee, alleged that the order was passed without giving them a hearing and was arbitrary.

Issues

Whether the State Government's order appointing a Special Investigating Team (SIT) to investigate the affairs of the Agricultural Produce Market Committee is valid. Whether the petitioners were entitled to a hearing before the issuance of the order appointing the SIT.

Submissions/Arguments

Petitioners argued that the Government order appointing SIT was passed without affording them an opportunity of hearing, violating principles of natural justice. Petitioners contended that the order was arbitrary and mala fide. Respondents argued that the appointment of SIT is an administrative act and does not require a prior hearing, and the order was within the statutory powers under Section 44A of the Act.

Ratio Decidendi

The appointment of a Special Investigating Team under Section 44A of the Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963 is an administrative act and does not require a prior hearing to the committee members. The order is valid and within the powers of the State Government.

Judgment Excerpts

By the present writ petition the petitioners are challenging the Government order dated 18/07/2025 passed by the respondent No.1 appointing a Special Investigating Team (SIT) for investigation into certain issues referred to therein relating to functioning of respondent No 5 market committee. The court held that the appointment of SIT is an administrative act and does not require a prior hearing to the committee members.

Procedural History

The writ petition was filed on an unspecified date. Rule was issued and made returnable forthwith. Heard finally by consent of counsel. Judgment reserved on 05/08/2025 and pronounced on 10/09/2025.

Acts & Sections

  • Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963: Section 44A
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