Bombay High Court Quashes Government Notifications Requiring Licenses for Hamals and Transporters in APMCs Under APMC Act. The Court held that the Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963 does not empower the State to require licenses for hamals and transporters, and upheld the constitutional validity of the Maharashtra Essential Services Maintenance Act, 2021.

High Court: Bombay High Court Bench: BOMBAY
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Case Note & Summary

The judgment concerns a batch of writ petitions filed by various transport companies, hamal unions, and cooperative societies challenging Government Resolutions issued by the State of Maharashtra requiring licenses for hamals and transporters operating in Agricultural Produce Market Committees (APMCs). The petitioners argued that the Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963 (APMC Act) does not empower the State to regulate the services of hamals and transporters, and that the impugned resolutions were ultra vires the Act. Additionally, the petitioners challenged the constitutional validity of the Maharashtra Essential Services Maintenance Act, 2021 (MESMA), which was enacted to prevent strikes in essential services, including the services of hamals and transporters in APMCs. The State contended that the APMC Act read with the Maharashtra Agricultural Produce Marketing (Development and Regulation) Rules, 1967, empowers the Market Committee to regulate all persons operating in the market area, including hamals and transporters. The State also argued that MESMA is a valid legislation under Entry 31 of List II (Public Order) and Entry 24 of List III (Welfare of Labour) of the Seventh Schedule to the Constitution. The Court analyzed the provisions of the APMC Act and held that the Act only regulates the marketing of agricultural produce and does not extend to regulating the services of hamals and transporters. The Court found that the impugned Government Resolutions requiring licenses for hamals and transporters were beyond the scope of the Act and were therefore quashed. Regarding MESMA, the Court applied the doctrine of pith and substance and held that the Act primarily deals with public order and welfare of labour, falling within the legislative competence of the State. The Court rejected the argument that MESMA is a colourable legislation or that it encroaches upon the Industrial Disputes Act, 1947, which is a central legislation. The Court upheld the validity of MESMA but clarified that it does not affect the rights of workmen under the Industrial Disputes Act. The Court directed that disputes between hamals/transporters and APMCs be adjudicated under the Industrial Disputes Act. The petitions were partly allowed, with the impugned resolutions quashed and MESMA upheld.

Headnote

A) Agricultural Produce Marketing - Licensing of Hamals and Transporters - Interpretation of Section 5 of the Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963 - The Court held that the Act does not empower the Market Committee to require licenses for hamals and transporters, as the Act only regulates marketing of agricultural produce and not the services of hamals and transporters. The impugned Government Resolutions requiring such licenses were quashed. (Paras 1-53)

B) Constitutional Law - Essential Services Maintenance Act - Validity of Maharashtra Essential Services Maintenance Act, 2021 - Doctrine of Pith and Substance - The Court held that the Act falls under Entry 31 of List II (Public Order) and Entry 24 of List III (Welfare of Labour) and is not a colourable legislation. The Act is constitutionally valid. (Paras 1-53)

C) Industrial Disputes Act, 1947 - Applicability to Hamals and Transporters - The Court held that hamals and transporters are workmen under the Industrial Disputes Act, 1947, and their disputes are to be adjudicated under that Act. The impugned notifications were quashed as they sought to bypass the Industrial Disputes Act. (Paras 1-53)

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Issue of Consideration

Whether the State Government has the power to require licenses for hamals and transporters under the Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963, and whether the Maharashtra Essential Services Maintenance Act, 2021 is constitutionally valid.

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Final Decision

The Court partly allowed the petitions. It quashed the Government Resolutions dated 30.12.2020 and 31.12.2020 requiring licenses for hamals and transporters under the APMC Act. The Court upheld the constitutional validity of the Maharashtra Essential Services Maintenance Act, 2021. The Court directed that disputes between hamals/transporters and APMCs be adjudicated under the Industrial Disputes Act, 1947.

Law Points

  • Interpretation of Section 5 of the Maharashtra Agricultural Produce Marketing (Development and Regulation) Act
  • 1963
  • Doctrine of Pith and Substance
  • Validity of Maharashtra Essential Services Maintenance Act
  • 2021
  • Entry 31 of List II of the Seventh Schedule to the Constitution of India
  • Entry 24 of List III of the Seventh Schedule to the Constitution of India
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Case Details

2021 LawText (BOM) (06) 16

Writ Petition No. 750 of 2021 with Writ Petition No. 1008 of 2021, Writ Petition No. 1010 of 2021, Writ Petition No. 1014 of 2021, Writ Petition No. 1015 of 2021, Writ Petition No. 1016 of 2021, Writ Petition No. 1017 of 2021, Writ Petition No. 1019 of 2021, Writ Petition No. 1021 of 2021, Writ Petition St. No. 11311 of 2021

2021-06-29

2021:BHC-AS:7036-DB

Mr.Anil V. Anturkar, Sr. Advocate a/w Mr.Mahesh Tarawade & Mr.Vilas Londe i/b Mr.Ranjit D. Shinde, for the Petitioner in WP/750/2021. Mr.S.M. Vaishnav, for Petitioner in WP/1008/2021. Mr. Nikhil Sakhardande, Sr. Advocate a/w. Mr. Hrishikesh S. Chitaley, Rohit P. Masurkar for the Petitioner in WP/1010/2021. Mr. Santosh S. Jadhavar for the Petitioner in WP/1014/2021. Mr. S.P. Shah a/w. Mr. Aditya N. Sikchi for Petitioner in WP/1015/2021 and WP/1016/2021. Mr. V.D. Sapkal, Sr. Advocate, Mr. Sandip R. Sapkal and Ajit B. Chormal for the Petitioner in WP/1017/2021. Mr. R.N. Dhorde, Sr. Advocate a/w. Mr. Vikram R. Dhorde for the Petitioner in WP/1019/2021

Prithviraj Enterprises, Shrinath Transport Company, Vidarbha General Kamgar Union, M/s.Girish Subhash Munale & Company, M/s.Om Shri Ganesh Transport, M/s.Kailash Zanwar, Paldear Prashant Agro Tech Pvt. Ltd., M/s.IMS Bhatia Transport Contractor, Jai Bhavani Hamal Kamgar Sahakari Sanstha and anr., The New Grain Dealers Service Resource Co-operative Society & ors.

State of Maharashtra and anr.

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Nature of Litigation

Writ petitions challenging Government Resolutions requiring licenses for hamals and transporters under the APMC Act and challenging the constitutional validity of the Maharashtra Essential Services Maintenance Act, 2021.

Remedy Sought

Quashing of Government Resolutions dated 30.12.2020 and 31.12.2020 requiring licenses for hamals and transporters, and declaration that the Maharashtra Essential Services Maintenance Act, 2021 is unconstitutional.

Filing Reason

The petitioners, being transport companies, hamal unions, and cooperative societies, were aggrieved by the Government Resolutions that required them to obtain licenses from the Market Committee, which they argued was beyond the scope of the APMC Act. They also challenged MESMA as being beyond the legislative competence of the State.

Issues

Whether the State Government has the power to require licenses for hamals and transporters under the Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963? Whether the Maharashtra Essential Services Maintenance Act, 2021 is constitutionally valid?

Submissions/Arguments

Petitioners argued that the APMC Act does not empower the Market Committee to regulate hamals and transporters, and that the impugned resolutions are ultra vires the Act. They also argued that MESMA is a colourable legislation and encroaches upon the Industrial Disputes Act, 1947, which is a central subject. Respondent State argued that the APMC Act read with the Rules empowers the Market Committee to regulate all persons in the market area, including hamals and transporters. They also argued that MESMA is valid under Entry 31 of List II and Entry 24 of List III of the Constitution.

Ratio Decidendi

The Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963 does not empower the Market Committee to require licenses for hamals and transporters, as the Act only regulates marketing of agricultural produce. The Maharashtra Essential Services Maintenance Act, 2021 is constitutionally valid under the doctrine of pith and substance, falling under Entry 31 of List II and Entry 24 of List III of the Seventh Schedule to the Constitution.

Judgment Excerpts

The Court held that the impugned Government Resolutions requiring licenses for hamals and transporters are beyond the scope of the APMC Act and are therefore quashed. The Court upheld the constitutional validity of the Maharashtra Essential Services Maintenance Act, 2021, holding that it falls within the legislative competence of the State.

Procedural History

The petitions were filed in 2021 challenging Government Resolutions dated 30.12.2020 and 31.12.2020 and the Maharashtra Essential Services Maintenance Act, 2021. The Court heard the matters and delivered judgment on 29.06.2021.

Acts & Sections

  • Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963: Section 5
  • Maharashtra Essential Services Maintenance Act, 2021:
  • Industrial Disputes Act, 1947:
  • Constitution of India: Entry 31 of List II, Entry 24 of List III
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