Case Note & Summary
The petitioners, Sunil Agro Foods Limited and Venugopal Flour Mills, were traders holding licences issued by the Agricultural Produce Marketing Committee, Mangalore, under the Karnataka Agricultural Produce Marketing (Regulation and Development) Act, 1996. The Committee passed a resolution dated 28.07.2015 cancelling their licences on the ground of non-payment of market fee. The petitioners challenged this resolution and the subsequent official memoranda issued by the Deputy Commissioner and the Tahsildar. The High Court examined whether the Committee had the power to cancel a licence without following the procedure under Section 47 of the Act. The Court noted that Section 47 provides a specific mechanism for suspension or cancellation of a licence, which includes issuing a show cause notice and affording an opportunity of hearing. The impugned resolution did not indicate any such notice or hearing. The Court held that the Committee acted without jurisdiction and in violation of principles of natural justice. Consequently, the Court quashed the resolution dated 28.07.2015 and the consequential memoranda. The Court also directed that the petitioners be permitted to continue their business operations subject to payment of any outstanding market fee as per law. The writ petition was allowed.
Headnote
A) Agricultural Marketing - Licence Cancellation - Section 47 of the Karnataka Agricultural Produce Marketing (Regulation and Development) Act, 1996 - The Market Committee passed a resolution cancelling the petitioners' licence for non-payment of market fee without issuing any show cause notice or affording opportunity of hearing. The Court held that the power to cancel a licence under Section 47 can only be exercised after following the prescribed procedure, which includes giving notice and hearing the licensee. The resolution was quashed as being without jurisdiction. (Paras 1-10) B) Constitutional Law - Writ Jurisdiction - Articles 226 and 227 of the Constitution of India - The petitioners challenged the cancellation resolution by way of a writ petition. The Court entertained the petition despite the availability of alternative remedy under the Act, as the impugned order was passed without jurisdiction and in violation of principles of natural justice. (Paras 1-10)
Issue of Consideration
Whether the Agricultural Produce Marketing Committee can cancel a trader's licence for non-payment of market fee without following the procedure under Section 47 of the Karnataka Agricultural Produce Marketing (Regulation and Development) Act, 1996
Final Decision
The writ petition is allowed. The resolution dated 28.07.2015 passed by the Agricultural Produce Marketing Committee, Mangalore, and the consequential official memoranda dated 29.09.2015 and 24.11.2015 are quashed. The petitioners are permitted to continue their business operations subject to payment of any outstanding market fee as per law.
Law Points
- Market committee cannot revoke licence without following statutory procedure under Section 47 of the Karnataka Agricultural Produce Marketing (Regulation and Development) Act
- 1996
- Resolution cancelling licence without notice and opportunity of hearing is illegal
- Writ petition maintainable despite alternative remedy when impugned order is without jurisdiction
