Bombay High Court Quashes Amalgamation Notification for Lack of Consent — Amalgamation Under Section 44 of Maharashtra Agricultural Produce Marketing Act Requires Consent of Both Market Committees. Withdrawal of Consent by One Committee Renders the Process Invalid.

High Court: Bombay High Court Bench: GOA In Favour of Accused
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Case Note & Summary

The petitioners, Sopanrao Sathe (Chairman) and the Agricultural Produce Market Committee (APMC), Malkapur, challenged a notification dated 17-01-2009 issued by the District Deputy Registrar (DDR), Co-operative Societies, Buldhana, under Section 44 of the Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963, which provided for amalgamation of APMC Motala into APMC Malkapur. Initially, both committees had passed resolutions in 2005 consenting to amalgamation. However, APMC Motala withdrew its resolution on 30-12-2005, and APMC Malkapur withdrew its resolution on 04-07-2008 after new elections. Despite these withdrawals, the DDR proceeded to issue the amalgamation notification. The petitioners argued that the DDR lacked authority to amalgamate without the consent of both committees. The court examined Section 44 of the Act and noted that the provision requires the consent of the market committees concerned. Since APMC Malkapur had withdrawn its consent, the DDR could not validly issue the notification. The court held that the notification was ultra vires the Act and quashed it. The writ petition was allowed, and the rule was made absolute.

Headnote

A) Agricultural Marketing - Amalgamation of Market Committees - Section 44 of Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963 - Consent Requirement - The District Deputy Registrar issued a notification for amalgamation of APMC Motala into APMC Malkapur despite APMC Malkapur having withdrawn its earlier resolution of consent. The court held that the power under Section 44 can be exercised only when both market committees consent; withdrawal of consent by one committee renders the process invalid. The notification was quashed as being without authority of law. (Paras 1-10)

B) Agricultural Marketing - Withdrawal of Resolution - Section 44 of Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963 - Effect of Withdrawal - APMC Malkapur passed a resolution on 10-10-2005 consenting to amalgamation but later withdrew it on 04-07-2008. The court held that once a committee withdraws its consent, the DDR cannot proceed with amalgamation. The notification dated 17-01-2009 was set aside. (Paras 3-10)

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Issue of Consideration

Whether the District Deputy Registrar could issue a notification for amalgamation of two Agricultural Produce Market Committees under Section 44 of the Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963 after one of the committees had withdrawn its consent resolution.

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Final Decision

The writ petition is allowed. The notification dated 17-01-2009 issued by the District Deputy Registrar, Co-operative Societies, Buldhana, under Section 44 of the Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963, is quashed and set aside. Rule is made absolute.

Law Points

  • Amalgamation under Section 44 of the Maharashtra Agricultural Produce Marketing (Development and Regulation) Act
  • 1963 requires consent of both market committees
  • withdrawal of resolution by one committee vitiates the process
  • notification without consent is ultra vires
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Case Details

2010 LawText (BOM) (08) 146

Writ Petition No. 365 of 2010

2010-08-17

D.B. Bhosale, P. B. Varale

Shri P.C. Madkholkar for petitioners, Smt. B.H. Dangre for respondent Nos. 1 to 3, Shri A.M. Gordey with Shri G.G. Mishra for respondent Nos. 4 & 5

Sopanrao s/o Onkarrao Sathe and Agricultural Produce Market Committee, Malkapur

State of Maharashtra, District Deputy Registrar, Director of Marketing, Agricultural Produce Market Committee, Motala, and others

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Nature of Litigation

Writ petition under Article 226 of the Constitution of India challenging a notification for amalgamation of two Agricultural Produce Market Committees.

Remedy Sought

Quashing of the notification dated 17-01-2009 issued by the District Deputy Registrar for amalgamation of APMC Motala into APMC Malkapur.

Filing Reason

The petitioners contended that the notification was issued without their consent as they had withdrawn their earlier resolution consenting to amalgamation.

Issues

Whether the District Deputy Registrar could issue a notification for amalgamation under Section 44 of the Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963 after one of the market committees had withdrawn its consent resolution.

Submissions/Arguments

Petitioners argued that the DDR had no authority to amalgamate without the consent of both committees, and since APMC Malkapur had withdrawn its resolution, the notification was invalid. Respondents argued that the DDR had power under Section 44 to amalgamate even after withdrawal of consent.

Ratio Decidendi

The power under Section 44 of the Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963 to amalgamate market committees can be exercised only when both market committees consent. Withdrawal of consent by one committee renders the amalgamation process invalid, and any notification issued thereafter is ultra vires the Act.

Judgment Excerpts

The power under Section 44 of the Act can be exercised only when both the market committees consent for amalgamation. Once the petitioner No.2-APMC, Malkapur had withdrawn its resolution, the DDR could not have issued the notification for amalgamation.

Procedural History

The petitioners filed a writ petition under Article 226 of the Constitution of India in the High Court of Judicature at Bombay, Nagpur Bench, challenging the notification dated 17-01-2009. The court heard the matter and delivered judgment on 17-08-2010.

Acts & Sections

  • Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963: 44
  • Constitution of India: 226
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