Case Note & Summary
The Bombay Agricultural Produce Market Committee filed a writ petition challenging an order dated 8th December 1989 passed by the Minister for Co-operation, Government of Maharashtra, which exempted respondent Nos. 3 to 7 (oil mills) from payment of marketing fee and supervision charges. The Director of Agricultural Marketing had earlier declared edible oil as a regulated commodity within the Committee's area and designated Dana Bunder and Masjid Bunder as the principal market. The Committee contended that the Minister lacked the power to grant such exemption and that the order was arbitrary. The respondents did not appear. The High Court, after hearing the petitioner's counsel, examined the provisions of the Maharashtra Agricultural Produce Marketing (Regulation) Act, 1963. The Court noted that Section 12 of the Act empowers the State Government to exempt any person or class of persons from payment of fee. The Minister, being a member of the State Government, had the authority to pass the order. The Court found that the exemption was granted after considering the representations of the mills and was not without jurisdiction. The Court held that the order was valid and within the Minister's power. The writ petition was dismissed with no order as to costs.
Headnote
A) Agricultural Marketing - Exemption from Marketing Fee - Section 12 of Maharashtra Agricultural Produce Marketing (Regulation) Act, 1963 - Validity of Minister's Order - The Minister for Co-operation exempted certain oil mills from payment of marketing fee and supervision charges. The Market Committee challenged the order. The Court held that the Minister had the power under Section 12 to grant exemption and the order was valid. The Court found no infirmity in the Minister's decision. (Paras 2-5)
B) Judicial Review - Scope of Interference - Administrative Order - The Court held that in a writ petition, the scope of judicial review of an administrative order is limited. Unless the order is shown to be arbitrary, irrational, or perverse, the Court would not interfere. The Minister's order was based on relevant considerations and was not vitiated. (Paras 4-5)
Issue of Consideration
Whether the Minister for Co-operation had the power to exempt the oil mills from payment of marketing fee and supervision charges under the Maharashtra Agricultural Produce Marketing (Regulation) Act, 1963, and whether such exemption was valid.
Final Decision
The writ petition is dismissed. No order as to costs.
Law Points
- Exemption from marketing fee
- Power of Minister under Section 12
- Scope of judicial review
- Market committee's right to levy fee
Case Details
2005 LawText (BOM) (05) 246
WRIT PETITION NO.2056 OF 1990
R.M. LODHA, J.P. DEVADHAR
Mr.Y.R.Naik i/by Mr.Prashant Naik for the petitioner
The Bombay Agricultural Produce Market Committee
The State of Maharashtra, Shri B.D.Pawar, Director of Marketing, Messrs. Raj Oil Mills, Messrs. Ahmed Oomerbhoy, Messrs. Kamani Oil Industries, Messrs. Bombay Oil Industries, Messrs. Malabar Oil Marketing Co., Shri Abhaysinh Raje Bhosale
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Nature of Litigation
Writ petition challenging the order of the Minister for Co-operation exempting oil mills from payment of marketing fee and supervision charges.
Remedy Sought
The petitioner, Bombay Agricultural Produce Market Committee, sought quashing of the Minister's order dated 8th December 1989.
Filing Reason
The Committee was aggrieved by the exemption granted to the oil mills from payment of marketing fee and supervision charges.
Previous Decisions
The Director of Marketing had declared edible oil as regulated commodity and designated principal market areas.
Issues
Whether the Minister for Co-operation had the power to exempt the oil mills from payment of marketing fee and supervision charges under the Maharashtra Agricultural Produce Marketing (Regulation) Act, 1963.
Whether the order of exemption was valid and within the scope of the Act.
Submissions/Arguments
The petitioner argued that the Minister lacked the power to grant exemption and the order was arbitrary.
Ratio Decidendi
The Minister for Co-operation, as part of the State Government, has the power under Section 12 of the Maharashtra Agricultural Produce Marketing (Regulation) Act, 1963 to exempt any person or class of persons from payment of marketing fee. The order granting exemption was valid and within the Minister's authority. The Court found no ground to interfere with the order.
Judgment Excerpts
The Bombay Agricultural Produce Market Committee (for short, 'the Committee') is the petitioner in this writ petition. They are aggrieved by the order dated 8th December, 1989, passed by the Minister for Co-operation, Government of Maharashtra whereby the mills (respondent Nos.3 to 7 herein) were exempted from the payment of the marketing fee and supervision charges.
The Director of Agricultural Marketing, Maharashtra State, Pune (for short, 'the Director') vide notification dated 20th June, 1988 declared that the edible oil within the area of operation of Agricultural Produce Market Committee shall stand regulated.
Procedural History
The writ petition was filed in 1990 challenging the Minister's order dated 8th December 1989. The matter was heard on 17th June 2005 and dismissed.
Acts & Sections
- Maharashtra Agricultural Produce Marketing (Regulation) Act, 1963: Section 12
