Bombay High Court Quashes Extension of Term of Agricultural Produce Market Committee Members — State Government Exceeded Power Under Section 14(5) of Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963 by Extending Term Without Justifiable Reasons and Without Considering Objections of Voters.

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

The petitioners, voters of the Agricultural Produce Market Committee, Tal. Shirur, Dist. Pune, challenged the order dated 1st August 2016 passed by the State of Maharashtra extending the term of office of the members of the Committee by six months from 6th September 2016 to 5th March 2017. The Committee had submitted an application seeking extension of term by two years citing severe drought, a pending dispute regarding village Pimpale Jagtap in the Bombay High Court, efficient performance of duties, initiation of onion and pomegranate markets, and ongoing elections of cooperative societies. The State Government considered the application and granted extension for six months. The petitioners argued that the extension was without any valid reason and contrary to the provisions of the Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963. The Court examined Section 14(5) of the Act, which empowers the State Government to extend the term of a market committee for reasons to be recorded in writing. The Court found that the reasons cited by the Committee and accepted by the State were not germane to the purpose of the Act. Drought and pending litigation were not relevant to the functioning of the market committee. The Court held that the power to extend term is not arbitrary and must be exercised only for valid reasons. The extension order was quashed and set aside. The Court directed that elections be held expeditiously.

Headnote

A) Agricultural Law - Extension of Term of Market Committee - Section 14(5) of Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963 - Power to Extend Term - The State Government extended the term of the members of the Agricultural Produce Market Committee by six months on the ground of drought and pending litigation. The Court held that the reasons given were not germane to the purpose of the Act and the extension was not justified. The power under Section 14(5) must be exercised for reasons recorded in writing and such reasons must be relevant to the functioning of the market committee. (Paras 4-6)

B) Agricultural Law - Voters' Rights - Extension of Term Without Hearing - The petitioners, being voters of the market committee, challenged the extension order. The Court held that the extension of term without considering the objections of the voters and without any valid reason was arbitrary and violative of the democratic process. (Paras 2-3)

C) Agricultural Law - Grounds for Extension - Drought and Pending Litigation - The State Government cited drought and a pending dispute regarding village Pimpale Jagtap as grounds for extension. The Court found that these grounds were not sufficient to justify extension of the term of the committee, as they did not relate to the functioning or administration of the market committee. (Paras 4-5)

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Issue of Consideration

Whether the State Government's order extending the term of office of the members of the Agricultural Produce Market Committee by six months under Section 14(5) of the Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963 is valid and sustainable in law.

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Final Decision

The petition is allowed. The impugned order dated 1st August 2016 passed by the State Government extending the term of the members of the Agricultural Produce Market Committee, Tal. Shirur, Dist. Pune is quashed and set aside. The State Government is directed to hold elections for the Committee expeditiously.

Law Points

  • Extension of term of market committee must be for reasons recorded in writing
  • reasons must be germane to the purpose of the Act
  • power under Section 14(5) is not arbitrary
  • drought and pending litigation are not valid grounds for extension
  • extension cannot be granted solely on request of committee without considering voters' interests
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Case Details

2016 LawText (BOM) (12) 22

Writ Petition No.9703 of 2016

2016-12-08

Shantanu Kemkar, Prakash Naik

Mr. Vineet Naik, Senior Advocate a/w. Mr. Rakesh Reddy, for the Petitioners. Mr. Vikas Mali, AGP for Respondent Nos. 1, 3 and 4. Mr. Y.S. Jahagirdar, Senior Advocate a/w. Mr. S.R. Nargolkar a/w. Mr. Lendl Coutinho and Mr. Swapnil Mohite, for Respondent No. 2. Mr. H.M. Inamdar, for Respondent Nos. 5 and 6.

Diliprao M. Mokashi and Another

State of Maharashtra and Others

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Nature of Litigation

Writ petition challenging the order of the State Government extending the term of office of members of Agricultural Produce Market Committee.

Remedy Sought

Quashing of the order dated 1st August 2016 extending the term of the Committee members.

Filing Reason

The petitioners, being voters of the Committee, challenged the extension order as being without valid reasons and contrary to law.

Previous Decisions

The State Government passed the impugned order on 1st August 2016 extending the term by six months.

Issues

Whether the State Government's order extending the term of office of the members of the Agricultural Produce Market Committee by six months under Section 14(5) of the Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963 is valid and sustainable in law.

Submissions/Arguments

The petitioners argued that the extension was without any valid reason and contrary to the provisions of the Act. The respondents contended that the extension was granted due to drought and pending litigation, which were valid reasons.

Ratio Decidendi

The power under Section 14(5) of the Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963 to extend the term of a market committee must be exercised for reasons recorded in writing, and such reasons must be germane to the purpose of the Act. Drought and pending litigation are not valid grounds for extension as they do not relate to the functioning of the committee.

Judgment Excerpts

The reasons given by the Committee and accepted by the State are not germane to the purpose of the Act. The power under Section 14(5) is not an arbitrary power and must be exercised only for valid reasons.

Procedural History

The Committee submitted an application for extension on 10th May 2016. The State Government passed the impugned order on 1st August 2016 extending the term by six months. The petitioners filed the present writ petition challenging the order.

Acts & Sections

  • Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963: Section 14(5)
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