Case Note & Summary
These intra-court writ appeals arose from a common order dated 25.04.2017, by which a single judge of the Karnataka High Court had dismissed the appellants' writ petitions. The appellants are ginning and pressing factories engaged in direct purchase of raw cotton—a notified agricultural produce—from agriculturists under licences granted under the Karnataka Agricultural Produce Marketing (Regulation and Development) Act, 1966. In 2014, the Act was amended by Karnataka Act No. 5 of 2014, effective from 04.01.2014, inserting a fourth proviso to Section 65(2) that reduced the market fee to 33% for 'any private markets established under Section 72-A'. Despite this amendment, the authorities demanded market fee at 70% from the appellants, asserting that the reduced rate applied only to private market yards holding licences under Rule 87-C of the 1968 Rules, and not to direct purchasers like the appellants. The appellants contended that their direct purchase centres fell within the meaning of 'private markets' under Section 72-A read with Rule 87-C, and therefore they were liable to pay only 33% market fee. The single judge rejected this contention and dismissed the writ petitions. In these appeals, the appellants argued that the single judge had misconstrued the statutory provisions and that the 33% rate was applicable to them. The appeals were heard by a division bench comprising Justices S.R. Krishna Kumar and G. Basavaraja. The judgment excerpt provided does not contain the court's reasoning and final decision; the bench's analysis and conclusion are not included in the text.
Issue of Consideration
Whether the appellants, who hold licences for direct purchase of notified agricultural produce from agriculturists, are entitled to pay market fee at 33% as per the 4th proviso to Section 65(2) of the Karnataka Agricultural Produce Marketing (Regulation and Development) Act, 1966, or at 70% as demanded by the APMC.
Law Points
- interpretation of 'private markets' under Section 72-A and 4th proviso to Section 65(2) of Karnataka Agricultural Produce Marketing (Regulation and Development) Act
- 1966
- market fee rate 33% or 70%
- licence for direct purchase of notified agricultural produce
