Bombay High Court Quashes Removal Order of APMC Chairman for Non-Compliance with Section 17 of Maharashtra APMC Act — Resolution Not Passed by Requisite Majority. The court held that the requirement of a resolution by at least 10 members is mandatory and cannot be dispensed with.

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

The petitioner, Sharad Bapuraoji Deshmukh, was an elected Director and Chairman of the Agricultural Produce Market Committee, Wardha. The District Deputy Registrar, Cooperative Societies, Wardha, passed an order under Section 17 of the Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963, directing his removal as a Member of the Board of Directors on the ground of negligence and misconduct. The petitioner challenged this order and also the order of the Director of Marketing dismissing his appeal as not maintainable. The parties agreed that the appeal under Section 52B of the Act was not maintainable because the order under Section 17 was passed by the District Deputy Registrar, to whom the State Government had delegated its powers by notifications dated 2nd April 1980 and 21st March 1984. The main contention of the petitioner was that under Section 17, the State Government may remove a member only on the recommendation of the Marketing Committee supported by a resolution passed by at least 10 members present and voting. In this case, the resolution was passed by only 7 members, which did not meet the statutory requirement. The respondents argued that the resolution was valid. The court examined the record and found that the resolution was passed by only 7 members, not the required 10. The court held that the condition precedent for removal under Section 17 was not satisfied, and therefore the order of removal was invalid. The court quashed the order of the District Deputy Registrar and the order of the Director of Marketing dismissing the appeal. The writ petition was allowed with no order as to costs.

Headnote

A) Agricultural Law - Removal of Director - Section 17 of Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963 - Requirement of Resolution - The State Government may remove a member only on the recommendation of the Marketing Committee supported by a resolution passed by at least 10 members present and voting. In the present case, the resolution was passed by only 7 members, falling short of the statutory requirement. Held that the removal order is invalid and liable to be quashed (Paras 5-6).

B) Agricultural Law - Delegation of Powers - Section 17 of Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963 - Delegation to District Deputy Registrar - The State Government delegated its powers under Section 17 to the District Deputy Registrar by notifications dated 2nd April 1980 and 21st March 1984. The order of removal passed by the District Deputy Registrar is validly delegated, but the condition precedent of a valid resolution must still be satisfied (Paras 3, 5).

C) Agricultural Law - Appeal - Section 52B of Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963 - Maintainability - An appeal under Section 52B is not maintainable against an order under Section 17 passed by a delegate of the State Government, as the order is deemed to be passed by the State Government itself. The Director of Marketing correctly dismissed the appeal as not maintainable (Para 3).

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Issue of Consideration

Whether the order of removal of the petitioner as a Director of the Agricultural Produce Market Committee under Section 17 of the Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963 is valid when the requisite resolution by at least 10 members was not passed.

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Final Decision

The writ petition is allowed. The order passed by the District Deputy Registrar, Cooperative Societies, Wardha directing removal of the petitioner as Member of Board of Directors under Section 17 of the Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963, and the order passed by the Director of Marketing dismissing the appeal as not maintainable, are quashed. Rule is made absolute in the above terms. No order as to costs.

Law Points

  • Section 17 of the Maharashtra Agricultural Produce Marketing (Development and Regulation) Act
  • 1963 requires a recommendation by the Marketing Committee supported by a resolution passed by at least 10 members present and voting
  • Delegation of powers by State Government to District Deputy Registrar does not dispense with the requirement of a valid resolution
  • Appeal under Section 52B is not maintainable against an order under Section 17 passed by a delegate of the State Government
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Case Details

2017 LawText (BOM) (04) 116

Writ Petition No.4699/2016

2017-04-20

Z.A. Haq

M.V. Samarth for petitioner, S.P. Deshpande for respondent Nos.1 and 2, S.K. Bhoyar for respondent No.3, A.M. Ghare for respondent Nos.4 to 7

Sharad Bapuraoji Deshmukh

The Director of Marketing, Maharashtra State, Pune & Ors.

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Nature of Litigation

Writ petition challenging the order of removal of the petitioner as a Director of the Agricultural Produce Market Committee under Section 17 of the Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963.

Remedy Sought

The petitioner sought quashing of the order of removal passed by the District Deputy Registrar and the order of the Director of Marketing dismissing his appeal.

Filing Reason

The petitioner was removed as a Director on the ground of negligence and misconduct, but the resolution recommending removal was not passed by the requisite number of members as required under Section 17.

Previous Decisions

The Director of Marketing dismissed the petitioner's appeal as not maintainable.

Issues

Whether the order of removal under Section 17 of the Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963 is valid when the resolution was passed by only 7 members instead of the required 10. Whether the appeal under Section 52B of the Act is maintainable against an order passed by a delegate of the State Government.

Submissions/Arguments

Petitioner argued that under Section 17, removal requires a recommendation by the Marketing Committee supported by a resolution passed by at least 10 members present and voting, and in this case the resolution was passed by only 7 members. Respondents argued that the resolution was valid and the appeal was correctly dismissed as not maintainable.

Ratio Decidendi

The condition precedent for removal under Section 17 of the Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963 is a recommendation by the Marketing Committee supported by a resolution passed by at least 10 members present and voting. In the absence of such a resolution, the order of removal is invalid.

Judgment Excerpts

The learned Advocates for the petitioner and the respondents are ad idem on the point that the appeal under Section 52B of the Act of 1963 would not be maintainable as the order under Section 17 of the Act of 1963 is passed by the District Deputy Registrar Cooperative Societies, the powers having been delegated to him by the State Government... As per Section 17 of the Act of 1963 the State Government may remove any Member, however, for that there has to be a recommendation of the Marketing Committee supported by a resolution by at least 10 Members present and voting at the meeting... In the present case, the resolution is passed by only 7 Members, which is not in compliance with the requirement of Section 17 of the Act of 1963.

Procedural History

The District Deputy Registrar, Cooperative Societies, Wardha passed an order under Section 17 of the Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963 removing the petitioner as a Director. The petitioner appealed to the Director of Marketing, who dismissed the appeal as not maintainable. The petitioner then filed the present writ petition before the Bombay High Court, Nagpur Bench.

Acts & Sections

  • Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963: 17, 52B
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