Case Note & Summary
The petitioners, including individual residents and a cotton merchants association, challenged a notification dated 27.04.2017 issued by the State of Karnataka directing the merger/amalgamation of the Agricultural Produce Market Committee (APMC) of Devadurga Taluka with the APMC of Raichur District. The petitioners contended that the notification was issued without any prior notice or opportunity of hearing to the affected parties, including the APMC Devadurga and its stakeholders. The court examined the provisions of the Karnataka Agricultural Produce Marketing (Regulation and Development) Act, 1966, particularly Section 5(1) which empowers the government to merge market committees. The court found that the impugned notification was issued in violation of principles of natural justice as no hearing was afforded to the petitioners or the APMC Devadurga. The court quashed the notification and directed the respondents to consider the matter afresh after giving an opportunity of hearing to all concerned parties. The decision was based on the fundamental principle that any administrative action affecting rights must be preceded by a fair hearing.
Headnote
A) Administrative Law - Natural Justice - Right to be Heard - Merger of APMCs - Section 5(1) of Karnataka Agricultural Produce Marketing (Regulation and Development) Act, 1966 - The petitioners challenged the notification dated 27.04.2017 directing merger of APMC Devadurga with APMC Raichur. The court held that the notification was issued without giving any opportunity of hearing to the affected parties, violating principles of natural justice. The notification was quashed. (Paras 1-5) B) Agricultural Marketing - Merger of Market Committees - Section 5(1) of Karnataka Agricultural Produce Marketing (Regulation and Development) Act, 1966 - The court observed that the power to merge market committees under Section 5(1) must be exercised in a fair manner, and any decision affecting rights must be preceded by a hearing. The impugned notification was set aside. (Paras 2-5)
Issue of Consideration
Whether the impugned notification dated 27.04.2017 directing merger/amalgamation of APMC Devadurga with APMC Raichur is valid and whether the petitioners were afforded an opportunity of hearing before issuance of the notification.
Final Decision
The court quashed the impugned notification dated 27.04.2017 and directed the respondents to consider the matter afresh after giving an opportunity of hearing to all concerned parties.
Law Points
- Natural justice
- Right to be heard
- Merger of APMCs
- Section 5(1) of Karnataka Agricultural Produce Marketing (Regulation and Development) Act
- 1966
- Quashing of notification





