Bombay High Court Upholds Secretary's Communication Declaring Trader Member's Seat Vacant in Agricultural Produce Market Committee for Non-Renewal of Licence. Proviso to Section 15(1) of Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1967 Creates Automatic Cessation and Deemed Vacation of Office upon Loss of Licence, with Communication under Rule 73 to State Co-operative Election Authority.

High Court: Bombay High Court Bench: NAGPUR
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Case Note & Summary

Before the Nagpur Bench of the Bombay High Court, a writ petition was filed by a Trader elected to the Agricultural Produce Market Committee (APMC), Akola from the Traders' category. The petitioner challenged a communication dated 25 April 2026 issued by the Secretary of the APMC, which informed him that since his trader licence had not been renewed for the year 2026-27, he had ceased to be a member of the APMC and his seat had become vacant. The petitioner contended that the Secretary had no jurisdiction to declare a vacancy, that any dispute regarding disqualification or vacancy under Rule 10(3) of the Maharashtra Agricultural Produce Market Committee (Election to Committee) Rules, 2017 had to be decided by the Director, and that principles of natural justice were violated as he was not heard. He also argued that he had applied for renewal of his licence and the application was pending, so the licence could not be treated as lapsed. The respondents, including the APMC, justified the communication on the basis of the proviso to sub-section (1) of Section 15 of the Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1967, which provides that a person who is a member by virtue of holding a licence shall cease to be such member and shall be deemed to have vacated office upon ceasing to hold that licence. The respondents submitted that the deeming provision operated automatically and no separate declaration was required. The court examined the relevant statutory provisions, including Sections 14, 15 and 18 of the 1967 Act and Rules 10 and 73 of the 2017 Rules. It noted that the proviso to Section 15(1) clearly stated that upon cessation of the licence, the member would cease and be deemed to have vacated office. The court observed that prior to the substitution of Section 18 by Maharashtra Act 11 of 2003, the Secretary was required to communicate casual vacancies to the Director; after the amendment, no such requirement remained. Rule 73 of the 2017 Rules now required the Secretary to communicate the occurrence of casual vacancies to the State Co-operative Election Authority, which was established under Section 73-CB of the Maharashtra Co-operative Societies Act, 1960 and had powers of superintendence and control over elections. Relying on Harish Tandon v. Additional District Magistrate, Allahabad U.P. and others, (1995) 1 Supreme Court Cases 537 and East End Dwellings Co. Ltd. v. Finbsbury Borough Council, 1952 AC 109, the court reiterated that a statutory fiction must be given full effect and carried to its logical conclusion, including its inevitable corollaries. The court's reasoning indicated that the deeming provision in Section 15(1) operated automatically when a member ceased to hold the requisite licence, and the Secretary's communication was consistent with Rule 73. The available judgment excerpt does not include the final operative order, but the analysis suggested that the petitioner's challenge would fail and the writ petition would be dismissed.

Headnote

A) Election Law - Membership of Market Committee - Cessation upon loss of licence - Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1967, Section 15(1) proviso and Section 13(1)/(1A) - The petitioner, a trader member of Agricultural Produce Market Committee (APMC), Akola, was informed by the Secretary that non-renewal of his trader licence for 2026-27 resulted in automatic vacation of his seat. The court examined the proviso to Section 15(1), which states that a member holding a licence shall cease to be such member and be deemed to have vacated office upon ceasing to hold that licence. Held that full effect must be given to this deeming provision, and no further declaration is required for the vacancy to occur (Paras 9-13, 20-22).

B) Administrative Law - Jurisdiction of Secretary and filling of casual vacancies - Communication to State Co-operative Election Authority - Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1967, Section 18; Maharashtra Agricultural Produce Market Committee (Election to Committee) Rules, 2017, Rule 73 - The petitioner challenged the Secretary's communication for lack of authority to declare vacancy. The court noted that after substitution of Section 18 by Maharashtra Act 11 of 2003, the requirement to communicate the vacancy to the Director was removed. Rule 73 now mandates the Secretary to communicate occurrence of casual vacancies to the State Co-operative Election Authority, which fills such vacancies. Held that the Secretary's role is to communicate the vacancy under Rule 73, not to declare it, and the deeming provision in Section 15(1) operates automatically (Paras 14-18).

C) Interpretation of Statutes - Legal fiction and deeming provision - Full effect to statutory fiction - Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1967, Section 15(1) proviso - Relying on Harish Tandon v. Additional District Magistrate, Allahabad U.P. and others, (1995) 1 Supreme Court Cases 537 and East End Dwellings Co. Ltd. v. Finbsbury Borough Council, 1952 AC 109, the court reiterated that when a statute creates a legal fiction, it must be carried to its logical conclusion and inevitable corollaries imagined. Held that the deeming provision under Section 15(1) proviso must be given full effect (Paras 20-22).

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Issue of Consideration

Whether upon cessation of the trader licence, the petitioner ceased to be a member and is deemed to have vacated office without any declaration made by the competent authority under the Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1967?

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Final Decision

The available judgment text does not expressly record the final operative order; the court's reasoning, based on the deeming provision in Section 15(1) of the Act and Rule 73 of the 2017 Rules, indicated that the Secretary's communication was justified and that no separate declaration by the Director was required.

Law Points

  • Full effect must be given to statutory fictions and deeming provisions
  • Upon cessation of licence
  • member ceases and is deemed to have vacated office under proviso to Section 15(1) of Maharashtra Agricultural Produce Marketing (Development and Regulation) Act
  • 1967
  • Secretary must communicate casual vacancies to State Co-operative Election Authority under Rule 73 of Maharashtra Agricultural Produce Market Committee (Election to Committee) Rules
  • 2017
  • No separate declaration by Director required for automatic vacancy under Section 15(1) proviso
  • Section 18 as amended removed requirement to communicate vacancy to Director
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Case Details

2026 LawText (BOM) (08) 163

Writ Petition No. 5586 of 2026

2026-08-31

Anil S. Kilor, Rajnish R. Vyas

2026:BHC-NAG:11518-DB

Mrs. Renuka Sirpurkar, Mr. Ghare, Mr. Autkar, Mr. Shingane

Agricultural Produce Market Committee (APMC), Akola and others

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Nature of Litigation

Writ petition under Article 226 of the Constitution of India challenging a communication dated 25/04/2026 declaring the petitioner's seat as member of Agricultural Produce Market Committee (APMC), Akola vacant due to non-renewal of trader's licence.

Remedy Sought

Petitioner sought quashing of the impugned communication dated 25/04/2026 issued by the Secretary of APMC and a declaration that he continues as a member.

Filing Reason

The Secretary informed the petitioner that because his trader licence was not renewed for the year 2026-27, he had ceased to be a member of APMC and his seat had become vacant.

Previous Decisions

Not mentioned; the writ petition was filed directly before the High Court.

Issues

Whether upon cessation of the trader licence, the petitioner ceased to be a member and is deemed to have vacated office without any declaration by the competent authority under the Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1967? Whether the Secretary of APMC had authority to communicate the vacancy and whether the procedure under Rule 10(3) requiring Director's decision applied.

Submissions/Arguments

Petitioner: The Secretary of APMC has no authority to declare that the seat has become vacant; such vacancy is required to be declared by the Director under Rule 10(3) of the Maharashtra Agricultural Produce Market Committee (Election to Committee) Rules, 2017 if any dispute arises. Petitioner: Principles of natural justice were not complied with; no opportunity of being heard was given before declaring the seat vacant. Petitioner: The petitioner applied for renewal of licence and the application remained pending, so it cannot be said that the licence lapsed or was not renewed. Respondent: The proviso to Section 15(1) of the Act creates an automatic deeming provision; upon cessation of licence, the member ceases and is deemed to have vacated office without any further declaration. The Secretary rightly communicated the vacancy.

Ratio Decidendi

The proviso to Section 15(1) of the Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1967 creates a deeming fiction; full effect must be given to it. Upon a member ceasing to hold the relevant licence, he ceases to be a member and is deemed to have vacated office automatically. Section 18 and Rule 73 of the Maharashtra Agricultural Produce Market Committee (Election to Committee) Rules, 2017 require the Secretary to communicate casual vacancies to the State Co-operative Election Authority, not to the Director, and no separate declaration by the Director is necessary under the deeming provision.

Judgment Excerpts

Proviso to Sub Section (1) of Section 15 says that a person who is a member by virtue of his being a representative, or holding office, or holding licence belonging to any of the categories of member referred to in Sub-Section (1) or (1A) of Section 13, such member shall cease to be member and shall be deemed to have vacated office on his ceasing to be representative or holding of such office or licence. The role of a provision in a statute creating legal fiction is by now well settled. When a Statute creates a legal fiction saying that something shall be deemed to have been done which in fact and truth has not been done, the Court has to examine and ascertain as to for what purpose and between what persons such a statutory fiction is to be resorted to. Thereafter full effect has to be given to such statutory fiction and it has to be carried to its logical conclusion. In the event of vacancy occurring on account of death, resignation, disqualification or removal of the member of a Market Committee or through such a member becoming incapable of acting prior to the expiry of his term of office or otherwise, the Secretary of the market committee shall forthwith communicate the occurrence of such vacancies to the State Co-operative Election Authority and the vacancy shall be filled as provided in Act.

Procedural History

Writ petition filed directly before the High Court challenging communication dated 25/04/2026; Rule issued and made returnable forthwith; heard finally with the consent of the learned counsel appearing for the parties.

Acts & Sections

  • Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1967: 13, 14, 15, 16, 17, 18
  • Maharashtra Agricultural Produce Market Committee (Election to Committee) Rules, 2017: 3, 4, 10(3), 73
  • Maharashtra Co-operative Societies Act, 1960: 73-CB
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