# M/s Baidyanath Ayurved Bhawan (P) Ltd v. State of U.P. and others

- **Citation:** (2003) 2 ILRA 455
- **Court:** High Court of Judicature at Allahabad
- **Decided:** 2003-07-14
- **Case number:** Civil Misc. Writ Petition No. 12372 of 2003
- **Bench:** M. Katju, R.S. Tripathi
- **Source:** https://unisonlegal.in/judgment/allahabad-high-court/m-s-baidyanath-ayurved-bhawan-p-ltd-v-state-of-u-p-and-others-40121
- **Pages:** 4

## Headnote

Section
9
(i)-Domestic
consumption-means-consumption
by
himself-petitioner-manufacturer
of
Ayurvedic Medicine-storage of Gur, Ghee
and Amla etc. -held-not liable to possess
the licence.

Held- Para 11

In our opinion this petition deserves to
be allowed on the ground that the
expression "domestic consumption" in
the proviso to Section 9 (1) means
consumption by the person himself who
is doing the storing. Hence in our opinion
the petitioner does not require to take a
licence under Section 9 of the Act.

(B)
U.P.
Krishi
Utpadan
Mandi
Adhiniyam-1964 Agricultural ProduceDomestic use in the word internal
includes consumption in factory also-not
limited to home only.

Held- Para 21

The meaning of 'domestic consumption'
in the proviso to Section 9 (1) is
'internal' and is not limited to 'home'.
The petitioner uses the agricultural
produce which he is buying for internal
purpose, that is, for the purpose of
consumption in its factory, and not for
external consumption by some one else
to whom he may transfer the agricultural
produce.
25 SCT 222 196 U.S. 207, 19 F 679

## Text

2 All] M/s Baidyanath Ayurved Bhawan (P) Ltd. V. State of U.P. and others
455
the year 1987 is being disposed off in
2003 at lease Rs.1000/- a year should be
the costs payable by the respondent no.3.

8. For the discussions and reasons
hereinabove, the writ petition succeeds
and is allowed and the impugned orders
dated 28th March, 1979 26th April, 1983
and 10th March, 1987 are hereby quashed.
The petitioner shall be entitled to costs of
Rs.28,000/- which should be paid to the
petitioner by the respondent no.3 through
an account payee bank draft drawn in
favour of the petitioner trust within a
period of six weeks from today. In case
the aforesaid costs is not paid within the
said time, the same shall be recovered as
arrears of land revenue by the Collector,
Basti and paid to the petitioner trust.
---------
ORIGINAL JURISDICTION
CIVIL SIDE
DATED: ALLAHABAD 14.7.2003

BEFORE
THE HON'BLE M. KATJU, J.
THE HON'BLE R.S. TRIPATHI, J.

Civil Misc. Writ Petition No. 12372 of 2003

M/s Baidyanath Ayurved Bhawan (Pvt. )
Ltd.

...Petitioner
Versus
State of Uttar Pradesh and others

 ...Respondents

Counsel for the Petitioner:
Sri Arun Tandon

Counsel for the Respondents:
Sri B.D. Mandhyan, S.C.

(A) U.P. Krishi Utpadan Mandi Adhiniyam
1964-
Section
9
(i)-Domestic
consumption-means-consumption
by
himself-petitioner-manufacturer
of
Ayurvedic Medicine-storage of Gur, Ghee
and Amla etc. -held-not liable to possess
the licence.

Held- Para 11

In our opinion this petition deserves to
be allowed on the ground that the
expression "domestic consumption" in
the proviso to Section 9 (1) means
consumption by the person himself who
is doing the storing. Hence in our opinion
the petitioner does not require to take a
licence under Section 9 of the Act.

(B)
U.P.
Krishi
Utpadan
Mandi
Adhiniyam-1964 Agricultural ProduceDomestic use in the word internal
includes consumption in factory also-not
limited to home only.

Held- Para 21

The meaning of 'domestic consumption'
in the proviso to Section 9 (1) is
'internal' and is not limited to 'home'.
The petitioner uses the agricultural
produce which he is buying for internal
purpose, that is, for the purpose of
consumption in its factory, and not for
external consumption by some one else
to whom he may transfer the agricultural
produce.
25 SCT 222 196 U.S. 207, 19 F 679

(Delivered by Hon'ble M. Katju, J.)

1. This writ petition has been filed
for quashing the proceedings under
section 37 of the U.P. Krishi Utpadan
Mandi Adhiniyam, 1964 (hereinafter
referred to as the Act) pending before the
Chief Judicial Magistrate, Allahabad as
also the summoning order.

Heard learned counsel for the parties.

2. The petitioner is a company
registered under the Indian Companies
Act. It has an industrial unit for
manufacture of Ayurvedic medicines at
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INDIAN LAW REPORTS ALLAHABAD SERIES [2003
456
Naini, Allahabad. For the purpose of
manufacture of these Ayurvedic drugs the
petitioner
purchases
commodities
including certain products which are
agricultural produce e.g. Gur, Ghee,
Amala etc. It is alleged that the petitioner
consumed these agricultural products in
its factory for manufacturing ayurvedic
drugs.

3. In paragraph 9 of the writ petition
it is alleged that the petitioner is not a
producer under section 2 (p) of the Act
nor is it a broker under section 2 (b), or a
trader under section 2 (y) of the Act. It is
alleged that the petitioner is not a buyer or
seller of agricultural produce nor is it
engaged in processing of agricultural
produce only as raw material for its
production in its factory. Hence it is
alleged that the petitioner is under no
obligation to take a licence under Section
9 (2) and the provisions of Rule 70 of the
Rules made under the Act have no
application.

4. It is alleged in paragraph 13 of the
writ petition that to the utter surprise of
the petitioner it was served with the notice
dated 17.3.1999 Annexure 1 to the writ
petition from the office of the Secretary,
Krishi Utpadan Mandi Samiti, Mundera,
Allahabad stating that the petitioner
should obtain a licence under the Act
failing which proceedings will be taken
against him. On receiving this notice the
petitioner sent a reply dated 31.3.1999
stating that the petitioner is not a trader
and hence is not liable to take any licence
under the Act. True copy of the
petitioner's reply is Annexure 2 to the writ
petition. However, vide letter dated
2.12.2000
the
respondent
Secretary,
Mandi Samiti issued an order stating that
the petitioner's explanation has been
considered but it is not acceptable and
hence the petitioner should take a licence
under Section 9 (2) read with Rule 70 of
the Rules otherwise legal action will be
taken against him. True copy of the said
letter dated 2.12.2000 is Annexure 3 to
the writ petition. The petitioner sent reply
dated 3.12.2000 vide Annexure 4 to the
writ petition. However, thereafter vide
letter dated 16.12.2000 and 15.2.2001 the
petitioner was directed again to take
licence vide Annexure 5 and 6 to the writ
petition. The respondents have initiated
proceedings for penalty under Section 37
of the Act against the petitioner for which
summons have been issued. Hence this
petition.

5. A counter affidavit has been filed
and we have perused the same. In
paragraph 8 it is stated that Gur, Ghee,
Amla are specified agricultural produce as
notified in the Schedule to the Act. Hence
the transactions in those commodities
entails market fee, and after declaration of
the market area all the traders or
consumers who effect sales and purchase
or even store agricultural produce are
liable to take a licence under Section 9 of
the Act.

6. In paragraph 9 of the counter
affidavit it is denied that the petitioner
does not sell or purchase specified
agricultural produce. It is alleged that
even storage of agricultural produce
requires licence under Section 9. It is
alleged in paragraph 10 that the petitioner
is storing agricultural produce, and hence
he has to obtain a licence.

7. A perusal of the Schedule to the
Act shows that Gur, Ghee and Amla are
mentioned therein. Hence in view of
Section
2
(a)
they
are
definitely
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2 All] M/s Baidyanath Ayurved Bhawan (P) Ltd. V. State of U.P. and others
457
agricultural produce under the Act. The
submission of the learned counsel for the
petitioner, however, is that the petitioner
is not engaged in the business of buying
or selling agricultural produce nor is
engaged in processing of agricultural
produce. Hence it is alleged that the
petitioner is neither broker, as defined in
Section 2 (b), nor a commission agent as
defined in Section 2 (e), nor a producer as
defined in Section 2 (p), nor a trader as
defined in Section 2 (y) of the Act.

8. Learned counsel for the petitioner
has submitted that the petitioner is exempt
from Section 9 (1) to the Act in view of
the proviso to the provision which states:

"Provided that the provisions of this
sub-section shall not apply to a producer
in
respect
of
agricultural
produce
produced, reared, caught or processed by
him or to any person who purchases or
stores any agricultural produce for his
domestic consumption."

9. Learned counsel submitted that
the words "domestic consumption" in the
proviso
to
Section
9
(1)
means
consumption for the use of that person
and is not limited to consumption in
homes. Hence he has submitted that
Section 9 (1) has no application to the
petitioner.

10. Sri B.D. Mandhyan, learned
counsel for the respondents, however,
urged that the petitioner is bound to take a
licence under Section 9 because it stores
agricultural produce.

11. In our opinion this petition
deserves to be allowed on the ground that
the expression "domestic consumption" in
the proviso to Section 9 (1) means
consumption by the person himself who is
doing the storing. Hence in our opinion
the petitioner does not require to take a
licence under Section 9 of the Act.

12. There is no dispute that the
petitioner
purchases
the
agricultural
produce for use as raw material in its
factory at Naini, Allahabad. In our
opinion, when the petitioner purchases
these agricultural produce and stores it for
use in its manufacturing activities such
purchases and storage is for domestic
consumption. In this case the whole issue
turns on the meaning of the word
"domestic".

13. One word may have several
meanings, and one meaning may have
several words (synonyms). Hence the
correct interpretation given to a word
must take colour from the context,
otherwise it may lead to strange results.
No doubt the word "domestic" can have a
meaning associated with the home or
house. For example a domestic servant
means a servant employed in the house
rendering
personal
service
to
the
employer.

14. However, the word domestic can
have
other
meanings
too
e.g.
the
expression "domestic trade" means trade
pertaining to the home country as opposed
to foreign trade, vide Law Lexicon by P.
Ramanatha Aiyar page 587.

15. In this sense the word
"domestic" means 'internal'' and not
'external'. From this point of view, the
expression
"domestic"
would
mean
consumption by the party purchasing the
goods himself and not by someone else to
whom the said party sells the goods. From
this point of view the storage of
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INDIAN LAW REPORTS ALLAHABAD SERIES [2003
458
agricultural produce by the petitioner is
clearly for domestic consumption as it is
used by him for manufacturing activity.

16. No doubt the words 'any person
who purchases or stores any agricultural
produce for his domestic consumption' in
the proviso to Section 3 (1) can also mean
a person who grows agricultural produce
and eats it or consumes it himself.
However, in our opinion, the expression
"domestic consumption" in the proviso to
Section
9
(1)
includes
both
the
agricultural producer who consumes his
own production and also the manufacturer
who uses the agricultural produce in his
manufacturing activity-

In Catto v. Plant 137 A. 764, 106
Conn. 236 it was observed:

"The term "domestic" has widely
varying meanings, and while its primary
significance relates to the house or home,
it is often used in a vastly broader sense,
and its significance is determinable with
reference to the subject matter or relation
in which it appears."

17. In United States v. United Verde
Copper Co. 25 S.Ct. 222 196 U.S. 207 it
was observed that the word 'domestic'
may relate to a broader entity than
household. Thus a domestic manufacturer
means not only those of the household but
may also mean those of a country, state or
nation, according to the context.

18. In Louisville & N.R. Co. v.
Railroad Commission of Tennessee 19 F.
679 it was observed that domestic
commerce is commerce which is entirely
within one state.

19. In the New Shorter Oxford
dictionary the word 'domestic' has been
shown to have several meaning e.g. of or
pertaining to one's own country or nation;
not foreign or international indigenous;
made in one's own country, not imported,
etc.

20. In Websers New International
Dictionary among the various definitions
of the word 'domestic' given there one
definition is 'internal'. This is also
mentioned in the Oxford Thesaurus p.
108.

21. In our opinion, the meaning of
'domestic consumption' in the proviso to
Section 9 (1) is 'internal' and is not
limited to 'home'. The petitioner uses the
agricultural produce which he is buying
for internal purpose, that is, for the
purpose of consumption in its factory, and
not for external consumption by some one
else to whom he may transfer the
agricultural produce.

22. In view of the above this petition
is allowed. We hold that the petitioner is
not liable to take licence under Section 9
of the Act. The impugned proceedings are
accordingly quashed. No order as to costs.
---------
ORIGINAL JURISDICTION
CIVIL SIDE
DATED: ALLAHABAD 04.08.2003

BEFORE
THE HON'BLE RAKESH TIWARI, J.

Civil Misc. Writ Petition No.33103 of 1997

Etawah Kshetriya Gramin Bank ...Petitioner
Versus
Presiding Officer, Central Government
Industrial Tribunal cum labour court,
Kanpur and another
 ...Respondents

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