# • • 2H G. V. GUNAYYA CHEITY & ANR v. V. DASARATHARAMAJAH & ORS

- **Citation:** [1975] Supp. 1 S.C.R. 219
- **Court:** Supreme Court of India
- **Decided:** 1975-04-21
- **Bench:** A. Alag!R!Swam!, P. N. Bhagwat!, P. K. Goswami
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/2h-g-v-gunayya-cheity-anr-v-v-dasaratharamajah-ors-6511
- **Pages:** 9

## Headnote

B
A ndhra Pradesh Agricultural Prvduce and Live-Stock Markets Act_. 1966,
cl. (iv) of sub-sec. (1) of sec. 5 and proviso to cl. (ir), and section 7 and
2z.!._tirfarket comniiJtee, constitution of-1Uen1bers . representing
traders
to
be elected, bur they are to be nominated by Govern1nent H1heri 111arket contniittee is constituted for the first thne-1\Tornir.ation of menibers reprcsentin;:
tradl?rs to the newlv
constituted
fnarket
cot11111ittee after
sttpersession, if - C
legal.
•
The Governn1ent, by a notificalion issued under sec .. 3,
~ub-sec. (3) of
the Andhra Pradesh Agricnltural Produce and Live-Stock ?lfarkets 1\ct, 1966,
declared the area compri~ed in Machilipatnam, Bandar and Divi taluka to be
notified area for the purposes of the Act. Th.is waS .follO\\'ed by a notification
dated 30th October, 1969 constih1ting a i\larket Con1mittee for the notifie4
area under s. 4, sub-s. (1) of the Act. The Market Committee was to conD
sist of twelve men1bers to b.e appointed in the n1anner set out ins. 5, sub-s. (1)
-0f the Act. Six out of these twelve members \\'ere nominated hy the Go\'c1nment from among . the gro\vcrs of agricultural produce and owners of livestock undef s. 5, snb-s. (1), cl. (i), two were nominat~d by the Govcrnn1ent from
among traders under proviso to s. 5 sub-~. (1)
cl.
(iv_) and the Agriculh1re Extension Ollicer. M'ovva was nom.inated by the Government as dcpartn1ental representative under s. 5, snb-s. (1), cl. (iii)(a).
The Chairmcin of the
l\Iarket Comn1ittee was elected on 24th January, 1970. Jn. consequence of the
E
judgment of the High Court of _Andhra Pradesh in Donde Ran1a Rao v. State
A.I.R. 1971 Andhra Pradesh 353), the Government superseded 1he Market
Committee. for a pcr'iod of six months on the ground that it was not competent
to perform the duties imposed on it by or _un'der the Act. The initial period of
"Six months for which the Market Comn1ittee v:as. superseded \Vas further extent.led
and just before the expiration of the extended period of supersession, the Government made an order dated 7th December, 1972 constituting a f!eW l\.!arkct
Committee by nominating six persons out of growers of agric,ultural produce and
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owners of livestock under s. 5, sub-s.(1), cl.(i), the President of the Diviseema Cooperative Marketing Society, Avanigadda under s. 5, sub-s. (1), cl. (ii),
the Agricultural Extension
Officer.
~fovva as departmental
representatives
under s. 5, sub-s. (1 ), cl. (iii) (a) nnd three persons representing traders under the proviso to snb-cl. (iv) of s. 5, sub-s. (l). Though Divi taluk formed
pa'ft of the notified area, no grower or trader fom Divi Taluk _was nominated
'On the Market Committee; all the six representatives of growers belonged to
Badar Taluka \Vhile nll the three representatives of traders belonged to Machi!ipatnam taluk. Respondents Nos. 1 and 2, who we'fe two of the traders from
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Divi Taluk, therefore, filed Writ Petition No. 1693 of 1973 in the High Court
of Andhra Pradesh cha1lenging the validity of the order dated 7lh December, 1972 in so far as it nominated 'fepresentatives of traders on the A-Iarket
Con1mittee under the Proviso to cl. {iv) of s11b-s. (1) of s. 5. The argun1ent of
re~pondent~ Nos. 1. and 2 was that it \vas the main part of cl. (iv) of sub-s.(J)
of s. 5 \Vh1ch app!Ied and not the Proviso and, therefore the Government \Vas
not entitled to nominate re·presentatives of traders but tbev were liable to be
elected by traders licensed. under s. 7, sub-s. (1) from amo-Ilgst·themselves. The
learned Single Judge of the High C.ourt dismissed the Writ.. Petiiion. Thereupon
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Respondents 1 and 2 prefe1Ted nn appeal under cl. 15 of the Letters Patent to
a Division Bench of the High Court.
The Division Bench disagreed \Vith the view taken by the learned Singie
Ju.dge and. held that when the Government constituted the new ~.farket Committee by It~ orde'f dated 7_th December, 197? on !he expiratiri.n of the pP.riod
of supcrsess1on of the earher Market Comm1tteei

## Text

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2H
G. V. GUNAYYA CHEITY & ANR
v.
V. DASARATHARAMAJAH & ORS.
April 21, 1975
[A. ALAG!R!SWAM!, P. N. BHAGWAT! AND P. K. GOSWAMI, JJ.)
B
A ndhra Pradesh Agricultural Prvduce and Live-Stock Markets Act_. 1966,
cl. (iv) of sub-sec. (1) of sec. 5 and proviso to cl. (ir), and section 7 and
2z.!._tirfarket comniiJtee, constitution of-1Uen1bers . representing
traders
to
be elected, bur they are to be nominated by Govern1nent H1heri 111arket contniittee is constituted for the first thne-1\Tornir.ation of menibers reprcsentin;:
tradl?rs to the newlv
constituted
fnarket
cot11111ittee after
sttpersession, if - C
legal.
•
The Governn1ent, by a notificalion issued under sec .. 3,
~ub-sec. (3) of
the Andhra Pradesh Agricnltural Produce and Live-Stock ?lfarkets 1\ct, 1966,
declared the area compri~ed in Machilipatnam, Bandar and Divi taluka to be
notified area for the purposes of the Act. Th.is waS .follO\\'ed by a notification
dated 30th October, 1969 constih1ting a i\larket Con1mittee for the notifie4
area under s. 4, sub-s. (1) of the Act. The Market Committee was to conD
sist of twelve men1bers to b.e appointed in the n1anner set out ins. 5, sub-s. (1)
-0f the Act. Six out of these twelve members \\'ere nominated hy the Go\'c1nment from among . the gro\vcrs of agricultural produce and owners of livestock undef s. 5, snb-s. (1), cl. (i), two were nominat~d by the Govcrnn1ent from
among traders under proviso to s. 5 sub-~. (1)
cl.
(iv_) and the Agriculh1re Extension Ollicer. M'ovva was nom.inated by the Government as dcpartn1ental representative under s. 5, snb-s. (1), cl. (iii)(a).
The Chairmcin of the
l\Iarket Comn1ittee was elected on 24th January, 1970. Jn. consequence of the
E
judgment of the High Court of _Andhra Pradesh in Donde Ran1a Rao v. State
A.I.R. 1971 Andhra Pradesh 353), the Government superseded 1he Market
Committee. for a pcr'iod of six months on the ground that it was not competent
to perform the duties imposed on it by or _un'der the Act. The initial period of
"Six months for which the Market Comn1ittee v:as. superseded \Vas further extent.led
and just before the expiration of the extended period of supersession, the Government made an order dated 7th December, 1972 constituting a f!eW l\.!arkct
Committee by nominating six persons out of growers of agric,ultural produce and
F
owners of livestock under s. 5, sub-s.(1), cl.(i), the President of the Diviseema Cooperative Marketing Society, Avanigadda under s. 5, sub-s. (1), cl. (ii),
the Agricultural Extension
Officer.
~fovva as departmental
representatives
under s. 5, sub-s. (1 ), cl. (iii) (a) nnd three persons representing traders under the proviso to snb-cl. (iv) of s. 5, sub-s. (l). Though Divi taluk formed
pa'ft of the notified area, no grower or trader fom Divi Taluk _was nominated
'On the Market Committee; all the six representatives of growers belonged to
Badar Taluka \Vhile nll the three representatives of traders belonged to Machi!ipatnam taluk. Respondents Nos. 1 and 2, who we'fe two of the traders from
G
Divi Taluk, therefore, filed Writ Petition No. 1693 of 1973 in the High Court
of Andhra Pradesh cha1lenging the validity of the order dated 7lh December, 1972 in so far as it nominated 'fepresentatives of traders on the A-Iarket
Con1mittee under the Proviso to cl. {iv) of s11b-s. (1) of s. 5. The argun1ent of
re~pondent~ Nos. 1. and 2 was that it \vas the main part of cl. (iv) of sub-s.(J)
of s. 5 \Vh1ch app!Ied and not the Proviso and, therefore the Government \Vas
not entitled to nominate re·presentatives of traders but tbev were liable to be
elected by traders licensed. under s. 7, sub-s. (1) from amo-Ilgst·themselves. The
learned Single Judge of the High C.ourt dismissed the Writ.. Petiiion. Thereupon
H
Respondents 1 and 2 prefe1Ted nn appeal under cl. 15 of the Letters Patent to
a Division Bench of the High Court.
The Division Bench disagreed \Vith the view taken by the learned Singie
Ju.dge and. held that when the Government constituted the new ~.farket Committee by It~ orde'f dated 7_th December, 197? on !he expiratiri.n of the pP.riod
of supcrsess1on of the earher Market Comm1tteei it did not constitute a new
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[1975] SUPP. s.c.n.
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J\Iarkct Committee for the first time, and therefore, the case \Vas governed.,
not by the proviso, but by the main pmt of s. 5, sub-s. (1), cl. (iv) and the
order dated' 7th .December, 1972 was invalid in so far as it
non1inatecl three
members from among traders purporting to act under the proviso to s. 5r
sub-s. (1), cl. (iv). The appellant thereupon brol!ght the present appcfll ¥.rfth
special leave obtained from this Court.
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Di.smissing the appeal ,
lfELD: The main part of cl. (iv) of sub-s. (1) of s. 5 enacts t11at, as a
general rule, members representing traders are to- be elected ·"by- the persons
licensed under sub-s.(1) of s. 7 in the notified area from an1ong then1selves"'.
But the licence contemplated under sub-s. (1) of s. 7 is a licence to be granted
by the Market Committee, and therefore, it must follow a forJiori that \Vhen
a market comn1.ittee is to be constituted for the ffrst time, there wouJd be no
"persons licensed under sub-s. (1) of s. T" in existence who could ekct members on the Market <::ommittee under the main part of cl.(iv) of sub-s-(1) of
s. 5. That is \Vhy the proviso was enacted to deal with such a sit11ation, it says
that \\·hen -a !\1arket Committee is being constituted for the first time, the
clectiYe meth<Xl being obviously inapplicable, n1cn1bers reprcscn_~ing traders shaU
be nominated by the Government in the manner set out there. The !tlarket
Con1mittee °"''hich is constituted by the Government on the expiration of the
period of supersession _must necessarily be a new market committee 1
11S-a-vis
the earlier one which is superseded. But that does not mean that it "" a market comrnit_tee constituted for the first time. lt would indee<t be doing violenceto the language of the proviso to say that such a market con1mittee is one constituted for the first time for a notified area, when there \Vas already an ear·
lier market committee constituted for the ~ame notified area, though it \Vas
subsequently superseded. The proriso to cl. (iv) of sub-s. (1) of s. 5 ha.I_,
therefore, no application ant.I the Government \Vas not entitled to
~on1inare
members representing traders on the Market
Committee conslitutecl hy it
under the order dated 7th December. 1972. It 'vas the main part of cl. (iv) of
sub-s. (I) of s. 5 which applied. [225H, 226ADE, GH 227DHF]
ClVIL APPE'Ll~ATE JURISDICTION : Civil Appeal No. 1731 of 1974
Appeal by special leave from the judgment and order dated 27-8-74
of the Andhra Pradesh High Court in Writ 'Appeal No. 716 of 1973.
S. V. Gupte, A. V. Rangam and A. Subhashini, for the appellant.
A. Subba Rao, for the respondent.
The Judgment of the Court was delivered by
BHAGWATI, J.-This appeal, by special leave, r,a,iscs a very short
question of construction of ~ertain provisions of the Andhra P~adesh
Agricultural Produce and Live-Stock Markets Act, 1966 (heremafter
referred to as the Act). The narration of a few facts giving rise to
the appeal would help to appreciate the
question which arises for
II determination, but it would be convenient first to refer to the relevant
provisions of the Act before we recapitulate the facts.
The Act is a species of legislation \vhich has now been enacted
in almost all States of India with a view to providing satisfactory conditions for the growers of agricultural produce to sell their produce on
equal terms and at reasonable prices. Section 2 gives definitions of the
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G. v. GUNAYYA CHETTY ir. v.· DASARATHARAMAIAH (Bhagwati, J.)
221
varioui terms used in the Act, while sec; 3 provides for issue of notification by the Govemmelit declaring a spi!tific. area "to. be a notified
area for the putposes·· of this Act in respect o'f any agrii:nltural produce,
livestock and products' of livestock. · Then comes s. 4, which says in
sub-s. (1), which is the only sub-section material for our purpose :
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"The Government shall. constitute, by poti.fication, a, market
wrninittec ,for every notifiea area from such Jlate as may
be specified in the. notification and the matl>et committee
so constituted. ~hall be a body corporate by such name as
the Government may specify in the said notific<1.tion, having perpetual successiop. and a common seal with power
to acquire, bold and dispose of property and may, by its
corporate name, sue aμd. be sued."
B
T11e c.ornposition of. market committee is laid down in s. 5. Sub-s. (1)
of that section provides :
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"Every market committee shall
consists of such number of
members,. being not less than twelve and not more than , b
sixteen, as may be fixed for it by the Government and
shall be constituted in the following manner :-
(i) uot less than one-half of the members, to be appointed
by the Government, after c.onsultatio~ with the Director
of Marketing, from among the growers of agricultural
produce and the owners of livestock and products of
I<:
livestock in the notified area ;
(ii) one non-official from the notified area, to be elected by
the members of the local cooperative marketing sbcieties ; or in the absence of ~uch societies to be elected
as specified in clause (iv) ;
(iii) (a) one representative, having jurisdiction over the notified area, of the Agricultural Department or the Animal
Hus!iandry Department, to be appointed by the Governmep.t;
(b) two representatives~ one each,
of the municipality
' within which the office of . the market committee is
located and of the gram panchayat!! comprised in the
notified area, to be elected by the
members of the
municipality and the gram panchayats respectively ; or
in the absence of such municipality both representatives
to be elected by the members of the gram panchayats ;
or in the absence of a gram panchayat, only one representative to be elected by the municipality ;
(iv) the remaining members, to be elected in the prescribed
manner by the persons licensed under sub,section (1) of
Sec. 7 in the notified area from among themselves :
Provided that where a market committee is cortstituted in any
notified area for the first time, the Government shall appoint
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SUPREME CO_l.JRT REPORTS
[1975] SUPP. S.C.R.
the members under this clause from out of a panel of traders of the
notified
agricultural produce, , livestock or
products or livestock in the notified area, furnished by
the Director of Marketing to the Government."
Sub-section (2) says that every market 'committee shall elect
two
of its members other than those mentioned in clause (iii) of sub-s. (1),
to be respectively Chairman and
Vice-Chairman..
and sub-sec. (3)
enacts that save as otherwise provided in the Act, the term of office
of the members appointed or elected under sub-s. (1) shall be three
years from the date of the election of the Chairman.
The other subsections of sec. 5 are not material and we need not refer to them.
Sub-s. (2) of s. 6 empowers the Government to extend the tenn of office
of the members of the market committee for a period not exceeding
one year mbject to the proviso that no such extension shall be given
for a period exceeding six months at a time. What is to happen on
the expiration of the term of the office of the members of the market
committee, whether original or extended. is set out in sub-s. (I) Qf s. 6.
That sub-section says that on the expiration of the term of th~ omce
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of the members of the market committee, the Government .shall reconstitute the market committee.
Then follow certain other sectioil.s
which have no bearing on the controversy before us and we may,
therefore, straight go to section 22 which deals with supersession of
market committee. That section is very material and we m:1Y
reproduce it in extenso.
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"Supersession of market committees.-(!) lf
in the
opinion of the Government a market committee is not competent to perform or persistently makes default in performing the duties imposed on it by or under this Act, or abuses.
its powers, they may, by notification, supersede such committee for a period not exceeding one year in the first instance and may, by order, extend, from time to time
the
period of supersession so however, that the total period of
supersession in the case of any market committee shall not
exceed two years:
Provided that before issuing a notification under this
sub'section, the Government shall give to
the market
committee an opportunity of
making
representation
on
the action proposed and shall consider the explanation
or objection, if any, of the market committee thereon.
(2) As from the date of publication of a notification
under sub-section (1), superseding
a market committee.
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the following consequences shall ensue-
(a) all the members as well as the Chairman and ViceChairma·n ·of the fr1arket committee shall be deemed to have vacated their oftices;
(b) all. the assets vested in the market- committee shall,
subject to all its liabilities, vest in th!> Government.
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G. v .. GUNAYYA CHETTY v. V. DASARATHMA~!A!AH (Blzagwati, J.)
223
(3) Where a market con1mittce has been supersededA
(a) the Government may, by order, appoint a suitable
person or persons to exercise the powers and perform the functions of the marke'\ committee during
the period of its superscssion and transfer to such .
person or persons the assets and liabilities of the
superseded
market committee as on
the dMe of
such transfer, and
(b) the Government, may at any time before the expiration of the period of supcrscssion, constitute a _new
market
committee
under
sub-section
( 1)
of
section 4 and ·transfer thereto the assets and liabilities of the superseded market committee as on
the date of such transfer."
Bearing in mind these relevant provisions of the Act, we may now
turn to the facts leading up to the present appeal before us.
The Government, by notification issued under s. 3, sub-s. (3) o·t
the Act, declared the area comprised in Maebilipatnam, Badar ·and
Divi taluks to be notified area for
the purposes of the Act.
This
was followed by a notification dated 30th October, 1969 constituting a Market Committee for the notified area under s. 4, sub-s. ( 1)
of the Act.
The Market Committee was lo consist of twelve members to be appointed in the manner set out in s. 5, sub-s. (1) of
the Act.
Six out of these twelve members . were nominated by the
Government from among the growers of Agricultural produce and
owners of live-stock under s. 5, subcs. (1), cl. (i), two were nominated by the Government from among traders under the proviso !o
s. 5, sub-s. (1), cl.
(iv) and the Agriculture Extension
Officer,
Movva nominated by the Government as departmental representative
under s. 5, sub-s. (1), cl. (iii)(a).
It docs not appear from the
record whether the other thr~e Jnembers were appointed as contemplated by s. 5, sub-s. (1), els. (ii) and (iii)(b).
The Chairman
of the Market Committee was elected on 24th January, 1970 and
the term of office of the members of the Market
Committee was,
therefore, three years from that date as provided in s. 5, sub-s. (3).
It, however, ·appears that in the case of Market Committee constituted by , the Government for some other notified areas, writ
petitions were filed in the High Court of Andhra Pradesh challenging 1he
validity of the nominations made by the Government under s.
5,
sub-s. (1), cl. ( i) and clause (iv) proviso. The ground of challenge
in regard to the nominations made under s. 5, sub-s. (1), cl.
(i)
was that the Government had not complied with the mandatory requirement of that provision which enjoined it to consult the Director of Marketing before nominating members from among the growers of agricultural produce and owners of livestock in the notified
areas in n;gard to nominations made under the proviso to s. 5, sub-s.
(l), cl. (iv), the challenge was based on the ground that the nominations were made by the Government outside the panel of traders
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SUPREME COURT REPORTS
[1975] SUPP. S.C.R.
A furnished by the Director of Marketing. These grounds of challenge
were upheld by the l:!igh Court in a decision reported in Donda Ram
Rao v. State(') and it was held that the nominations made under
s. 5, sub-s. (1), cl. (i) and the proviso to cl. (iv) were in contravention of those respective provisions and were accordingly invalid.
Though this decision was given in regard to the Market Committee&
B of other notified areas, it equally applied to the Market Committee
constituted for the notified area of Machilipatnam, Bandar and Divi
taluks and hence it was obvious that the nominations made by the
Government from among the
growers of agricultural produce and
owners of livestock under s. 5, sub-s. (l), cl. (i) and from among
traders under the proviso to s. 5, sub-s. (1), cl. (iv) were invalid.
But that would leave only one or at th~ highest four validly appointC ed members on the Market Committee. and the quorum for a meeting of the Market Committee under rule 29 of the Andhra Pradesh
Agricultural Produce and
Livestock Markets Rules, 1969
made
under s. 33 of the Act being &ave, it would be incompetent to the
Market Committee to exercise its powers and discharge its functions.
The Government, therefore, after giving an opportunity to the existD, ing members of the Market Committee to
be heard, passed
an
order dated November, 1971 under section 22, sub-s. (I) of the
Act superseding the Market Committee for a period of six months
on the ground that it was not competent to perform the duties imposed on it by or under the Act.
The consequence of this supersession was that aU the members of the Market Committee were
E deemed to have vacated their offices and all the assets vested in the
Market Committee, subiect to all its liabilities. became vested
in
the Government.
Vide sub-s. (2) of s. 22.
The Government by
another order of foe sam-o date made under s. 22, sub-s. (3), cl. (a)
appointed the Assistant Din;etor of Marketing to exercise the powers
and perform the functions cif
the 'Market Committee during
foe
period of its supersession. It may be stated that none of the perF
sons affected challenged the order of supersession made by the Government and it does not form the subject matter of challenge even in
the present appeal.
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It appears that the initial period of six months for which
the
Market Committee was superseded was further extended and just
before the expiration of the extended period of supersession, the
G Government made an order dated 7th December, 1972 constituting
a new Market Committee by nominating six pers"ons cut of growers
of agricultural produce and owners of livestock under s. 5, sub-s.
( l). cl. (i}, the President of the Diviscema Cooperative Marketing
Society, Avanigadda und-or s. 5, sub-s. (1), cl. (ii), the Agricultural
Extension Officer. Movva as departmental representatives under s. 5,
sub-s. ( 1), cl. (iii)( a) and three persons representing traders under
H the proviso to sub-cl. (iv) of s. 5, sub-s. (l). Though Divi taluk
formed part of the
notified area, no grower
or trader from Divi
Taluk was nominated on the Market Committee all the six representatives of growers hclong'-.d to Badar taluk, while all the representatives
of traders belonged to
Machillipatnam -taluk.
Rcspon-
(1) A.I.R. 1971 Andhra Pradesh 353.
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G. v, GUNAYYA CHETT,Y v. v. DASARATHl\RAMAIAH (Bhagwati, !.)
22;
dents Nos. 1 and 2, who were two of the traders from Divi Taluk,
therefore filed Writ' Petition No. 1693 of 1973 in the High Court
of . Andhra Pradesh challenging the validity of the order d,ated 7th
December, 197Z in so far as iL nominated representatives of traders on the Market Committee 411der the Proviso to cl. (iv) of .sub-s.
(I) of s. 5.
The .argument of respondents Nos. 1 and 2 was that
it was the main part of cl.. (iv) of sub-s. (1) of s. 5 which applied
and not the Proviso and, therefore, the Government was n.ot entitled to nominate representatives of traders but they were liable to
be selected by traders licensed _under s. 7, sub-s. (1) from amongst
themselves. The appellant who was one of the representatives nominated by the Government, resisted this argument and defended the
order dated 7th December, 1972.
]be learned Single Judge, who
heard the writ petition in the first instance, rejected the contention
of respondents Nos. 1 and 2 and held that when the Government
constituted the new Market Committee by issuing the order
dated
7th December, 1972, it constituted the Market Comfl)ittee for the
first time, and therefore, under the proviso to s. 5, sub-s. (1), cl.
(iv), the Government was entitled to nominate members from out
of the p~nel of traders ·furnished by the Director of Marketing and
the order dated 7th December, 1972 did not suffer from any infirnlity.
On this view, the learned Single Judge dismissed the writ
petition.
Respondent Nos. 1 and 2 being aggrieved by the order made
by the learned Single Judge preferred an appeal under cl. 15 of the
Letters Patent to a Division Bench -of the High Court.
The
Division Bench disagreed with the
view taken by the learned Single
Jiidge and held that when the Government constituted the new Market Committee by its order dated 7th December, 1972 on th~ expiration of the period of supersession of the earlier Market Committee,
it did not constitute a new Market .Committee for the first time, and
therefore, the case was governed, not by the proviso, but the main
part of s. 5, sub-s. (1), cl. (iv) and the order dated 7th December,
1972 was accordingly invalid in so far as it nominated three members from among traders
purporting to act under proviso to s. 5,
sub-s. (1 ), cl. (iv).
The appellant thereupon brought the present
appeal with special leave obtained from this Court.
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The sole question that arises for determination in this appeal is
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as ta which provision applied in the present case: the main part of
cj. (iv) of sub-s. (1). of s. 5, or its proviso.
The answer
to the
question depends upon whether the Market Committee was
constituted for the first time when the Government made the order dated
7th December, 1972.
The main part of cl. (iv) of sub-s. (1) of
s. 5 er\acts that, as a general rule, members representing traders are
to "he elected "by the persons licensed under sub-s. (1) of s. 7 in the
H
notified area among
themselves".
But the
licence contemplated
under sub-s. (l) of s. 7 is a licence to ·be granted by the Market
Committee, and therefore, it must follow a fortiori that when a market committee is to be constituted for the first time, there would be
no "persons licensed under sub-s. (l) of s. 7" in existence
who
could elect members. on the Market Committee under the main part
226
SUPREME COURT REPORTS
[1975] SUPP. S.C.R.
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of cl. (iv) of sub-s. (I) of s.
5.
That is why the proviso
was
enacted to deal with such a situation.
It savs that when a Market
Committee is being constituted for the first time, the elective method
being obviously inappli.cablc, members representing traders shall be
nominated by the Government in the manner set out there. Whenever,
therefore, a question arises as to which is the appropriate method to be
adopted in appointing members representing traders-whether elective
method under the main part of ci. (iv) of sub-s. (1) of s. 5,
or
nominative method under the proviso--the inquiry which has to be
made is: is the Government constituting the market committee for
the first time, or has it already been constituted once before
and
in view of the expiration of the term of ot!ice of its members or its
supersession, it is being constituted again?
Let us first take a case where a market committee has bec'l constituted for a notified area for the first time and the term of ollicc
of its members, whether original or extended, expires.
The Government is then required to reconstitute the market commit!ee under
I} s. 6.
'Reconstitute', according to
its plain natural connotation,
means nothing else than 'constitute again'.
111c Government has,
tkrefore, to constitute the market
committee again.
That would
clearly be a new market committee, but it would not be a
market
committee constituted for the first time, for there was already
an
clearly be a new market committee, but it would not be a. market
came to an end by eftlux of time.
The proviso to cl. (iv) of sub-s.
E
(I) of s. 5 can, therefore, obviously, on its plain language, have no
application in such a case.
The raison d'etre for the
necessity of
nomination under the proviso would also not be there.
Thm, does it make any difference whether a market committee
constituted for a notified area for the first time is superseded and on
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the expiry of the period of supersession, a new market committee
is constituted by the Government under sub-s. (I) of s. 4 as contemplated by sub's. (3) (b) of s. 22?
The market committee which
is constituted by the Government on the expiration of the period of
supersession 1nust necessarily be a new market con1mittec vis-a.\·is
the earlier one which is superseded.
But that does not mean that
it is a market committee constituted for
the first time. It would
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indeed be doing violence. to the language of the proviso to say that
such a market committee is one constituted for the first time for a
notified area. when there was already an earlier market committe~
constituted for the same notifo:d area, though it was subsequently
suspcrsedcd. There is no scope here for verbal semantics. It is a
simple question we have to ask for ourselves: is this a n1arkct cu1nmittee constituted for· the first time for this notified area or
has
H there been ,l\ market committee before so that this is not the first time
that a market committee is constituted for this notified area? If this
question is asked, the answer is
simple and
self-evident.
When
there is a market committee constituted for a notified area and it
is superseded and on th~ expiry of its superses~ion, ~ new. market
committee is constituted by the Government, It is 1mposs1ble to
see how it can be said that the new market committee is a market
..
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G. v. GUNAYYA CllETTY v. V.· DASARATllARAMA!AH (li/wgwati, !.)
227
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·:ommittee constituted for
the
first time for !his notified
area.
Whether a market committee is constituted for the first tinie or not
would depend on the question whether there was an earlier market.
committee for the same notified area or not and not on the question
whether it is a new market committee c9nstituted under sub-s. 11)
of s. 4, or a market committee reconstituted under s. 6.
Here in the present case, there was a market committee constituted by the Government for ·the
notified area of Machilipatnam,
Banda~ and Divi taluks under the notification dated 30th October,
1969 and this Market Committee functioned until it was superseded
by the order dated 23rd November, 197 J.
It may
be reiterated
once again that the supcrsession pf this Market Committee on the
ground that by reason of want of sufficient members to constitute
quorum, it was not competent to perform the duties imposed on it
by or under the Act, was not challenged before us and we must,
therefore, proceed on the basis that it was a market committee which
had existence until it was superseded and it was not non-est ab initio
When, therefore, the Government made t11c order dated 7th December, 1972 on the expiration. of
the period of supcrsession of this
Market Committee, it undoubtedly constituted a m:w market committee-new vis-a-vis the old which was superseded-but that was
not a market committee constituted for the first time for the notified area of Machilipatnam, Bandar and Divi taluks.
There was already an earlier Market Committee for this notified ar-<a which was
superseded and this was a second Market Committee constituted for
this notified area on the expiration of the period of supersession of
the earlier one.
The proviso to cl. (iv) of suh-s. ( 1) of s. 5 had,
therefore, no application and the Government was not entitled to
non1inatc mcn1bers representing traders on the 1vfarkct Co1nn1ittee
constituted by it under the order
dated 7th December, 1972.
It
was the main part of cl. (iv)
of sub-s. (!) of s. 5 which applied
an<l so far as representation
of traders
was conccrnca, "persons
licensed under sub-s. (l) of s. 7 in the notified area" were entitled
to elect members from among themselves.
We most, ·therefore, hold
that the Division Bench of the High Court was right in takina the
view that the order dated 7th December.
1972 was invalid fu so
far as it purported to nominate tqrce members from among traders
under the proviso to cl. (iv) of sub-s. (I) of s. 5.
,
The appeal, therefore, fails and is dismissed with costs in this
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cour:t.
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Appeal dismissed .
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