Created byFuzzy Cloud

Supreme Court of India

SANGAM MILK PRODUCER COMPANY LTD.versusTHE AGRICULTURAL MARKET COMMITTEE & ORS.

Citation
2024 INSC 174
Decided
5 March 2024
Disposal
Dismissed

Holding

Ghee is a product of livestock and the 1994 notification, issued under Section 4, is valid despite the absence of a draft notification and hearing prescribed by Section 3.

Summary

The appellants, Sangam Milk Producer Company Ltd., challenged a 1994 Government of Andhra Pradesh notification that classified ghee as a "product of livestock" under the Andhra Pradesh (Agricultural Produce and Livestock) Markets Act, 1966, contending that ghee is not such a product and that the notification was issued without complying with the procedural requirements of Section 3 of the Act. The Supreme Court examined the statutory definitions of "livestock" and "products of livestock" and held that ghee, being derived from milk of cows and buffaloes, qualifies as a product of livestock. It further clarified that the 1994 notification was made under Section 4, not Section 3, and therefore the draft‑notification, hearing and objection process prescribed in Section 3 were not applicable. The Court affirmed the High Court's view that procedural compliance is required only for declarations or mergers of notified areas, not for notifications under Section 4(4). Regarding market fees, the Court found the appellants liable to pay fees accrued from 1994 to the High Court judgment, allowing payment in instalments. Consequently, the appeals were dismissed and the High Court's decision upheld.

Issues considered

  • Whether ghee is a "product of livestock" within the meaning of the Andhra Pradesh (Agricultural Produce and Livestock) Markets Act, 1966.
  • Whether the 1994 government notification designating ghee as a product of livestock complied with the procedural requirements of the Act, particularly those under Section 3.

Legislation cited

Subjects

GheeLivestockProduct of livestockAgricultural Market CommitteeUnjust enrichmentMarket CommitteesMarket fee

Judgment

                  [2024] 3 S.C.R. 174 : 2024 INSC 174

               Sangam Milk Producer Company Ltd.
                                 v.
             The Agricultural Market Committee & Ors.
                       (Civil Appeal No. 6493 of 2014)
                                 05 March 2024
            [Sudhanshu Dhulia* and S.V.N. Bhatti, JJ.]

                            Issue for Consideration
       Whether “ghee” is a “product of livestock” under the provisions of
       the Andhra Pradesh (Agricultural Produce and Livestock) Markets
       Act, 1966 and; whether the Government 1994 notification, which
       inter alia notified “ghee” as one of the products of livestock for the
       purpose of regulation of purchase and sale of “ghee” in all notified
       market areas was published after due compliance of the procedure
       contemplated under the provisions of the Act.

                                   Headnotes
       Andhra Pradesh (Agricultural Produce and Livestock) Markets
       Act, 1966 – “Ghee” if a “product of livestock”:
       Held: Yes – The argument that “ghee” is not a product of livestock
       is baseless, and bereft of any logic – The contrary argument
       that “ghee” is indeed a product of livestock is logically sound –
       Livestock has been defined u/s.2(v) of the Act, where Cows and
       buffalos are the livestock – Undisputedly, “ghee” is a product of
       milk which is a product of the livestock – Reasoning adopted by
       the Full Bench of the High Court that ‘Ghee’ is derived out of ‘milk’
       by undergoing a process, yet it still remains a product of livestock,
       for the purposes of the Act and payment of “market fee”, agreed
       with – Further, there was nothing wrong in the 1994 notification
       and the challenge to the notification was rightly turned down by
       the Full Bench of the High Court – The argument of the appellant
       that the procedure given u/s.3 of the Act was not followed, is
       not correct – There is a basic difference between the notification
       which has to be made u/s.3 of the Act and the notification made
       subsequently u/s.4 of the Act – Majority opinion in the Full Bench
       concluded that procedural compliance is only necessary when
       there is a declaration or later a merger/de-merger of a notified area
       and there is no requirement of following any particular procedure

* Author
[2024] 3 S.C.R.                                                                175

                 Sangam Milk Producer Company Ltd. v.
                The Agricultural Market Committee & Ors.

     while issuing a notification u/s.4 (4) of the Act notifying/de-notifying
     any already notified products for the purpose of regulation by any
     respective Agricultural Market Committee – Thus, a prior hearing or
     prior publication of the draft notification is not a requirement u/s.4
     of the Act, since the notification of the year 1994 is a notification
     u/s.4 and not of s.3 of the Act – Therefore, the argument that the
     process u/s.3, was not followed is totally misconceived – No prior
     process was required to be followed as contemplated u/s.3 of the
     Act for working the scheme u/s.4 of the Act – Majority decision of
     the High Court upheld. [Paras 10 ,11 and 14]
     Andhra Pradesh (Agricultural Produce and Livestock) Markets
     Act, 1966 – Issue as regards market fee – 1994 notification
     had an effect which made ‘Ghee’ a product that could be
     regulated under provisions of the Act, Market Committees
     were empowered to levy fee on the sale and purchase of
     ‘ghee’ as per s.12 of the Act:
     Held: Appellants’ argument that the Market Committees did not
     provide any facilities, rejected – Appellants availed the facility
     given by the Market Committee and hence are liable to pay the
     fee – There may also be a question of unjust enrichment here –
     Thus, this market fee should be paid as well – Appellants’ prayer
     that respondent Market Committees should be restrained from
     collecting market fees prior to the date of the High Court Judgment
     not accepted. [Para 13]

                               Case Law Cited
           Kommisetty Nammalwar & Co. Guntur v. Agricultural
           Market Committee, Tenali & Ors., (2009) SCC OnLine
           AP 317 – approved.
           Park Leather Industry (P) Ltd. v. State of U.P., [2001]
           1 SCR 1035 : (2001) 3 SCC 135; Kishan Lal v. State
           of Rajasthan, [1990] 2 SCR 142 : AIR 1990 SC 2269;
           Ram Chandra Kailash Kumar v. State of U.P., : (1980)
           Supp (1) SCC 27; Smt. Sita Devi (Dead) by LRs. v.
           State of Bihar & Ors., [1994] Suppl. 5 SCR 682 : (1995)
           Supp (1) SCC 670 – referred to.

                                  List of Acts
     The Andhra Pradesh (Agricultural Produce and Livestock) Markets
     Act, 1966.
176                                                          [2024] 3 S.C.R.

                       Digital Supreme Court Reports


                              List of Keywords
       “Ghee”; Livestock; “Product of livestock”; Agricultural Market
       Committee; Unjust enrichment; Market Committees; Market fee.

                             Case Arising From
       CIVIL APPELLATE JURISDICTION : Civil Appeal No.6493 of 2014
       From the Judgment and Order dated 24.09.2009 of the High Court
       of A.P. at Hyderabad in WP No.1897 of 2007
       With
       C.A. Nos. 6494, 6495, 6496, 6497 and 6498 of 2014
                          Appearances for Parties
       Ajit Bhasme, Sr. Adv., Byrapaneni Suyodhan, Ms. Nitipriya Kar, Bharat
       J Joshi, Kumar Shashank, Rupesh Kumar, Mukesh Kumar Pandey,
       Ms. Himani Bhatnagar, Sanjay Kumar Visen, Ms. Tatini Basu, Ms.
       Pankhuri Shrivastava, Atreya G.C., Advs. for the Appellant.
       Mrs. D. Bharathi Reddy, Guntur Prabhakar, Sahil Bhalaik, Tushar
       Giri, Siddharth Anil Khanna, Ms. Gulshan Jahan, Advs. for the
       Respondents.
                  Judgment / Order of the Supreme Court

                                  Judgment
       Sudhanshu Dhulia, J.
1.     Two questions arise in these appeals for our determination. The
       first question is whether “ghee” is a “product of livestock” under the
       provisions of The Andhra Pradesh (Agricultural Produce and Livestock)
       Markets Act, 1966 (hereinafter referred to as “the Act”) and the second
       would be whether the Government notification (G.O. Ms. No.286 dated
       05.07.1994), which inter alia notifies “ghee” as one of the products of
       livestock for the purpose of regulation of purchase and sale of “ghee”
       in all notified market areas was published after due compliance of the
       procedure contemplated under the provisions of the Act?
2.     In the erstwhile State of Andhra Pradesh, the above Act was brought
       with the purpose to consolidate and amend the laws regulating the
       purchase and sale of agricultural produce, livestock and products
       of livestock, along with establishment of markets in connection
[2024] 3 S.C.R.                                                                                    177

                      Sangam Milk Producer Company Ltd. v.
                     The Agricultural Market Committee & Ors.

      therewith. The aim was to secure effective and remunerative price
      of commodities by bringing producers and traders face to face
      thereby eliminating middlemen and do away with some other earlier
      unethical trade practices, which were exploiting agriculturists and
      farmers. In other words, it was a farmer friendly legislation. The
      commodities which were to be regulated were not only agricultural
      produce but also livestock as well as products of livestock. Whereas
      livestock has been defined under Section 2(v) and products of
      livestock has been defined under Section 2(xv). Both the Sections
      are reproduced below:
              (v) ‘livestock’ means cows, buffaloes, bullocks, bulls,
              goats and sheep, and includes poultry, fish and such
              other animals as may be declared by the Government by
              notification to be livestock for the purposes of this Act;
              (xv) ‘products of livestock’ means such products of
              livestock as may be declared by the Government by
              notification, to be products of livestock for the purposes
              of this Act.
3.    Under sub-Section (1) of Section 3 of the Act, the Government has to
      initially publish a draft notification declaring its intention of regulating
      purchase and sale of proposed notified agricultural produce, livestock
      or products of livestock in an area. It is only after hearing objections
      from public, it finally publishes its notification under sub-Section (3)
      of Section 3 declaring the area to be a ‘notified area’ in respect of
      such agricultural produce, livestock and products of livestock. Under
      Sub-Section (4) of Section 3 the Government also has a power to
      exclude from a notified area, any area earlier included in it.
4.    After a notification is made under Section 3, there comes the
      process of notification under Section 4 of the Act. Under Section
      4 (1) of the Act, a process is given wherein the Government
      further notifies a market committee for every notified area. Under
      Sub Section (3) of Section 4, the market committee is empowered
      to establish markets for the purchase and sale of any notified
      agricultural produce, livestock or products of livestock. After the
      establishment of markets by the market committee under Section 4
      (3), the Government declares by a notification under Section 4 (4)1,


1    Section 4 (4) stands omitted vide the Andhra Pradesh (Agricultural Produce and Livestock) Markets
     (Amendment) Act, 2015.
178                                                            [2024] 3 S.C.R.

                       Digital Supreme Court Reports


       the ‘notified market area’ for the purposes of the Act in respect of
       the notified products.
       In short, the above provisions provide that first there will be a larger
       physical unit called “notified area” wherein the market committee
       shall establish markets and thereafter, through a notification u/s
       4 (4), the Govt. declares a “notified market area” in respect of the
       notified products.
5.     In the year 1968, the State of Andhra Pradesh had issued a
       notification u/s 3 (3) of the Act declaring “notified areas” in the State
       where “ghee” was included in Schedule II of the said notification
       as a livestock product. Thereafter, in the year 1971, a notification
       u/s 4 (4) was published, which declared the ‘notified market areas’
       in respect of the respondent-committee, i.e. Agricultural Market
       Committee, Guntur and “ghee” was specified as a notified product.
       However, in 1972 the 1971 notification was amended and “ghee”
       was taken out of the list of notified livestock products in respect of
       the respondent-committee, and it remained so for a considerable
       period of time. We must clarify here that both these notifications
       i.e., notifications of 1971 & 1972 were issued u/s 4 (4) of the Act
       and not u/s 3 (3) of the Act.
6.     Later, on 15.07.1994, the Govt of A.P. published a general notification
       directing all the notified markets within the State of AP to regulate all
       the products notified in Schedule II of the 1968 Notification, which
       also included Ghee.
7.     It is this notification of the year 1994 which came to be challenged
       by the producers of livestock products and which has now before
       us for determination. This notification was challenged before the
       Andhra Pradesh High Court on two grounds. The first challenge was
       that “ghee” is not a “product of livestock” and therefore cannot be
       regulated and notified. The second ground for challenge was that
       there is a procedure which is laid down under the law, mainly under
       Section 3 of the Act which prescribes the process i.e., first a draft
       notification has to be published, objections are invited against the
       notification and only after hearing such objections can this notification
       be made. It was contended that this process has not been followed
       and therefore the notification is bad.
8.     This matter ultimately went to a Full Bench of the Andhra Pradesh
       High Court in Writ Petition No. 24818 of 2008 titled Kommisetty
[2024] 3 S.C.R.                                                                                  179

                     Sangam Milk Producer Company Ltd. v.
                    The Agricultural Market Committee & Ors.

      Nammalwar & Co. Guntur v. Agricultural Market Committee, Tenali
      & Ors. (2009) SCC OnLine AP 317 and by a 2:1 majority, the Andhra
      Pradesh High Court rejected the argument of the appellants and
      upheld the notification of the year 1994, holding that the notification
      under challenge is not under Section 3 but under Section 4 of the
      Act, and is valid and moreover “ghee” is a livestock product. Based
      on the said judgment the Writ Petitions filed by the appellants in Civil
      Appeal Nos. 6493 of 2014 (M/s Guntur District Milk Production2),
      6494 of 2014 (M/s. Lakshmi Das Premji Ghee Merchants), 6496 of
      2014 (M/s Durga Dairy Ltd.), 6497 of 2014 (The Krishna District Milk
      Producers Co-operative Union Ltd., Vijaywada) & 6498 of 2014 (M/s.
      Karnataka Co-operative Milk Producers Federation Limited) were
      also dismissed by the Andhra Pradesh High Court. The decision of
      the Full Bench in Kommisetty Nammalwar (supra) upholding the
      validity of the 1994 notification is also under challenge before us in
      C.A No.6495 of 2014.
9.    We have heard learned counsel for the parties at length and have
      perused the material on record.
10. The argument that “ghee” is not a product of livestock is baseless,
    and bereft of any logic. The contrary argument that “ghee” is indeed
    a product of livestock is logically sound. Livestock has been defined
    under Section 2(v) of the Act, where Cows and buffalos are the
    livestock. Undisputedly, “ghee” is a product of milk which is a product
    of the livestock. The majority opinion of the Full Bench decision in
    Kommisetty Nammalwar (supra) while referring to the judgments of
    this Court in Park Leather Industry (P) Ltd. v. State of U.P. (2001)
    3 SCC 135; Kishan Lal v. State of Rajasthan, AIR 1990 SC 2269;
    Ram Chandra Kailash Kumar v. State of U.P. 1980 Supp (1) SCC
    27 and Smt. Sita Devi (Dead) by LRs. v. State of Bihar & Ors.
    (1995) Supp (1) SCC 670 held that all animal husbandry products
    would fall within the meaning of ‘products of livestock’ as defined
    under Section 2 (xv) of the Act. Further, the majority decision has
    also held that the inclusion of “ghee” as a livestock product cannot
    be faulted merely because it is derived from another dairy product.
    It was observed by the High Court that even though “ghee” is not
    directly obtained from milk, which is a product of livestock, it would


2    Vide Order dated 02.01.2024 passed by this Court in IA No.241663 of 2023 in CA No.6493 of 2014
     name of appellant is amended as Sangam Milk Producer Company Ltd.
180                                                            [2024] 3 S.C.R.

                       Digital Supreme Court Reports


       still be a “product of a product of livestock”. The relevant portion of
       the judgment of the High Court is as under:
            “Scientifically or common sense point of view, even though
            ghee is not directly obtained from milk (which is certainly a
            product of cow/buffalo), it is certainly a product of a product
            of livestock i.e., cow or buffalo. It would be rather illogical
            or irrational to say that ghee is not a milk/dairy product or
            to say that it is not a product of livestock. Ghee is certainly
            a product of livestock. It is, therefore, to be seen whether
            ghee comes within the definition of product of livestock
            or within the meaning of notified product of livestock.
            Section 2(x) and 2(xv) of the Act used the plural ‘products
            of livestock’. The legislative intention is very clear that not
            only a product of livestock like milk (when notified by the
            Government), butter etc., are products of livestock but
            even derivative items (derived from a product of livestock)
            are intended to be product of livestock for the purpose of
            the Act. We are convinced that the term ‘ghee’ has to be
            interpreted on the basis of expression ‘products of livestock’
            as defined in Section 2(xv) of the Act. Whatever products
            are declared as such by the Government by notification,
            they become products of livestock for purposes of the Act.”
       Another case of which a reference must be made here is the decision
       taken by this Court in Park Leather Industry (P) LTD. v. State of U.P.
       and Others (2001) 3 SCC 135. In this case, the Supreme Court was
       dealing with the provisions of U.P. Krishi Utpadan Mandi Adhiniyam,
       1964, which has a provision dealing with similar issues as are there
       before this Court. In the U.P. Act, “agricultural produce” was widely
       defined and it included inter alia produce of animal husbandry which
       were specified in the schedule. In the schedule, one of the items
       was prescribed under the head “animal husbandry products” was
       “hides and skins”. The question was whether tanned leather would
       come within the term “hides and skins” or not? This Court held that
       the term “tanned leather” can be included under “hides and skins”,
       for the purposes of the Act and more importantly for the purposes
       of payment of “market fee”. The reason being that although while
       making a leather into “tanned leather” a process of cleaning, curing
       and adding preservatives may be adopted, yet the finished product
       which is “tanned leather” though different in physical appearance or
[2024] 3 S.C.R.                                                                   181

                 Sangam Milk Producer Company Ltd. v.
                The Agricultural Market Committee & Ors.

     even chemical combination and even commercially a different item
     still remains “leather” and would come under the definition of “hides
     and skins”. The same reasoning has been adopted by the Full Bench
     of Andhra Pradesh High Court that ‘Ghee’ is derived out of ‘milk’ by
     undergoing a process, yet it still remains a product of livestock, for
     the purposes of the Act and payment of “market fee”.
     We are absolutely in agreement with the above reasoning.
11. The second argument of the appellant that the procedure given under
    Section 3 of the Act has not been followed, is also not correct. There
    is a basic difference between the notification which has to be made
    under Section 3 of the Act and the notification which has to be made
    subsequently under Section 4 of the Act. What has to be done under
    Section 3 is a one-time measure where the Government notifies an
    area where purchase and sale of agricultural produce, livestock and
    products of livestock can be made. This is a one-time exercise. What
    happens under Section 4 of the Act is that the Govt. declares the ‘notified
    market area’ in respect of any notified product (products which have
    already been notified under section 3 of the Act). A perusal of Sections
    3 and 4 of the Act clearly shows that whereas a draft notification is
    mandatory under Section 3 and so is the hearing of objections to the
    draft notification, there is no similar provision under Section 4 of the Act.
     The two Sections of the Act Section 3 and Section 4 are being
     reproduced below for a comparative analysis :

                    Section 3                                Section 4
      3. Declaration of notified area :–       4. Constitution of Market Committee
                                               and declaration of notified market
                                               area :-
      (1) The Government may publish in        (1) The Government shall constitute,
      such manner as may be prescribed         by notification, a market committee for
      a draft notification declaring their     every notified area from such date as
      intention of regulating the purchase     may be specified in the notification and
      and sale of such agricultural produce,   the market committee so constituted
      livestock or products of livestock in    shall be a body corporate by such
      such area as may be specified in such    name as the Government may
      notification.                            specify in the said notification, having
                                               perpetual succession and a common
                                               seal with power to acquire, hold and
                                               dispose of property and may, by its
                                               corporate name, sue and be sued:
182                                                                    [2024] 3 S.C.R.

                         Digital Supreme Court Reports



       (2) Such notification shall state that      Provided that any market committee
       any objections or suggestions which         functioning immediately before such
       may be received by the Government           constitution in respect of a notified
       from any person within a period to be       area abolished under the proviso to
       specified therein will be considered        clause(c) of sub-section (4) of section
       by them.                                    3 shall stand abolished.
       (3) After the expiration of the period      (1-A) Any notification made under
       specified in the draft notification and     sub-section (1) for the constitution
       after considering such objections and       of a new market committee in
       suggestions as may be received before       respect of any new notified are
       such expiration, the Government             declared under clause (c) of sub-
       may publish in such manner as may           section (4) of section 3, may contain
       be prescribed a final notification          such supplemental, incidental and
       declaring the area specified in the draft   consequential provisions, including
       notification or any portion thereof, to     provisions as to the composition of
       be a notified area for the purposes of      the new market committee or new
       this Act in respect of any agricultural     and existing market committees and
       produce, livestock and products             the apportionment of the assets
       of livestock specified in the draft         and liabilities between the market
       notification.                               committees affected thereby].
       (4) Subject to the provisions of [(1-B) Notwithstanding anything
       sub-sections (1), (2) and (3), the contained in Section 3 and in sub-
       Government may, by notification –          section (1) and (1-A) of Section 4
                                                  of the Act, the Government, may,
       (a) exclude from a notified area, any
                                                  by notification, also constitution a
       area comprised therein; or
                                                  separate market committee to a
       (b) include in any notified area, any special market in a notified area.]
       area specified in such notification; or
                                                  (2) It shall be the duty of the market
       (c) declare a new notified area by committee to enforce the provisions
       separation of area from any notified of this Act and rules and bye-laws
       area or by uniting two or more notified made thereunder in the notified area
       areas or parts thereof or by uniting
                                                  (3) (a) Every market committee shall
       any area to a part of any notified area;
                                                  establish in the notified area excluding
       Provided that where, as result of the scheduled areas such number of
       declaration of a new notified area markets as the Government may, from
       under this clause, the entire area time to time, direct for the purchase
       comprised in an existing notified area and sale of any notified agricultural
       is united to one or more notified areas, produce, livestock or products of
       the said existing notified are shall stand livestock and shall provide such
       abolished.                                 facilities in the market as may be
                                                  specified by the Government, from
                                                  time to time, by a general or special
                                                  order.
[2024] 3 S.C.R.                                                                                183

                      Sangam Milk Producer Company Ltd. v.
                     The Agricultural Market Committee & Ors.


                                                       (b) Every market committee shall also
                                                       establish in the notified area such
                                                       number of markets as the Government
                                                       may, from time to time, direct for
                                                       the purchase and sale, solely of
                                                       vegetables or fruits and shall provide
                                                       such facilities in the market as may
                                                       be specified by the Government, from
                                                       time to time, by a general or special
                                                       order.
                                                       [(bb) Every market committee may
                                                       also establish in the notified area
                                                       such number of special market as
                                                       the Government may from time to
                                                       time direct for the purchase and sale
                                                       of any notified agricultural produce,
                                                       livestock or products of livestock or
                                                       fruits and vegetable and may provide
                                                       such facilities in the special market as
                                                       may be specified by the Government
                                                       from time to time, by a general or
                                                       special order.]
                                                       [(bbb) Every Market Committee may
                                                       also declare in the notified area
                                                       any warehouse or cold storage or
                                                       processing unit or any other place as
                                                       a market by following the procedure
                                                       as may be prescribed.]3
                                                       [(c) The Market Committee shall
                                                       specify the limits of every market
                                                       established or declared as a market
                                                       by it and the Government may notify
                                                       the market with such limits, to be
                                                       notified market area for the purposes
                                                       of this Act.]4




3   Added by the Andhra Pradesh (Agricultural Produce and Livestock) Markets (Amendment) Act, 2015.
4   Subs. by Ibid.
184                                                                             [2024] 3 S.C.R.

                           Digital Supreme Court Reports



                                                       [(4) As soon as may be after the
                                                       establishment of a market under
                                                       sub-section (3), the Government shall
                                                       declare by the notification the market
                                                       area such other area adjoining thereto
                                                       as may be specified in the notification,
                                                       to be notified market area for the
                                                       purpose of this Act in respect of any
                                                       notified agricultural produce, livestock
                                                       or products of livestock.
                                                       (5) Subject to the provisions of
                                                       sub-sections (1), (2),(3) and (4), the
                                                       Government may, by notification –
                                                       (a) exclude from a notified market
                                                       area, any area comprised therein; or
                                                       (b) include in any notified market
                                                       area, any area specified in such
                                                       notification.]5


        After discussing provisions of Sections 3 & 4 of the Act, the majority
       opinion in the Full Bench concluded that procedural compliance is
       only necessary when there is a declaration or later a merger/de-
       merger of a notified area and there is no requirement of following
       any particular procedure while issuing a notification under Section
       4 (4) of the Act notifying/de-notifying any already notified products
       for the purpose of regulation by any respective Agricultural Market
       Committee (AMC). In other words, a prior hearing or prior publication
       of the draft notification is not a requirement under Section 4 of the
       Act, since the notification of the year 1994 is a notification under
       Section 4 and not of Section 3 of the Act. Therefore, the argument
       that the process under Section 3, has not been followed is totally
       misconceived. No prior process was required to be followed as
       contemplated under Section 3 of the Act for working the scheme
       under Section 4 of the Act. Consequently, we hold that there was
       nothing wrong in the 1994 notification and the challenge to the
       notification has rightly been turned down by the Full Bench of the
       Andhra Pradesh High Court.


5   Omitted vide the Andhra Pradesh (Agricultural Produce and Livestock) Markets (Amendment) Act,
    2015.
[2024] 3 S.C.R.                                                       185

                Sangam Milk Producer Company Ltd. v.
               The Agricultural Market Committee & Ors.

12. We are now left with one more issue related to the market fee. Since
    the 1994 notification had an effect which made ‘Ghee’ a product that
    could be regulated under provisions of the Act, Market Committees
    were empowered to levy fee on the sale and purchase of ‘ghee’ as
    per section 12 of the Act. During the pendency of the matter before
    the High Court, the appellants were not required to pay market fee
    as they were granted interim protection by the High Court. After the
    majority decision of the High Court in Kommissetty Nammalwar
    (Supra), market committees started issuing demand notices to the
    producers of ‘Ghee’ asking them to pay fees from the date of the
    notification in the year 1994 to the date of the High Court judgment
    i.e. 01.05.2009. This issue was also raised by appellants in the
    present appeals and it was prayed that they should be exempted
    from paying the fee to the market committees prior to the High Court
    judgment. This Court while issuing the notices in present matters,
    vide interim order, restrained market committees from collecting the
    market fees for the period prior to the High Court judgment. Even
    some of the present appeals were heard on this limited question.
13. As per section 4(2) of the Act, the Market Committee has the duty
    to enforce the provisions of the Act within a notified area. Section
    4(3), which empowers Market Committees to establish markets within
    the notified area, also directs that these Market Committees have to
    provide facilities in the markets for the purchase and sale of notified
    products. Appellants’ argument that these Market Committees did
    not provide any facilities has already been dealt with and rejected
    by the High Court and we are also of the same view as that taken
    by the High Court. The appellants have availed the facility given
    by the Market Committee and hence they are liable to pay the fee.
    There may also be a question of unjust enrichment here. For all
    these reasons, we are of the opinion that this market fee should
    be paid as well. The appellants’ prayer that Respondent Market
    Committees should be restrained from collecting market fees prior
    to the date of the High Court Judgment cannot be accepted. All the
    same, since this fee which has now accumulated for more than 14
    years between 05.07.1994 to 01.05.2009 may entail some hardship
    on the appellants, they shall be permitted to deposit this fee with the
    Committee within two years from today, in four equal instalments.
14. Consequently, we dismiss these appeals and uphold the majority
    decision of the Andhra Pradesh High Court. The interim orders
186                                                     [2024] 3 S.C.R.

                       Digital Supreme Court Reports


       passed by this Court in the present batch of cases where we had
       restrained the respondents from collecting market fees prior to
       the date of the High Court judgment during the pendency of these
       appeals, stand vacated.


       Headnotes prepared by: Divya Pandey            Result of the case:
                                                       Appeals dismissed.


Search Indian case law

Ask in plain English, not just keywords. 25,000 AI words free, no card.

Try "Ghee"Sign in to search

For a digitally signed copy suitable for filing, refer to the court's own website. Only the court can issue one.