2004 (7) TMI 636 - SC - Indian Laws

Whether the land and building of a daily market owned by a Municipality or a Gram Panchayat where notified agricultural produces are bought and sold is liable to be transferred to the Market Committee, if requisition therefor is made?

Summary

Issues:
1. Whether a market owned by a Municipality or Gram Panchayat where agricultural produces are bought and sold is liable to be transferred to the Market Committee upon requisition.
2. Interpretation of Section 4(4) of the Orissa Agricultural Produce Markets Act, 1956.
3. Conflict between the provisions of the Orissa Municipal Act and the Orissa Agricultural Produce Markets Act, 1956.

Analysis:
1. The case involved a dispute regarding the transfer of a market owned by a Municipality to the Market Committee under the Orissa Agricultural Produce Markets Act, 1956. The Respondent-Market Committee requisitioned the transfer of the market, which the Appellant Municipality failed to comply with, leading to a writ petition. The core issue was whether such a market is liable to be transferred as per the Act.
2. The Appellant argued that the Act, enacted to regulate buying and selling of agricultural produce, does not apply to markets predominantly dealing with non-agricultural produces. They relied on legal precedents to support their position. In contrast, the Respondent contended that the language of Section 4(4) of the Act is clear, and the High Court's judgment was correct. They emphasized that the Act aims to regulate agricultural produce markets.
3. The Supreme Court analyzed the legislative competence of the State to enact the Orissa Agricultural Produce Markets Act, 1956, under Entries 26, 27, and 28 of List II of the Constitution of India. It was established that the Act falls within the ambit of markets covered by Entry 28. The Court held that the Act's provisions prevail over those of the Orissa Municipal Act, citing legal principles such as 'generalia specialibus non derogant'.
4. Section 4(4) of the Act mandates the transfer of a market owned by a Municipality within a designated market area to the Market Committee upon requisition. The net income from such transferred properties is to be shared between the Committee and the Municipality. The Court clarified that even if a market sells non-agricultural produces alongside agricultural ones, the Act's provisions still apply.
5. The Court dismissed the appeal, stating that the Appellant's contentions regarding the market's dominant purpose and the sale of non-agricultural produces were not raised earlier and could not be considered at that stage. The validity of the Act's provision was not challenged, preventing the Appellant from arguing against its application. The appeal was dismissed with no costs awarded.