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TMI Blog1959 (9) TMI 75X X X X Extracts X X X X X X X X Extracts X X X X ..... trate, First Class, Broach, for committing the breach of r. 65(1) of the Rules. The Judicial Magistrate held that pressed cotton was not cotton, ginned or unginned, within the meaning of one of the items mentioned in the schedule to the Bombay Agricultural Produce Markets Act (hereinafter called the Act ), and, therefore, the appellant did not commit any offence under the Act or the Rules framed thereunder. The State of Bombay carried the matter by way of appeal to the High Court of Bombay, and a Division Bench of the said High Court, consisting of Chainani and Shah, JJ., allowed the appeal and convicted the appellant for contravening the provisions of r. 65(1) of the Rules and imposed upon him a fine of Rs. 25. This appeal challenges the correctness of the judgment of the High Court. 3. Learned Counsel for the appellant raised before us the following three contentions : (i) the Act and the Rules framed thereunder did not apply to pressed cotton, and, therefore, the appellant did not contravene the provisions of r. 65(1) of the Rules; (ii) r. 65 is ultra vires inasmuch as its provisions are in excess of the rule making power of the State Government; and (iii) the transactions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n within the meaning of the Act. What is pressed cotton in bales ? It involves a simple process described as pressing, and cotton is pressed into bales only to facilitate its transport from one place to another; it does not involve any chemical change or even a manufacturing process. Ginned cotton, after it is pressed into bales, continues to be ginned cotton, and it is sold and purchased only as cotton, though in bales. We find it difficult to accept the argument that pressed cotton is a different commodity. Nor do we find any relevancy in the argument that stockists, industrialists and exporters deal with pressed cotton and not loose cotton, because the said fact does not in any way change the essential character of the agricultural produce. If a trader carries on business in that commodity, the consideration whether the trader or the buyer is an agriculturist or a non-agriculturist is not relevant to the enquiry. 8. Items II to XI of the Schedule specify cereals, pulses, oilseeds, narcotics, sugarcane, fruits, vegetables, animal husbandry products, condiments, spices and others, and grass and fodder. A perusal of the items indicates that most of them would be sold in cont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any agricultural produce in any market area except under a licence granted by the Market Committee under that rule. Under s. 26(2) (e) of the Act, the State Government has power only to make rules fixing the maximum fees which may be levied by the Market Committee in respect of agricultural produce bought and sold by persons holding a licence under the Act in the market area. Under the Act the State Government is only empowered to grant a licence to any person to use any place in the market area for the purpose of buying or selling of any agricultural produce; therefore, under s. 26(2) (e) of the Act, the Government can only make a rule prescribing the fees in respect of a licence issued to a person to use any place in the said area and not prohibiting any other person from doing business without a licence in that area. So stated the argument appears to be plausible, but a scrutiny of the relevant provisions of the Act, the Rules made by the Government and the Bye-laws framed by the Market Committee shows that there is no basis for this contention. The relevant provisions read : The Bombay Agricultural Produce Markets Act, 1939. S. 26(1) : The Provincial Government may, e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cified in the bye-laws. (6). The names of all such traders and general commission agents shall be entered in a register to be maintained for the purpose. (7). Whoever does business as a trader or a general commission agent in agricultural produce in any market area without a licence granted under this rule or otherwise contravenes any of the provisions of this rule shall, on conviction, be punishable with fine which may extend to Rs. 200 and in the case of a continued contravention with a further fine which may extend to Rs. 50 for every day during which the contravention continues after the date of the first conviction, subject to the maximum of Rs. 200. Bye-laws of the Agricultural Produce Market Committee, Broach. Bye-laws 33 : (1). All traders, general commission agents, brokers, weighmen, measurers, and surveyors operating in the market area shall pay full fees for each market year or any part thereof as per Schedule given in Appendix No. 2 for obtaining licences, required to be taken by them, under Rules 65 and 67. 12. The said provisions may be summarized thus : Section 27 of the Act empowers the Market Committee, subject to any rules made by the St ..... X X X X Extracts X X X X X X X X Extracts X X X X
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