NDLI: Walaiti Ram Charan Dass & Ors. Etc. Vs. State of Punjab & Ors. Etc.

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	Punjab State Agricultural Marketing Board Validity of Rules 1999 and 2008
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Case(s) Referred	Referred Case 0
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Appeal Disposed Off
Headnote	Punjab State Agricultural Marketing Board (Sale and Transfer of Plots) (First Amendment) Rules, 2008 – Punjab State Agricultural Marketing Board (Sale and Transfer of Plots) Rules, 1999 – r. 3 (iii) and (iv) – Validity of Rules 1999 and 2008 – The old grain market was de-notified and a new market was set up – Dealers of the old market applied for allotment of plots/shops in the new grain market – Their applications were rejected – Writ Petitions – High Court did not grant relief in writ petitions decided in 2010 – However, in another set of writ petitions decided in 2015 & 2016 the High Court granted relief to the dealers – Appellants Contended that the Rules were against the Labha Ram’s Case – On appeal, held: When Labha Ram’s case was decided there was no provision for preferential allotment to the old dealers – After this judgment that the 1999 Rules were notified – Thereafter (First amendment) Rules 2008 come into existence, which were much more liberal – Now, 50 % of the shops were reserved for the existing licence holders and there were two important conditions; (i) that a person must have licence for 3 years and (ii) that the dealer must have an annual turnover of Rs. 5 lakhs in each of the three financial years – If there were no conditions like the one laid down in the Rules, any person would get a licence, not transact any business, and after a few months apply for a new shop at a concessional rate – That would defeat the purpose which was sought to be highlighted by Labha Ram and Prem Chand Case – Thus, these Rules did not violate any of the provisions of the Constitution including Art. 14 and are legally valid – Punjab Agricultural Produce Markets Act, 1961. Punjab State Agricultural Marketing Board (Sale and Transfer of Plots) (First Amendment) Rules, 2008 – Punjab State Agricultural Marketing Board (Sale and Transfer of Plots) Rules, 1999 – r.3 (iii) – Allotment of Plots/ Shops in the new market set up – Dealers of the old market applied for allotment of plots/ shops in the new market – Applications were rejected – Writ Petitions – In the group of petitions which were decided in 2015 & 2016 the High Court granted some relief to the dealers – The High Court held that a person can furnish adequate proof of his working in the denotified market yard even if he did not hold a licence on the cut-off date – The market boards filed appeal before the Supreme Court – Held: r. 3 (iii), which provides that to prove the turnover, the dealer is required to produce form ‘M’ which is in the nature of a daily return to be filed by the licensed dealer with the Market Committee/ Board u/rr. 29(3) and 31(1) of the Punjab Agricultural Produce Markets (General) Rules, 1962 – In the absence of Form ‘M’ (daily return) the dealer can rely on form ‘H’ (auction register) and ‘J’ (sale voucher) to prove his turnover – These have to be read along with form ‘F’ which is the form of renewal of licence – However, High Court held that form ‘F’ (renewal of licence) was not the only document required for determination of eligibility of an old licensee for allotment of a plot, but the independent adequate proof of working in denotified market yard was required to be considered to determine the eligibility of the old licenses for allotment of plots – Reasoning of High Court cannot be accepted – Licence is mandatory and no person can carry on business in an agricultural market without having a licence – The Rules provide that the renewal of the licence should be applied one month before the expiry of the previous licence – Further, a person who has not renewed his licence without justifiable cause, cannot get any benefit – Punjab Agricultural Produce Markets (General) Rules, 1962.
Judge	Hon'ble Mr. Justice Deepak Gupta
Neutral Citation	2019 INSC 1149
Petitioner	Walaiti Ram Charan Dass & Ors. Etc.
Respondent	State Of Punjab & Ors. Etc.
SCR	[2019] 13 S.C.R. 754
Judgement Date	2019-10-16
Case Number	8051

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