Trade restriction on middlemen upheld as a valid measure to curb exploitation and protect agriculturists.

Section 32(5) of the Madhya Pradesh Krishi Upaj Mandi Adhiniyam authorised a market committee, with prior approval of the Director, to prohibit commission agents or brokers from interposing between producer-seller and trader-purchaser, taking commission or dalali, or acting for both sides. The measure was treated as part of the statutory scheme to curb exploitation by middlemen and protect agriculturists from excessive and illegal gains. Such restrictions were held to be in the interests of the general public and protected by Article 19(6), so the challenge under Article 19(1)(g) failed and the abolition of the kachhi adhat system was upheld.

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Issues: Whether the resolution abolishing the kachhi adhat system under section 32(5) of the Madhya Pradesh Krishi Upaj Mandi Adhiniyam, 1973 violated the traders' fundamental right under article 19(1)(g) of the Constitution of India.

Analysis: The power under section 32(5) enables the market committee, with prior approval of the Director, to prohibit a commission agent or broker from acting between producer-seller and trader-purchaser, from deducting commission or dalali, and from acting for both buyer and seller. The measure was treated as part of the statutory scheme to curb exploitation by middlemen and to protect agriculturists from excessive and illegal gains. Restrictions of this nature were held to be in the interests of the general public and therefore saved by article 19(6) of the Constitution of India.

Conclusion: The challenge under article 19(1)(g) failed, and the abolition of the kachhi adhat system was upheld as constitutionally valid.

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