Presumption of local sale for market fee claims under the Mandi law unless the dealer rebuts it with proof.

The Explanation to Section 17 of the Uttar Pradesh Krishi Utpadan Mandi Adhiniyam, 1964 creates a presumption that specified agricultural produce taken out, or proposed to be taken out, of a market area by a licensed trader is deemed sold within that area, so the market committee may raise market fee demands before passes are issued. The dealer may rebut the presumption only by proving that the sale did not take place within the notified market area. If the presumption is not displaced, the market fee remains payable and any challenge must be pursued in the manner provided under the Act.

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Issues: Whether, under the Explanation to Section 17 of the Uttar Pradesh Krishi Utpadan Mandi Adhiniyam, 1964, sales of specified agricultural produce taken out of a market area by a licensed trader are presumed to have taken place within that area, enabling demand of market fee unless the contrary is proved.

Analysis: The Explanation creates a presumption against the dealer that specified agricultural produce taken out, or proposed to be taken out, of a market area by or on behalf of a licensed trader is deemed to have been sold within that area. On that footing, the market committee is entitled to raise demands before passes are issued. The dealer can displace the presumption only by proving that the sale did not take place within the notified market area. If the rebuttal fails, the market fee remains payable and the challenge to the demand is available only in the manner provided under the Act.

Conclusion: The presumption under the Explanation operates in favour of the market committee, and the dealers are liable to pay the demanded market fee unless they successfully rebut that presumption.

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