1986 (4) TMI 312

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....986, of the High Court of Madhya Pradesh (Gwalior Bench) in Miscellaneous Petition No. 889 of 1985 filed under article 226 of the Constitution of India. Petitioner No. 1 is a commission agent (adhatia) carrying on business within the jurisdiction of the Agricultural Produce Market Committee, Bhind, in the State of Madhya Pradesh and petitioner No. 2 claims to be an agriculturist residing in village Lawan, District Bhind. The Agricultural Produce Market Committee, Bhind (hereinafter referred to as "the Market Committee") constituted under the Madhya Pradesh Krishi Upaj Mandi Adhiniyam, 1973 (hereinafter referred to as "the Act"), passed a resolution on February 25, 1981, resolving to abolish the "kachhi adhat system" [which could not co-e....

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....er was passed directing that the order of temporary injunction should remain effective for a period of three weeks only and that in the meanwhile the trial court was directed to try the issue relating to the maintainability of the suit as a preliminary issue and to record its finding thereon. The trial court by its order dated October 31, 1985, dismissed the suit holding that it was not maintainable. On the suit being dismissed "kachhi adhat system" which had continued by virtue of the order of temporary injunction came to an end. Immediately after the dismissal of the suit the petitioners herein filed the writ petition out of which this special leave petition arises questioning the validity of the resolution passed by the Market Committee ....

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....ducer-seller or trader-purchaser on behalf of a producer-seller;   (ii) that a commission agent shall not deduct any amount towards commission or dalali from the sale proceeds payable to the producer-seller; and (iii) that a commission agent shall not act on behalf of both the buyer and the seller, and thus to abolish the "kachhi adhat system". It is contended on behalf of the petitioners that the "kachhi adhat system" is not an illegal business, the adhatias, like petitioner No. 1, provide very useful service to the agriculturists by providing space to store their produce and providing financial accommodation until their goods are actually sold, by receiving a reasonable amount for the services rendered by them. It is argued tha....

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....ommission agent's godown at the cultivators' expense and as the latter generally cannot afford to wait about until the sale is effected he leaves his produce to be sold by the commission agent at the best possible price, and it is doubtful whether eventually he receives the best price. The middle class ryot invariably disposes of his produce through the same agency but, unlike the rich ryot he is not free to choose his commission agent, because he generally takes advances from a particular commission agent on the condition that he will hand over his produce to him for sale. Not only, therefore, he places himself in a position where he cannot dictate and insist on the sale being effected for the highest price but he loses by being compelled ....