1987 (2) TMI 468

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....e short question that falls for decision is as to how explanation to section 2(p)(i) inserted by the Bihar Agricultural Produce Markets (Amendment) Act, 1982, should be read with the explanation to section 27 also inserted by the same Act. Before the High Court, the wires of explanation to section 2(p)(i) was challenged on the ground that it encroached upon entry 42 of List I of the Seventh Schedule. The Division Bench of the High Court after considering the various authorities dealing with the concept of sale, refrained from declaring the explanation bad but read it down and held that it should be read in harmony with the explanation to section 27 and directed the marketing committee concerned to make assessment of fees after giving the pe....

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....transfer or acquisition of goods on hire-purchase or under any other system in which payment of valuable consideration is made by instalment notwithstanding the fact that the seller retains title in goods as valuable security of payment of consideration or for any other person. Explanation.-Notwithstanding anything contained in any law for the time being in force sale shall be deemed to have taken place for the purpose of this Act within a market area when the goods are transferred from the principal to his selling agent or to the arhatia within the market area or outside the market area." Section 27 is the charging section. It reads as follows along with the explanation: "Section 27: Power to levy fees.-(1) The market committee sh....

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.... by a deeming fiction, that when goods are transferred from the principal to his selling agent or arhatia within a market area or outside the market area a sale takes place. This explanation encompasses within its sweep, sales of all kinds within the market area or outside or within the State or outside. That is the reason why its validity was challenged by the respondents before the High Court. The learned counsel for the appellants contended that the explanation to section 2(p)(i) could stand independent of the explanation to section 27 since they have different fields of operation. According to him, if this explanation is made subject to the explanation to section 27, this explanation would be rendered redundant and futile. The learne....