1994 (7) TMI 280

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....tion 2(p) of the Madhya Pradesh Krishi Upaj Mandi Adhiniyam, 1972 ("the Act"), has been interpreted to include an "agriculturist". Sub-sections (b), (e) and (p) of section 2 which are relevant are reproduced hereunder: "(b) 'agriculturist' means a person whose main source of livelihood is wholly dependent on agricultural produce and who cultivates land on one's own accounts- (i) by one's own labour; or (ii) by the labour of either spouse; or (iii) under the personal supervision of oneself or any member of one's family referred to in sub-clause (ii) above by hired labour or by servants on wages payable in cash or kind but not as crop share, but does not include a trader, commission agent, processor, broker, weighmen or hammal ....

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....ct and in any case the agriculturists being traders under the Act the commission agents are entitled to sell/purchase the agricultural produce on their behalf in consideration of a commission or percentage. The High Court posed the following questions for its consideration: "The short question raised in this petition, therefore has been whether the petitioners can be prohibited from acting as commission agents on behalf of the seller, namely, agriculturist and whether the agriculturist, who thus sells his produce is a 'trader'." On the interpretation of the provisions of the Act reproduced above, the High Court allowed the writ petition and quashed the Government instructions impugned before it on the following reasoning: "The defi....

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....led to notice that the Legislature has separately defined the expression "agriculturist" under section 2(b) of the Act. The expression "trader" under section 2(p) of the Act means a person who "in his normal course of business", "buys or sells" any notified agricultural produce........... The High Court noticed the words "buys" or "sells " but failed to appreciate that the said buying and selling has to be "in his normal course of business". The normal course of business of an agriculturist is neither buying nor selling. Cultivation of land to gain agricultural produce is the normal course of business of an agriculturist. It is no doubt correct that a farmer takes his produce to the market for sale but that by itself would not brine, him....