1982 (12) TMI 231

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....e name and style of New Egerton Woollen Mills (hereinafter referred to as 'Dhariwal Mills') and another at Kanpur in the name and style of 'Lal-Imli Cawnpore Woollen Mills' (hereinafter referred to as 'Kanpur Mills'). The case of the appellant-company was that after the purchase of raw material made by its head office at Kanpur the raw material is sent from various centers in India as well as from abroad to both the mills in accordance with their requirements and no raw material used in the Dhariwal Mills is purchased locally or within the area of the Market Committee, Dhariwal excepting that during the years 1969 and 1970 two contracts for the purchase of raw wool of the value of Rs. 6,000/- and Rs. 5,000/- were ent....

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....rket Committee once again levied market fee of Rs. 4,26,000/- and penalty of a like sum and made a demand for the total sum of Rs. 8,52,000/- by notice dated 16.8.1973. The present Writ Petition was filed under Articles 226 and 227 of the Constitution for quashing that demand notice and restraining the Market Committee from recovering the amount. The learned Single Judge allowed the Writ Petition on a legal point that the assessment order made is not accordance with the provisions of the aforesaid Act and the Rules, without expressing any opinion on the merits of the case. The Market Committee, therefore filed the aforesaid Letters Patent Appeal. 3. There is no dispute that the raw material received by the Dhariwal Mills is an agricultural....

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.... to state only a few of those terms and conditions. Clause A relating to the procedure for scouring yield read thus: (A) Two bales at random are taken and issued to Scouring Department. The weight recorded at the time of receipt of the consignment is taken. After scouring in three bowl Scouring Machine using warm water, the wool is dried in the dryer and spread in a covered place for about 12 hours to regain normal moisture. The wool is then weighed and yield calculated. 6. Clauses 2 and 3 read thus: 2. The Mills have every right to reject a portion or bulk if the quality is not up to the suppliers' samples given at the time of offers. 3. Weight received in the mills will be taken as final weight. 7. Rule 29 of the Punjab Agricu....