S 201 191 1 1 a 1 CWP N013024 of2009 etc 1 4 IN THE HIGH COURT OF PUNJAB AAHARYANA AT CHANDIGARH DATE OF DECISION I l 11 2010 1CWP N013024 of2009 1 Mls ChandgiRam Ram Niwas and others 0 C0 eeePetitioners I Versus CD I HaryanaState AgriculturalMarketingBoard an others Z Respondents 2CWP N0013141of2009 r Mls VijayKumar Dinesh Kumar and others I 08 veePetitioners 00 Versus W2 Z ChiefAdininistrator HaryanaState AgrictturalMarkengBoard and 0 others Respondents 3CWP N0014153of2009 Mls DeepakKumar Baru Ram Propland another Cmm Petitioners Versus HaryanaState AgricuIturaIMarkctiogBoard 2nd others 7espondents 4CWP Nol4138 of2009 Singh Gagan Preet 2013.02.22 09: 58 True Scanned Copy of the Original PHHC, Chandigarh Sahil Soni 2016.03.21 12:25 I attest to the accuracy and integrity of this document 202 9 CWP Noe13024of2009 etc 2 V4 Mls Om Parkash SanjayKumar and others eeePetitioners Versus Haryana State Agricultural MarketingBoard and others 5eCWPN015311 of2009 Mls Bhatia TradingCoeand others 1 eeePetitioners 0 Versus C Z HryanaState AgriculturalMarketing Board and others CD I 6eCWP Noe15307of2009 Z Mls Jamindara TradingCo and others tr eeePetitioners I Versus 08 Haryana State Agricultural MarketingBoard and others 7 Z CORAM HONBLE MRJUSTICE PERMOD KOHLI Presentl Mrlavi KapurAdvocate for thepetitioners MrAkshayBhan Advocate C lvlrGirish AgnihotriSr Advocate with IvlrTijayPal Advocate for Permod Kohli Je Keepingin view the common factual and queslionsof law thesepetitionsare beingdisposedofbythis common order Singh Gagan Preet 2013.02.22 09: 58 True Scanned Copy of the Original PHHC, Chandigarh Sahil Soni 2016.03.21 12:25 I attest to the accuracy and integrity of this document 203 9 CWP N013024 of2009 etce 3 V Thepetitioners in all thesepetitions are licenseeshavingbeengranted licensesfor the sale ofgrainsetc Admittedlyall ofthem were operating in theOld Grain Market at UklanaMandi District Hissar The HaryanaState MarketingBoard hereinafterreferredto as Board establishedanew grainMarket at Uklana 110 plotsof the size of 20 x 50 were carvedout in theyear 2002 In accordancewith thepolicyof the StateGovernment lt was decidedto allot plotsto theexistinglicensees m at reservedpriceAs many as 86 existinglicenceeswere foundeligibleas 0 perthe formulated by Existinglicensees Cao did not opt for the plots at thereservedpriceprobably on the groundthat I CD the pricefixed is too high79 plotswere thussold in open auctionin flrst Cr phaseand 31 plotswere left In so far as the existinglicencees are Z concernedonly such licenceeswere considered for allotment of plotswho C were holdinglicenses upto March 1995 Some of the presentpetitioners though were existing licensees but theyhad obtainedlicenses between the 08 years1995 to 2000 and were not found eligibleunder the norms laid down Cr J for the purpose Remaining 31 plotswere putto draw of lots on reserved Z priceon 162005 Onlysuch licensees were permitted to participate 111 draw of lots who had licences upto 31122000 26 eligiblepersonswere allotted plotson teserved priceand 5 persons were allotted plotson the basis of various court directions as lS evident from the minutes of the rneeting of the Board held on 2692005 Someof the petitioners mentioned C ln tlie writ petitions were found eligibleHowever on account of non theycould not be allottedtheplotsin draw oflots lt is alleged that such of the etitionerswho were not allotted plotseither on account of or ineligibility at the relevant time were assuredthat they Singh Gagan Preet 2013.02.22 09: 58 True Scanned Copy of the Original PHHC, Chandigarh Sahil Soni 2016.03.21 12:25 I attest to the accuracy and integrity of this document 204 6 CWP N0013024of2009 etce 4 J would be allotted plotson reservedpricein Phase II It is 81rtheralleged thatChief Minister of the Statehad assuredto modi67the existingpolicy laying down eligibility and such of the old licensees with five years licence wouldbe considered for draw of lots In the meanwhilethe Board decided to allot the plotsby open auction The date of auction was flxedon 92008 The Board also took a decisionl 2332008 to allot plotsto old licensees of CategorylIKatcha Arhtiyas9 so as to revise the 1 L policyfor allotment Decision ofthe Board is hereunderl 0 Regardingallotment of shopllotsto old licensees of 0 cha Arhityalin the New Grain and CD Vegetable Markets Z The matter was discussed in detail In order to make the Z r new markets illy he old markets mav be C Cr delotified The existingpolicyis defective to the extent that it has not taken into consideration the factor of 08 0 compulsory of the old licensees Thus the Vm Board decidedto revise theexistingpolicyto the extent Z that the eligibilityfor allotment of plotson r basis will be for all thoselicensees who have four years valid license of Category6iil e Katcha Arhityaon the date on which the are invited for draw of lots All other conditionsshall remain the same 22 C Under the aforesaid decision the 01 marketswere to be de4lotifled and the existinglicenseeshavingfour years valid licence of Categoryi9 would be eligibl for allotment of plotsOll basis The State Governmentaccordinglyissued notication dated 1 92008 and substituted Singh Gagan Preet 2013.02.22 09: 58 True Scanned Copy of the Original PHHC, Chandigarh Sahil Soni 2016.03.21 12:25 I attest to the accuracy and integrity of this document 205 CWP N013024 of2009 etce 5 e Rule3 Sub Rule for Clause as under OnlythoseCategory Licensees shall be eligiblefor allotmentof plotswho had valid license of four years on thedateofinviting for draw oflots In view ofthe auction noce for allotmentofplotsbypublicauction the existinglicensees filed appealsbeforeAppellateAuthoritr ChiefAdministrator Haryana StateAgricultural Marketing Board Sector6 C Panchkula HaryanaIt appears that ln view of some oral observations 0 duringthependency ofthe said appealsanotherauction was notified to be C held on26f02009 Aggrieved ofthe same CWP N09355 of2009 was fited CD before this Court In the said writ petitionauctlon was held subjectto the ultimateoutcome of the writ petitionDuringthe of the wnt Z r petition Chief Administrator dismissed the appealvide order dated t 222009 In view of the decision of the appellateauthoritythe writ I petition was dismissed as withdrawn with libertyto challenge the order of 08 the appellate authorityvide order dated 1882009 passedby this Court 4r me The Appellateauthoritysorder dated 1182009 1S subjectmatter of Z challenge in these writ petitionsIn additionto the aforesaidorder the Om petitioners have also challenged advertisement dated 3 82009 whereby openauction of the plotswas scheduled to be held on 262009 on conditionsspecified therein C The contention raisedby the lS tWO fold 6a9The existing licenSeeshave a rightto allotmentofthe pots on the fixed price and 6blall thosepersonswho have existinglicenses operational for the last four years are eligiblefor sitch allotment in terms of the decision of the respondents dated 12008 Singh Gagan Preet 2013.02.22 09: 58 True Scanned Copy of the Original PHHC, Chandigarh Sahil Soni 2016.03.21 12:25 I attest to the accuracy and integrity of this document 206 CWP No13024 of2009 etc 6 While issuingnotice of motion vide order dated 282009 this Court had directed the to keepreserved plots equalto the writ petitionerssubjectto ultimate outcome of the writ petitions The claim of the petitioners for allotment of plotsat New Grain Market have been seriouslycontestedby inter alia on the following of thesewrit petitionsis questioned 1r in view of theavailability of alternativestatutoryremedyofrevision before 0 the StateGovernmentunder Section 40 ofthe PunjabAgricultural Produce C I lvlarketAct 1961 hereinafterreferredto as the 1961 Act That C5 the year 1997 the framed rules namelyHaryana I AgriculturalMarketingBoard Sale of lmmovable Rules 1997 Z hereinafter referredto as the 1997Rulesl whereunder ll lS provided that C the immovableproperties be sold onlybypublic auction The aforesaid I Rules were however replacedby HaryanaState AgriculturalMarketing C4 Board Sale of ImmovablePropertyRules 2000 hereinafterreferred to as 7 the Rules 20009prescribing eligibilityof havingfour years license at the Z timeof consideration The relevant amendedrules of Rule 2000 are noticed Ll asunder 3610Allimmovableproperties in the marketsdeveloped C by the Board or Market Committeesshall be disposed of by way of auction in accordance with theprovisionsof theserules The shopplotswill be allotted to the old licensees of category io of old markets which is to be denotified resultingin of such liccnsed dealersof categoryiil Oll Singh Gagan Preet 2013.02.22 09: 58 True Scanned Copy of the Original PHHC, Chandigarh Sahil Soni 2016.03.21 12:25 I attest to the accuracy and integrity of this document 207 t1 5 CWP No13024 of2009 etce 7 l 1 free holdbasis for conducting business of sale and of produce in the new markets Oll the terms and conditionsnamelY i9In the marketswhere some auction have alreadybeen heldthe allotment shall be made on the basis of the priceofthe last auclione iilIn the marketswhere no auction has so far been held 1 theallotmentpriceshall be fixed at thirtyOve per cent 0 above he reserve price The reserve priceshall be Ca worked out aS per the formulateapprovedby the C5 Boardvide its resolution dated the first June 1987 or any otherformulateto be approved bythe Board from Z time to time 2 thosecategory6iillicensees shall be eligibile for c allotment of plotswho had valid Iicense of two years C6 on the date of first auction lll the case of mandis C m where some auctions havealreadybeen helcl In the Z case of alreadydeveloped mandis where no auctions CL haveso far been held the licensee should have valid license of category6iil for at least five yearsas On lsl January2000 ln the case of Mandis to be developed C lll future the licensee should have at least two years licnse of category6iio on the date of issuance of notificationunder Section 40f the Land Auction Act 1894 6Actof 18941or the date of transferof land to the Market Committee if the Iand is oblained Singh Gagan Preet 2013.02.22 09: 58 True Scanned Copy of the Original PHHC, Chandigarh Sahil Soni 2016.03.21 12:25 I attest to the accuracy and integrity of this document 208 21 CWP Nol3024 of 2009 etce 8 1l otherwiseas thecase may be licensees must have paidmarket fee of at least Rs50001 annually for the last two years Provided that in case of a category6ii licensee who doesnot pay market fees himself his annual turnover duringthe last two yearsshouldebe at least rupeestwo lakhfiftythousand 35 1r Clause iii9 of Sub Rule 19of Rule 3 was further amendedvide 0 Notiflcationdated 92009 wherebysuch of Category6ii9licensees were 0 made eligiblefor allotment of plotswho had valid licence of four years0n 0 thedate fixed for inviting for draw of lots I Ct I haveheard learnedcounsel forpartiesIt is not in dispute that all the Z are existinglicenseesand were carryingon their businessin the C old grainmarket in Uklana It is equally admitled positionthat the Ct I decided to wind up the existingrainmarketand to establish C4 a new grainmarket In the first phase 110 plotsof the size of 20 x 50 Ct 7 were carved outin the year 200 In termsof laiddownnormsunder Z 1997 rules old licencees with five years were eligibleon reserved price ll However all the 86 eligiblelicenseesdid not opt for plotson the reserved pricemeant for 01d licensees on the pleathat the price IS too high Petitionersin CWP No3141 of 2009 are all originaleligiblelicenseeswho C refusedthe offer at the fixed price Petitionersin CWP Nosl3024 15307 and 15311 of 2009 are those who were ranted licences after 1995 but beforeOctober 2000 whereaspetitioners in CWP Nos14138 and 14153of 2009 have been grantedlicenses between2001 to 2005 The flrst draw of lots was to be held for 86 eligiblelicenseeson 16122002 None of them Singh Gagan Preet 2013.02.22 09: 58 True Scanned Copy of the Original PHHC, Chandigarh Sahil Soni 2016.03.21 12:25 I attest to the accuracy and integrity of this document 209 57 J CWP No13024 of2009 etce 9 1 came forwardto seek allotment on reservedprice Second draw of lots againfor old eligiblelicensees was scheduled to be held on 2432003 Againnone of them turned up The Board accordingly conducted the open auction OIl 2532003 when 16 plotswere sold Another open auction was held on 1582004 wherein 64 plotswere sold out of 111 plotsOpen auction for remaining 31 plotswas scheduled to be held on 862005 The same was cancelled on account of of old licensees The m accordingly decided to allot the remaining31 plotsOll 0 reserved priceto old licensees All the petitionersexcept petitioners in 0 I CWP Nol4153 of 2009 out oftotal 114 applicantswere found eligible C0 amongst 86 Iicenseesunder Rule 3 1J6xiOSince numberof plotswere less I than the eligiblelicensees draw of lots was resOrtedto and all the 31 plots Z were sold on the reservedpriceby draw of lot held on 1682005 The 0 disputeseems to havearisen when secondphaseof New Grain Market was I carved out with 116 plots notied these plots for auction 08 m vide Annexure Ia9 Such ofthe who were eligiblewhen the first 7 allotmentwas made on flxed pricebut did not opt seems to have changed Z their mind and became interestedfor allotment of plots Rule 3 61 xii9 Om provides for allotment of plotsto the eligiblelicensees in the order of their seniority to be determinedon the basisoftheir periodoflicence ii thoughthe allotment of numberof plotswill be decided through draw of lots had flxed periodof four years as qualifyingperiodof C liceiice for entitlement for allotment on fixed price as on the date of issuance of the notice for draw of lots It is the case of the respondents that the second phas61S not a new grainmarket but only an extension of the originalgrainmarket The eligiblelicenseeswere allotted plotson the basis Singh Gagan Preet 2013.02.22 09: 58 True Scanned Copy of the Original PHHC, Chandigarh Sahil Soni 2016.03.21 12:25 I attest to the accuracy and integrity of this document 210 1 CWP Nol3024 of2009 etce 10 1 ofreservedpriceon 1682005 which can be construedto be the crucial or the relevantdatefor the purposeof allotmentof plotsto the old licensees Even when 31 plotswere allotted such of the licensees who had earlier declinedthe offer on the reservedpricewere allowed to participate in the draw of lots and have been allotted the plols Similar treatmentcannot be denied to other old licensees at least to those who were eligibleon 1682005 The rightof the existinglicenseeshas also been consideredby 1 C Honble Supreme Court 111case of Mls Labha Ram and sons and others 0 VS Stateof Punjaband others JT 1998 01 SC 636 wherein it has been C I observedas under CD lOlt is notedthat learnedjudges did not doubt I the correctness of the principl e that Government has an r inherent obligationto provideall the licensed deaiers Z sufficientaccommodationfor carryingon their trade But can 5t it be said that such stands merelyby allowingthem to competewith outsidersin the open auction It C must be rememberedthat even without any special I provision the existing traders can have such a right to compete with rest of others We find much force in the C6 contention of the learned counsel for theappellant cO that merelyprovidingan to competewith the rest of the publicfor gettingaccommodationin the new Market lS m not sufflcient to the inherent of the Z Government to providethe existingtradersat the new market area hence it 1SdifOcultto concur with the View adopted in LL Chand Ram Ram Chand vs StateofPunjab ipra9 XXX XXX XXX xxx 151t is easy to contendthat theexisting traders can still operatefrom their old placesbut then for the conduct of their businessfor saleofagricultural producetheyhaveto come C to new Mandi It would mean thattheyhave to come to the new Mandis for conduct of their routine businessbut for businesstlieycould continue to do the same at old placesThe fact remalns that any trader would 1ike to conduct his business of sale and purchaseof agricultural produce at theplatform close to his shop 51 Petitioners in all these writ petitionsexcept petitionersin CWP No14153 of 2009 were eligiblewhen plotswere allotted on flxed price Singh Gagan Preet 2013.02.22 09: 58 True Scanned Copy of the Original PHHC, Chandigarh Sahil Soni 2016.03.21 12:25 I attest to the accuracy and integrity of this document 211 CWP N0013024of2009 etc 11 However due to lesser number of plotstheycould not be allotted plots Now more plotshave been carved out in tbis New Grain Market Their rightcannot be defeatedby passageof time or the govemmentdecides to allot the plotsby open auction with the sole objectof earningmore revenue Admittedly no sale is in the old grainmarket thesame havingbeen de4lotifled Thus the existinglicensees cannot operatefrom the old premises as hasbeen observedbythe Honble Supreme Court It has m CC comeon record that out of 116 plotscarved out 111Phase II 53 plotswere 0 sold byopen auction on 2662009 Thus 63 plotsare still availableThese C plotscan be allotted to the exceptpetitioners in CWP No4153 CD of2009 who obtainedlicencesonlyin the year 2004 and had not the requisiteperiodof license Rule 3 11of the 2000 Rules further Z provides for allotmentof plotswhere some auction hasalreadytakenplace C on thebasisofaverage priceofthe last auction wherethe old marketstands I delotified This rule provides a valid rational and reasonablebasis for c6 m allotmentof plotson fixed price Petitionersexceptin CWP No4153 of 7 2009 were eligibleon the date ofauction e 1682005 Theyare entitledto Z be consideredfor allotment Qm This petition lS accordinglydisposedof with the following directionsl in all the writ petitionsexceptpetitioners in CWP N014153 of C4 2009 shall be considered for allotment of plotsin New Grain Market on fixed priceto be detennined in terms of Rule 3 619of 2000 Rules by utilizing63 plotsin New Grain Market The process of considerationshall be completedwIthin a periodof three months Successful petltioners 111 draw of lots will be allotted the plotswithin onc monlh thereafter on Singh Gagan Preet 2013.02.22 09: 58 True Scanned Copy of the Original PHHC, Chandigarh Sahil Soni 2016.03.21 12:25 I attest to the accuracy and integrity of this document 212 v1 CWP Noe13024of2009 etce 12 6 paymentof the requisitepriceor any such olher manner as may be underRules ofthe CWP Nos13024 14138 15307 15311 and 13141 of 2009 are allowed in the above manner whereasCWP No14153 of2009 is dismissed r 6 0 Oo PERMOD KOHLII eeeeV JUDGE 1 Ilell2010 MFK 0 lee 0 NOTE Whether to be referred to Reporteror notYES I t5 I 2 0 I a5 3 Z Singh Gagan Preet 2013.02.22 09: 58 True Scanned Copy of the Original PHHC, Chandigarh Sahil Soni 2016.03.21 12:25 I attest to the accuracy and integrity of this document