HIGH COURT OF UTTARAKHAND AT NAINITAL Special Appeal No.62 of 2009 President/Secretary & another …Appellants Versus State of Uttarakhand & others ...Respondents Dated : August 19th 2010 Coram: Hon’ble Barin Ghosh, C.J. Hon’ble V.K. Bist, J. Hon’ble Barin Ghosh, C.J. (Oral) Mr. V.B.S. Negi, Advocate for the appellants. Mr. S.K. Posti, Advocate for respondent nos.4 & 27. 2. The appellants exercised power under Section 36 of the U.P. Krishi Utpadan Mandi Adhiniyam, 1964 and seized agricultural produce of the respondent-writ petitioners. Those were lateron permitted to be released. In the writ petition, the respondent-writ petitioners sought for a direction upon the appellants not to basically harass the respondent-petitioners by demanding market fee in relation to goods not transacted in the area of the appellants and also to refund the amount charged by the appellants as a condition for releasing the goods, which had been seized. By the judgment and order under appeal, the prayer of the respondent-writ petitioners to refund the amount realized by the appellants as a condition for releasing the seized goods has been declined. However, the judgment and order under 2 appeal has restrained the appellants from realising or demanding any market fee from respondent-petitioners in respect of goods not dealt with or transacted within the market area of the appellants. The appellants content that if it has reason to believe that an offence under the Act has been or is being or is about to be committed, the appellants under Section 36 (c) of the Act have power to seize the subject goods. It is the contention of the appellants that having regard to the case of the respondent-petitioners that they are accuiring the subject goods from Nazimabad Mandi and thereupon transporting the same to different parts of the State of Uttarakhand by trucks and while doing so carrying the subject goods through the area of the appellants, it is well within the competence of the appellants to reasonably believe that an offence under the Act has been or is being or is about to be committed, and accordingly they can seize the goods, which can only be avoided by producing documents suggesting payment of mandi fee. The said submission accepts that an offence under the Act can only be committed when goods covered by the Act are transacted in a market area, but market fees are not paid therefor. In the event, goods are purchased at Nazimabad Mandi, but fees in regard thereto are not paid, certainly an offence under the Act can be said to have been committed. However, in relation to such an offence, the appellant Market Committee has no jurisdiction. In relation to the same, the jurisdiction vests in the Market Committee, Nazimabad and accordingly, the said Market Committee alone can exercise power under Section 36 (C) of the Act in relation to the concerned goods. It is not 3 the contention of the appellants that at any point of time it reasonably believe that the goods were being brought within the market area of the appellants to enter into any clandestine deal. If the appellants had suspected so, of course, it could exercise power under Section 36(c) of the Act. However, because goods have been brought within the market area or goods are passing through the market area, it is beyond the competence of the appellants to require the person who has brought the goods within the market area or who is taking the goods through the market area to produce documents to suggest that Mandi fee of some other Mandi has been paid. A transaction in the market area attracts mandi fee. If some one has collected goods from a place which is not a market area, he is not required to pay any market fee. However, the moment, there is an intention to deal with such goods once again in the market area and such intension is carried out into reality and accordingly, a transaction takes place, the person becomes obliged to pay market fee to the Market Committee. We therefore, find no reason to interfere with the judgment and order under appeal. (V.K.Bist, J.) (Barin Ghosh, C.J.) 19.08.2010 Arti