Gudivada Chowkadara Dukanadarula Sangam vs Government of Andhra Pradesh and Others

V.V.S. Rao, J.—Gudivada Chowkadhara Dukanadarula Sangham (hereafter called ''the association''), a society registered under the Societies Act filed the instant writ petition seeking a declaration that the third respondent, Gudivada Municipality or its contractors cannot levy and collect any fee or cess for the food grains supplied by respondents 1 and 2 for the purpose of supplying to the card holders through public distribution system. The members of the petitioner association are fair price shop dealers in Gudivada town. The facts are not in dispute. The fourth respondent herein got issued a legal notice to the President of the petitioner association informing that the fourth respondent became the highest bidder in the public auction conducted on 17-3-1997 for the lease of rights to collect cess in the municipal market areas and that he is not entitled to collect the cess at Rs. 100/- per lorry, Rs. 35/- per mini lorry and Rs.12/- per cart-load which will be unloaded within Gudivada Municipal limits. The President of the petitioner association was asked to cooperate with the second respondent as the fourth respondent is required to pay an amount of Rs. 88,000/- to the municipality every month, besides paying Rs. 40,000/- towards salaries of his staff.

After receiving the legal notice from the fourth respondent, the petitioner filed the writ petition contending that the fair price shop dealers are the agents of the Government and, therefore, the municipality has no power or authority to collect levy or cess from them.

The third respondent municipality has filed a counter affidavit through its Commissioner. It is stated that as per the provisions of the A.P. Municipalities Act, 1965 (''the Act'' for brevity), the municipality is empowered to collect fee on rice and other food grains. The Government, by G.O.Rt. No. 21, Municipal Administration Department, dated 5-1-1996 clarified the same and that the municipality in its resolution No. 329, dated 30-12-1996 has resolved to implement the said Government Order and called for objections from the general public by issuing a notification dated 29-1-1997. Pursuant to such notification, the members of the petitioner association or the petitioner have not raised any objection. Therefore, the notification was published in the District Gazette on 26-2-1997 and auction was conducted on 10-3-1997. The fourth respondent has become the highest bidder and the auction was confirmed in his favour. The allegation that the members of the petitioner association are only agents of the Government is denied stating that the fair price shop dealers get their commission and, therefore, the municipality is entitled to collect fee.