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Judgment
P.D. Dinakaran, J.—The Petitioner is a Sangam registered under the Societies Registration Act. The members of the Petitioner-Sangam are
employed as weighmen in various regulated market committees established under the Tamil Nadu Agricultural Produce Marketing (Regulation)
Act, 1987 (hereinafter referred to as ''the Act'').
According to the Petitioner-Sangam, weighmen are required to weigh the produce brought in by the agriculturists using the weighing machines
supplied by the market committee under the direct supervision of the superior officers of the market committee, namely, Yard Maistry, Yard
Clerk, Supervisor, Superintendent, Secretary, etc.. and they are required to obtain licence from competent authorities to operate as weighmen
within the notified area as per Section 8(1) of the Act.
The Petitioner contends that the market committee is empowered to appoint Secretary and other paid officers and servants for the efficient
performance of its functioning and they shall be whole-time Government Servants as per Section 22 of the Act. Claiming that the Petitioners are
rendering continuous service under the respective market committees which are functioning under the third Respondent Board, the Petitioners seek
that they are entitled for conferment of permanent status on par with Government Servants as in the case of secretaries and other paid officers and
servants, who are appointed u/s 22 of the Act, without treating them as licensed weighmen u/s 8(1) (b) of the Act, or otherwise. Section 8(1) (b) is
violative of Article 14, 16 and 21 of the Constitution of India, and consequently, is to be held void, illegal arbitrary ultra vires. Hence, the
Petitioner, in W.P. No. 2088 of 1994, seeks the issue of a writ of declaration to declare that Section 8(1)(b) of the Tamil Nadu Agricultural
Produce Marketing (Regulation) Act, 1987 is null and void, illegal, arbitrary, ultra vires and unconstitutional; and in W.P. No. 2089 of 1994, seeks
for issue of writ of Mandamus to direct the Respondents to forthwith regularise the services of the members of the Petitioner association as
employees of the respective Regulated Marketing Committees under the control of the Respondents with all incidental and attendant benefit.
4.1. Mr. Arul Murugan, learned Counsel appearing for the Petitioner, reiterating the contentions mentioned in the affidavit filed by the Petitioner
Sangam in the respective writ petitions, contends that the denial of conferment of permanent status to the members of the Petitioner sangam under
the respective market committees by the third Respondent placing relience on Section 8(1)(b) of the Act inspite of their continuous service, is
arbitrary, unreasonable and violative of Articles 14, 16 and 21 of the Constitution of India.
4.2. learned Counsel for the Petitioner further contends that the Respondent market committee have refused to renew the licences of some of the
members of the Petitioner sangam arbitrarily, and therefore they are entitled for regularisation of their services.
5.1. Per contra. Mr. V. Selvanayagam, learned Government Advocate appearing for Respondents 1 and 2 and Mr. S.T.S. Murthy, learned
Counsel appearing for Respondents 3 and 4 brought to my notice that a Division Bench of this Court in Raja Palayam Paruthi Panchu Sangam v.
State of Tamil Nadu reported in AIR 1996 Madras 29 has already upheld Section 8 of the Act.
5.2. learned Counsel for the Respondents further contend that assuming the grievance of the weighmen in comparison to the status of paid officers
and servants of the market committees who are appointed u/s 22 of the Act, was not dealt with in the said decision, weighmen form a class by
themselves and the licences granted to them cannot be compared with the appointment of Secretary and other paid officers and servants of the
market committees made u/s 22 of the Act, and therefore, there is no violation of Articles 14, 16 and 21 of the Constitution of India
I have given a careful consideration to the submissions of both sides.
In this regard I am obliged to refer Section 8 and 22 of the Tamil Nadu Agricultural Produce Marketing (Regulation) Act, 1987, which read as
follows:
Section 8: ""Trading in agricultural produce in notified area. -
(1) No person Shall, ''within a notified area""-
(a) set up, establish or use, or continue or allow to be continued, any place for the purchase or sale, storage, weighment measurement or
processing of any notified agricultural produce, or
(b) operate as a broker, weighman, measurer, trader, warehouseman or in any other capacity in relation to the buying and selling of any notified
agricultural produce,
except under, and in accordance with the conditions of, a license granted to him by the market committee:
Provided that the market committee may exempt from the provisions of this Sub-section any person who carries on the business of purchasing or
selling, storing, weighing, measuring or processing any notified agricultural produce in any quantity not exceeding such quantity not exceeding such
quantity as may be prescribed:
Provided further that a producer selling, storing, weighing, measuring or processing any notified agricultural produce which has been grown, reared
or produced by him, or a Cooperative Marketing Society selling, storing, weighing measuring or processing any notified agricultural produce which
has been grown, reared or produced by any of its members, shall be exempt from the provisions of this subsection, but the Government may
withdraw, for such period as may be prescribed, such exemption in respect of any such producer or Co-operative Marketing Society or all of
them.
Explanation: ""Co-operative Marketing Society"" means any Co-operative Society registered or deemed to be registered under the Tamil Nadu Co-
operative Societies Act, 1961 (Tamil Nadu Act 53 of 1961) which has, as its principal object, the promotion of the marketing of the agricultural
produce grown, reared or produced by its members.
(2) Nothing contained in Sub-section (1) shall apply to -
(a) a person purchasing any notified agricultural produce for his own domestic consumption in any quantity not exceeding such quantity as may be
prescribed;
(b) a person purchasing any notified agricultural product for his own seed purposes in any quantity not exceeding such quantity as may prescribed:
(c) a Warehousing Corporation established or maintained by the State or Central Government or a warehouseman licensed under the Tamil Nadu
Warehouses Act, 1951 (Tamil Nadu Act XV of 1951) in respect of storage, weighment or measurement of any notifies agricultural produce
accepted for warehousing.
(3) Notwithstanding any thing contained in Sub-section (1), no person shall, after the date to be notified by the Government in this behalf in the
Tamil Nadu Government Gazette, purchase or sell any notified agricultural produce in a notified market area outside the market in that area.
Explanation,-- For the purpose of this subsection, purchase, or sale shall, unless otherwise prescribed, mean the purchase or sale in the first point
in the notified market area.
(4) A licence under Sub-section (1) may be refused to a person--
(a) whose licence was cancelled, and a period of three years has not elapsed since the date of the cancellation; or
(b) who has been convicted of an offence where such offence relates to his business or his integrity as a man of business; or
(c) in regard to whom the market committee is satisfied, after such enquiry as it considers adequate, that he is a benamidar for, or a partner with,
any other person to whom a licence may be refused under Clause (a) or Clause (b).
(5) If a market committee is satisfied, either on a reference made to it in this behalf, or otherwise, that ?
(a) a licence granted under Sub-section (1) has been obtained by misrepresentation or fraud; or
(b) the holder of a licence has contravened, or failed to comply with, any of the revisions of this Act or the rules or by laws made under this Act or
any of the conditions of the license, then without prejudice to any other penalty to which the holder of the licence may be liable under this Act, the
market committee may, subject to such rules as may be made in this behalf, cancel or suspend the licence, after giving the holder of the licence a
reasonable opportunity of showing cause against such cancellation or suspension.
(6) Any person aggrieved by the decision of he market committee,
(a) refusing to grant, or
(b) cancelling or suspending,
a licence may, within such time as may be prescribed, appeal to the Board and the Board may make such order in the case as it may think fit.
(7) A licence granted under Sub-section (1) shall be valid for a period of-
(a) three years ins respect of a person who carries on the business, by wholesale, of purchasing or selling any notified agricultural produce;
(b) one year in respect of others,
and may bee renewed from time to time and the provisions of his Act shall, so far as may be, apply in relation to the renewal of a licencee as they
apply in relation to the grant of a licence.
(8) Every person to whom a licence is granted under Sub-section (1) shall comply with the provisions of this Act, the rules and by-laws made
under this Act and the conditions specified in the licence.
(9) Every person licensed or liable to pay fee or any other amount under this Act shall keep and maintain a true and correct account and such other
records showing such particulars as may be specified in the by-laws of the market committee and shall submit such periodical returns relating to his
business transaction including processing as may be prescribed, to the market committee in such manner and within such period as may be
prescribed, together with the fee or other amount due on the basis of the return.
Notes: In view of the decision in T.M. Kannappa Mudaliar and Others Vs. The State of Madras and Another, the Court has no hesitation in
holding that Sub-section (4) and (5) are valid and they are not liable to be struck down. On a careful consideration of Sub-section (4) and (5) the
Court is of me view that the conditions laid down in those sin-sections to refund, cancellation and suspension of the licence cannot be considered
as unreasonable and unjustified when one takes note of the object and purpose of the Act, which is regulatory in nature. It cannot be said mat Sub-
section (4) and (5) infringes the fundamental rights guaranteed under, Sub-section (4), (5) constitution. Sub-section (4), (5) and (9) and rules 32
and 33 are perfectly valid and they are not liable to be struck down. Vide WP.2429 of 1991 dt. 28.4.94.
Section 22: Officers and servant of market committee - (1) Subject to the provisions of Sub-section (2), (3) and (4) and the rules made in this
behalf, the market committee may appoint a secretary and other paid officers and servants as are necessary for the efficient performance of its
functions. The secretary and other paid officers and servants of he market committee shall be whole time Government servants.
(2) Notwithstanding anything contained in any law for the time being in force, on and from the 17th November, 1981, the Secretary and other paid
officers and servants of every market committee established under the Tamil Nadu Agricultural Produce Markets Act, 1959 (Tamil Nadu Act 23
of 1959) shall become whole-time Government servants.
(3) The salaries, allowances, pensions and other remuneration of the Secretary and other paid officers and servants of the market committee shall
be paid in the first instance from the Consolidated Fund of the state and the marketing committee shall, out of the Market Committee Fund, repay
to the Government the amounts paid by the Government under this Sub-section.
(4) Notwithstanding anything contained in this Act and subject to the provisions of Article 311 of the Constitution, the Government may make rules
regulating the conditions of service of the Secretary and other paid officers and servants of the market officers and servants of the markets
committee.
(5) Any rule under Sub-section (4) may be made so as to have retrospective effect on and from a date not earlier than the 17th November 1981.
7.1. A reading of Section 8 makes it clear that not only weighmen, but also brokers, measurers, traders and warehousemen are entitled to operate
in the notified area only in accordance with the conditions of licence granted to them by the market committee, while dealing with buying, selling,
weighing mesuring and processing in notified agricultural produce.
7.2. One should not forget that the Tamil Nadu Agricultural Produce Marketing (Regulation) Act, is intended only to regulate buying and selling of
agricultural produce in Tamil Nadu and for the establishment and proper administration of the markets for the agricultural produce in the State of
Tamil Nadu. Like brokers, measures, traders and warehousemen, weighmen are also paid for their service from the funds of the concerned trader
and not from that of the respective committees. But Secretary, other paid officers and servants, who are appointed u/s 22 of the Act, are paid from
the consolidated funds of the State and Market committees. Since the job depends upon the inflow of agricultural produce every day which varies
from season to season, their work load is not permanent or regular. However the licensed weighmen, who alone could operate in the entire area as
per Section 8(1) (b) are paid weighing charges from the concerned trader proportionate to their services, which varies depending upon the
produce and the seson and therefore, they are not entitled to be treated as regular employees of the regulated market. Except the licences granted
to weighmen u/s 8(1) (b) of the Act, they are not under any compulsion to undertake any work compulsorily or regularly and no attendance
register is maintained for the job they undertake. In other words, the licenced weighmen are at liberty to accept any weighing work at their own
choice or to attend their own private work. Therefore, in my considered opinion, the contention that they were rendering continuous service under
the respective market committees by way of licences obtained by them u/s 8(1)(b) of the Act cannot be accepted, as they avail ""will and pleasure
in undertaking any weighing work.
It therefore follows that the respective market committees have no control over the Petitioners except to see that the conditions of licence in
weighing the produce are not violated. If the market committee arbitrarily refuses to grant, or suspends or cancels the licence except for the
reasons that are provided u/s 8(5) of the Act and following the procedure provided therein, the aggrieved person, still, is entitled to prefer an
appeal before the third Respondent Board against such refusal to grant licence of suspension or cancellation of the licence. But, on the other hand.
Section 22(4) of the Act enables the Government to make rules to regulate the conditions of service of the Secretary and other paid officers and
servants of the market committee, of course, subject to Article 311 of the Constitution of India, because they were treated as whole-time
Government Servants and their salaries, allowances, pensions and other remuneration are paid from the consolidated funds of the State and the
Market Committee, out of the market committee funds, and the market, committee would repay to the Government, the amounts paid by the
Government u/s 22(3) of the Act.
For all these reasons, I am satisfied that the grievance of the Petitioner that the members of the Petitioner Sangam are treated as bonded
labourers, exploited by the respective market committees and they are entitled for regularisation of their services as that of the Secretary and other
paid officers and servants of the market committee who are appointed u/s 22 of the Act are all totally misconceived. Hence, finding no good and
sufficient reasons, these writ petitions are dismissed. No costs.