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Gujarat High Court

Mohanbhai Ukabhai Akoliya & 2 vs State Of Gujarat & 35 on 16 June, 2017

Author: Bela M. Trivedi

Bench: Bela M. Trivedi

                    C/SCA/13909/2015                                             ORDER




                    IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

                   SPECIAL CIVIL APPLICATION  NO. 13909 of 2015
         ========================================================
                  MOHANBHAI UKABHAI AKOLIYA  &  2....Petitioner(s)
                                       Versus
                      STATE OF GUJARAT  &  35....Respondent(s)
         ========================================================
         Appearance:
         MR R.S. SANJANWALA, SR. ADVOCATE with MR DIPEN DESAI, 
         ADVOCATE for the Petitioners
         MS MANISHA SHAH,  GOVERNMENT PLEADER with  MRVENUGOPAL 
         PATEL, AGP for the Respondent(s) No. 1 to 3
         MR HRIDAY BUCH, ADVOCATE for the Respondent(s) No. 4
         MR V.C. VAGHELA, ADVOCATE with MR. ANAND V THAKKAR, 
         ADVOCATE for the Respondent(s) No. 5 ­ 36
         ========================================================

             CORAM: HONOURABLE MS.JUSTICE BELA M. TRIVEDI
          
                                       Date : 16/06/2017
          ORAL ORDER

1. The   petitioners   in   the   instant   petition   filed  under Article 226 of the Constitution of India,  had   initially   challenged   the   impugned   orders  dated   14.08.2015   and   17.08.2015   passed   by   the  Respondent   No.2­   Director   and   also   had   sought  direction   against   the   Respondent   Nos.1­2  prohibiting   them   from   nominating   any   member   in  Agriculture   Produce   Market   Committee,   Dhanera  (hereinafter referred to as the APMC, Dhanera) in  the   traders   and   the   cooperative   marketing  societies constituencies. During the pendency of  the   petition,   the   respondents   having   nominated  the members of the APMC, Dhanera for the traders  constituency   and   the   cooperative   marketing  societies constituency in exercise of the powers  Page 1 of 16 HC-NIC Page 1 of 16 Created On Sun Aug 13 14:33:22 IST 2017 C/SCA/13909/2015 ORDER conferred under section 11(3) of the Agricultural  Produce   Market   Committee   Act   (hereinafter  referred   to   as   'the   said   Act')   vide   the   order  dated 27.08.2015, the petitioners had amended the  petition   and   prayed   to   issue   a   writ   of  prohibition   for   prohibiting   the   said   nominated  members   from   participating   in   the   election   of  Chairman   and   Vice   Chairman   of   APMC,   Dhanera  scheduled to be held on 31.08.2015. 

2. At   the   first   instance   the   Court,   while   issuing  the notices to the respondents on 28.08.2015, had  stayed   the   execution   of   the   order   dated  17.08.2015   (Annexure­A)   and   had   also   suspended  the nomination in favour of the six respondents,  who   were   also   the   appellants   before   the  Respondent   No.2­Director.   The   Court   had   further  directed that election to the posts of Chairman  and   Vice   Chairman   of   the   said   APMC   be   held   on  31.08.2015, however, the said six nominees would  have limited right to vote in the said election  and  their  votes  will  be  kept   in  a  sealed  cover  without   destroying   secrecy   thereof   and   that  result of the election be declared on the basis  of the remaining votes cast. The said order was  continued from time to time till this date.

3. The chronology of the events giving rise to the  present   petition   is   that   the   election   of   the  APMC,   Dhanera   had   taken   place   on   07.07.2015,  wherein   the   petitioners   were   elected   from   the  agriculturists constituency. It appears that the  Page 2 of 16 HC-NIC Page 2 of 16 Created On Sun Aug 13 14:33:22 IST 2017 C/SCA/13909/2015 ORDER term   of   the   APMC,   Dhanera   had   expired   on  26.05.2015 and that the erstwhile Chairman of the  said   APMC   had   not   issued   any   licences   to   the  traders   or   the   cooperative   marketing   societies  for the year 2015­16. As a result thereof, some  of   the   traders   and   the   cooperative   marketing  societies had preferred Special Civil Application  No.6422   of   2015   and   Special   Civil   Application  No.6424   of   2015   seeking   direction   against   the  respondent Marketing Committee to hold meeting of  the   Marketing   Committee   for   the   renewal   of  licences and to include their names in the voters  lists   of   traders   constituency   and   cooperative  marketing societies constituency for the election  declared   on   03.04.2015.   The   said   petitions   came  to   be   dismissed   by   the   Division   Bench   of   this  Court   vide   the   order   dated   13.04.2015   by  observing  inter alia  that once the election was  declared no such prayers as prayed for could be  granted.   It   was,   however   observed   that   if   the  business of the petitioners was to have adverse  effect   on   their   functioning   in   capacity   as   the  licence holders for non­renewal of the licences,  they may resort to appropriate proceedings. 

4. It   appears   that   in   view   of   the   above  circumstances,   since   there   was   no   trader   or  cooperative   marketing   society   holding   valid  general   licence,   the   said   two   constituencies  remained unrepresented in the said election held  on   07.07.2015,   and   only   the   petitioners   and  others   were   declared   elected   for   the  Page 3 of 16 HC-NIC Page 3 of 16 Created On Sun Aug 13 14:33:22 IST 2017 C/SCA/13909/2015 ORDER agriculturists   constituency,   as   per   the  notification   dated   17.08.2015   issued   by   the  Respondent no.2 (Annexure­G Colly).  

5. It   further   appears   that   thereafter   since   the  election   of   Chairman   and   Vice   Chairman   of   the  said Marketing Committee was not being held, the  petitioners and others had approached this Court  by filing the Special Civil Application No.11975  of   2015   seeking   direction   to   declare   and   hold  election of the Chairman and Vice Chairman of the  said APMC. The said petition was disposed of by  the   Court   vide   the   order   dated   10.08.2015  directing   the   respondent­   Director   and   the  District   Registrar   to   issue   notification   under  Rule   27   of   the   Agriculture   Produce   Market  Committee Rules and to convene the first meeting  of   the   Market   Committee   for   the   election   of  Chairman and Vice Chairman within two weeks from  the date of publication of the said notification  under   Order   27   (Annexure­F).   Accordingly,   the  notification   under   Rule   27   was   issued   by   the  respondent No.2 on 17.08.2015 and the election of  the   Chairman   and   Vice   Chairman   was   held   on  31.08.2015.   In   the   said   election,   the   Chairman  and   Vice   Chairman   were   declared   elected  uncontested.

6. In the meantime, the respondent Nos.5 to 36 who  were   the   traders   and   the   cooperative   marketing  societies, whose licences were not renewed by the  erstwhile   APMC,   had   approached   the   Respondent  Page 4 of 16 HC-NIC Page 4 of 16 Created On Sun Aug 13 14:33:22 IST 2017 C/SCA/13909/2015 ORDER No.2­Director by filing the appeals under section  27(5)   of   the   said   Act.   The   Respondent   No.2­ Director vide the impugned order dated 17.08.2015  (Annexure­A)   allowed   the   said   appeals   and  directed the APMC, Dhanera to issue licences to  the said appellants. It is pertinent to note that  the present petitioners alongwith six others had  filed   applications   before   the   Respondent   No.2­ Director   for   being   impleaded   as   the   party  opponents in the said appeals, however, the said  applications   were   rejected   by   the   Director   vide  the   order   dated   14.08.2015.   The   petitioners  therefore   being   aggrieved   by   the   said   orders  dated   14.08.2015   and   17.08.2015   passed   by   the  Respondent   No.2­Director   had   filed   the   present  petition.   As   stated   earlier   during   the   pendency  of   the   petition,   the   Respondent   No.2­Director  having   nominated   six   persons   as   the   nominated  members   in   the   traders   constituency   and  cooperative   marketing   societies   constituency  under   section   11(3)   of   the   said   Act,   vide   the  order   dated   27.08.2015   (Annexure­III   to   the  affidavit in reply filed by the Respondent Nos.5­

36),   the   petitioners   also   challenged   the   said  order dated 27.08.2015 by amending the petition.

7. Learned   Senior   Counsel   Mr.R.S.Sanjanwala  appearing   with   learned   Advocate   Mr.Dipen   Desai  for   the   petitioners   vehemently   submitted   that  respondent No.2­Director had passed the impugned  orders   in   the   appeals   filed   by   the   concerned  respondents   without   jurisdiction,   inasmuch   as  Page 5 of 16 HC-NIC Page 5 of 16 Created On Sun Aug 13 14:33:22 IST 2017 C/SCA/13909/2015 ORDER there was no order passed by the said APMC with  regard   to   the   renewal   or   non­renewal   of   the  licences   of   the   concerned   respondents   and   in  absence of any such order, the appeals could not  have   been   filed   by   the   said   respondents   under  section   27(5)   of   the   said   Act.   According   to  Mr.Sanjanwala,   the   petitioners   were   the   elected  members   of   the   said   APMC   from   agriculturist  constituency   and   therefore,   they   were   necessary  parties   in   the   said   proceedings,   however,   the  Respondent No.2­Director arbitrarily rejected the  applications   of   the   petitioners   for   being  impleaded as party opponents in the said appeals.  Mr.Sanjanwala also challenging the action of the  Respondent   No.2­Director   in   nominating   six  persons in the traders and cooperative marketing  societies   constituencies   under   section   11(3)   of  the said Act submitted that the election of the  traders   constituency   as   well   as   cooperative  marketing   society   constituency   having   not   taken  place, there being no qualified voters available  from the said constituencies, the Director could  not have invoked the powers under section 11(3)  of   the   said   Act.   In   this   regard,   Mr.Sanjanwala  has relied upon the decision of the Full Bench of  this Court in the case of  Manubhai  Hargovanbhai  Joshi Vs. State of Gujarat  reported in  2014 (1)  GLR   190.  According   to   him   the   entire   exercise  undertaken by the Respondent Authorities and the  Director was illegal, malafide and in colourable  exercise of powers in order to create artificial  Page 6 of 16 HC-NIC Page 6 of 16 Created On Sun Aug 13 14:33:22 IST 2017 C/SCA/13909/2015 ORDER majority   in   the   said   market   committee,   all  impugned orders deserve to be quashed.

8. However,   the   learned   Senior   Advocate   and  Government   Pleader   Ms.   Manisha   Shah   appearing  with the learned AGP Mr.Venugopal Patel for the  Respondent   Nos.1­3   taking   the   Court   to   the  various provisions of the said Act submitted that  the   very   object   of   the   Act   is   to   regulate   the  buying and selling of the agriculture produce and  the   establishment   of   the   markets   of   the  agriculture produce in the State of Gujarat, and  the   Director   is   conferred   with   the   powers   and  responsibility   of   the   superintendence   and  administration   for   ensuring   that   the   purpose   of  the Act is fulfilled. She further submitted that  since the Chairman of the erstwhile APMC had not  convened   the   meetings   and   had   not   renewed   the  licences   of   any   trader   or   cooperative   marketing  societies   for   the   year   2015­16,   the   concerned  aggrieved   persons   had   preferred   the   appeals  before   the   Respondent   No.2­   Director.   The  Director had entertained their appeals to ensure  that   the   object   and   the   purpose   of   the   Act   is  fulfilled.   She   further   submitted   that   the  requisite   number   of   the   said   two   constituencies  having not returned in the election held for the  said   marketing   committee,   the   Director   had  rightly exercised his powers under section 11(3)  of   the   said   Act   by   making   nomination   of   the  concerned   six   respondents   for   the   said   two  constituencies. Challenging the very locus standi  Page 7 of 16 HC-NIC Page 7 of 16 Created On Sun Aug 13 14:33:22 IST 2017 C/SCA/13909/2015 ORDER of the petitioners to file present petition, she  submitted   that   the   petitioners   having   been  elected   from   the   agriculturists   constituency,  they have no right to challenge the nominations  made   by   the   Director   for   the   other   two  constituencies.

9. Learned   Advocate   Mr.Hriday   Buch   appearing   for  Respondent­APMC   submitted   that   alternative  efficacious   remedy   being   available   to   the  petitioners under section 27(5) of the said Act  to approach the State Government and also under  section 48 of the said Act, the present petition  should not be entertained. According to him, the  Chairman and Vice Chairman of the siad APMC were  elected   uncontested,   despite   the   interim   order  passed by this Court on 28.08.2015 and therefore,  the said order has paled into insignificance.

10. Learned   Advocate   Mr.V.C.Vaghela   appearing   with  learned   Advocate   Mr.Anand   Thakkar   for   the  Respondent   Nos.5­36,   supporting   the   contentions  raised by the learned Government Pleader and by  Mr.Buch,   further   submitted   that   only   three  petitioners out of seven elected members from the  agriculturists   constituency   have   challenged   the  impugned   orders   of   the   respondent­Director.  According   to   him,   the   allegations   made   by   the  petitioners   that   nominations   made   were   for  creating artificial majority, have been proved to  be   baseless   as   the   Chairman   and   Vice   Chairman  have   been   declared   elected   uncontested.   The  Page 8 of 16 HC-NIC Page 8 of 16 Created On Sun Aug 13 14:33:22 IST 2017 C/SCA/13909/2015 ORDER petitioners also did not have the locus standi to  challenge   the   licences   issued   to   the   concerned  respondents,   as   the   petitioners   being   from  agriculturists constituency, could not be said to  be the persons aggrieved, and even otherwise an  alternative remedy is available under the Act to  challenge the orders passed by the Director.   

11. So   far   as   the   preliminary   objections   raised   by  learned   Counsels   for   the   respondents   as   regard  the maintainability of the petition and the locus  standi   of   the   petitioners   to   file   present  petition   are   concerned,   it   may   be   noted   that  section   27(5)(ii)   provides   for   filing   of   an  appeal to the State Government against the order  passed by the Director. The provisions contained  in section 48 of the said Act also confer powers  upon   the   State   Government   to   call   for   the  proceedings   of   the   Director   for   the   purpose   of  satisfying   itself   as   to   the   legality   or   the  propriety of the decision or the order passed by  the   Director.   Hence,   the   petitioners   could   have  availed   of   the   alternative   efficacious   remedy  available under the Act to challenge the impugned  orders   passed   by   the   Director   by   filing  appropriate   proceedings   before   the   State  Government   instead   of   directly   approaching   this  Court. 

12. The Court also finds substance in the submissions  made by the learned Advocates for the respondents  that the petitioners having been elected from the  Page 9 of 16 HC-NIC Page 9 of 16 Created On Sun Aug 13 14:33:22 IST 2017 C/SCA/13909/2015 ORDER agriculturists constituency, could not be said to  be   an   aggrieved   party   in   respect   of   the   order  passed   by   the   respondent   Director   directing   the  APMC, Dhanera to issue licences to the respondent  nos.5­36,   who   are   the   traders   and   cooperative  marketing societies. It is settled legal position  that only the petitioner who has suffered legal  injury   or   whose   personal   or   individual   legal  right   has   been   affected   would   have   the   locus  standi   to   invoke   extraordinary   jurisdiction   of  the   High   Court   under   Article   226   of   the  Constitution   of   India.   The   petitioners   having  failed   to   establish   their   legal   right   or   legal  injury could not have filed the petition. In any  case,   since   the   petition   has   been   argued   at  length on other points also, the same is decided  on merits also.

13. As   regards   the   first   and   foremost   contention  raised   by   the   learned   Senior   Counsel  Mr.Sanjanwala that the impugned orders passed by  the   Director   in   the   appeals   filed   by   the  concerned   respondents   are   without   jurisdiction,  it   may   be   noted   that   the   then   Chairman   of   the  said   APMC   had   not   called   any   meeting   for   the  renewal   of   or   issuance   of   the   licences   to   the  traders   and   the   cooperative   marketing   societies  for the year 2015­16. As a result thereof around  more than 900 applications had remained pending.  Since,   the   APMC,   Dhanera   had   declared   elections  and   no   licences   to   the   traders   and   the  cooperative   marketing   societies   were   issued   or  Page 10 of 16 HC-NIC Page 10 of 16 Created On Sun Aug 13 14:33:22 IST 2017 C/SCA/13909/2015 ORDER renewed,   the   concerned   traders   and   the  cooperative   marketing   societies   had   filed   the  petitions being Special Civil Application No.6422  of 2015 and Special Civil Application No.6424 of  2015   before   this   Court.   As   stated   hereinabove,  the   Division   Bench   while   not   entertaining   the  said   petitions   on   the   ground   that   election  process   had   started,   had   observed   that   such  traders   and   societies   could   file   appropriate  proceedings. The concerned respondents therefore  filed   appeals   before   the   Director.   It   is   true  that  as  per  section   27(5)  of  the  said   Act,  the  persons   aggrieved   against   the   order   refusing   to  grant   or   renew   licences   or   suspending   or  cancelling the licences could file the appeal to  the Director within 30 days from the date of the  communication   of   the   order,   and   that   no   such  orders   in   writing   as   such   were   passed   by   the  Marketing Committee. Nonetheless, it is pertinent  to note that the Secretary of the said APMC vide  communication   dated   10.04.2015   had   informed   the  Authorised   Officer   that   the   said   Committee   had  not   renewed   the   licence   applications   of   the  traders   for   the   year   2016­17.   The   said  communication   though   was   addressed   to   the  Authorised   Officer,   the   concerned   respondents  whose   licences   were   not   renewed   for   the   year  2015­16 filed the appeals under section 27(5) of  the said Act to the Director. Thus, in peculiar  facts and circumstances of the case, the Director  appears to have entertained the said appeals with  Page 11 of 16 HC-NIC Page 11 of 16 Created On Sun Aug 13 14:33:22 IST 2017 C/SCA/13909/2015 ORDER a view to enhance the object and purpose of the  said Act, as there was no representation from the  said traders and cooperative marketing societies  constituencies   in   the   said   APMC.   As   stated  earlier, the Court while dismissing the petitions  being   Special   Civil   Application   No.6422   of   2015  and Special Civil Application No.6424 of 2015 had  also   observed   that   if   the   business   of   the  petitioners   i.e.   the   traders   and   cooperative  marketing societies was being adversely affected  for   non­renewal   of   their   licences,   they   may  resort   to   appropriate   proceedings.   Accordingly,  the   aggrieved   respondents   had   filed   the   appeals  under   section   27(5)(i)   of   the   said   Act,   which  could   not   be   said   to   be   non­maintainable   as  sought to be contended by learned Senior Advocate  Mr.Sanjanwala.   It   is   also   significant   to   note  that   the   licences   of   the   concerned   respondents  were being renewed from time to time prior to the  year   2015­16,   and   were   also   renewed   for   the  subsequent years. It was only for the year 2015­ 16   the   same   were   not   renewed   as   the   concerned  Chairman did not convene any meeting of the said  APMC.   Learned   Advocate   Mr.Sanjanwala   has   also  failed   to   point   out   as   to   how   the   petitioners  were   aggrieved   by   the   said   order   passed   by   the  Director, who had directed to issue licences to  the   concerned   respondents,   who   were   from   the  traders and the cooperative marketing societies,  whereas the petitioners were the agriculturists. 

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14. It is also difficult to accept the submission of  learned   Senior   Advocate   Mr.Sanjanwala   that   the  Director   did   not   have   powers   to   nominate   the  concerned   respondents­nominees   under   section  11(3)   of   the   said   Act.   As   rightly   submitted   by  learned Government Pleader Ms.Shah, the election  of the said APMC had taken place on 07.07.2015,  however,   sufficient   number   of   qualified   persons  having   not   returned   for   the   traders   and   the  cooperative   marketing   societies   constituencies,  the   Director   had   nominated   the   six   persons   for  the   said   constituencies   vide   the   order   dated  27.08.2015. It is the election of the APMC which  takes   place   and   not   the   election   of   the  constituencies   separately   as   sought   to   be  submitted   by   Mr.Sanjanwala.   If   the   traders   or  cooperative   marketing   societies   qualified   to  participate   in   the   election   for   the   market  committee   are   not   available   for   any   reason,   in  the   instant   case,   no   account   of   non   renewal   of  licences, it is required to be construed that the  sufficient   number   of   qualified   persons   had   not  returned   for   the   said   constituencies,   and   under  the circumstances, the Director was justified in  exercising   the   powers   to   nominate   the   persons  under   section   11(3)   of   the   said   Act.   At   this  juncture,   the   relevant   observations   made   by   the  Full   Bench   in   case   of  Manubhai   Hargovanbhai  Joshi Vs. State of Gujarat (Supra)  are required  to   be   reproduced.   The   Full   Bench   while  interpreting the provisions contained in Section  Page 13 of 16 HC-NIC Page 13 of 16 Created On Sun Aug 13 14:33:22 IST 2017 C/SCA/13909/2015 ORDER 11(2) and Section 11 (3) of the said Act held as  under: 

"16.  In   our   opinion,   sub­section   2   of   the  Section 11 speaks of a situation where for  any   reason,   the   formalities   required   for   holding  the election as a  whole  were  not  complied with as a result, no election of  the  market  committee was  at  all  held  and  consequently,   no   body   has   been   elected.  Sub­section   3,   on   the   other   hand,  indicates   the   situation   where   although  election   in   respect   of   all   the   three  categories   was   declared   and   consequently,  the   election   of   the   market   committee   was  held,   but   the   required   number   of   the  candidates   prescribed   for   any   of   the  categories have not been returned for any  reason.   The   only   plausible   reasons   for   a  situation   covered   by   subsection   3   of  Section 11 are when the sufficient number  of the candidates in any of the categories   either   did   not   file   their   nomination  papers   or   in   spite   of   filing   such   nomination   papers,   some   were   rejected  being found to be defective or some of the   candidates after the last date for filing  nomination   papers   was   over   had   withdrawn   their nomination papers.
17. In the case before us, there is no dispute   that   with   respect   of   all   the   three  Page 14 of 16 HC-NIC Page 14 of 16 Created On Sun Aug 13 14:33:22 IST 2017 C/SCA/13909/2015 ORDER categories   of   constituency,   the  formalities   required   for  holding   election  had   been   complied   with,   thereafter,   the  candidates participated in the process of  election by filing their nomination papers  but all the 17 candidates of the trader's   category   had   withdrawn   their   nomination  papers;   but   the   required   number   of  candidates   of   the   other   two   categories  have   returned   after   being   duly   elected;  however,   for   the   withdrawal   of   the  nominations, 4 persons in the category of  traders' constituency could not be elected  or returned. This is not a case where the   election of the market committee could not   be   held   but   is   one   where   the   required  number   of   candidates   were   not   returned.  Therefore,   in   our   opinion,   the   present  case   clearly   comes   within   the   purview   of  Section   11(3)   of   the   Act.   If   in   the   election   of   a   market   committee,   the   candidatures of candidates for four seats  of   traders'   constituency   out   of   14   are   withdrawn,   it   cannot   be   said   that   there   was   no   election   of   the   market   committee.  Section 11 prescribes election of a market   committee in general but does not refer to  separate   election   of   three   different  categories of constituency."

15. The   submissions   of   learned   Senior   Counsel  Page 15 of 16 HC-NIC Page 15 of 16 Created On Sun Aug 13 14:33:22 IST 2017 C/SCA/13909/2015 ORDER Mr.Sanjanwala that the Director had exercised the  powers   under   section   11(3)   of   the   Act   malafide  and with a view to create artificial majority for  the election of the Chairman and Vice Chairman of  the said APMC, has also been found to be without  substance,   in   view   of   the   fact   that   both   the  Chairman   and   the   Vice   Chairman   were   declared  elected   uncontested.   As   such   there   are   no  specific   allegations   of   malafides   made   in   the  petition and therefore, also the said contention  cannot be accepted.

16. In   that   view   of   the   matter,   the   petition   being  devoid   of   merits,   is   dismissed.   Notice   is  discharged.   Interim   relief,   granted   earlier,  stands vacated forthwith. 

 

17. At this juncture, learned Advocate Mr.Dipen Desai  for   the   petitioners   has   prayed   to   continue   the  interim relief for a period of two weeks with a  view to approach the Higher Forum, however, the  said   request   cannot   be   granted   for   the   reasons  mentioned hereinabove for rejecting the petition. 

(BELA M. TRIVEDI, J.)  Tuvar Page 16 of 16 HC-NIC Page 16 of 16 Created On Sun Aug 13 14:33:22 IST 2017