Laxmi Industries And Cold Storage Co. ... vs Income-Tax Officer, "A" Ward And Ors. on 8 May, 1970
7. A perusal of various provisions of the Act show that the object of the Act is to provide amelioration of existing marketing condition concerning the agricultural produce and the elimination of evils attending upon it. When a market area is notified, the traders cannot obviously be permitted to continue with their wholesale transactions and business activities at a place other than notified area. The traders are required to sale and purchase produce in one complex. The provisions are confined to wholesale transactions, and, freedom to negotiate including as to the price, customs, equality is left unhampered. If on declaration of market area, shifting of the traders to the notified area is not insisted upon, the entire purpose would be defeated and the object may remain a paper transaction. The object being the supervision and control of the transaction of purchase by the traders from the agriculturists in order to prevent exploitation of the later by forms would stand defeated in case such shifting is not insisted upon. The Apex Court reiterated these principles in Laxmi Industries v. State of U.P. and Ors. and Ram Chand Kailash Kumar and Anr. v. State of U.P. and Ors. .