{"id":93729,"date":"1996-07-09T00:00:00","date_gmt":"1996-07-08T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/the-state-of-rajasthan-etc-vs-rajasthan-agriculture-input-on-9-july-1996"},"modified":"2015-03-27T21:51:13","modified_gmt":"2015-03-27T16:21:13","slug":"the-state-of-rajasthan-etc-vs-rajasthan-agriculture-input-on-9-july-1996","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/the-state-of-rajasthan-etc-vs-rajasthan-agriculture-input-on-9-july-1996","title":{"rendered":"The State Of Rajasthan Etc vs Rajasthan Agriculture Input &#8230; on 9 July, 1996"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">The State Of Rajasthan Etc vs Rajasthan Agriculture Input &#8230; on 9 July, 1996<\/div>\n<div class=\"doc_citations\">Equivalent citations: JT 1996 (6),    217\t  1996 SCALE  (5)51<\/div>\n<div class=\"doc_author\">Author: M Punchhi<\/div>\n<div class=\"doc_bench\">Bench: Punchhi, M.M.<\/div>\n<pre>           PETITIONER:\nTHE STATE OF RAJASTHAN ETC.\n\n\tVs.\n\nRESPONDENT:\nRAJASTHAN AGRICULTURE INPUT DEALERS ASSOCIATION ETC.\n\nDATE OF JUDGMENT:\t09\/07\/1996\n\nBENCH:\nPUNCHHI, M.M.\nBENCH:\n<a href=\"\/doc\/1457401\/\">PUNCHHI, M.M.\nMANOHAR SUJATA V. (J)\n\nCITATION<\/a>:\n JT 1996 (6)   217\t  1996 SCALE  (5)51\n\n\nACT:\n\n\n\nHEADNOTE:\n\n\n\nJUDGMENT:\n<\/pre>\n<p>\t\t THE 9TH DAY OF JULY, 1996<br \/>\nPresent:\n<\/p>\n<p>\t  <a href=\"\/doc\/327852\/\">Hon&#8217;ble Mr. Justice M.M. Punchhi<br \/>\n\t  Hon&#8217;ble Mrs. Justice Sujata V. Manohar<br \/>\nAruneshwar Gupta, Adv.<\/a> for the appellants<br \/>\nG.L.Sanghi, Sr.Adv. Ravinder Narain, Adv. for M\/s JBD &amp; Co.,<br \/>\nN.K.Sagar, Adv. for B.D. Sharma, Adv. with him for the<br \/>\nRespondents.\n<\/p>\n<p>\t\t      J U D G M E N T<br \/>\n     The following Judgment of the Court was delivered :<br \/>\nThe State of Rajasthan etc.<br \/>\nV.\n<\/p>\n<p>Rajasthan Agriculture Input<br \/>\nDealers Association etc.<br \/>\n\t\t      J U D G M E N T<br \/>\nPunchhi,J.\n<\/p>\n<p>     In Civil  Appeal Nos.4064\tand 4065 of 1995, the common<br \/>\nappellant is  the State\t of Rajasthan  and in  Civil  Appeal<br \/>\nNos.4066 and  4067 of  1995, its ally, the Krishi Upaj mandi<br \/>\nSamiti, Jaipur\tis the\t&#8211; common  appellant.  The  grievance<br \/>\nvoiced herein  by them is common and hence disposal of these<br \/>\nappeals by a common order.\n<\/p>\n<p>     These appeals are directed against order dated 3.7.1990<br \/>\npassed by  a Division  Bench of\t the Rajasthan\tHigh  Court,<br \/>\nJaipur Bench,  allowing two  writ petitions preferred by the<br \/>\nrespective respondents\therein. Facts  giving  rise  thereto<br \/>\nwould require no elaboration, except reference to the barest<br \/>\nminimal. The  respondents claim\t themselves to be engaged in<br \/>\nthe business  of purchasing  and selling seeds. One of them,<br \/>\nM\/s Hindustan Lever Limited, in particular, raises and sells<br \/>\nBajra seeds, as claimed. According to the respondents, seeds<br \/>\ncannot be termed to be agricultural Produce for the purposes<br \/>\nof the\tRajasthan Agricultural Produce Markets Act, 1961 and<br \/>\nits Schedule,  as amended  from time  to time  by the  State<br \/>\nGovernment in  exercise of powers under Section 40, enabling<br \/>\nit to  add, amend or cancel any of the items of agricultural<br \/>\nproduce specified  in the  Schedule. It\t is maintained\tthat<br \/>\nseeds are  a processed\titem  and  coated  by  insecticides,<br \/>\nChemicals and  other poisonous substances whereby the grains<br \/>\nemployed lose their use and utility as foodgrains and become<br \/>\nunfit for  human or  animal consumption\t or  for  extraction<br \/>\ntherefrom for  such consumption.  Since, as  claimed,  these<br \/>\nwere outside  the  ambit  of  the  expression  &#8220;agricultural<br \/>\nproduce\t as  defined  in  Section  2(1)(i)  of\tthe  Act;  a<br \/>\ndefinition inclusive  in nature\t applying to produce whether<br \/>\nof agriculture,\t horticulture, animal husbandry or otherwise<br \/>\n(emphasis supplied) as specified in the schedule, the demand<br \/>\nof the\tappellants in  requiring the  respondents to  obtain<br \/>\nlicenses for  engaging in  the trade of purchase and sale of<br \/>\nseeds  was   uncalled  for,   as  well\t as  the  threatened<br \/>\nprosecutions, in  the event  of failure. The challenge posed<br \/>\nby the respondents before the High Court was answered by the<br \/>\nappellants maintaining\tthat foodgrains\t of  all  sorts,  as<br \/>\nmentioned in  the Schedule,  were seeds\t per  se,  the\tonly<br \/>\nexception  carved  out\tfrom  the  items  mentioned  in\t the<br \/>\nSchedule being those relating to blue tagged certified seeds<br \/>\nand white tagged certified foundation seeds; such exceptions<br \/>\nhaving been  notified on May 16, 1980 by way of amendment to<br \/>\nthe Schedule,  in exercise  of the  State Government&#8217;s power<br \/>\nunder Section 40 of the Act.\n<\/p>\n<p>     The High  Court on\t consideration of the entire Matter,<br \/>\ntook the  view that  when foodgrains of particular varieties<br \/>\nwere  treated\tand  subjected\t to  chemical\tprocess\t for<br \/>\npreservation, those  grains  become  commercially  known  as<br \/>\n&#8220;seeds&#8221;. Reservation  was kept\thowever by the High Court to<br \/>\nits statement afore-referred that in case a dealer was found<br \/>\ndealing\t in   foodgrains  under\t  the  garb  of\t seeds,\t the<br \/>\nappellants, were not precluded from prosecuting the offender<br \/>\nin a  Criminal Court.  In  sum,\t it  was  ordered  that\t the<br \/>\nappellants stand precluded from requiring the respondents to<br \/>\ntake licenses under the provisions of the Act in relation to<br \/>\ntheir business\tof dealing  in seeds  of Bajra\tor any other<br \/>\nfoodgrain,  as\t well  as   restrained\tfrom   realising  or<br \/>\nrecovering market  fees in respect thereof. Sequelly, it was<br \/>\nordered that  no licence under the Act was required for sale<br \/>\nof such stands. this is how these appeals are before us.\n<\/p>\n<p>     Strong reliance  was placed  by Mr.  Aruneshwar  Gupta,<br \/>\nlearned counsel\t for the  appellants on Kishan lal Vs. State<br \/>\nof Rajasthan and Ors. &#8211; 1990 (Suppl) SCC 742 to contend that<br \/>\nfor the purposes of Section 2 (1)(i) and the Schedule of the<br \/>\nAct, the  expression &#8220;agricultural  produce&#8221; is an inclusive<br \/>\ndefinition which  could even  include processed\t items\tfrom<br \/>\nfoodgrains. Thus  processed foodgrains on becoming seeds, as<br \/>\nalleged by  the\t respondents,  would  all  the\tsame  remain<br \/>\nfoodgrains requiring  the respondents  to take license under<br \/>\nthe  Act.    Secondly,\tit  was\t urged\tthat  by  virtue  of<br \/>\nNotification dated  16th  May,\t1980,  certified  seeds\t and<br \/>\nfoundation seeds  of a\tdescription alone were excluded from<br \/>\nthe purview of the Schedule and no other seed.\n<\/p>\n<p>     We are  one with  Mr. Gupta,  learned counsel  for\t the<br \/>\nappellants, so\tfar as\tthe  definition\t of  the  expression<br \/>\n&#8220;agricultural produce&#8221;\tbeing wide  and inclusive goes. But,<br \/>\nthen the  real difficulty  comes in  interpreting the  items<br \/>\nmentioned in  the  schedule  as\t to  whether  mention  of  a<br \/>\nparticular item\t would ipso  facto mean inclusion of all its<br \/>\nforms and  derivatives achieved by manufacture or processing<br \/>\nor by some other method. On reading the schedule as it stood<br \/>\nat the\trelevant time,\twe come to the view that such a wide<br \/>\ninterpretation to  the items in the schedule can in no event<br \/>\nbe given.  In Kishan  Lal case , Khandsari, Shakkar, Gur and<br \/>\nSugar were brought in the Schedule as &#8220;agricultural produce&#8221;<br \/>\nand the\t argument that\tthese items  were  not\tagricultural<br \/>\nproduce per  se, and  thus incapable of being brought in the<br \/>\nSchedule, was  repelled because when a particular item finds<br \/>\nway in\tthe Schedule  in that  form, it\t stays there for all<br \/>\npurposes as  long as  it is  in some  way referable  to\t the<br \/>\npurpose for which the Schedule is set up.\n<\/p>\n<p>     The Schedule applicable on the relevant dates discloses<br \/>\nthat Item  2 is\t titled as Dhanya&#8221; (foodgrains). Serial No.1<br \/>\nthereunder is  Gehun (wheat).  Serial No.II  is Aata  (wheat<br \/>\nflour). Serial\tNo.12 is Maida (refined wheat flour). Serial<br \/>\nNo.13 is  Suji and  Serial No.14  is Rava  (both  semilona).<br \/>\nSimilarly, Serial  No.2 is Jau Ghat Sahit (barley as also in<br \/>\nthe dehusked  form). Serial  No.6 is Dhan (paddy) and Serial<br \/>\nNo.7 is\t Chawal (rice).\t The scheme of serializing processed<br \/>\nitems in this manner is reflective of a positive application<br \/>\nof mind\t that not  only the  original foodgrains  which\t are<br \/>\nfoodgrains  per\t  se  included,\t  but  their   products\t and<br \/>\nderivatives too\t are mentioned specifically as &#8220;agricultural<br \/>\nproduce&#8217; due  to its  wide  definition,\t Noticeably,  Serial<br \/>\nNos.3 to  5 are\t Jawahar,Makka and  Bajra but  only in their<br \/>\nnatural form  and not  in any other form. Going further down<br \/>\nin the\tSchedule Item  No.6 is\tPhal (fruit). At Serial No.8<br \/>\nthereof is  Kharbuja (Musk  Melon) and Serial No.9 is Tarbuj<br \/>\n(Water Melon).\tGoing to  Item No.II Vividh (Miscellaneous),<br \/>\none finds  at Serial  No.14 Tarbuj  Ke Beej  (Seeds of Water<br \/>\nMelon) and  at Serial  No.16 Kharbuje Ke Beej (Seeds of Musk<br \/>\nMelon). It  is thus  evident that  wherever any\t produce  of<br \/>\nagriculture, horticulture  or animal  husbandry or otherwise<br \/>\nis sought to be inducted in the Schedule, other than what it<br \/>\nis in  the natural  form, it  is given\ta name\tand identity<br \/>\ndistinct from  the corpus  from which  it came.\t Mr.  Gupta,<br \/>\nlearned counsel, could not point out to us anywhere if seeds<br \/>\nof foodgrains,\tinclusive of Bajra seed, per Item No.II were<br \/>\nspecifically mentioned\tas such\t in the\t Schedule.  Wherever<br \/>\nseeds were  intended to be separately serialized, like seeds<br \/>\nof  musk  melon\t and  water  melon,  they  distinctly  found<br \/>\nmentioned in  contrast to  the fruits,\tfrom which they came<br \/>\nbut as distinct products.\n<\/p>\n<p>     It is  undoubtedly true that foodgrains per se could be<br \/>\nused as\t seeds for being sown and achieving germination, but<br \/>\nin  that   form\t they  retain  the  dual  utility  of  being<br \/>\nfoodgrains as  well as\tseeds. By  process  of\tcoating\t and<br \/>\napplying insecticides, other<br \/>\nchemicals and poisonous substances to food grain meant to be<br \/>\nutilized as  seed, one\tof its\tbasic character,  i.e.,\t its<br \/>\nconsumption as\tfood by\t human\tbeings\tor  animals  or\t for<br \/>\nextraction for the like purpose, gets irretrievably lost and<br \/>\nsuch processed\tseeds become  a commodity distinct form food<br \/>\ngrains as commonly understood. that distinction was borne in<br \/>\nmind by\t the High Court in allowing the writ petition of the<br \/>\nrespondents, and in our view rightly.\n<\/p>\n<p>     The next  argument of Mr. Gupta, learned counsel, based<br \/>\non the Notification dated May 16 1980 must also fail because<br \/>\nby excepting from the purview of the Schedule, certified and<br \/>\nfoundation seeds,  bearing tags\t of particular\tcolours,  it<br \/>\ncannot be  spelt out that words relating to foodgrains would<br \/>\nautomatically include  inferences. what\t is meant to contain<br \/>\ntherein shall  be explicit  and categoric. Nothing stops the<br \/>\nState Government to add suitable words therein to coney that<br \/>\nfoodgrains,  as\t  processed  for   seeds,  would   also\t  be<br \/>\nagricultural produce  within the meaning of the expression &#8221;<br \/>\nof otherwise&#8221;  occurring in  Section 2\t(1) (i)\t of the Act.<br \/>\nsince no  such exercise has been taken, the State Government<br \/>\ncannot be  permitted to\t achieve indirectly  which it  could<br \/>\nhave achieved  directly, by  being specific  in that regard.<br \/>\nThe High  Court\t rightly  rejected  such  contention  raised<br \/>\nbefore it by the appellants.\n<\/p>\n<p>     For the  foregoing reasons,  we find  no merit in these<br \/>\nappeals. the  same are accordingly dismissed but without any<br \/>\norder as to costs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India The State Of Rajasthan Etc vs Rajasthan Agriculture Input &#8230; on 9 July, 1996 Equivalent citations: JT 1996 (6), 217 1996 SCALE (5)51 Author: M Punchhi Bench: Punchhi, M.M. PETITIONER: THE STATE OF RAJASTHAN ETC. Vs. RESPONDENT: RAJASTHAN AGRICULTURE INPUT DEALERS ASSOCIATION ETC. DATE OF JUDGMENT: 09\/07\/1996 BENCH: PUNCHHI, M.M. BENCH: [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-93729","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The State Of Rajasthan Etc vs Rajasthan Agriculture Input ... on 9 July, 1996 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/the-state-of-rajasthan-etc-vs-rajasthan-agriculture-input-on-9-july-1996\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The State Of Rajasthan Etc vs Rajasthan Agriculture Input ... on 9 July, 1996 - Free Judgements of Supreme Court &amp; 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