w w w . L a w y e r S e r v i c e s . i n



Bharat Sugar Mills Limited v/s Bihar State Agriculture Marketing Board


Company & Directors' Information:- BIHAR STATE SUGAR CORPORATION LIMITED [Active] CIN = U15421BR1974SGC001181

Company & Directors' Information:- A M MARKETING PRIVATE LIMITED [Active] CIN = U51109WB1982PTC035266

Company & Directors' Information:- S M SUGAR PRIVATE LIMITED [Active] CIN = U51299DL1999PTC098109

Company & Directors' Information:- BHARAT SUGAR MILLS LIMITED [Active] CIN = U01542TG1994PLC051208

Company & Directors' Information:- B H MARKETING PRIVATE LIMITED [Active] CIN = U74899DL1993PTC051539

Company & Directors' Information:- BHARAT BOARD MILLS PRIVATE LIMITED [Active] CIN = U20211WB1950PTC018924

Company & Directors' Information:- MARKETING INDIA PVT LTD [Active] CIN = U51109AS1988PTC002921

Company & Directors' Information:- SUGAR CORPORATION PVT LTD [Strike Off] CIN = U15424WB1954PTC000884

Company & Directors' Information:- S A MARKETING PRIVATE LIMITED [Strike Off] CIN = U74999DL1995PTC070950

Company & Directors' Information:- BIHAR MARKETING PRIVATE LIMITED [Strike Off] CIN = U51900MH2000PTC127859

    Civil Writ Jurisdiction Case No.6976 Of 2000 Civil Writ Jurisdiction Case No. 7000 Of 2000 Of Civil Writ Jurisdiction Case No. 7065 Of 2000

    Decided On, 01 April 2010

    At, High Court of Bihar

    By, THE HONOURABLE MR. JUSTICE AJAY KUMAR TRIPATHI

    For the Appearing Parties: Y.V. Giri, Vikas Ratan Bharti, Sanjeev Kumar, B.K. Singh Chauhan, Binod Kumar Singh, Advocates.



Judgment Text

AJAY KUMAR TRIPATHI, J.

(1.) The factual matrix and the legal position are no longer in dispute since certain developments have taken place during the pendency of the writ applications.

(2.) The issue is whether the respondent Bihar State Marketing Board while exercising power under the Bihar Agriculture Produce Market Act can levy market fee on purchase of sugar cane and sale of sugar and molasses effected by the Sugar Factories of Bihar.

(3.) The protracted litigation initiated at the level of High Court travelled to the Hon'ble Supreme Court. Matter was finally heard by a Constitution Bench and the opinion rendered by the Court is the case of Belsund Sugar Co. Ltd. Vs. State of Bihar and others, (1999) 9 SCC 620.

4. The Court need not delve into all the reasons which have come to be given by the Hon'ble Supreme Court as it is more concerned with the final finding. The final finding is that the Market Committee or Committees do not have the requisite power to levy market fee in so far as the Sugar Factories of Bihar are concerned, in the matter of purchase of sugar cane and sale of sugar or molasses, specially when there is a separate set of law governing them.

(4.) The Hon'ble Apex Court records in para 113 of the said decision, which is quoted herein below for ready reference as it has significance. 113. However, one rider has to be added to this direction. If any of the Market Committees has been restrained from recovering market fee from the writ petitioners in the High Court or if any of the writ petitioners in the High Court has, as an appellant before this Court, obtained stay of the payment of market fee, then for the period during which such stay has operated and consequently market fee was not paid on the transactions covered by such stay orders, there will remain no occasion for the Market Committee concerned to recover such market fee from the sugar mill concerned after the date of this judgment even for such past transactions. In other words, market fees paid in the past shall not be refunded. Similarly, market fees not collected in the past also shall not be collected hereafter. The impugned judgments of the High Court in this group of sugar matters will stand set aside as aforesaid. The writ petition directly filed before this Court also will be required to be allowed in the aforesaid terms.

(5.) In view of the above observation and finding of the Hon'ble Supreme Court the contention of the learned senior counsel representing the petitioners is that there is no occasion for the erstwhile Marketing Board to demand payment of penalty on the assessed market fee due to failure of these petitioners to pay within time.

(6.) Learned senior counsel also draws support from a Division Bench of this Court which is the case of Harinagar Sugar Mills Ltd. Vs. State of Bihar and others, 2000 (3) PLJR 419. Emphasis is on the finding recorded in para 14 of the said decision. It has been categorically held that penalty is an integral part of the fee. Penalty is to be imposed for failure to deposit the market fee. If the market fee itself was not leviable under the law as declared by the Constitution Bench, the component of penalty too cannot be recovered.

(7.) Learned counsel representing the dissolved Market Committees and the so-called Agriculture Produce Marketing Board submits that the penalty has to be deposited by the petitioners because the Hon'ble Supreme Court had held that all that was deposited was not be refunded and if what was deposited was held to be valid, then the component of the penalty also must accrue in favour of the respondents.

(8.) This Court has serious reservation in accepting the submission made at the bar on behalf of the respondents because that will be amount to violence to the decision rendered by the Constitution Bench. If the original component of market fee itself was held to be unconstitutional, then the consequences for non-compliance of payment of the same can never be rec

Please Login To View The Full Judgment!

overy of penalty which has been imposed. If what has not been recovered earlier even as a component of penalty, the same cannot be allowed to be recovered now. The Constitution Bench stares in the face of the respondents. (9.) In view of the above stated position, the imposition of penalty for non-payment of market fee for the year 1980-81, 1981-82 and 1982-83 are hereby quashed and all the writ applications are allowed but without any cost.
O R







Judgements of Similar Parties

23-06-2020 S. Saravanan & Another Versus The District Manager, Tamilnadu State Marketing Corporation Ltd., (TASMAC) Dindigul District Before the Madurai Bench of Madras High Court
02-06-2020 K. Saravanakumar Versus The Senior Regional Manager, Tamil Nadu State Marketing Corporation Ltd., Coimbatore & Another High Court of Judicature at Madras
08-05-2020 The Managing Director, Tamil Nadu State Marketing Corporation Ltd., CMDA Tower-II, Egmore Versus B. Ramkumar Adityan & Others High Court of Judicature at Madras
30-04-2020 Natural Sugar and Allied Industries Limited & Others Versus The State of Maharashtra, Through the Secretary for Co-operation, Marketing & Textile Department, Mantralaya & Others In the High Court of Bombay at Aurangabad
29-04-2020 The Greater Hyderabad Municipal Corporation Versus M/s. In & Out Marketing High Court of for the State of Telangana
24-04-2020 Yum! Restaurants (Marketing) Private Limited Versus Commissioner of Income Tax, Delhi Supreme Court of India
22-04-2020 West U.P. Sugar Mills Association & Others Versus The State of Uttar Pradesh & Others Supreme Court of India
22-04-2020 National Agricultural Cooperative Marketing Federation of India Versus S.A. Alimenta Supreme Court of India
11-03-2020 M/s. Tamil Nadu State Marketing Corporation Ltd., Represented by its Managing Director, R. Kirlosh Kumar Versus Union of India, Represented by its Secretary, Ministry of Finance, New Delhi & Others High Court of Judicature at Madras
06-03-2020 Indian Oil Corporation Limited (Marketing Division) Senior Area Manager, West Bengal Versus Biswanath Adhikary & Others National Consumer Disputes Redressal Commission NCDRC
02-03-2020 K. Ravi Versus The Managing Director, The Tamil Nadu State Marketing Corporation Limited, Chennai & Others Before the Madurai Bench of Madras High Court
26-02-2020 M/s. Tamilnadu State Marketing Corpn. Ltd., Represented by its Managing Director, R. Kirlosh Kumar Versus The Deputy Commissioner of Income Tax Corporate Circle – 3(1), Chennai High Court of Judicature at Madras
24-02-2020 Usha Jadhav & Another Versus Minister of Co-operation, Marketing & Textile Department & Others High Court of Judicature at Bombay
10-02-2020 Executive Director, Sales And Marketing Renault India Pvt. Ltd. Versus Paramjeet Singh Brar National Consumer Disputes Redressal Commission NCDRC
07-02-2020 Oudh Sugar Mills Ltd. Versus Union of India & Another Supreme Court of India
06-02-2020 State Bank of India V/S Mittal Marketing Debts Recovery Tribunal Delhi
03-02-2020 M/s. Bright Marketing Company, Tirupur Versus The Commissioner of Central Excise & Service Tax, Coimbatore High Court of Judicature at Madras
28-01-2020 M.S. Marketing Services, Salem, Represented by its Proprietor M. Satya Versus The District Revenue Officer / General Manager The Salem District Co-operative Milk Producers Union Limited Sithanoor, Salem & Another High Court of Judicature at Madras
21-01-2020 Imagine Marketing Pvt. Ltd. Versus Exotic Mile High Court of Delhi
09-01-2020 M/s. Shri Durga Khandsari Sugar Mills Mendrana, Madhya Pradesh Versus The New India Assurance Co. Ltd., Madhya Pradesh National Consumer Disputes Redressal Commission NCDRC
04-01-2020 Shankarrao Gajanan Choudhary & Others Versus The State of Maharashtra, Through the Hon'ble Minister for Co-operation, Marketing & Textiles, Mantralaya & Others In the High Court of Bombay at Nagpur
17-12-2019 K.M. Kumar Versus The Managing Director, Tamil Nadu State Marketing Corporation Ltd, Chennai & Others High Court of Judicature at Madras
03-12-2019 M/s. The India Sugars & Refineries Ltd., Rep. by its: Manager Finance, P.S. Krishnamurthy Versus The Commissioner for Cane Development & Director of Sugar, Bangalore & Others High Court of Karnataka Circuit Bench At Dharwad
15-11-2019 Administrator, Kallakuruchi -II Co-operative Sugar Mills Limited, Villupuram Versus The Deputy Chief Inspector of Police, Cuddalore & Others High Court of Judicature at Madras
13-11-2019 The Management of Ponni Sugar Mills (The Management of Ponni Sugars (Erode) Limited), Namakkal, Rep. by its President, R. Chandramouli Versus The Presiding Officer, Labour Officer, Salem & Another High Court of Judicature at Madras
11-11-2019 D. Ganesan Versus The Chairman/Special Officer, The Dharmapuri District Co-operative Sugar Mills Polytechnic, Palacode, Dharmapuri & Another High Court of Judicature at Madras
25-10-2019 The Special Officer, (presently the Managing Director), Thirupathur Coop. Sugar Mills Ltd., Vellore Versus The Presiding Officer, The Principal Labour Court, Vellore & Another High Court of Judicature at Madras
24-10-2019 Paramount Tea Marketing (SI) Private Limited, Coimbatore Versus Tea Board of India, Represented by its Executive Director, Ministry of Commerce & Industry, Department of Commerce, Govt. of India, The Nilgiris High Court of Judicature at Madras
22-10-2019 Steel Authority of India Limited Central Marketing Organization Through Assistant General Manager (Marketing) Regional Office, Maharashtra Versus Lalit Agrawal & Others High Court of Chhattisgarh
18-10-2019 The State of Bihar & Others Versus M/s. Riga Sugar Co. Ltd. Supreme Court of India
16-10-2019 Vivek Verma Versus Ipro Sugar Engineering Pvt. Ltd. & Another National Company Law Appellate Tribunal
03-10-2019 The Tamil Nadu State Marketing Corporation Limited, Rep. by its Managing Director, Egmore, Chennai Versus The Senior Divisional Manager, United India Insurance Co. Ltd., Coimbatore High Court of Judicature at Madras
01-10-2019 Maharashtra State Cotton Marketing Employees Co-Operative Spinning Mill Limited, Akola Versus Satish Narayanrao Gawande In the High Court of Bombay at Nagpur
25-09-2019 G. Ravichandran Versus The District Revenue Officer/Administrator, M.R. Krishnamoorthy Co-operative Sugar Mills Ltd., Chidambaram Taluk, Cuddalore District & Another High Court of Judicature at Madras
09-09-2019 S. Kamaraj Versus Indian Oil Corporation Limited, (Marketing Division), Trichy & Others High Court of Judicature at Madras
05-09-2019 The Management, Kelamangalam Agricultural Producers, Co-Operative Marketing Society Ltd. Rep. by its Managing Director, Krishnagiri Versus The Appellate authority/Joint Commissioner of Labour under the Payment of Gratuity Act, Coimbatore & Others High Court of Judicature at Madras
30-08-2019 Front Line Marketing Kachipukur(South) Versus United India Insurance Co. Ltd. West Bengal State Consumer Disputes Redressal Commission Kolkata
27-08-2019 K.M. Sakhar Karkhana Pvt. Ltd. & Another Versus The Commissioner of Sugar, Sugar Commissionerate & Others High Court of Judicature at Bombay
14-08-2019 M/S Fertico Marketing And Investment Pvt., Ltd., & Others Versus C.B.I., Anti Corruption Branch Lucknow & Another High Court of Judicature at Allahabad
14-08-2019 Ponvel Nadarajan & Others Versus State of Maharashtra Through Joint Secretary, Co-operation Marketing & Textile Department, Government of Maharashtra & Others High Court of Judicature at Bombay
01-08-2019 Chopra Marketing Pvt. Ltd. Versus Drishticon Properties Pvt. Ltd. & Another High Court of Delhi
01-08-2019 Maniyarasu & Another Versus The Commissioner of Sugar, Chennai & Others Before the Madurai Bench of Madras High Court
30-07-2019 Surabhi Chits Limited, Rep. by its Marketing Manager, Vishwanath Patil Versus T. Ganshyam High Court of Karnataka
24-07-2019 The Management, represented by its Administrator, Cheyyar Co-operative Sugar Mill, Anakkavur, Thiruvannamalai District Versus The Presiding Officer, Additional Labour Court, Vellore & Another High Court of Judicature at Madras
23-07-2019 Branch Manager,United Bank of India & Others Versus M/s. S.S. Marketing, Prop. Swapan Bhattacharya West Bengal State Consumer Disputes Redressal Commission Kolkata
18-07-2019 Sushila Versus Gangakhed Sugar & Energy Ltd. In the High Court of Bombay at Aurangabad
17-07-2019 Sahkari Ganna Vikas Samiti & Another Versus M/s. Rai Bahadur Narain Singh Sugar Mill Ltd. & Others High Court of Uttarakhand
10-07-2019 Kusum Bansal Versus Haryana State Agricultural Marketing Board & Another Haryana State Consumer Disputes Redressal Commission Panchkula
09-07-2019 Nagar Palika Parishad Versus M/s. Commercial Marketing Services High Court of Madhya Pradesh Bench at Gwailor
04-07-2019 Belhekarwadi Vividh Karyakari Seva Sahkari Society Ltd. & Others Versus The State of Maharashtra, Through its Principal Secretary, Cooperation, Marketing and Textile Department & Others In the High Court of Bombay at Aurangabad
26-06-2019 Sadashiv Pandurang Patil Versus The State of Maharashtra Through the Department of Marketing & Textiles & Others High Court of Judicature at Bombay
19-06-2019 The Management of North Eastern Regional Agricultural Marketing Corporation Limited Neramac, Assam Versus The Workmen Represented By The President & Another High Court of Gauhati
17-06-2019 G. Malathi Versus The Deputy General Manager, L.P.G. Sales, Indian Oil Corporation, Marketing Division, Coimbatore High Court of Judicature at Madras
12-06-2019 S. Indirarajan Versus The Managing Director, Tamil Nadu State Marketing Corporation Limited, Chennai & Others High Court of Judicature at Madras
04-06-2019 Metex Marketing Pvt. Ltd. & Others Versus Securities & Exchange Board of India SEBI Bhavan SEBI Securities amp Exchange Board of India Securities Appellate Tribunal
30-05-2019 C. Vijaykumar Versus The Director of Agricultural Marketing, Bangalore & Others High Court of Karnataka
15-05-2019 Delhi Agricultural Marketing Board Versus H.R. Builders High Court of Delhi
09-05-2019 Nayaagarh Sugar Complex Limited Versus SBI General Insurance Company Limited National Consumer Disputes Redressal Commission NCDRC
09-05-2019 Nayaagarh Sugar Complex Limited Versus SBI General Insurance Company Limited National Consumer Disputes Redressal Commission NCDRC
03-05-2019 AGME Marketing Pvt. Ltd. & Another Versus Canara Bank & Others Debts Recovery Appellate Tribunal at Allahabad
30-04-2019 S. Madasamy & Another Versus The Tamil Nadu State Marketing Corporation Ltd., Rep. by its District Manager, Thiruvallur & Others High Court of Judicature at Madras
24-04-2019 M/s. Suguna Foods Private Limited, Rep by its Authorized Signatory, Coimbatore Versus The Secretary, Tamil Nadu Marketing Committee, Coimbatore & Others High Court of Judicature at Madras
02-04-2019 M/s. M.S. Marketing, Represented by its Proprietor M. Selvi Versus The Deputy Commercial Tax Officer Before the Madurai Bench of Madras High Court
02-04-2019 M/s. Nag Leathers Pvt Ltd, Rep. by its Managing Director, Chockalingam Pillai, Vellore District Versus M/s. Dynamic Marketing, Partnership Rep. by its Partners J.L. Sobhana & Another High Court of Judicature at Madras
02-04-2019 K. Hari Versus The District Manager, Tamil Nadu State Marketing Corporation Ltd (TASMAC), Vellore High Court of Judicature at Madras
02-04-2019 D. Ganesan Versus The Commissioner of Sugar, Chennai & Others High Court of Judicature at Madras
22-03-2019 Ravi Pal Versus All India Sugar Trade Association (AISTA) & Another Competition Commission of India
27-02-2019 C. Sankar Versus The Tamil Nadu State Marketing Corporation Ltd, rep. by its Managing Director, Egmore, & Others High Court of Judicature at Madras
15-02-2019 Amulya Marketing Agency Pvt. Ltd. Versus ICICI Bank Ltd. National Consumer Disputes Redressal Commission NCDRC
07-02-2019 K. Gopi & Others Versus Tamil Nadu State Marketing Corporation Ltd., Represented by its Managing Director, Chennai & Others High Court of Judicature at Madras
05-02-2019 The Administrator, M.R. Krishnamurthy Co-operative Sugar Mills Limited, Cuddalore District Versus V. Suresh Kumar & Another High Court of Judicature at Madras
05-02-2019 The Administrator, M.R. Krishnamurthy Co-operative Sugar Mills Limited, Cuddalore District Versus V. Suresh Kumar & Another High Court of Judicature at Madras
30-01-2019 Lakshmi Sugar Mill, Uttaranchal Versus State of Uttar Pradesh & Others Supreme Court of India
24-01-2019 Britannia Industries Ltd. Versus Bombay Agricultural Produce Marketing Committee & Another Supreme Court of India
14-01-2019 John Distilleries Pvt. Limited Versus The Brihan Maharashtra Sugar Syndicate Limited High Court of Judicature at Bombay
14-01-2019 Rajendra Pundlikrao Deore & Others Versus The State of Maharashtra, through Secretary ? Coo-peration & Marketing Dept. & Others High Court of Judicature at Bombay
09-01-2019 Gangakhed Sugar & Energy Limited Nagpur Through its Director Versus National Insurance Co. Ltd. Through its Chief Managing Director & Others Maharshtra State Consumer Disputes Redressal Commission Nagpur
02-01-2019 Management of the Barara Cooperative Marketing-cum-Processing Society Ltd. Versus Workman Pratap Singh Supreme Court of India
24-12-2018 Ramavath Shankar Versus The State of Telangana Rep by its Principal Secretary Agriculture and Marketing Department & Others High Court of Andhra Pradesh
10-12-2018 Jaina Marketing & Associates Versus Department of Women & Child Development, Government of Maharashtra High Court of Judicature at Bombay
05-12-2018 Virgoz Oils & Fats Pte. Ltd. Versus National Agricultural Co-Operative Marketing Federation of India Ltd. High Court of Delhi
04-12-2018 Soneko Marketing Pvt. Ltd V/S Rashmi Metaliks Ltd. High Court of Judicature at Calcutta
28-11-2018 National Agricultrual Cooperative Marketing Federation of India Ltd. Versus S.A. Alimenta High Court of Delhi
19-11-2018 P. Pounraj Versus The Managing Director Tamil Nadu State Marketing Corporation (TASMAC), CMDA Complex, Chennai & Others High Court of Judicature at Madras
08-11-2018 M/s K.C. Marketing Versus OPPO Mobiles MU Private Limited Represented by Eric Deng (Director) Competition Commission of India
02-11-2018 K. Thiagarajan Versus The Managing Director, the Tamil Nadu State Marketing Corporation Ltd., (TASMAC), Chennai & Others High Court of Judicature at Madras
02-11-2018 Sri Mangal Murty Marketing Versus State of Maharashtra & Others High Court of Judicature at Bombay
29-10-2018 Ratnesh Gupta & Another Versus SVS Buildcon Private Limited, (Marketing Office) Through Manager & Others Madya Pradesh State Consumer Disputes Redressal Commission Bhopal
26-10-2018 M/s. Daurala Sugar Works Versus State of U.P. & Others High Court of Judicature at Allahabad
22-10-2018 M. Anbazhagan Versus The Director of Sugar, Chennai & Others High Court of Judicature at Madras
08-10-2018 Himachal Pradesh Horticultural, Produce Marketing & Processing Corporation Limited, Chennai Versus The Commissioner, Thiruvallur & Others High Court of Judicature at Madras
03-10-2018 Sabroop Feed & Dairy Farm Village Versus Punjab State Cooperative Supply & Marketing Federation Ltd. High Court of Punjab and Haryana
25-09-2018 Kultali Food Marketing Pvt. Ltd. & Others Versus Barun Ghosh & Others High Court of Judicature at Calcutta
24-09-2018 M/s Heritage Marketing Versus Ito, W-3(2), Chandigarh Income Tax Appellate Tribunal Chandigarh
14-09-2018 M/s. S.P.P. Foods Products Pvt. Ltd. Versus M/s. Hannu Marketing High Court of Delhi
11-09-2018 M/s. Rainbow Marketing & Exports & Another Versus State of West Bengal & Another High Court of Judicature at Calcutta
07-09-2018 Department of Women & Child Development Belapur, Navi Mumbai & Another Versus Jaina Marketing & Associates High Court of Judicature at Bombay
06-09-2018 M/s. Suguna Foods Limited, Rep. by its General Manager Finance & Taxation, Coimbatore Versus The Secretary, Tamil Nadu Marketing committee, Coimbatore & Others High Court of Judicature at Madras
30-08-2018 Shree Shubham Logistics Limited Versus State of Rajasthan, Through Its Principal Secretary Department of Agriculture & Marketing, Jaipur & Others High Court of Rajasthan Jodhpur Bench
27-08-2018 Mother Boon Foods Pvt. Ltd. Versus Mindscape One Marketing Pvt. Ltd. High Court of Delhi


LawyerServices is a Premium Legal Tech solution.


Lawyers, Law Firms, Government Departments and Corporates rely on us for, Workflow Automation, Data Aggregation, Timely Updates, Case Management, Intelligent Research, Latest Legal Data Updates and a LOT more!

If you are a legal professional, CONTACT US, in order to see how our UNIQUE solution can benefit your organization.

Features Intro Close Box