Himachal pradesh act 009 of 1970 : Himachal Pradesh Agricultural Produce Markets Act, 1969

Section 1. Short title, extent and commencement

1. Short title, extent and commencement.- (1) This Act may be called the Himachal Pradesh Agricultural Produce Markets Act, 1969.

(2) It extends to the whole of Himachal Pradesh.

(3) It shall come into force at once.

Section 2. Definitions

2. Definitions.- In this Act, unless there is anything repugnant in the subject or context,-

(a) "agricultural produce" means all produce, whether processed or, not, of agriculture, horticulture, animal husbandry or forest as specified in the Schedule to this Act;

(b) "Board" means the Himachah Pradesh Marketing Board constituted under section 3;

(c) "broker" means an agent who in consideration of a commission, fee or reward merely negotiates and brings about a contract for the purchase or sale of notified agricultural produce on behalf of his principal but does not receive, deliver, transport, pay for the purchase of, or collect the payment for the sale of the notified agricultural produce;

(d) "committee" means a market committee estabished and constituted under sections 9 and 10;

(e) "Director" means the Director of Agriculture for Himachal Pradesh and includes any officer appointed by the State Government to perform all or any of the functions of the Director under this Act;

(f) "godown-keeper" means a person, other than a producer, who stores agricultural produce for himself for sale or stores agricultural produce of others, in lieu of storage charges;

[(ff) "licensee" means a person to whom a licence is granted under section 8 and the rules made under this Act and includes any person who buys or sells agricultural produce and to whom a licence is granted as Kacha Arhtia or commission agent or otherwise, but does not include a person licensed under section 11;]¹

(g) "market" means a market established and regulated under this Act, for the notified market area and includes a market proper, a principal market yard and sub-market-yard;

(h) "producer" means a person who, in his normal course of avocation, grows, manufactures, rears or produces, as the case may be, agricultural produce personally, through tenants or otherwise, but does not include a person who works as a dealer or a broker or who is a partner of a firm of dealers or brokers or is otherwise engaged in the business of disposal or storage of agricultural produce other than that grown, manufactured, reared or produced by himself, through his tenants or otherwise. If a question arises as to whether any person is a producer or not for the purposes of this Act the decision of the Deputy Commissioner of the district in which the person carries on his business or profession shall be final:

Provided that no person shall be disqualified from being a producer merely on the ground that he is a member of a co-operative society;

Explanation.- The term ‘producer’ shall also include tenant:

(i) "dealer" means any person who, within the notified market area, sets up, establishes or continues or allows to be continued any place for the purchase, sale, storage or processing of agricultural produce notified under sub-section (1) of section 4 or purchases, sells, stores or processes such agricultural produce;

(j) "market proper" means any area including all lands with the buildings thereon, within such distance of the principal market or sub-market yard, as may be notified in the Official Gazette by the State Government to be a market proper;

[(jj) "member" includes the chairman of the Board]²;

(k) "co-operative society" means a co-operative society of producers registered under the provisions of the Co-operative Societies Act for the time being in force, which deals in the purchase, sale, processing or storage of agricultural produce, or is otherwise engaged in the business of disposal of agricultural produce;

(l) "State Government" or "Government" means the Government of Himachal Pradesh;

(m) "notification" means notification published under proper authority in the Rajpatra, Himachal Pradesh;

(n) "notified market area" means any area notified under section 4;

(o) "prescribed" means prescribed by rules made under this Act;

(p) "principal market yard" and "sub-market yard" mean an enclosure, building, locality or other area declared to be a principal market yard and sub-market yard under section 5;

(q) "trade allowance" includes an allowance having the sanction of custom in the notified market area concerned and market charges payable to various functionaries.

(r) "retail sale" means sale of agricultural produce not exceeding such quantity as may be prescribed; ¹[and]

(s) "Secretary" means the executive officer of a committee and includes an Assistant Secretary or a person officiating or acting as Secretary.

¹(t) [x x x]

Section 3. Himachal Pradesh Marketing Board

3. Himachal Pradesh Marketing Board.- (1) The State Government may, for exercising the powers conferred on, and performing the functions and duties assigned to, the Board by or under this Act, establish and constitute² a Himachal Pradesh Marketing Board consisting of ³[a Chairman to be appointed by the Government and] 15 members of whom 5 shall be officials and 10 non-officials to be nominated by the State Government in the following manner:-

(a) the official members shall include the Director, ³[the Deputy Director (Agriculture Marketing) Himachal Pradesh] and 3 other officials nominated by the State Government;

(b) of the non-official members,-

(i) two shall be producer members of the committees,

(ii) four shall be other progressive producers of Himachal Pradesh;

(iii) three shall be from among such persons licenced under section 8 who are members of the committees;

(iv) one representing co-operative societies.

⁴[(2) There shall be a Secretary of the Board who shall be appointed by the State Government from amongst the Joint and Deputy Directors of Agriculture Department of the State Government],

(3) The Board shall be a body corporate as well as local authority by the name of the Himachal Pradesh Marketing Board, having perpetual succession and a common seal, with power, subject to the provisions of the Act, to acquire and hold property and shall, by the said name, sue and be sued.

(4) The term of the office of the non-official members of the Board shall be three years.

(5) No person shall be eligible to become a member of the Board who,-

(a) does not ordinarily reside within Himachal Pradesh;

(b) is below 25 years of age;

(c) has been removed under sub-section (7) of section 13;

(d) is of unsound mind; or

(e) has been declared as insolvent or sentenced by a criminal court, whether within or outside Himachal Pradesh for an offence involving moral turpitude:

Provided that the disqualification under clause (e) on the ground of a sentence by a criminal court shall not apply after the expiry of four years from the date on which the sentence of such person has expired.

¹[(6) The Chairman of the Board may resign by tendering his resignation to the State Government and a member other than the Chairman of the Board may resign from the membership by tendering his resignation to the State Government through the Chairman of the Board and the seat of such Chairman or the member, as the case may be, shall become vacant on the date of acceptance of his resignation.]

(7) The State Government may remove any non-official member of the Board who has become subject to any of the disqualifications specified in sub-section (5) or who is, in its opinion, unfit to act as a member or remiss in the discharge of his duties or whose continuance as a member of the Board is considered to be prejudicial to its interset and may appoint another member in his place in the manner as prescribed in sub-section (1), from the category to which the removed member belongs:

Provided that before removing a member, the reasons for the proposed action shall be conveyed to him and his reply invited within a specified period and duly considered:

Provided further that the term of office of the member so appointed shall expire on the same date as the term of office of the vacating member would have expired had the latter held office for the full period allowed under sub-section (4),

²[(7-A) Subject to the rules made under this Act, the Board may, with the approval of the State Government, frame bye-laws for,-

(a) regulating the transaction of business at its meeting;

(b) assignment of duties and powers of the Board to its Chairman, Secretary or persons employed by it; and

(c) such other matters which are to be or may be prescribed under the bye-laws.]

(8) ³[One third of the total members] shall constitute a quorum at a meeting of the Board. All questions that may come up before a mealing of the Board shall be determined by a majority of votes of the members present and in case of equality of votes, the Chairman may exercise a casting vote;

Provided that if a meeting is adjourned for want of quorum, no quorum shall be necessary at the next meeting: called for transacting the same business.

(9)(a) An estimate of the annual income and expenditure of the Board for the ensuing year shall be prepared by the Board and submitted for sanction to the Government not later than the first week of February each year. On the sanction of the budget by the Government, the Board shall have power to operate upon it.

(b) The State Government shall sanction and return budget within two months from the date of the receipt thereof. If it is not received within two months it shall be presumed to have been sanctioned.

(10) Subject to the provisions of this Act and the rules and bye-laws made thereunder, the Board may employ such persons for the performance of the functions, of the Board under this Act, and may give them such remuneration, as it may think fit, and may suspend, remove, dismiss or otherwise punish any person so employed.

(11) The Chairman of the Board and its Secretary shall have the same powers as are respectively conferred under the financial rules of the ¹[State] Government on the Head of Department and Head of Office and exercise such other powers and discharge such, other duties as may be prescribed.

(12) The State Government shall exercise superintendence and control over the Board and its officers and may call for such information as it may deem necessary and, in the event of its-being convinced that the Board is not functioning properly, or is abusing its powers or is guilty of corruption or mis-management, it may suspend the Board, and till such time as a new Board is constituted, make such arrangement for the exercise of the functions of the Board ²[and of its Chairman] as it may think fit:

³[Provided that the Board shall be constituted within six months from the date of its suspension.]

(13) The Board shall exercise superintendence and control over all market committees established and constituted under this Act.

(14) The Chairman of the Board may, on administrative grounds transfer employees of one market committee to another, and of a market committee to the Board and vice versa.

(15) The Board, may delegate any of its powers, to the Chairman, Secretary, or officers of the Board.

(16) The Board or the Chairman of the Board or its Secretary, or any-other officer authorised by the Board shall have the power to call for any information, records or returns relating to agricultural produce from a market committee or a dealer or other functionaries and shall also have the power to inspect the accounts of a market committee or a dealer or other functionaries and in case any irregularity comes to its or his notice shall have the power to suspend or cancel the licence of any licensee.

(17) The State Government may delegate to the Board or its Chairman any of the powers conferred on, it by or under this Act.

(18) No act or proceeding of the Board shall be invalid by reason only of the existence of any vacancy among its members or any defect in the constitution thereof.

(19) The Board may, with the prior approval of State Government, by notification, declare its intention of exercising control over the purchase, sale storage and processing of such agricultural produce, and in such area as, may be specified in the notification. Such notification shall state that any objections or suggestions which may be received by the Board within a period to be specified in the notification, will be considered;

Provided that such period shall not be less than one month.

Section 3-A. The Chairman and his term of office etc.

¹[3-A. The Chairman and his term of office etc..- (1) The State Government shall appoint any of the members of the Board to be its Chairman who shall perform such duties and exercise such powers as may be assigned to or conferred upon him.

(2) The term of office of the Chairman appointed under sub-section (1) shall, unless the State Government otherwise directs, be coterminus with the term of the non-official members, of the Board and he shall be paid such remuneration and allowances as may, from time to time, be fixed by the Government.

(3) Notwithstanding the expiration of the term mentioned in sub-section (2), the Chairman shall continue to hold office until the vacancy caused by the expiration of the term has been filled up:

Provided that no vacancy shall be allowed to-remain unfilled for more than 6 months.

(4) Whenever there, is a temporary vacancy in the office of the Chairman the Government may appoint another member of the Board to act as the Chairman during the period of such vacancy and shall pay to his such remuneration and allowances as may be fixed by it.

Section 3-B. Supersession of the Baord

3-B. Supersession of the Baord.- (1) If at any time the State Government is satisfied that the Board is incompetent to perform or persistently defaults in performing the duties imposed on it by or under this Act, or abuses the powers conferred on it, the State Government may, by notification, supersede, the Board:

Provided that before issuing any such notification, the State Government shall give a reasonable opportunity to the Board to make representation against the proposed supersession and shall consider the representation, if any, of the Board.

(2) When the Board is superseded under the provisions of sub-section (1),-

(a) all the members including the Chairman of the Board, notwithstanding that their term of office has not expired, shall, from the date of supersession, vacate their offices as such members or the Chairman, as the case may be;

(b) all the powers and duties of the Board shall, during the period of supersession, be exercised and performed by such persons as the State Government may appoint in this behalf and their remuneration shall be such as may be fixded by the Government;

(c) all funds and other properties vested in the Board shall, during the period of supersession, vest in the State Government; and

(d) as soon as the period of supersession expires, the Board shall be reconstituted in accordance with the provisions of this Act].

Section 4. Declaration of notified market area

4. Declaration of notified market area.- (1) After the expiry of the period specified in the notification under section 3(19) and after considering such objections and suggestions as may be received-before the ??? of the specified period, the Board may, by notification and in any of her manner that may be prescribed, declare the area notified under section 3 or any portion thereof to be notified market area for the puropses of this Act in respect of the agricultural produce notified under section 3 or any part thereof.

(2) The Board, if satisfied that in any notified market area, a committee is not functioning or two such areas or a part of any such areas is to be amalgamated with another such area or is to be constituted into a separate notified market area may, by notification, denotify any market area noticed under sub-section (1) or any part thereof, and, when the whole of such, area is denotified, cancel a committee and transfer all the assets of that committee which remain after satisfaction of all its liabilities to the Board. Such assets shall be utilised by the Board for such objects in the area as it may consider to be for the benefit of the producers of that area:

Provided that the liabilities of the Board shall not extend beyond the assets so vested.

(3) After the date of issue of such notification or from such later date as may be specified therein, no person, unless exempted by rules framed under this Act shall, either for himself or on behalf of another person, or of the Government within the notified market, area, set up, establish or continue or allow to be set up, established or continued any place for the purchase, sale, storage and processing of the agricultural produce so notified, or purchase, sell, store or process such agricultural produce except under a licence granted in accordance with the provisions of this Act, the rules and bye-laws made thereunder and the conditions specified in the licence:

Provided that a licence shall not repaired by a producer who sells himself or through a bona fide agent, not being a commission agent, his own agricultural produce or the agricultural produce of his tenants on their behalf or by a person who purchases any agricultural produce for his private use.

(4) For the removal of doubts, it is hereby declare that a notification published in the Official Gazette under this section or section 3 shall have full force and effect notwithstanding any omission to publish or any irregularity or defect in the publication of a notification under this section or under section 3, as the case may be.

Section 5. Declaration of market yards

5. Declaration of market yards.- (1) For such notified market, area, there shall be one principal market yard and one or more sub-market yards as may be necessary.

(2) The Board may, with the prior approval of State Government, by notification, declare any enclosure building locality or other area in any notified market area to be principal market yard for the area and other enclosures, building localities or other areas to be one or more sub-market yards for the notified market area.

Section 6. No private market to fee opened in or near places declared to be markets

6. No private market to fee opened in or near places declared to be markets.- On and after the date on which the Board-has, by a notification under section 5, declared any place to be a principal-or sub-market yard no person or municipal committee, district board, panchayat or any local authority, notwithstanding anything contained in any enactment relating to such municipal committee, district board, panchayat or local authority shall be competent to set up, establish or continue or allow to be continued any place within the limits of such market or within a distance thereof to be notified in the Official Gazette in this behalf in each case by the State Government for the purchase, sale, storage and processing of agricultural produce:

Provided that a producer shall not be deemed to set up, establish or continue or allow to be continued a place as a market for the purpose of the purchase, sale, storage or processing of agricultural produce if he sells his own agricultural produce outside the premises set apart by the committee for the purpose of purchase, sale, storage and processing of agricultural produce.

Section 7. Authority to whom applications for grant of licences are to the made

7. Authority to whom applications for grant of licences are to the made.- The Secretary of the Board or any officer authorised, by the Chairman in writing in this behalf, shall be an authority for granting licences required under section 4(3).

Section 8. Applications for licences, fees to be paid and cancellation or suspension of licences

8. Applications for licences, fees to be paid and cancellation or suspension of licences.- (1) Any person may apply to the authority specified in section 7 for a licence which shall be granted for such period, in such form, on such conditions and on payment of such fees not exceeding Rs. 100, as may be prescribed:

Provided that if any person carrying on any business-of the nature specified in sub-section (3) of section 4 in a notified market area fails to apply for a licence on or before such date as the Board may, by notification, appoint in respect of that area, the licensing authority may refuse to grant him a licence until after the expiry of such period not exceeding three-years as it may think fit:

Provided further that the Board may, in its discretion, issue a licence to such person and may, before issuing such licence, impose such penalty not exceeding two thousand rupees as it may think fit.

(2) The Board or its Chairman or Secretary or any other officer authorised by the Board may, on being satisfied that there has been a breach of any of the conditions specified in a licence, by an order in writing cancel or suspend such licence, and may also direct that such licence shall, not be renewed for such period not exceeding five months for a first breach and not exceeding nine months for a second breach as may be specified in that order.

Provided that no such order shall be passed without giving the licensee an opportunity, to show cause why such an order should, not be passed:

Provided further that the Chairman of a committee or its Secretary may, under intimation to the Secretary of the Board, suspend a licence for a period not exceeding 15 days.

(3) The Secretary of the Board may, after such inquiry as he may consider necessary, refuse a licence to a person who in, his opinion-

(a) is a benamidar for or a partner with any person to whom, a licence has been refused, or whose licence is cancelled or suspended under sub-section (2), for the period of such cancellation or suspension;

(b) is convicted of an offence affecting the said person's, integrity as a man of business, within two year's of such conviction or

(c) is undischarged insolvent:

Provided that no such order shall be made without giving such person an opportunity to show cause why such an order should not be made.

Section 9. Establishment of market Committee

9. Establishment of market Committee.- The Board shall, by notification, establish a market committee, for every notified market area and shall specify its headquarters.

Section 10. Constitution of the Committee

10. Constitution of the Committee.- (1) A market committee shall consist of nine or sixteen, members as the Board may, in each, case, determine.

(2) of these members, one may be appointed by the Board from amongst the salaried servants of the Government by virtue of his office.

(3) The remaining members shall be appointed by the Board out of a panel of names equal to twice the number of vacancies to be filled in the manner provided hereunder, that is to say,-

(a) if the committee is to consist of nine members, there shall be appointed:-

(i) five members from the, producers of the notified market area; and

(ii) there members from the persons licensed under section 8 from the notified market area;

(b) if the committee is to consist of sixteen members, there shall be appointed:-

(i) nine members from the producers of the notified market area; and

(ii) six members from the persons licensed under section 8 from the notified market area.

(4) The panel of the names will be given by the Deputy Commissioner concerned.

(5) Whenever any member dies, resigns, ceases to reside in Himachal Pradesh or becomes incapable of acting as a member of the committee, the Board, in its discretion, may, on the submission of another panel, or in default of such panel, appoint another person to be a member in his stead.

(6) No act done by the Committee shall be called in question on the ground merely of the existence of any vacancy in, or any defect in the constitution of the committee.

(7) Subject to rules made under this Act, the disqualifications specified in sub-section (5) of section 3 shall also apply for purposes of becoming a member of a committee.

Section 11. Duties and powers of Committees

11. Duties and powers of Committees.- (1) It shall be the duty of the market committee and Secretary, market committee;-

(a) to enforce the provides of this Act and the rules and bye-laws made thereunder in the notified market area and, when so required by the Board, to establish a market therein providing such facilities for persons visiting it in connection with the purchase, sale, storage, weighment and processing of agricultural produce concerned as the Board or Chairman of the Board may, from time to time, direct;

(b) to control and regulate the admission to the market, to determine the conditions for the use of the market and to prosecute or confiscate the agricultural produce belonging to person trading without a valid licence;

(c) to bring, prosecute or defend or aid in bringing, prosecuting or defending any suit, action, proceeding, application or arbitration, on behalf of the committee or otherwise when directed by the Board or the Chairman of the Board; and

(d) to grade and standardise specified agricultural produce.

(2) Subject to such rules as the State Government may make in this behalf, it shall be the duty of the Secretary market committee, to issue licences to brokers, weighmen, measurers, surveyors, godown-keepers and other functionaries for carrying on their occupation in that notified market area in respect of agricultural produce and to renew, suspend or cancel such licences.

(3) No broker, weighman, measurer, surveyor, godown-keeper or other functionary shall, unless duly authorised by a licence, carry on his occupation in a notified market area in respect of the agricultural produce.

(4) Every person, licensed under sections 8 and 11 and every person exempted under section 4 from taking out licence, shall on demand by the committee or its Secretary or any person authorised by it in this behalf, furnish such records, information and returns, as may be necessary for the proper enforcement of the Act or the rules and bye-laws made there under.

Section 12. Term of office of members

12. Term of office of members.- Subject to the provisions of section 15, every member shall hold office for a period of three years from the, date of his appointment, and if, when such period expires, no person has been appointed to succeed him, such member shall, unless the Board otherwise directs, continue to hold office, until his successor is appointed.

Section 13. Removal of members

13. Removal of members.- The Board may, at any time, during the period, of his office, remove, by notification, any member, if such member has, in its opinion, been guilty of misconduct or neglect of duty or has lost the qualifications on the strength of which he was appointed, provided that, before the Board notifies the removal of a member under this section, the reasons for his proposed removal shall be communicated to the member concerned and he shall be given an opportunity of tendering an explanation in writing.

Section 14. Election of Chairman and Vice-Chairman

14. Election of Chairman and Vice-Chairman.- (1) Every market committee shall elect from among its memebrs a Chairman and a Vice-Chairman.

(2) The Committee may, by a majority of two-third of the total members at a meeting specially convened for the purpose, pass a resolution for the removal of any of the office bearers and any resolution, so passed shall be subject to confirmation by the Board.

Section 15. Filling of vacancies

15. Filling of vacancies.- (1) If through death, resignation, retirement, transfer or removal, in accordance with the provisions of section 13, any vacancy occurs, the Board may appoint a member to fill such vacancy in accordance with the provisions of section 10:

Provided that the term of office of the member so appointed shall expire on the same date as the term of office of the vacating member would have expired had the latter held office for the full-period allowed under section 12.

(2) Should the Board decide to raise the number of members of an existing committee from 9 to 16, the additional vacancies shall be filled in accordance with the provisions of sub-section (1) and the term of office of the additional members appointed shall expire with the existing members of the committee.

Section 16. Incorporation of Committee

16. Incorporation of Committee.- Every market committee shall be a body corporate as well as local authority by such name as the Board, may specify in the notification establishing it, shall have perpetual succession and a common seal, may sue and be sued in its corporate name and shall, subject to the provisions of section 28, be competent to acquire and hold property both movable and immovable, to lease, sell or otherwise transfer any movable or immovable property which may have become vested in or been acquired by it, and to contract and to do all other things necessary for the purposes for which it is established:

Provided that no committee shall permanently transfer any immovable property except in pursuance of a resolution passed at a meeting specially convened for the purpose by a majority of not less than three-fourth of the members of committee and with the prior approval of the Chairman of the Board.

Section 17. Appointment of sub-committee, joint committee and delegation of power

17. Appointment of sub-committee, joint committee and delegation of power.- The market committee may appoint two or more of its members to be a sub-committee or to be a joint committee for the conduct of any work or to report on any matter and may delegate to such committees or to any two or more of its members such of its powers or duties as it thinks fit.

Section 18. Appointment and salaries of officers and servants of committee

18. Appointment and salaries of officers and servants of committee.- (1) Every market committee shall have a Secretary deputed by the State Government from amongst ¹[its officers trained in agricultural marketing, not below the rank of an Agricultural Inspector] on the recommendation of the Chairman of the Board on such terms and conditions as may be prescribed.

(2) With the previous approval of the Chairman of the Board, a market committee may employ such officers and servants as may be necessary and proper for the management of the market and may pay such officers and servants salaries as fixed by the Board for different caders:

Provided that where the basic pay of an employee is less then 50 rupees the previous approval of the Chairman of the Board for appointment will not be necessary.

(3) Every officer or servant against whom an order of punishment has been made by a committee shall be entitled to appeal to the Board within a period of thirty days from the date of the order appealed against:

Provided that the appellate authority may, for sufficient cause, entertain the appeal, if made after the expiry of the aforesaid period.

(4) In computing the peroid of thirty days, the period spent for obtaining a copy of the order appealed against shall be excluded and a copy of the order shall be supplied to the person concerned free of cost.

(5) Any person aggrieved by the order of the appellate authority may further appeal to the State Government within a period of thirty days of the date of the appellate order; and the provisions of the proviso to sub-section (3) and sub-section (4) shall apply to such further appeal in the-same manner as they apply to an appeal under sub-section (3).

(6) The services of the Secretary or any employee shall be transferable from one market committee to another-market committee and from a market committee to the Board and vice versa.

Section 19. Persons who are public, servants within the meaning of section 21 of Indian Penal Code

19. Persons who are public, servants within the meaning of section 21 of Indian Penal Code.- Every member and officer or servant of the Board and of a market committee shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code (45 of 1860).

Section 20. Execution of contract

20. Execution of contract.- (1) Every contract entered into by a market committee shall be in writing and shall, be signed on behalf of the market committee by the Chairman or if, for any reason he is unable, to act, by the Vice-Chairman and two other members of the committee and shall be sealed, with the common seal of the committee.

(2) No contract other than a contract executed as provided in sub-section(1) shall be binding on a market committee.

Section 21. Levy of fee

21. Levy of fee.- The market committee shall levy, on ad valorem basis, fees on agricutural produce bought or sold by licensees in the notified market area at the rate not exceeding one rupee for every one hundred rupees, as may be fixed by the Board:

Provided that-

(a) no fee shall be leviable in respect of any transaction, in which delivery of the agricultural produce bought or sold is not actually made; and

(b) a fee shall be leviable only on the parties to a transaction in which delivery is actually made.

Section 22. Octroi not payable on certain agricultural produce

22. Octroi not payable on certain agricultural produce.- Notwithstanding anything to the contrary contained in the Himachal Pradesh Municipal Act, 1968 (19 of 1968), the State Government that in respect of such agricultural produce, notified under section 4, brought or received within a notified market area as may be specified in the notification, no octroi shall be payable by any person to a municipal committee from such date as may be specified therein.

Section 23. Himachal Pradesh Marketing Board Fund

23. Himachal Pradesh Marketing Board Fund.- ¹[(1) All receipts of the Board shall be credited into a fund to be called the Himachal Pradesh Marketing Board Fund and all expenditure incurred by the Board shall be defrayed out of the said fund which shall be operated upon in such manner as may be prescribed].

(2) This fund shall be utilised for the following purposes:-

(i) better marketing of agricultural produce;

(ii) marketing of agricultural produce on co-operative lines;

(iii) collection and dissemination of market rates and news;

(iv) grading and standardisation of agricultural produce;

(v) general improvement in the markets or their respective notified market area;

(vi) maintenance of the office of the Board, and construction and repair of its office buildings, rest house and staff quarters;

(vii) giving aid to financially week committees in the shape of loans and grants;

(viii) payment of salary, leave allowance, gratuity, compassionate allowance, compensation for injuries or death resulting from accidents while on duty, medical aid, pension or provident fund to the persons employed by the Board and leave and pension contribution to Government servants on deputation;

(ix) travelling and other allowances to the employees of the Board or its members;

(x) propaganda, demonstration and publicity in favour of agricultural improvement;

(xi) production and betterment of agricultural produce;

(xii) meeting any legal expenses incurred by the Board;

(xiii) imparting education in marketing or agriculture;

(xiv) construction of godowns;

(xv) loans and advances to the employees;

(xvi) expenses incurred in auditing the accounts of the Board; and

(xvii) with the previous sanction of the State Government, any other purpose which is calculated to promote the general interest of the Board, committees or national or public interest.

Section 24. Market Committee Fund

24. Market Committee Fund.- (1) All money received by a market committee shall be paid into a fund to be called the "Market Committee Fund". All expenditure incurred by the market committee under or for the purposes of this Act shall be defrayed out of the said fund, and any surplus remaining after such expenditure has been met, shall be invested in such manner as may be prescribed by rules.

(2)(a) Every market committee shall, out of its fund, pay to the Board, 20 per cent of the moneys received by it on account of the Board office expenses and such other expenses incurred by it in the interest of the marketing committee generally and also pay to the Government the cost of any special or additional staff employed by the Government in consultation with the committee for giving effect to the provisions of this Act in the notified market area.

(b) The Government shall determine the cost of such special or additional staff and shall, where the staff is employed for the purposes of more market committees than one, apportion such cost among the committees concerned in such manner as it thinks fit. Its decision determining the amount payable by any market committee shall be final.

Section 25. Purposes for which the market committee fund may be expended

25. Purposes for which the market committee fund may be expended.- Subject to the provisions of section 24, the market committee fund shall be expended for the following purposes:-

(i) the acquisition of a site or sites for the market;

(ii) the maintenance and improvement of the market;

(iii) the construction and repair of buildings which are necessary for the purposes of such market and for the health, convenience and safety of the persons using it;

(iv) the provision and maintenance of standard weights and measures;

(v) the pay, leave allowances, gratuities, compassionate allowances, and contributions towards leave allowances or provident fund of the persons employed by the market committee;

(vi) the collection and dissemination of information regarding all matters relating to crop satistics and marketing in respect of the agricultural produce concerned and propaganda in favour of agricultural improvement;

(vii) providing comforts and facilities such as shelter, shade, parking accommodation and water for the persons, draught cattle and pack animals coming to the market and similar other purposes;

(viii) the expenses incurred in auditing the accounts of the he committees and expenses incurred in the maintenance of the offices;

(ix) the payment of interest of loans that may be raised for purposes of the market and the provision of a sinking fund in respect of such loans;

(x) for the payment of travelling allowance to the members of the market committee and employees of the committee as prescribe

(xi) production and betterment of agricultural produce;

(xii) meeting any legal expenses incurred by the committee;

(xiii) loans and advances to the employees; and

(xiv) with the previous sanction of the Board, any other purpose which is calculated to promote the general interests of the committee for the notified market area or any other purpose calculated to promote the national interest.

Section 26. No trade allowance permissible except as prescribed by rules or bye-laws

26. No trade allowance permissible except as prescribed by rules or bye-laws.- No trade allowance, other than allowance prescribed by rules, or bye-laws made under this Act, shall be paid or received in a notified market area by any person in any transaction in respect of the agricultural produce concerned and no civil court, shall in any suit or proceeding arising out of any such transaction, recognise any trade allowance not so prescribed:

Provided that all market charges shall be paid by the buyers.

Section 27. Bar of suit in absence of notice

27. Bar of suit in absence of notice.- (1) No suit shall be instituted against the Board or a committee or any member or employee thereof or any person acting under the direction of any such body or member or employee for anything done or purporting to be done under this Act, until the expiration of two months next after a notice in writing, stating the cause of action, the name and place of abode of the intending plaintiff and the relief which he claims, has been, in the case, of a Board or committee delivered to him or left at its office, and in the case of any such member, employee or person as aforesaid, delivered to him or left at his office or usual place of abode, and the plaint shall contain a statement that such notice has been delivered, or left.

(2) Every such suit shall be dismissed unless it is instituted Within six mouths from the date of the accrual of the cause of action.

Section 28. Power to borrow

28. Power to borrow.- (1) The market committee may, with the previous sanction of the Board, raise the money required for carrying on the purposes for which it is established on the security of any property vested in and belonging to the market committee and of any fees leviable by the market committee under this Act.

(2) The market committee may, for the purpose of meeting the initial expenditure on lands, buildings and equipment required for establishing the market, obtain a loan from the Government on such conditions and subject to such rules as may be prescribed.

(3) A committee may, with the previous approval of the Chairman of the Board? obtain loans from other committees on such conditions, and subject to such rules, as may be prescribed.

Section 29. Acquisition of land for the Board and Committees

29. Acquisition of land for the Board and Committees.- (1) When any land is required for the purposes of this Act, the State Government may, on the request of the Board or a committee requiring it, proceed to acquire it under the provisions of the Land Acquisition Act, 1894 (1 of 1894), and on payment by the Board or committee of the compensation awarded under that Act and of all other charges incurred by the State Government on account of the acquisition, the land shall vest in the Board or committee.

(2) The Board or a committee shall be deemed to be a local authority for the purposes of the Land Acquisition Act, 1894 (1 of 1894).

Section 30. Supersession of market Committee

30. Supersession of market Committee.- (1) if, in the opinion of the Board, a market committee is incompetent to perform or persistently makes default in performing, the duties imposed on it by or under this Act, or abuses its powers, the Board may, by notification, supersede such committee:

Provided that before issuing a notification under this sub-section the Board shall give a reasonable opportunity to the market committee for showing cause against the proposed suspersession and shall consider the explanation and objections, if any, of the market committee.

(2) Upon the publication of the notification under sub-section (1) superseding a market committee, the following consequences shall ensue:-

(a) all the members including Chairman and Vice-chairman of the market committee shall, as from the date of such publication, be deemed to have ceased to be members of the committee;

(b) all the assets of the committee shall vest in the Board and it shall be liable for all the legal liabilities of the committee subsist date of its supersession up to the limit of the said assets; and

(c) the Board may, at its discretion, by order, constitute either a new committee as provided under section 10 or such other authority for the carrying out of the functions of the committee as the Board may deem fit.

(3)(a) When the Board, has made an order under clause (c) of sub-section (2), the assets and liabilities defined in sub-section (2)(b) vesting in the Board at the date of such order shall be deemed to have been transferred on the date of such order to the new committee or authority constituted as aforesaid.

(b)(i) Where the Board by order under clause (c) of sub-section (2), has appointed an authority other than a new committee for the carrying out of the functions of the superseded committee, the Board may, by notification, determine the period for which such an authority shall Act. Such period shall not be longer than three years:

Provided that the term of office of such authority may be terminated earlier if the Board for any reason considers it necessary.

(ii) On the expiry of the term of office of such authority, a new committee shall be constituted.

(iii) Upon such an order being made the assets and liabilities vesting in the authority thereby superseded, shall be deemed to have been transferred by such order to the new committee.

(4) Whenever the assets of a committee vest in the Board and no new committee or authority is appointed in its place, the Board shall employ the balance of the assets remaining after the discharge of the subsisting legal liabilities of the said committee for any object of public utility in the area specified in the notification issued under section (3).

Section 31. Emergency power

31. Emergency power.- If at any time the State Government is satisfied that a situation has arisen in which the purposes of this Act cannot be carried out in accordance with the provisions thereof, it may, by notification.

(a) declare¹ that the functions of the market committee shall, to such extent as may be specified in the notification, be exercised by the Board or such person or persons as the State Government may direct;

(b) assume to itself all or any of powers vested in, or exercisable by, a committee; and such notification may contain such incidental and consequential provisions as may appear to the State Government to be necessary or desirable for giving effect to the objects of the notification.

Section 32. Penalties

32. Penalties.- (1) Any person who contravenes any of the provisions of section 4 or section 6 or section 26 or the rules or bye-laws made thereunder shall, on conviction, be punishable with simple imprisonment which may extend to 90 days, or with fine which shall not be less than fifty rupees but may extend to five hundred rupees, or with both, and in the case of a continuing contravention, with a fine which, in addition to such fine as aforesaid, may extend to thirty rupees for every day after the date of first conviction during which the contravention is continued.

(2) Any person who contravenes any of the provisions of this Actor the rules or bye-laws made thereunder, except the provisions of section 4 or section 6 or section 26, shall be punishable with fine which may extent to Rs. 200 and in the cases of continuing contravention, with a further fine of, Rs. 20 for every day subsequent to the date of first conviction for which the contravention has continued.

Section 32-A. Laying of the annual and audit reports of the Board

¹[32-A. Laying of the annual and audit reports of the Board.- (1) The Board shall prepare once every year, in such form and at such times, as may be prescribed, an annual report, giving a true and full account of its activities during the previous year, and a copy there of shall be forwarded to the State Government.

(2) The accounts of the Board shall be audited annually by the Examiner of the Local Fund Audit or by such other person as the State Government may direct.

(3) As soon as the accounts of the Board are audited, the Board shall send a copy of the audit report to the State Government.

(4) Soon after the submission of the audit report under sub-section (3) and the annual report under sub-section (1) by the Board, the State Government shall cause the said reports to be laid before the State Legislative Assembly:

Provided that, when these reports are to be laid in the budget session, those shall be a laid on the Table of the house on the first sitting of the said session:

Provided further that the period intervening the close of the financial year to which the reports pertain and the laying of reports, shall not exceed nine months.]

Section 33. Power to make rules

33. Power to make rules.- (1) The State Government may make rules², consistent with this Act, for carrying out all or any of the purposes of this Act.

(2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for:-

(i) the appointment of members of the Board and market committees;

(ii) the powers to be exercised and the duties to be performed by the market committee or the Board, their officers and servants;

¹[(ii-a) the powers to be exercised and duties to be performed by the Chairman of the Board and the remuneration and allowances to be paid;]

(iii) the election of the Chairman and Vice-Chairman of market committee, their powers and term of office;

(iv) the filling of casual vacancies in the office of members or in the office of Chairman or Vice-Chairman of the market committee;

(v) the time, place and manner in which a contract between buyer and seller is to be entered into and the money is to be paid to the seller;

(vi) generally for the guidance of the market committees:

(vii) management of the market maximum fees which may be levied by the Board in respect of the agricultural produce bought or sold by licensees in any notified market area and the recovery and disposal of such fees;

(viii) the issue by a market committee of licences to brokers, weighmen, measurers, surveyors and godown-keepers or other functionaries, the form in which, and the conditions under which, such licences shall be issued or renewed and the fees, if any, to be charged therefor;

(ix) the place or places at which the agricultural produce shall be weighed, the kind and description of the scales, weights and measures which alone may be used in transactions in agriucltural produce in a notified market area;

(x) the inspection, verification, regulation, correction and confiscation of scales, weights and measures in use in a notified market area;

(xi) the trade allowances which may be made or received by any person in any transaction in an agricultural produce in a notified market area;

(xii) the provision of facilities for the settlement, by arbitration, or otherwise, of any dispute between a buyer and a seller of agricultural produce of their agents including disputes regarding the quality or weight of the article, the price or rate to be paid, allowances for wrapping, dirt or impurities or deductions for any cause;

(xiii) the prohibition of brokers from acting in the same transaction on behalf of both the buyer and the seller of agricultural produce;

(xiv) the provision of accommodation for storing any agricultural produce brought into the market;

(xv) the preparation of plans and estimates for works proposed to be constructed partly or wholly at the expense of a market committee or the Board and the grant of sanction to such plans and estimates;

(xvi) the form in which the accounts of a market committee shall be kept, the audit and publication of such accounts, and the charged, if any, to be made for such audit;

(xvii) the management and regulation of provident funds which may be established by market committee or Board for the benefit of its employees;

(xviii) the preparation and submission for sanction of an annual budget and the reports and returns to be furnished by the Board or market committes;

(xix) the investment and disposal of the surplus funds of the Board or market committees;

(xx) the manner in which auctions of agricultural produce shall be conducted and bids made and accepted in any market;

(xxi) determining the scale of fees payable for the issue or renewal of licences and for prescribing the form of a licence and the conditions under which a licence shall be issued to dealers;

(xxii) fixing the maximum annual fees which may be levied by market committee in respect of licences granted and maximum fees which may be levied on the agricultural produce bought or sold in the notified market area and the recovery of such fees;

(xxiii) exemption of persons or classes of persons from the obligation of obtaining licences under section 4;

(xxiv) specifying the authority to which applications for obtaining licences shall be made;

(xxv) the realisation or disposal of fees recoverable under the Act or under any rules or bye-laws made under this Act;

(xxvi) the travelling expenses that may be paid to the ¹(Chairman), members and employees of the Board and committees.

²(xxvi-a) operation of the Himachal Pradesh Marketing Board Fund;]

(xxvii) the settlement of any question as to-whether any person is producer or not;

(xxviii) the grading and standardisation of the agricultural produce the prevention of adulteration of the agricultural produce;

(xxix) imposing on the persons holding licences under this Act, the duty of making returns to committees at regular intervals of transactions of sale, purchase, storage and processing done by them, and of producing accounts and records for inspection and furnishing information when called by an authority empowered and prescribing the form and mode of verification of and the particulars to be entered in such returns as well as the nature of such information;

(xxx) the payment to the employees of the Board and market committee or leave allowance, gratuties or compassionate allowance and contribution to any provident fund which may be established for the benefit of such employees;

(xxxi) the penalties to be imposed upon the employees of the Board, and market committees, including the manner of imposing such penalties and the rights of appeal against such penalties;

(xxxii) nature and status of the servants of the Board and market committees;

(xxxiii) the regulation of advances, if any, given to producers by brokers or dealers; and

(xxxiv) any other matter which is to be or may be prescribed.

(3) The rules made under this section shall, as soon as may be after they are made, be laid before the Legislative Assembly.

Section 34. Bye-laws

34. Bye-laws.- (1) Subject to any rules made by the State Government under section 33, the Board may, in respect of the notified market area-make bye-laws for:-

(i) the regulation of business;

(ii) the conditions of trading;

(iii) the appointment and punishment of its employees and the employees of the market committees;

(iv) the payment of salaries, gratuities and leave allowance to such employees; and

(v) the delegation of powers, duties and functions to the subcommittee if any, provided by section 17.

(2) No bye-law shall take effect until it has been published for information and notified in the Rajpatra, Himachal Pradesh.

Section 35. Power of State Government to amend schedule

35. Power of State Government to amend schedule.- (1) The State Government may, by notification, add to the schedule to this Act any other item of agricultural produce or amend or omit any item of such produce specified therein.

¹[(2) Notwithstanding anything contained in sub-section (1), the State Government may, wherever it is expedient to do so in the public interest, by notification, add to the schedule to this Act any other item of agricultural produce or amend or omit any item of such produce specified therein, subject to such conditions as it may deem fit to impose, in its application to a market committee or committees and thereupon the schedule in its application to that/those market committee/committees shall be deemed to have been amended accordingly].

Section 36. Trial of offences

36. Trial of offences.- (1) No offence made punishable by this Act or any rule or bye-law made thereunder shall be tried by a court inferior to that of a Magistrate of the first class.

(2) Prosecutions under this Act may be instituted by the Chairman, Secretary or, in their absence, by any other person duly authorised by a resolution passed by the Board or a committee in this behalf.

(3) All fines received from an offender shall be credited to the Government revenues and grant equivalent to such fines, shall be paid to the market committee.

Section 37. Appeal

37. Appeal.- (1) An appeal against the order passed under section 8 shall lie to the Board in the manner prescribed.

(2) Any person objecting to the order passed by the Board may appeal to the State Government whose decision in-.the matter shall be final.

Section 38. Recovery of sums due to State Government from market committees

38. Recovery of sums due to State Government from market committees.- (1) Every sum due from a committee to the State Government or the Board shall be recoverable as an arrear of land revenue.

(2) Every sum due to a committee from any person shall be recoverable as an arrear of land revenue.

Section 39. Revision

39. Revision.- Notwithstanding anything contained in this Act, the State Government shall have the power of reversing or modifying any order of the Board or any of its officers passed or purporting to have been passed under this Act, if it considers it to be not in accordance with this Act or the rules or bye-laws made thereunder.

Section 40. Power to write off irrecoverable fees etc.

40. Power to write off irrecoverable fees etc.- Whenever it is found that any amount due to the Board or a committee is recoverable or should be remitted or whenever any loss of the Baord's or a committee's money or stores or other property occurs through the fraud or negligence of any person or for any other cause and such property or money is found to be irrecoverable the facts shall be reported to the Board or committee, as the case may be, and the Board, with the approval of the Government, and the committee, with the approval of the Board, may order the amount or value of the, property to be written off as loss irrecoverable or remitted, as the case may be, provided that in case of a committee, if in any case the amount due or the value of such property is in excess of two hundred rupees, such order shall not take effect without the approval of the State Government.

Section 41. Power to compound offences

41. Power to compound offences.- (1) With the previous approval of the Chairman of the Board, a committee or, with the authorisation by a resolution of a committee, its Chairman may accept from any person against whom a reasonable suspicion exists that he has committed an offence under this Act or any rule or bye-law made thereunder, a sum of money by way of composition for such offence.

(2) On the payment of such amount of money to the committee or to its Chairman, as the case may be, no further proceedings shall be taken against suspected person, who, if in custody, shall be discharged.

Section 42. Power of entry and search

42. Power of entry and search.- Subject to scuh restrictions as may be prescribed, the Secretary of the market committee or any other officer authorised by the committee in this behalf, may, for carrying out any of the duties imposed on the market committee by or under this Act, at all reasonable times, enter and search any place, premises or vehicles.

Section 43. Liability of member or employee of committee or the Board

43. Liability of member or employee of committee or the Board.- (1) Every person shall be liable for the loss, waste or misapplication of any money or other property belonging to committee, if such loss, waste or misapplication is proved, to the satisfaction of the Board, to be the direct consequence of his neglect or misconduct in the performance of duties as a Chairman, Vice-Chairman, member or an employee of the committee and he may, after being given an opportunity by a written notice to show cause why he should not be required to make good the loss, be surcharged with the value of such property or the amount of such loss by the Board, and if the amount is not paid within one month from the expiry of the period of appeal prescribed by sub-section (3) shall be recoverable as arrears of land revenue:

Provided that no such person shall be called upon to show cause after the expiry of a period of one year from the occurrence of such loss, waste or misapplication or after the expiry of one year from the time of his ceasing to be a member or an employee.

(2) Every person shall be liable for the loss, waste or misapplication of any money or other property belonging to the Board, if such loss, waste or misapplication is proved to the satisfaction of the State Government to be direct consequence of his neglect or misconduct in the performance of duties as a member or an employee of the Board, and he may, after being given an opportunity by a written notice to show cause why he should not be required to make good the loss, be surcharged with the value of such property or the amount of such loss by the state Government and if the amount is not paid Within one month from the expiry of the period of appeal prescribed by sub-section (3), if shall be recoverable as arrears of land revenue:

Provided that no such person shall be called upon to show cause after the expiry of a period of one year from the occurrence of such loss, waste or mis-application or after the expiry of one year from the time of his ceasing to be a member or an employee.

(3) The person against whom an order under sub-section (1) or sub-section (2) is made may, within one month of the service of such order? appeal to the State Government which shall have the power of confirming, modifying or disallowing the surcharge.

Section 44. Repeal and savings

44. Repeal and savings.- The Punjab Agricultural Produce Markets Act, 1961 (23 of 1961), as in force in the areas added to Himachal Pradesh under section 5 of the Punjab Re-organisation Act, 1966 (31 of 1966) and the Patiala Agricultural Produce Markets Act, 2004 BK., as in force in the areas comprised in Himachal Pradesh immediately before 1st November, 1966, are hereby repealed:

Provided that such repeal shall not affect:-

(a) the previous operation of any Act so repealed or anything duly done or suffered thereunder;

(b) any right, privilege, obligation or liability acquired or incurred under any Act so repealed;

(c) any penalty, forfeiture or punishment incurred in respect of any offence committed against any Act so repealed; or

(d) any investigation, legal proceeding or remedy in respect of any such right, privilege, obligation-liability, penalty, forfeiture or punishment as aforesaid;

and any such investigation, legal proceeding or remedy may be instituted, continued or enforced and any such penalty, forfeiture or punishment may be imposed as if this Act had not been passed:-

Provided further that anything done or any action taken under the Acts so repealed shall be deemed to have been done or taken under this Act and shall continue to be in force accordingly, unless and-until superseded by anything done or any action taken under this Act:

Provided further that the Himachal Pradesh Marketing Board constituted under the Patiala Agricultural Produce Markes Act, 2004 BK, and functioning immediately before the commencement of this Act shall, till the Board is duly established and constituted under section 3, continue to function as if that Board had been constituted under the provisions of this Act, and all the employees in the service of the Himachal Pradesh Marketing Board immediatly before the commencement of this Act, shall be deemed to be the employees of the said Board and their emoluments and other conditions of service shall not be varied to their disadvantage without the prior approval of the Government:

Provided further that every market committee constituted under the Patiala Agricultural Poduce Markets Act, 2004 BK., and the Punjab Agricultural Produce Markets Act, 1961 and functioning before the commencement of this Act, shall continue to function as if the committee had been constituted under section 10 and their members including the Chairman and Vice-Chairman shall hold office till a new committee is set up under this Act or the expiry of two years, whichever is earlier.