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Case Reviews, The Law

ADM Jabalpur V/S Shivkant Shukla AIR (1976) SC 1207

This article provides the answer to the question that whether the writ petition under Art. 226 is maintainable at the time of emergency and discusses the issue of judicial scrutiny in Presidential Orders.

By: Roopal Dhoot, 2nd Year, Indian Law Society’s Law College, Pune.

FACTS:

  • On June 25, 1975, the President in the exercise of his powers conferred by Clause (2) of Article 352 of the Constitution declared that a grave emergency exists whereby the security of India is threatened by internal disturbance.
  • The Presidential order of June 27, 1975, further stated that the state shall be in addition to and not in derogation of any order made before the date of the aforesaid order under Clause (1) of Art. 359 of the Constitution.
  • On June 27, 1975, in the exercise of powers conferred by Clause(1) of Art. 359,

the President declared that the right of any person (including a foreigner) to move any court for the enforcement of the rights conferred by Articles 14, 21, and 22 of the constitution and all proceedings pending in any court for the enforcement of the above-mentioned rights shall remain suspended for the period during which the proclamation of emergency.

MISA Act, 1975

The President promulgated the amending Ordinances No. 1 and 7 of 1975 and replaced by the Maintenance of Internal Security (Amending Act) (No. 39 of 1975) Act.

  • Introducing a new section 16A, and giving a deemed effect to s. 7 of the act as one from June 25, 1975, while the rest having a deemed effect from June 29,1975. By the same act, a new section 18 was also inserted with effect from June 25, 1975.
  • The respondent detained under s. 3(IA)(ii) read with s. 3(2) of the Maintenance of Internal Security Act (MISA).
  • The Act was challenged in several High courts, the vires of the ordinance issued on June 27, 1975, by the President of India as unconstitutional and inoperative in law and prayed for:

        i) the setting aside of the said order and,

       ii) for directing their release forthwith. In some cases, they challenged the validity of the thirty-eighth and thirty-ninth constitutional Amendment acts.

  • When these petitions came up for hearing, the appellant raise the preliminary objection to the maintainability on the ground that in asking for release by the issuance of a writ of Habeas Corpus.
  • The respondent was in substance claiming that they have been deprived of their Personal Liberty in violation of the procedure established by law, which plea was available to them under Art. 21 of the Constitution only 
  • In view of the Presidential order dated June 27 1975, suspending the right to move for enforcement of the right conferred by that article, the petition was liable to be dismissed at the threshold.

ISSUES:

  • Whether the writ petition under Art. 226 before a High Court is maintainable to enforce the right to personal liberty during an emergency declared under clause (1) of Art. 359 of the constitution?
  • If such a petition is maintainable, what is the scope of Judicial Scrutiny in view of Presidential Order?

 RULES:

Article 21 says that no person shall be deprived of his life or personal liberty except according to the procedure established by law.

Essential ingredients of Article 359(1) are as follows: 

        i) Proclamation of emergency must be in operation.

        ii) The President may order not to move to any court for the enforcement of F.R under part iii of the constitution.

        iii) By any such order, the proceedings for the enforcement of the rights shall remain suspended for the period during which the proclamation is in force.

JUDGMENT:

  • In the view of the Presidential order dated June 27, 1975, under clause (1) of the article 359, no person has locus standi to move writ petition under Article 226 of the constitution before a High Court for Habeas Corpus or any other writ or order or direction to enforce any right to personal liberty of a person detained under the MISA Act 1971 on the grounds that the order of detention or the continued detention is for any reason not in compliance with the Act or is illegal or male side.

In times of emergency, the executive safeguards the life of the nation and therefore its action either on the ground that these are arbitrary or unlawful cannot be challenged in view of the fact that considerations of security forbid proof of the evidence upon which the detention was ordered.

  • An application invoking Habeas Corpus under sec. 491 CrPc cannot simultaneously be moved in the High Court.
  • Article 359(1) makes no distinction between the threat to the security of India by war or external aggression on one hand and a threat to Security of India by internal disturbance to another hand. Powers of President U/A 352(1) and 359(1) of our constitution are immune from challenge in courts even when the emergency is over.
  • Sec 16A (9) of Maintenance of Internal Security Act is not unconstitutional on the ground that it constitute an encroachment on the writ jurisdiction of High Court under Act 226.

PRECEDENTS CITED:

Queen v. Halliday Ex Parte Zadiq(1917) AC 210 referred to.

  • Liberty is confined and controlled by law whether common law or statute. The safeguard of liberty is in the good sense of the people and in the system of representative and responsible government which has been evolved. If extraordinary powers are given, they are given because the emergency is extraordinary. Liberty is itself the gift of the law and may by the law forfeited or abridged.
  • The purpose and the object of Art. 359(1) is that the enforcement of any Fundamental Rights mentioned in the Presidential Order is barred or it remains suspended during the emergency. The scope of Art. 359(1) is not only to restrict the application of the article to the legislative field but also to the acts of the executive.

ENDNOTES:

¹https://indiankanoon.org/doc/1735815/ 

²https://blog.ipleaders.in/adm-jabalpur-v-shivakant-shukla/ 

³https://www.clawlegal.org/editorial/adm-jabalpur-v-shivkant-shukla-air-1976-2-scc-521/ 

⁴Nupur Chowdhury, Asia Pacific Journal of Environmental Law 2014.
https://www.lawnn.com/adm-jabalpur-v-shivkant-shukla/

Legislations, The Law

The Commercial Courts Act, 2015

Based on the recommendation of the Law Commission of India, the act came into force from October 2015. The primary aim of the Commercial Courts Act is to provide speedy disposal of high-value commercial disputes to reduce the pendency of cases. Further, the act introduces Commercial Courts, Commercial Divisions in High Courts, and Commercial Appellate Divisions as discussed in the article along with several important provisions.

By: Ankita Sharma, Faculty of Law, University of Delhi.

Introduction

The efficiency of our legal system or the pace of disposal of cases has an important role in the economic and social development of a country. Speedy justice is a far reached goal in our country. To curb this problem of delay in justice, steps are being taken. One of such major step taken was in the commercial division for the speedy disposal of cases of commercial disputes, which was one of the initiatives of the Make In India concept. The recommendation for the same was made by the Law Commission of India in its 253rd report. The bill for the commercial courts was passed in both the houses and got the assent of the President and the act came into force from October 2015.  The Act is expected to lighten the encumbrance of litigation on courts making it less cumbrous and more efficient.1

What is a Commercial Dispute?

The act covers a wide range of disputes. Section 2(c) of the act defines ‘commercial dispute’ as covering ordinary transactions and contractual enforcement issues, the provisions extend to myriad other commercial transactions, including shareholder agreements, insurance, and reinsurance issues, disputes emerging out of the infringement of intellectual property, etc.

Additional commercial disputes can be added to the list by the central government as given under section 2(c)(xxii).

Constitution of Commercial Courts

1. Commercial Courts

The act talks about the constitution of commercial courts in every state and union territory except in those states and union territories where the High Court has original jurisdiction.

The High Courts which exercise original jurisdiction concerning commercial disputes are only five: Delhi, Bombay, Calcutta, Himachal Pradesh, and Madras.

2. Commercial divisions in high courts

The High Courts which do not have original jurisdiction for the commercial disputes, with the coming of this act, now they will have a commercial division within itself, which is authorized to hear all the applications related to the commercial transactions. 

3. Commercial Appellate Division

The setup of these divisions will be in High Court which will hear appeals from:

  • the orders of the commercial courts
  • the orders of the commercial Division High Courts

From the date of the judgment, the appeal should be filed within sixty days.

Such appeals should be disposed of within six months from the date of filing of such appeal by the Commercial Appellate Division.

Some Important provisions 

Commercial Court Under Section 6 of the act exclusive jurisdiction to try such suits and applications which are concerning to a commercial dispute of a Specified Value which arises out of the whole territory of the State over which it has been vested with territorial jurisdiction
Commercial Division High Courts Under section 7 of the actAll suits and applications relating to commercial disputes of particular values filed in the High Court having original civil jurisdiction specified by an act to lie in a court (not inferior to a District court) and pending on the original side of High court.All suits and applications transferred to the High Court under Section 22(4) of the Design Act, 2000 or Section 104 of the Patents Act, 1970 shall be heard and resolved by the Commercial Division of the High Court.

Jurisdiction

In Samsung Leasing Ltd. v. Samsung Electronics Co. Ltd. & Anr2it was clearly stated that

the Commercial Division of the High Court has jurisdiction to hear and dispose of all suits and applications relating to commercial disputes of a specified value, having ordinary original civil jurisdiction. 

Bar on Revision Applications

Section 8 of the Act puts a bar on:

  • civil revision application or 
  • petition against an interlocutory order of a Commercial Court and the same is to be raised only in an appeal against the decree of the Commercial Court. 

The jurisdiction in case of Arbitration matters

Section 10 of the act states that in case of a commercial dispute of a specified value, if arbitration is an International arbitration matter or domestic arbitration matter, then the commercial courts can take the case. The commercial appellate Court will treat the appeal arising out of it in the same way.

Bar of Jurisdiction

A Commercial Court or any Commercial Division is not empowered to accommodate or resolve any specified suit, application, or proceedings linking to a commercial dispute in reverence of which the jurisdiction of any such civil court in express or implied manner barred by any other law for the time being in force in the territory as according to the section 11 of the act.

The maximum prescribed period for the disposal of the appeal

Section 14 of the act provides 6 months as the maximum time for disposal of an appeal.

Transfer of pending suits

According to Section 15

  • all suits of a value of Rs 1 crore or more than that pending in the high court will be transferred to the commercial division of the court. 
  • all suits which are of the value of more than 1 crore, and are pending in district court, will be transferred to the commercial court.
Amendments to The Code of Civil Procedure, 1908 

When applied to any suit of a commercial dispute of a specified value, The Code of Civil Procedure, 1908 shall be amended in a manner as described in the schedule of the act. Some key points are mentioned herein:

  • A strict timeline of 120 days is prescribed, after the service of summoning, to file the written statement failing which the right to file statement will be forfeited.

Further, there is a prescribed way that is to be followed in case of denial in the written statement, it should include details of the allegation that the defendant denies but requires the plaintiff to prove and the ones he admits.

The defendant should also give reasons in support of the denial and state his version of the same.

  • Any party can submit an application for a summary of the judgment, of a claim (or part thereof) which can be decided without recording oral evidence, at any time before the issues being framed.
  • A timely procedure has been prescribed for disclosures, discovery, and inspection of documents.
  • Within 15 days from completion of inspections, or any further date as fixed by the court, the statement of admission and denial of all documents is to be completed.
  • Against any frivolous suits and counterclaims, a provision of imposing costs has been provided.

2018 Amendment

  • This amendment aims to decrease the specified value of a commercial dispute, from the current value of 1 crore to 3 lakhs. Hence, commercial courts will now be deciding commercial disputes of reasonable value, and the time taken in deciding commercial disputes of lesser value would come down.
  • In the cities such as Delhi, Mumbai, Kolkata, Chennai, and State of Himachal Pradesh, where the respective High Courts have ordinary Civil Jurisdiction, this amendment paves the way for the establishment of Commercial Courts at the District Judge level in such territories. The State Governments may, by the issue of a notice, specify such pecuniary value of commercial disputes to be adjudicated at the district level. This value shall not be more than the pecuniary jurisdiction of the district court and at the same time shall not be less than Rs. Three lakhs. Under the jurisdiction of High Courts, except those exercising ordinary original jurisdiction, a forum of Appeal in a commercial dispute is provided, decided by commercial courts that are below the level of District judge, in the form of Commercial Appellate Courts to be at district judge level.
  • The clause of the introduction of the pre-institution mediation process in cases where no urgent, interim relief is intended will provide a chance to the parties that they can resolve the commercial disputes outside the confines of the courts through the authorities established under the Legal Services Authorities Act, 1987 and will, thus, ultimately strengthen investor’s confidence in the resolution of commercial disputes.
  • Section 17 of this bill aims at amending Section 21 of the principal act to add a clause that allows the Central Government to make rules and regulations for pre-institution mediation.
  • Another clause has been added to give probable effect to the amendment so as not to disturb the authority of the judicial forum currently adjudicating the commercial disputes according to the existent provisions of the Act.

Conclusion

This Act is of great importance as it provides separate courts to deal with the matter of commercial disputes. This act tries to lower down the burden of the courts and is a speedy tool for the disposal of cases and justice. This not only helps in disposing of cases at speed but also it will improve the economic growth and this will be a vision for the investors in our country.

End Notes:

  1. Galatea Ltd v. Diyora and Bhanderi Corporation, 2018 SCC Online Guj 1886.
  2. 2017 SCC Online Del 9374.
  3. Rajani Associates, Legally India, What does the Commercial Courts Act, 2015 do? 08 January 2016 at https://www.legallyindia.com/views/entry/commercial-courts-act-2015f.
  4. The Commercial Courts Act, 2005 (bare act)
Case Reviews, The Law

G.P. SRIVASTAVA V. SHRI R.K. RAIZADA & ORS. (Special Leave Petition (civil) 17942-43 of 1999)

The present case deals with the concept of ex-parte decree and the legal method of understanding by the Supreme Court of India in case the subordinate judiciary is unable to meet the ends of justice or takes a narrow view of the facts and evidence presented.

By: Melena Janet Jeen R, 4th Year BBA LL.B, Alliance University, Bangalore.

Hon’ble Judges/Coram

Saiyed Saghir Ahmad and R.P. Sethi, JJ. 

Counsels: 

For Appellant/Petitioner/Plaintiff: Gopal Subramanium, Sr. Adv., Santosh Kumar, Devesh Singh, Pradeep Ranjan Tiwari, and Rakesh K. Sharma, Advs 

For Respondents/Defendant: Tara Chandra Sharma, Ajay Sharma, and Pankhuri Shrivastava, Advs. 

Acts/Rules/Orders: Order 9 Rule 13 of the Code of Civil Procedure (CPC) 

Prior History

From the Judgment and Order Dated September 23, 1999, of the Allahabad High Court in Civil Revn. No. 73 of 1985, From the Judgment and Order Dated October 11, 1999, of the Allahabad High Court in Review Petn. No. 201 of 1999 

Case Note

Tenancy – sufficient cause – Order 9 Rule 13 of CPC Code, 1908 – appeal against Order of High Court dismissing the application filed by the appellant under Order 9 Rule 13 praying for setting aside ex parte decree for eviction of the appellant – under Order 9 Rule 13 ex-parte decree against the defendant can be set aside upon satisfaction of Court that either summons was not duly served upon the defendant or he was prevented by any ‘sufficient cause’ from appearing when the suit was called on for hearing – ‘sufficient cause’ for nonappearance refers to the date on which absence was made ground for proceeding ex parte and cannot be stretched to rely upon other circumstances anterior in time – appellant had established sufficient cause for his non-appearance on the date fixed when ex parte proceedings were initiated against him and had approached Court for setting aside ex parte decree within the statutory period – Order of High Court set aside – appeal allowed.

Judgment

On the failure to appear in the Court either personally or through his Advocate, the suit for arrears of rent, ejectment, and damages filed against the appellant was decreed ex-parte on 10.3.1983. This case deals with the concept of Ex-parte decree and the legal method of understanding by the Supreme Court of India.

Facts in Issue

  • The landlord filed a suit for eviction and recovery of arrears of rent in August 1981 as the tenant failed to pay the rent since June 1980 and was having arrears of Rs.4,000/-.

Even though the landlord served a notice dated May 1981 stating that the tenants should have to vacate the house, the tenants did not vacate nor pay the rent or damages for the suit.

  • The case was called for hearing in the morning and then postponed to the afternoon due to the absence of the appellant on 10th March 1983. The appellant failed to appear either personally or through his advocate both the times.
  • As the appellants weren’t present during the case the courts decided the case as an ex parte decree. 
  • The appellants approach the court to set aside the ex parte decree as they had valid reasons for not appearing for the hearing under Order 9 Rule 13 of CPC.
  • The trial court and the High Court had rejected the application.
  • The case is now heard in the Supreme Court as a special leave writ petition.

Matter in Issue

The appellant wasn’t able to attend the hearing as he was appointed as Assistant Engineer in the Irrigation Department for the construction of a bridge. He also contended that it was for the interest of the public. He was present on the site from 8th March 1982 to 11th March 1982 which prevented him from attending the hearing.

The Advocate of the appellant was not able to attend the case because his nephew had met with an accident. Both the reasons were supported by an affidavit and a medical certificate from a private doctor.

The courts rejected the above statements and documents as they did not find them sufficient enough. The medical certificate was from a private doctor and not from a government doctor.

Both the trial Court as also the High Court have adopted a very narrow and technical approach in dealing with the matter about the eviction of the appellant although he had put a reasonable defense and had approached the Court for setting aside the ex parte decree, admittedly, within the statutory period.

Justice can be served only if the court has heard the appellant’s side.

Laws Applicable

I. In the given case, the Civil Procedure Code was applicable. The case mainly focuses on setting aside the ex parte decree given by the court. Order 9 Rule 13 talks about setting aside decree ex parte against the defendant. The rule is as follows:

In any case, in which a decree is passed ex parte against a defendant, he may apply to the Court by which the decree was passed for an order to set it aside; and if he satisfies the Court that the summons was not duly served, or that he was prevented by any sufficient cause from appearing when the suit was called on for hearing, the Court shall make an order setting aside the decree as against him upon such terms as to costs, payment into Court or otherwise as it thinks fit, and shall appoint a day for proceeding with the suit:

Provided that where the decree is of such a nature that it cannot be set aside as against such defendant only it may be set aside as against all or any of the other defendants also:

Provided further that no Court shall set aside a decree passed ex parte merely on the ground that there has been an irregularity in the service of summons if it is satisfied that the defendant had notice of the date of hearing and had sufficient time to appear and answer the plaintiff’s claim.

Explanation – Where there has been an appeal against a decree passed ex parte under this rule, and the appeal has been disposed of any ground other than the ground that the appellant has withdrawn the appeal, no application shall lie under this rule for setting aside that ex parte decree.

II. Rent Agreement laws in India are the state laws enacted to govern the rental agreements in various aspects. These fall under the ambit of the Rent Control Act. Each state has its own Rent Control Act. For instance, Rent Control Act (1999) Maharashtra, Rent Control Act (1958) Delhi, Tamil Nadu Buildings (Lease and Rent Control) Act (1960) Chennai govern the state’s rent agreements. This means there are also referred to settle disputes between the landlords and the tenants in their respective states. Here the laws of Allahabad will be applicable.

The judgment of the Case

On account of the unrealistic and technical approach adopted by the Courts, the litigation between the parties has unnecessarily been prolonged for about 17 years. The ends of justice can be met only if the appellant-defendant is allowed the opportunity to prove his case within a reasonable time.

The Supreme Court allowed the ex parte decree given by the High Court and the Trial Court to be set aside.

This was done with the payment of Rs. 5,000/- to the opposite parties. The Trial Court was instructed to take up the case and hear the appellant’s side within six months from the date of receipt of the copy of the order.

Case Analysis

An ex-parte decree is a kind of judgment given in case the parties to the case do not appear in the court hearing even though the summons were issued. The parties to a case in which the judgment was ex parte can approach and apply to the court a reasonable cause and the ex parte decree will be set aside if the courts are convinced.

In the case, both the Trial Court and the High Court have rejected the application for the setting aside of the ex parte decree. It clearly is stated in Order 9 Rule 13, that if the decrees are passed against the defendant, the ex parte decree can be set aside if they come up with the sufficient cause for not appearing in the hearing and should have to take care of the court fees for the same. Here the appellant had a valid reason which was for an interest in the public and supported the reason with an affidavit. The courts have no reason not to apply Order 9 Rule 13 in this situation. The Trial Court and High Court have adopted a very narrow and technical approach in dealing with a matter about the eviction of the appellant although he had put a reasonable defense and had approached the Court for setting aside the ex parte decree, admittedly, within the statutory period.

Conclusion

Even though the Trial Court and the High Court have given a very narrow judgment even after the appellants have submitted enough evidence and have done it within the statutory period, the Supreme Court had rectified this situation by considering the evidence of not attending the hearing of the Courts to be valid and had ex parte decree set aside as per Order 9 Rule 11. Thus, the Supreme court had followed a legal method of understanding.

Legislations, The Law

DOWRY PROHIBITION ACT, 1961

To expunge the social evil of dowry, The Dowry Prohibition Act was enacted on 1st May 1961. It lays down provisions to punish the giver and the taker of dowry. This legislation prohibits the request, payment, or acceptance of dowry in any form. It applies to all the people and religions of India.

By: Himanshi Jain, student of Final year LL.B., Balaji Law College, Pune

Any young man, who makes dowry a condition to marriage, discredits his education and his country and dishonuors womanhood.” – Mahatma Gandhi 

The concept of dowry is prevalent in society since time immemorial.

Thousands of unnatural deaths of newly wedded women have been labeled as kitchen mishappening. 

Objective 

 This Act aims to stop the malpractice of demanding and giving of the dowry in the form of value as a consideration for marriage in Indian society.

Definition of Dowry

Section 2 of the Act lays down the definition of dowry and implies that dowry means any property or valuable security given or agreed to be given either directly or indirectly by parties to the marriage, or their parents before or at or anytime after the marriage.

However, it does not includes dower or mahr if the parties are Muslim and the Muslim personal law applies to them. 

Penalty 

Section 3 and Section 4 of the Act lays down the penalty for giving, taking, demanding, or advertising dowry.

Who could initiate the proceeding?

Section 7 of the Act states that the proceeding for Dowry could be initiated by the following:

  • Police
  • Aggrieved person
  • Family, Relatives, and Friends
  • Any recognized welfare institution or organization

The offense of dowry is non-bailable, non-compoundable, and cognizable in nature.

Other Laws Related To Dowry

Apart from the Dowry prohibition Act, 1961, several provisions of the  Indian Penal Code, 1860 also provide for penal provisions to dowry which are:

  • Section 302- Punishment for murder
  • Section 304B– Dowry death
  • Section 306- Abetment of suicide
  • Section 498A- Husband or relative of husband of a woman subjecting her to cruelty

Analysis

The sole motive of this act is to provide legal protection to married women against victimization by her in-laws and also to safeguard the interests of women. But even after years of the passing of this Act, dowry is still a common practice amongst all the communities in India. Dowry related violence is not merely physical but psychological as well. Women are still abused and ill-treated for dowry. There is a lack of knowledge about the existing laws and the prohibition of dowry.  But there are always two sides to a picture. There has been an increase in false dowry cases. Some women use it as a weapon to harass and humiliate their husband and his family. This is where the question arises that somewhere or the other, the law lacks an effective implementation. Thus, it becomes important for both men and women to become sensitized towards the issue of dowry and even more for women who misuse the protection granted to them.

Legislations, The Law

The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020.

On 5th June 2020, the President of India promulgated ‘The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020’ which has been passed by both the Houses of the Parliament during the ongoing monsoon session.

By: Hanoon Vahab, BBA L.LB 3rd year, Geeta Institute of law

Objectives of the ordinance:

1. To provide freedom of choice to farmers and traders concerning the sale and purchase of farmers’ produce.

2. To promote efficient, transparent, and barrier-free inter-state and intra-state trade & commerce.

3. To provide a facilitative framework for electronic trading.

Key points of the ordinance:

1. Trade of Farmers’ Produce : 

The ordinance allows intra-state and inter-state trade of farmers’ produce outside by providing:

  1. The market committee formed under the state APMC acts runs the physical premises of the market.
  2.  Trade can be conducted in other markets notified under the state APMC act such as: 
  • (i) Farm gates
  • (ii) Factory premises
  • (iii) Warehouses
  • (iv) Silos
  • (v) Cold storage

2. Electronic Trading

The ordinance permits the electronic trading of scheduled farmers’ produce in the specified areas in the following manner:

  1. E-platform is set up to facilitate the direct and online purchase and selling of scheduled farmers’ products through electronic devices.
  2. E-platforms of scheduled farmers’ product can be established and operated by:
  • (i) Companies
  • (ii) Partnership firms
  • (iii) Registered societies
  • (iv) Any other trader having permanent account numbers under the Income Tax Act, 1961, or any other document notified by the central government.
  • (v) A farmer producer organization.

3. Market Fee Abolished :

The ordinance prohibits the state government from levying any market fee, cess, or levy on farmers, traders, and electronic trading platforms for trade and commerce in scheduled farmers’ produce in a trade area.

What is Farmer’s Produce?

The definition of farmers’ produce under section 2 (a) of The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020 states that:

(a) Farmers’ produce means –

  1. Foodstuff including cereals like wheat, rice, or other coarse grains, pulses, edible oilseed, oils vegetables, fruits, nuts, spices, sugarcane, and products of poultry, piggery, goatery, fishery, and dairy intended for human consumption in its natural or processed form.
  2. Cattle fodder including oil cakes and other concentrates; and
  3. Raw cotton whether ginned or unginned, cotton seeds, and raw jute.

Trade and Commerce of Farmers’ produce 

  • The ordinance ensures freedom to conduct trade (inter-state or intra-state) and Commerce in a trade area. 
  • Any trader may engage in the inter-state or intra-state trade of scheduled farmers’ produce with farmer or trader in a trade area.
  • The definition of Scheduled Farmers’ Produce under section 2 (J) of The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020 states that Scheduled farmers’ produce means the agricultural produce specified under any state APMC act or regulation.

Trade and commerce in lieu of public interest:

In such a case, the central government may prescribe a system for electronic registration for traders, modalities for trade transaction, and mode of payment of the scheduled farmers’ produce in a trade area,

wherein the payment has to be made either on the same day or maximum within the 3 working days.

Who are competent to E-trade?

  1. Any person (other than an individual) having a permanent account number allotted under the Income Tax Act 1961 or other documents as notified by the central government.
  2. Any farmer producer organization 
  3. Agricultural cooperative society 
  • The ordinance restricts State Government from levying market fees under state APMC or any other state law in the trade area.

The ordinance provides the authority to Central Government to develop a Price Information and Market Intelligence System and appoint any person owning and operating E-trade to provide such information.

Dispute Resolution between the farmer and a trader

  • Composition of the Board of Conciliation
  1. It shall consist of a chairperson; who shall be an officer serving under the supervision and control of the Sub-Divisional Magistrate.
  2. Members shall not be less than 2 and not more than 4; who shall be appointed in equal numbers to represent the parties to the dispute on the recommendation of such parties, as the Sub-Divisional Magistrate may deem fit.
  • Procedure to resolve the dispute

1. Parties to the dispute, through conciliation, can file an application to the Sub-Divisional Magistrate who will further refer the matter to a Conciliation Board regarding the same.

2. During Conciliation Proceedings, a Memorandum of Settlement signed by the parties to the dispute shall be drawn and it should be binding upon them.

3. If such parties are unable to resolve the dispute within 30 days, they may approach the Sub-Divisional Magistrate to resolve the same.

4. The Sub-Divisional Authority, on its motion or in a petition or on the reference from any government agencies, can take action in that regard within 30 days from the date of its filing by giving the parties an opportunity of being heard.

5. Any party aggrieved by the order of the Sub-Divisional Authority can prefer an appeal before the Appellate Authority within 30 days of such an order.

6. The manner and procedure for filing a petition or an appeal before the Sub-Divisional Authority and Appellate Authority respectively shall be such as may be prescribed.

  • The ordinance also provides for the provisions concerning the Suspension or Cancellation of the right to operate in electronic trading and transaction platform along with the Right to Appeal against the same.
  • It contains the provisions regarding Penalties for Contravention of Ordinance and Rules.
  • The ordinance provides for the Protection of action taken in good faith.
  • The ordinance gives power to the Central Government to make rules under sections 4(2),m4(3),8(10),9(2),10(2),10(3), and any other matter which is to be or may be prescribed.
  • The ordinance provides for Laying of Rules and Powers to remove difficulties by the Central Government by notifying in the official gazette and after the approval of both Houses of the Parliament.

An exception to the ordinance:

The ordinance shall not apply to the Stock Exchanges and Clearing Corporations recognized under the Securities Contracts (Regulations) Act, 1956.

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