12

12. Constitution of committees (1) - A market committee shall consist of nine or sixteen members as the State Government may in each case determine, out of whom one may be appointed by the State Government from amongst its officials :

Provided that where in a notified market area there is in-existence a Co-operative Society, the committee shall consist of ten or seventeen members as the case may be.The remaining members shall be elected in the prescribed manner by the following persons as provided hereunder, that is to say,-

(a) If the committee is to consist of nine members, there shall be elected -

(i) five members from producers of the notified market area, by the Panches and Sarpanches of the Gram Panchayats situated within the notified market area,

(ii) two members from persons licensed under section 10 for the notified area concerned, by the persons holding licensing under that section; and

(iii) one member from persons licensed under sec. 13, by the persons licensed under that section ;

(b) if the committee is to consist of ten members, there shall be elected, in addition to the members specified in sub-clause (i), (ii) and (iii) of clause (a), one member representing the Co-operative Society, by such Societies;

(i) nine members from producers of the notified market area by the Panches and Sarpanches of the gram Panchayats Situated within the notified market area ;

(ii) four members from persons licensed under section 10 for the notified market area concerned, by persons licensed under that section; and

(iii) two members from persons licensed under section 13, by persons licensed under that section;

(d) if the committee is to consist of seventeen members, there shall be elected, in addition to the members specified in sub-clause (i), (ii), and (iii) of clause (c) one member representing the Co-operative Societies, by such Societies:

Provided that the producers elected under this sub-section shall be persons who are residents of the notified market area;

Provided further that where, in the case of sub-clause (iii) of clause (a) or sub-clause (iii) of clause (c), there are no persons licensed under section 13 or the number of such persons is less than four, the requisite number of such persons shall be elected jointly by persons licensed under section 10 and section 13 .

(3) The election of members referred to in sub-section (2), shall be made and communicated to the State government within the prescribed in this behalf which shall not be less than two months and there upon the State Government shall notify such election in the official gazette :

Provided that if within the period aforesaid the election is not made and communicated to the State Government or the requisite number of persons are elected and communicated, the state Government may appoint the requisite number of persons to the committee on its own motion and notify the appointment so made.

(4) Notwithstanding anything contained in the foregoing sub-sections and section 16, where a committee is constituted for the first time all the members including the Chairman and Vice-Chairman thereof shall be nominated by the state Government and subject to the provisions of section 17, such members shall hold office for a period not exceeding three years as may be prescribed.’

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

(6) 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.

¹[12-A. Supression of Nominated Committees -

(a) all the committees, constituted by way of nomination, whether under sub-section (4) of section 12 or under section 12-d as it existed immediately before such commencement shall stand superseded;

(b) all the members including the Chairman and the vice-Chairman of every Committee shall cease to hold office;

(c) during the period of Supersession of the committees, all powers and duties conferred and imposed upon the committee, its chairman and other members by or under this Act, shall be exercised and performed by such gazetted officer as the Government may appoint in that behalf ; and

(d) All property vested in each Committee shall, until these are re-constituted, vest in the Government.

Provided that vested the Committees shall be re-constituted in accordance with the provisions of ²[Section 12-8] within a period of one year from the date of Supersession.]

¹[ 12-B Constitution of committees by nomination for fixed period (1) - All the members of a committee shall be nominated by notification by the State Government from amongst the same categories of persons from which they, but for this provision, would have been appointed or elected under section 12.

(2) The chairman and the Vice-Chairman of a committee shall be nominated by State Government form amongst its members nominated under sub-section (1).

(3) The term of office of the members nominated under sub-section (1) shall, unless sooner determined by the State Government, be three years from the date on which their nomination is notified in the official Gazette.

(4) The State Government anything contained expiry of the term specified in sub-section (3) arrange to constitute the committee in accordance with the provisions of section 12.

(5) Notwithstanding anything contained in section 17, whenever any member nominated under sub-section (1) dies, resigns, ceases to reside permanently in the notified market area or becomes incapable of acting as a member or any vacancy occurs as a result of removal in accordance with the provisions of section 15 or otherwise, the State Government may fill up such vacancy in accordance with the provisions of such section (1);

Provided that the term of office of the member so nominated 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 period specified in sub section (3) .]

²[ 12-C. Supersession of Nominated Committee

(a) (4) section 12 or under section 12-B, in existence immediately before such commencement , shall stand superseded;

(b) all the members, including the Chairman and the Vice Chairman of every such Committee, shall cease to hold office;

(c) during the period of supersession of such Committees, all the powers and duties all the Committees, constituted by way of nomination, whether under sub-section, conferred and imposed upon the committees, their Chairman and other members by or under this Act. Shall be exercised and performed by such gazetted officers as the State Government may appoint in that behalf ; and

(d) all property vested in every such committee shall, until it is re-constituted in accordance with the provisions of section 12, vest in state Government.

Provided that such reconstitution shall be made within a period of ^1[four years & six months] from the date of supersession.]

²[12-d. (1) All the members of a committee shall be constitution of nominated by notification by the state Government committees by from amongst the same categories of persons, would have been appointed fixed period, or elected under section 12

(2) The Chairman and the vice-Chairman of a committee shall be nominated by the state Government from amongst its members nominated under sub-section (1).

(3) The term of office of the members nominated under sub-section (1) shall, unless sooner determined nominated by the state Government, be three years from the on which their nomination is notified in the official Gazette.

(4) The state Government shall, before the expiry of the term specified in sub-section (3), arrange to constitute the committee in accordance with the provision of section 12.

(5) Notwithstanding anything contained in section 17, whenever any member nominated under sub-section (1) dies, resigns, cease to reside permanently in the notified market area or become incapable of acting as a member or any vacancy occurs as a result of removal in accordance with the provision of section 15 or otherwise, the state Government may fill up such vacancy in accordance with the provision of sub-section (1).

13. Duties and powers of committee (1) - It shall be the dulty of a committee-

(a) to enforce the provisions of this act and the rules and the bye-laws made thereunder in the notified market area and, when so required by the.¹[***] 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 ²[***] 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 board³ [***].

(1) Every person licensed under section 10 or section 13 and every person exempted under section 6 from taking out licence, shall on demand by the committee or any person authorised by it in this behalf furnish such information and return, as may be necessary for proper enforcement of act or the rules and bye-laws made thereunder ;

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

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

Provided that nothing in sub-section (3) and (4) shall apply to person carrying on there business of warehouseman who is licence under the Punjab act, 1957 (Punjab) act no . 2of 1958).

14. Term of office of members - Subject to the provisions of section 17, every member of a committee other than a committee constituted under sub- section (4) of section 12 shall hold office for a period of three years from the date of his appointment.

15. Removal of members - The State Government may be notification remove any member if, in its opinion, he has been guilty of misconduct or neglect or duty or has lost the qualification on the strength of which he was appointed :

Provided that before the State Government notify the removal of a member under this section, the reason for his proposed removal shall be communicated to the member concerned and he shall be given an opportunity of tendering an explanation in writing.

16. Election of chairman and vice-chairman - (1) Every committee shall elect from among its members a chairman and a vice-chairman.

¹[provided that no official member of a Committee shall be entitled to be elected as or to take part in the election of its chairman or Vice-Chairman]

(2) The Committee may be a majority of two thirds 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 ²[***] board.

17. Filling of vacancies (1) - Whenever any member dies, resigns, ceases to reside Permanently in the notified market area or becomes incapable of acting as a member of a committee or any vacancy occurs trough transfer or removal in accordance with the provision of section 15 or otherwise, the State Government may appoint a member to fill in such vacancy in accordance with the provision of section 12:

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 14 unless there be delay in appointing a new member to succeed the member first mentioned above in which case it shall expire on the date on which his successor is appointed by the State Government .

(2) Should the State Government 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 provision of sub-section (1) and the term of office of the additional members appointed shall be the unexpired portion of the term of the existing members of the committee.

¹[17-A. Election petition. (1) - Any person who is a voter for the election of a member may, on furnishing the prescribed and on such other conditions, as may be prescribed, within twenty days of the date of announcement of the result of an election, present to the prescribed authority, an election petition in writing, against the election of many person as a member, vice- chairman or chairman of the Committee.

(2) The prescribed authority may -

(a) If it finds , after such a inquiry as it may deem necessary , that a failure of justice has occurred or any corrupt practice has been committed by a returned candidate or his agent or by any other person with the consent of a returned candidate or his agent , set aside the election, and a fresh election, shall thereupon be held;

(b) If it finds that the petition is false, frivolous or Vaxatious dismiss the petition and order the security to be forfeited to the committee

(3) Expect as provided in the section, the election of a member, wise–chairman or chairman shall not be called in question before any authority or in any court.]

18. Incorporation of committees - Every committee shall be a body corporate as well as a local authority by such name as the state Government may specified in the notification established it , shall have perpetual succession and common seal , may sue and be sued in it corporate name, and shall subject to the provisions of section 32 be competent to acquire and hold property, both moveable and immovable to lease, sell or otherwise transfer any moveable and 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 proposes for which it is established :

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

19. Appointment of sub-committees and joined committees and delegation of powers - A committee may appoint, one or more of its members or other to be sub-committee or to be a joined committee or to be an adhoc committee for the administration of the sub-market yards , for the conduct of any work or for reporting or any matter and may delegate to such committee or any one or more of its members such of its powers or duties as it think fit :

Provided that when any such committee is to consist of, or the power of the committee are delegated to, one member the resolution shall operate only after it is duly approved by the ¹[***] board.

20. Appointment and salaries of officers and servants of committees (1) Every committee shall have a person as its secretary , appointed by the bold as its servants , and lent to the committee subject to such terms and conditions and as the hold may prescribed .

(2) A committee may, with the previous approval of the ²[secretary of the board], employ such other officers and servants as may be necessary for the management of the market and may pay such officers and servants salaries as fixed. by he board for different caders and shall have power to control and punish them :

Provided that where the basic pay of an employee is less then ³[five hundred rupees] the previous approval of the secretary of the board for the appointment will not be necessary :

Provided further that if after examining the records obtained from the committee or otherwise the ⁴[board] is satisfied that any officer or servant of the committee is a negligent in the discharge of his duties the committee shall on the requirement of the ⁵[board] suspend or otherwise punish him, and if the ⁶[board] is satisfied that he is unfit for employment the committee shall dismiss him or terminate his services .

(3) (i) A committee shall in the case of any other officers or servant of the board whom it employs , pay such pension and other contribution , gratuity and allowances as may be required by the conditions of his service under the board.

(ii) A committee may also, in the case of any of its officers and servants provide for the payment to them of such leave or other allowances , pensions or gratuities as it deems proper. And may contribute to any provident fund which may be established for the benefit of such officers and servants .

(iii) A committee shall, in case of Government servant whom it employs , pay to the state Government such contributions towards the pension and leave allowances of such servant as may be payable under may regulation in force for the time being .

(4) The services of the secretary or any employee dealing with the accounts of a committee shall be transferable within the same ¹[state].

(5) The secretaries in the service of market committees constituted under the Punjab Agricultural produce markets Act, 1939 and the Patiala Agricultural produce markets Act, 2004 B.K. shall be deemed to be the servants of the board and their emoluments and the other conditions of service shall be such as may be determined by the Board .

(6) The powers conferred by this section on a Committee shall be exercised subject to such rules as may be made in this behalf by the State Government .

21. Persons who are to be deemed public servants within the meaning of section 21 of Indian penal code - Every member and officers or servant of the Board or a committee shall be deemed to be public Servant within the meaning of section 21 of the Indian Penal Code.

22. Execution of contracts (1) - Every contract entered into by Committee shall be in writing and shall be signed on behalf of the Committee by the Chairman or if for any reason he is unable to act, by the Vice- Chairman, and ²[one other member and the Secretary] of the Committee and shall be sealed with the common seal of the Committee .

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

23. Levy of fees - ¹[A committee shall subject to such rules as may be made by State Government in this behalf , levy on ad-valorem basis –

(i) Fees on the agricultural produce bought or sold be a licensee in the notified market area at a rate not exceeding two rupees for every one hundred ; and

(ii) Also additional fees on the agricultural produce when sold by a producer to a licensee in the notified market area at a rate not exceeding one rupee for every one hundred rupees.]

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 on the parties to a transaction in which delivery actually made.

²[23-A. Saving of excess fee charged - (1) - Notwithstanding any thing contained in any judgement. Decree or order of any court, it shall be lawful for a Committee to obtain the fee levied and collected by it from a licensee in excess of that leviable under section 23, if the burden of such fee was passed on by the licensee to the next purchaser of the agricultural produce in respect whereof such fee was levied on collected.

(2) No suit or other proceedings shall be instituted, maintained or continued in any court for the refund of whole or any part of the fee retained by a Committee under sub-section (1) and the question is whether the burden of such fee was.

(3) If any dispute arises as to the refund of any fee retained by a Committee by virtue of sub-section (1) and the question is whether the burden of such fee was

(4) If any amount of fee retainable by a committee under sub-section (1) has been refunded to any licensee, the same shall be recoverable by the Committee in the manner indicated in sub-section (2) of section 41.

(5) The provisions of this section shall not affect the operation of section 6 of the Punjab Agricultural produce markets (|Amendment and validation) Act, 1976.

24. Octroi not payable on certain agricultural produce - Notwithstanding anything to the contrary contained in the Punjab Municipal Act, 1911 (and any other corresponding law for the time being in force), the state Government may by notification direct that in respect of such agricultural produce, notified under section 6, brought or received within a notified market area, as may be specified in the notification no octroi shall be payable by any person to Municipal committee from such date as may be specified therein .

25. Marketing Development Fund - (1) All receipts of the Board shall be credited into a fund to be called the Marketing Development Fund.

(2) ² [ All expenditure incurred by the Board shall be defrayed out of such fund which shall be operated upon in such manner as may be prescribed.]

26. Purposes for which the Marketing Development Fund may be expended - The Marketing Development Fund shall be utilised out of following purposes:-

(i) better marketing of agricultural produce;

(ii) marketing of agricultural produce on cooperative lines;

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

(iv) grading and standardisation of agricultural produce;

(v) general improvements in the markets or their respective notified market areas;

(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 weak 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, its members and members of Advisory Committees;

¹[(x) propaganda, demonstration and publicity in favour of agricultural improvements;]

²[(xi) production and betterment agricultural produce;]

(xii) meeting and legal expenses incurred by the board;

(xiii) imparting education in marketing ³[or agriculture;]

(xiv) construction of godowns;

(xv) loans and advances to the employees;

(xvi) expenses incurred in auditing the accounts of the board;

(xvii) with the previous sanction of the State Government, any other purpose which is calculated to promote the general interests of the board and the Committees ⁴[or the national or public interest.

Provided that if the board decides to give aid of more than five thousand rupees to a financially weak Committee under clause (vii), the prior approval of the State Government to such payment shall be obtained.

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

(2) (a) Every Committee shall, out of its fund pay to the board as contribution such percentage of its income derived from licence fee, market fee and fines levied by the courts as is specified below to defray expenses of the office establishment of the board and such other expenses incurred by it in the interest of the Committees generally and also pay to the State Government the cost of any special or additional staff employed by the State Government in consultation with the Committee for giving effect to the provisions of this Act

¹[(i) if the annual income of a committee does not exceed Rs. 20,00,000 ;	Twenty per centum
(ii)if the annual income of a committee exceeds Rs.20,00,000/-,
(a) on the first of Rs.20,00,000/-	Twenty per centum.
(b) on the next Rs.20,00,000/-	Forty per centum
(c) on the remaining income	Fifty per centum]

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

28. Purposes for which the Market Committee Funds may be expended - Subject to the provision of section 27, the market Committee Funds shall be expended for the following purposes:-

(i) acquisition of sites for the market;

(ii) maintenance and improvement of the market;

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

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

(v) pay, leave allowances, gratuities, compassionate allowances and contributions towards leave allowances, compensation for injuries and death resulting from accident while on duty, medical aid, pension or provident fund of the person employed by the Committee;

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

(vii) collection and dissemination of information regarding all matters relating to crop statistics and marketing in respect of the agricultural produce concerned;

(viii) providing comforts and facilities, such as shelter, shade, parking accommodation and water for the per sons, draught cattle, vehicles and pack animals coming or being brought to the market or on construction and repair of ¹[link roads] approach roads, culverts, bridges, and other such purposes;

(ix) expenses incurred in the maintenance of the officers and in auditing the accounts of the Committee;

²[(x) propaganda in favour of agricultural improvements and thrift ;]

³[(xi) production and betterment of agricultural produce;]

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

(xiii) Imparting education in marketing ⁴[or agricultural;[

(xiv) Payments of travelling and other allowance to the members and employees of the Committee , as prescribed;

(xv) Loans and advances to the employees;

(xvi) Expenses of and incidental to elections; and

(xvii) With the previous sanction of the Board, any other purpose which is calculated to promote the general interests of the Committee or the notified market area ⁵[or with the previous sanction of the State Government, any purpose calculated to promote the national or public interest.]

*29. Liability of member or employee of Committees or the Board (1) - Every person shall be liable for the loss, waste or misapplication of any money or other property belonging to a 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 member or 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) it 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 four years from the occurrence of such loss, waste or misapplication or after the expiry of two years from the time of his ceasing to be a member of an employee, whichever expires first .

(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 the 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 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) it shall be recoverable as arrears of land revenue:

(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.

30. No trade allowance permissible except as prescribed - No trade allowance, other than an allowance permitted by rules or bye-laws made under this Act, shall be made 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, transaction, recognise any trade allowance not so permitted .

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

31 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 Committee, 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 of two months next name and place of abode of the intending plaintiff and the relief which he claims, has been, in the case if the board or a committee delivered to him or left at its office, and the case of any such member, employee or a 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 months from the date of accrual of cause of action.

Contents Next