Madras High Court · 2025

W.P.(MD)Nos.27726 and 26544 of 20241st to 3rd respondents to forbear the 4th respondent from conducting private online E-auction on cardamom produces, parallel to 1st respondent's E-auction proceedings and take legal action against the 4th respondent and other private E-auctioneers from conducting private E-auction in cardamom produces, based on the petitioner e-mail representation dated 03.11.2024.For Petitioner : Mr.Raja KarthikeyanFor R-1 to R-3 : Mr.K.Govindarajan, Deputy Solicitor General ofIndiaFor R-4 : Mr.B.Saravanan, Senior Counsel, Assisted by, Mr.S.ChandrasekarORDERTwo writ petitions are filed by two of the licensed e-auctioneers of the First Respondent Spices Board, seeking to direct the first to third respondents to forbear the fourth respondent from conducting private online e-auction on cardamom produces, parallel to the first respondent's e-auction proceedings and take legal action against the fourth respondent and other private e-auctioneers from conducting private e-auction in cardamom produces, based on the respective petitioner's e-mail representation dated 03.11.2024 and 18.11.2024 4/43 https://www.mhc.tn.gov.in/judis W.P.(MD)Nos.27726 and 26544 of 2024respectively. 2. The fourth respondent in W.P.(MD)No. 26544 of 2024 is one Kerala Cardamom Trading Company, having its registered address at Door No. 249, Krishnanagar, Ward No. 3, Bodi-Thevaram Road, Bodinayaknur, Theni District. Likewise, the fourth respondent in W.P.(MD)No. 27726 of 2024 is one Vandamedu Spices Trading LLP, having its registered address at Lakshmi Mahal, near SCISM School, Bodinayaknur, Theni District. 3. The controversy involved in these writ petitions, lies in a very narrow compass, that is, whether the traders after purchase of cardamom from a licensed dealer of cardamom, who had purchased from the Spice Board auction, could do a secondary sale of cardamom among traders by further conducting online / e-auction of cardamom, independent of the Spice Board?. 4. The plea of the learned counsels appearing for the petitioners is that, the Central Government in exercise of the powers conferred by Section 38 of the Spices Board Act, 1986, (10 of 1986) and in supersession of the Cardamom (Licensing and Marketing) Rules, 1977, has made the Cardamom (Licensing and Marketing) Rules, 1987, for 5/43 https://www.mhc.tn.gov.in/judis W.P.(MD)Nos.27726 and 26544 of 2024regulating the trade in cardamom business. However, private individuals who neither possess the auctioneer license or the dealer license as issued by the Spices Board under Rule 4 of the cardamom (Licensing and Marketing) Rules, 1987, (hereinafter to be mentioned as Rules, 1987) in Form B are conducting online auction of cardamom without the approval of the first respondent. 5. Hence, the petitioners have sought for a direction to the respondents 1 and 2 for taking appropriate action against the respective 4th respondents who have indulged in private online e-auctioning and conducting trade fair of cardamom to prevent illegal trading carried out against the provisions of Section 38 of Spices Board Act, 1986, by submitting their email representation on 03.11.2024 and 18.11.2024 respectively. The inaction on the part of the respondents 1 and 2 have compelled the petitioners to file these writ petitions. In an earlier occasion under similar circumstances, two writ petitions in W.P.(MD)Nos. 6245 and 14199 of 2023 were filed before this Court and when this Court took up the matter for admission, the learned Deputy Solicitor General of India, who appeared for the Spices Board submitted that the Spices Board and the official authorities are strictly implementing the rules and are also taking action whenever any private trade has been conducted in violation of the rules. Recording the said 6/43 https://www.mhc.tn.gov.in/judis W.P.(MD)Nos.27726 and 26544 of 2024submission of the learned Deputy Solicitor General of India, this Court was pleased to close the aforesaid writ petitions by an order dated 22.09.2023. Aggrieved by a similar situation, these writ petitions have come up before me. 6. The learned counsel for the petitioners Mr.Raja Karthikeyan claimed that the petitioners are licensed e-auctioneers of the first respondent Spices Board. The fourth respondents in both the writ petitions, violating the various mandates of the Cardamom (Licensing and Marketing) Rules, 1987 and the Spices Board Act, 1986, are conducting the private online e-auctions, which are not legally permissible, causing damage to the business of cardamom in the open market. 7. Being a licensed e-auctioneer, the learned counsel appearing for the petitioners voiced on behalf of the petitioners to forbear the fourth respondents from conducting a parallel private online e-auction as conducted by the Spices Board and pressed for allowing these writ petitions.8. The learned Deputy Solicitor General of India for the respondents 1 to 3 demonstrated the way, in which the auction of 7/43 https://www.mhc.tn.gov.in/judis W.P.(MD)Nos.27726 and 26544 of 2024cardamom is carried out by the Spices Board. The Spices Board provides two licences, namely auctioneer licence and dealer licence. As many as 16 auctioneer licences are issued by the Spices Board. As far as the dealer licence is concerned, somewhere, between 500 to 600 licences are issued from time to time. 9. The holders of auctioneer licence are entitled to procure cardamom directly from the growers / producers of cardamom. The persons with dealer licence shall also procure cardamom from the auctioneer / producers. However, both the category of licencees on procurement of cardamom should bring the same to the auction centres run by the Spices Board at Puttady and Bodinayakkanur. Only two auction centres are run by the Spices Board as on date, across India. 10. On procurement of cardamom from the growers / producers, a sample of 1½ kg of every procurement has to be produced by the auctioneers before the auction centres at Puttady and Bodinayakkanur for display to the dealers for the purpose of assessing the market value of the product. The samples received at Puttady and Bodinayakkanur auction centres would be subjected to laboratory test, for verifying, whether the same is artificially coloured, wherein if any irregularity is identified, the same would be banned and would not be permitted in the 8/43 https://www.mhc.tn.gov.in/judis W.P.(MD)Nos.27726 and 26544 of 2024auction process. The said exercise would safeguard the traders as well as the consumers of cardamom from adulteration if any. 11. After subjecting the sample to laboratory test, the respective samples at Puttady and Bodinayakkanur would be displayed for the dealers and the dealers will be at liberty to examine the sample produced in the auction centres and thereafter, a minimum price for every sample would be fixed by the auctioneer, for whom the particular auction is slotted on a particular day. After the minimum price fixed by the auctioneer, the dealers are open to rise their bids for every six seconds and such auction would be in an online mode, where the respective bid of the dealers would be made in every six seconds and the final price would be fixed on reaching the maximum bid. 12. Thereafter, the successful bidder / dealer would procure the particular consignment, and only the successful dealer is open to trade the same across the country with the strength of the sale certificate issued by the Spices Board. That apart, the money fetched from the dealers after auction should be paid by the auctioneer within a period of ten days to the cardamom growers / producers, for which, the auctioneer will have to give a bank guarantee as per the demand of the Spices Board in terms of Rule 10 of the Cardamom (Licensing and 9/43 https://www.mhc.tn.gov.in/judis W.P.(MD)Nos.27726 and 26544 of 2024Marketing) Rules, 1987. The purpose for receiving the bank guarantee from the auctioneer licensees is that, incase of default by the auctioneer to pay the auction amount to the growers within a period of ten days, the bank guarantee (bg) would be enhanced and the same will be paid by the Spices Board to the growers. In such a way, both the fruits of the agricultural produce of the growers of the cardamom as well as the quality of the cardamom is ensured by the Spices Board. 13. It is seen that, as per the Cardamom (Licensing and Marketing) Rules, 1987, only the holders of the auctioneer licence could conduct auction of cardamom at Puttady and Bodinayakkanur auction centres run by the Spices Board and the successful bidders of the auction, holding the dealer licence could further sell the cardamom to various traders across the country.14. The Deputy Solicitor General of India appearing for the respondents 1 to 3 further submitted that, the fourth respondent is neither an auctioneer nor a dealer and hence, he has no authority to conduct any auction on cardamom as per the rules governing the Spices Board and hence, he should be prosecuted and the Superintendent of Police, Theni District, has to be impleaded and has to be directed to take action as against the fourth respondent.10/43 https://www.mhc.tn.gov.in/judis W.P.(MD)Nos.27726 and 26544 of 202415. Per contra, the learned senior counsel appearing for the fourth respondent, on the basis of the counter affidavit, submitted that, the petitioner being an auction purchaser is a broker or commission agent in broker system, in which auctioneers will sell the cardamom for commission and their remuneration would be commissioned, which they fetch from every auction. But the fourth respondent is neither an auctioneer nor a dealer, but he is conducting trade. The fourth respondent purchase cardamom from the traders along with invoices at a price and selling it to various other buyers. The fourth respondent is selling their own stocks at a price quoted by the buyers. The practice followed by the fourth respondent did not involve any commission agency such as brokers and the same is done in a transparent manner for both the buyers as well as the sellers. The learned counsel also categorically contended that the fourth respondent never conducted any auction and only conducted a trade of cardamom and he is marketing the same only under the TNGST norms.16. Interestingly, as many as five impleading petitions have been filed in this petition by various stakeholders. W.M.P.(MD)No.26329 of 2024 has been filed by a registered cardamom planter of the Spices Board in order to safeguard the interest of the licensed auctioneer. W.M.P.(MD)No.79 of 2025 has been filed by another registered 11/43 https://www.mhc.tn.gov.in/judis W.P.(MD)Nos.27726 and 26544 of 2024cardamom grower and a licensed dealer of the Spices Board. W.M.P.(MD)No. 26327 of 2024 is also filed by a registered cardamom planter of the Spices Board who has filed this impleading petition to safeguard the interest of the licensed auctioneer and all these impleading petitioners sail with the writ petitioners herein. 17. Per contra W.M.P.(MD)No. 25268 of 2024 is filed by the proprietor of one Yuva Spices, a registered firm with GST registration number who bats for the right of secondary sale of cardamom and its trade. W.M.P.(MD)No.24993 of 2024 is filed by the proprietor of M/s.Sonali Exports who claim to be a trader who purchase cardamom from the licensed auctioneers through Spices Board and thereafter who sell the produce obtained from the auction through private e-trade. 18. W.M.P.(MD)No. 24717 of 2024 has been filed by the fourth respondent in W.P.(MD)No. 27726 of 2024 to vacate the interim injunction passed by this Court on 19.11.2024 pending these writ petitions. 19. The learned senior counsels Mr.Isaac Mohanlal, Mr.Ajmal Khan, Mr.Saravanan and the learned counsel Mr.Prasanna Vinoth categorically submitted their submissions justifying the case of the 12/43 https://www.mhc.tn.gov.in/judis W.P.(MD)Nos.27726 and 26544 of 2024fourth respondents as well as the right of private individuals to undertake the trade of cardamom in a secondary level and their arguments are crystallized as follows: (i) The fourth respondents' right to conduct trade fairs without inviting producers / planters / estate owners of cardamom but only inviting the cardamom traders is protected under Article 19(1)(g) of the constitution which guarantees the fundamental right of trade occupation and business. Though the right of trade occupation and business can be restricted or regulated by a legislative law made by the parliament or by the state legislatures, the same cannot take away the right of secondary sale or secondary trade of cardamom. The prohibition stipulated by the Spices Board Act, 1986, read with the Cardamom (Licensing and Marketing) Rules, 1987, is only in respect of the first time primary sale and not for the secondary sales. (ii) Already four trade fairs have been successfully conducted by the respondents and the proposed trade fair which is challenged before this Court in these writ petitions are the fifth one. After the completion of primary sale, the traders who bought cardamom through licensed auctioneers in the auction centers run by the Spices Board, the same need to be marketed throughout the country or maybe throughout the world. Only for the said purpose, the respondents herein are organizing 13/43 https://www.mhc.tn.gov.in/judis W.P.(MD)Nos.27726 and 26544 of 2024a fair wherein spaces are provided for all the licensed dealers to come and display so that all will have a look and they can test the quality, quantity and price and they can do the marketing and only for that limited purpose, the trade fair is likely to be conducted and that cannot be restricted or prohibited. Making it clear that the fourth respondents are not involving in any primary sale but they are fully indulged in dealing with the licensed traders who are going to do only second or fourth or fifth sale and not at all primary sale. (iii) The business of cardamom involves four stakeholders wherein the first player would be the cardamom growers and the estate owners. The second player being the licensed auctioneers, the third player would obviously be the licensed dealers. The fourth respondents are those who have procured cardamom from the licensed dealers and all those persons are the consumers who are engaged in the secondary sale of cardamom as the fourth player and their business cannot be restricted or prohibited in the absence of any specific provision which restricts the secondary sale. Thus, the e-auction for the conduct of secondary sale by organizing trade fairs which are proposed to be done by the fourth respondents are protected under Article 19 (1) (g) of the Constitution of India. As long as there is no allegation that the fourth respondents are purchasing cardamom directly from the growers there cannot be any 14/43 https://www.mhc.tn.gov.in/judis W.P.(MD)Nos.27726 and 26544 of 2024case as against the fourth respondents which would prohibit them from engaging in the business of cardamom for the conduct of secondary sales through any mode of marketing. 20. Heard the learned counsel for the petitioner Mr. Raja Karthikeyan, Mr. Herold Singh and Mr. Ashwin Rajasimman on behalf of the writ petitioners and the impleading petitioners who sail along with the writ petitioners. Heard the learned senior counsel Mr.Isaac Mohanlal, learned senior counsel Mr. Saravanan, learned senior counsel Mr. Ajmal Khan and the learned counsel Mr. Prasanna Vinoth for the fourth respondents and the impleading petitioners who sail with the fourth respondents, the learned Deputy Solicitor General of India, Mr. Govindarajan, who appear on behalf of the respondents 1 to 3 and carefully perused the materials available on record. Analysis:21. The Spices Board in India grants licenses to traders engaged in cardamom / spices. The same serves as a regulatory authority and the Spices Board safeguards the farmer's interest by ensuring that they receive fair prices for the produce and guarantees the supply of high quality spices to consumers. To achieve fair pricing and eliminate the exploitation of middleman, the Spices Board conducts e-auctions which 15/43 https://www.mhc.tn.gov.in/judis W.P.(MD)Nos.27726 and 26544 of 2024help farmers' secure better returns. Section 2 (e) of the Spices Board Act, 1986, defines the term “dealer”: dealer means a dealer in spices. Section 2 (j) of the Spices Board Act, 1986, defines “owner” as follows:2. (j) “owner” in relation to any land planted with cardamom plants, includes - (i) any agent of the owner; and (ii) a mortgagee, lessee or other person in actual possession of the land; 22. Section 2 (l) and 2 (m) of Spices Board Act, 1986, (herein after to be mentioned as Act, 1986) defines registered estate and registered owner as follows:(l) “registered estate” means an estate in respect of which an owner is registered under sub-section (1) of section 8 and includes any estate in respect of which an owner is required to be registered under the provisions of that sub-section; (m) “registered owner” means an owner of a registered estate which has been or is registered or is required to be registered under sub-section (1) of section 8; 23. Chapter II of the Act, 1986, provides for the constitution of Spices Board and its functions. The functions of the Spices Board is enumerated under Section 7 of the Act, 1986, and the same is extracted as follows: 16/43 https://www.mhc.tn.gov.in/judis W.P.(MD)Nos.27726 and 26544 of 2024“7. (1.) The Board may:-(i) develop, promote and regulate export of spices;(ii) grant certificate for export of spices and register brokers therefore;(iii) undertake programmes and projects for promotion of exportof spices;(iv) assist and encourage studies and research for improvement of processing, quality, techniques of grading and packaging of spices;(v) strive towards stabilisation of prices of spices for export;(vi) evolve suitable quality standards and introduce certification of quality through “Quality Marking” for spices for export;(vii) control quality of spices for export;(viii) give licences, subject to such terms and conditions as may be prescribed, to the manufacturers of spices for export;(ix) market any spice, if it considers necessary, in the interest of promotion of export;(x) provide warehousing facilities abroad for spices;(xi) collect statistics with regard to spices for compilation and publication;(xii) import, with the previous approval of the Central Government, any spice for sale, and(xiii) advise the Central Government on matters relating to import and export of spices.(2) The Board may also:-17/43 https://www.mhc.tn.gov.in/judis W.P.(MD)Nos.27726 and 26544 of 2024(i) promote co-operative efforts among growers of cardamom;(ii) ensure remunerative returns to growers of cardamom;(iii) provide financial or other assistance for improved methods of cultivation and processing of cardamom, for replanting cardamom and for extension of cardamom growing areas;(iv) regulate the sale of cardamom and stabilisation of prices of cardamom;(v) provide training in cardamom testing and fixing grade standards of cardamom;(vi) increase the consumption of cardamom and carry on propaganda for that purpose;(vii) register and licence brokers (including auctioneers) of cardamom and persons engaged in the business of cardamom;(viii) Improve the marketing of cardamom;(ix) collect statistics from growers, dealers and such other persons as may be prescribed on any matter relating to the cardamom industry; publish statistics so collected or portions thereof or extracts therefrom;(x) secure better working conditions and the provision and improvement of amenities and incentives for workers; and(xi) undertake, assist or encourage scientific, technological and economic research.”24. Chapter III of the Act, 1986, provides for the registration of owners of cardamom estate and the same is extracted as follows:18/43 https://www.mhc.tn.gov.in/judis W.P.(MD)Nos.27726 and 26544 of 2024“REGISTRATION OF OWNERS OF CARDAMOM ESTATES8. Registration of owners of cardamom estates: (1) Every owner of land planted with cardamom plants, whether such land is comprised in one estate or more than one estate, shall, before the expiration of one month from the date on which he first became owner of such estate or estates, apply to the registering officer appointed in this behalf by the State Government to be registered as an owner in respect of each estate owned by him;Provided that the State Government may, for sufficient reasons, extend the time-limit for registration by such period as it thinks fit.(2) Registration once made shall continue to be in force until it is cancelled by the registering officer.9. Power of State Government to make rules: (1) The State Government may, by notification in the Official Gazette, make rules to carry into effect the provisions of section 8.(2) Without prejudice to the generality of the foregoing power, such rules may prescribe the form of the application for registration and for cancellation of registration, the fee payable on such applications, the particulars to be included in such application the procedure to be followed in granting and cancelling registration, the registers to be kept by registering officers and the supply by registering officers of 19/43 https://www.mhc.tn.gov.in/judis W.P.(MD)Nos.27726 and 26544 of 2024information to the Board.10.Returns to be made by registered owners:(1) A registered owner shall furnish returns to the Board in suchform, at such times and in such manner as may be prescribed.(2) The Board may authorize an officer to visit any estate at any timeto verify the accuracy of any return made under this section or toascertain the productive capacity of the estate.”25. Chapter IV of the Act, 1986, Section 11, provides for the certificate for export of spices and the same is extracted as follows:“CERTIFICATE FOR EXPORT OF SPICES11.No person to export spices without certificate: Save as otherwise provided in this Act, no person shall, after the commencement of this Act, commence or carry on the business of export of any spice except under and in accordance with a certificate.Provided that a person carrying on the business of export of spices immediately before the commencement of this Act, may continue to do so for a period of three months from such commencement; and if he has made an application for such certificate with the said period of three months till the disposal of such application.Explanation: The reference in this section to the commencement of this Act shall be construed in relation to any spice 20/43 https://www.mhc.tn.gov.in/judis W.P.(MD)Nos.27726 and 26544 of 2024added to the Schedule by notification under the proviso to clause (n) of section 2 as reference to the date with effect from which such spice is added to the Schedule.”26. Chapter V of Act, 1986, elaborates the power of the Central Government to control the price and distribution of cardamom and Section 16 and 17 of the Act, 1986, is extracted as follows:“CONTROL BY THE CENTRAL GOVERNMENT16.Power to control price and distribution of cardamom: (1) The Central Government may, by order notified in the Official Gazette, fix in respect of cardamom of any discription specified therein (a) the maximum price or the minimum price, or the maximum and minimum prices, which may be charged by a grower of cardamom or cardamom dealer, wholesale or retail, whether for the Indian market or for export; and (b) the maximum quantity which may in one transaction be sold to any person.(2) Without prejudice to the generality of the powers conferred by sub-section (1), any order made thereunder may provide- (a) for requiring persons engaged in the production, supply or distribution of, or trade and commerce in cardamom to maintain and produce for inspection such books, accounts and records relating to their business and to furnish such information relating thereto as 21/43 https://www.mhc.tn.gov.in/judis W.P.(MD)Nos.27726 and 26544 of 2024may be specified in the order; and(b) for such other matters; including in particular the entering and search of premises, vehicles, vessels and aircraft, and seizure by a person authorised to make such search of cardamom in the respect of which such person has reason to believe that a contravention of the order has been, is being or is about to be committed.17.Power to prohibit or control import of Cardamom:The Central Government may, by order publish in the official Gazette, make provision for prohibiting, restricting or otherwise controlling the import of cardamom, either generally or in specified classes of cases.”27. Under Chapter VII of the Act, 1986, Section 38, emphasizes the power of the Central Government to make rules to carry out the purposes of Act, 1986, by notification in the official gazette. In exercise of the powers conferred by section 38 of the Spices Board Act, 1986 (10 of 1986) and in supersession of the Cardamom (Licensing and Marketing) Rules, 1977, the Central Government made the “Cardamom (Licensing and Marketing) Rules, 1987”. Rule 2 of Rules, 1987, deals with the definition clause and the same is extracted as follows. “2.Definitions.- In these rules, unless the context otherwise requires :-(a)"Act" means the Spices Board Act, 1986;22/43 https://www.mhc.tn.gov.in/judis W.P.(MD)Nos.27726 and 26544 of 2024(b)"auctioneer" means a person engaged in the business of conducting cardamom auctions;(c)"Dealer" means a person engaged in the business of purchasing and selling of cardamom but does not include any auctioneer or exporter ;(d)"Form" means a form appended to these rules ;(e)"Person" means an individual and includes company, firm, society and any other association or body of individuals, whether incorporated or not.”28. The conditions to carry on business in cardamom is enumerated under Rule 3 of Rule, 1987, and the same is extracted as follows: “3.Conditions to carry on business in cardamom:-(1) No person shall carry on business as auctioneer or dealer of cardamom except under and in accordance with the terms and conditions of a licence issued under these rules and such other instructions as may be issued, from time to time, by the Board for the development of the cardamom industry.(2) No producer of cardamom shall sell his produce otherwise than through a Licensed auctioneer or to a dealer licensed to purchase cardamom from producers:Provided that the Board may, if it is satisfied that to ensure remnuerative returns to growers, it is necessary to route all cardamom through auctions, require producers to sell their produce 23/43 https://www.mhc.tn.gov.in/judis W.P.(MD)Nos.27726 and 26544 of 2024to the licensed dealers through auctions alone.”29. Licensing of persons to carry on business of cardamom is enumerated under Rule 4 of Rule, 1987, and the same is extracted as follows:“4. Licensing of persons to carry on business of cardamom.- (1) Any person desiring to carry on business as auctioner or dealer in any year may apply in Form A to the Board for a license:Provided that separate applications shall be necessary where a person desires to be licensed in more than one capacity:Provided further that separate license shall be necessary for an auctioneer in respect of each centre if he desires to conduct auctions in more than one centre.(2) Every application shall be accompanied by a fee of Rs.100 by a crossed demand draft or postal order drawn payable to the Spices Board at Cochin.(3) The Board may, if it is satisfied as to the suitability of the appellant, issue a license to him in Form B.”30. The validity of license is dealt with by Rule 6 of Rule, 1987, and the same is extracted as follows:“6.Validity of license.- The license shall normally be valid for a period of three years:Provided that the Board may issue a license for a shorter 24/43 https://www.mhc.tn.gov.in/judis W.P.(MD)Nos.27726 and 26544 of 2024period for reasons to be recorded in writing.”31. For the purpose of this case it is necessary to extract the various Forms provided under Rules, 1987. Any person desiring to carry on business as auctioneer or dealer should apply in Form A and the same is extracted as follows:25/43 https://www.mhc.tn.gov.in/judis W.P.(MD)Nos.27726 and 26544 of 202426/43 https://www.mhc.tn.gov.in/judis W.P.(MD)Nos.27726 and 26544 of 202432. The Spices Board if satisfied as to the suitability of applicant shall issue license to the applicant as dealer or auctioneer in Form B and the same is extracted as follows:27/43 https://www.mhc.tn.gov.in/judis W.P.(MD)Nos.27726 and 26544 of 202428/43 https://www.mhc.tn.gov.in/judis W.P.(MD)Nos.27726 and 26544 of 202429/43 https://www.mhc.tn.gov.in/judis W.P.(MD)Nos.27726 and 26544 of 202433. Every licensed dealer should maintain a register in the format given under Form E of the Rules, 1987. The monthly statement of a licensed dealer should be sent to the board in the format enumerated under Form F and the same are extracted as follows:30/43 https://www.mhc.tn.gov.in/judis W.P.(MD)Nos.27726 and 26544 of 2024 31/43 https://www.mhc.tn.gov.in/judis W.P.(MD)Nos.27726 and 26544 of 202432/43 https://www.mhc.tn.gov.in/judis W.P.(MD)Nos.27726 and 26544 of 202434. The Spices Board for the purpose of striving towards stabilization of prices of spices for export and evolving suitable quality standards has introduced certification of quality through quality marketing for spices and has also introduced measures to control quality of spices for export by giving licenses subject to the terms and conditions as prescribed under the marketing Rules. The licensing marketing and conditions to carry on business in cardamom is fully dealt with by the Cardamom (Licensing and Marketing) Rules, 1987. Rule 3 which provides for the conditions to carry on business in cardamom do not distinguish between the term 'dealer' and 'trader'. On the other hand, it makes it clear that, it is only after the scrutiny of the suitability of the applicants, who have made an application for license under Rule 4 in Form A, the Spices Board would issue a license to the applicants whoever had succeeded in the selection process in Form B as 'auctioneer' or 'dealer'. Only those licensees could carry on business in cardamom either as 'auctioneer' or as 'dealer' of cardamom. Nowhere in the entire scheme of trade of cardamom enumerated under Rules 1987, the term 'trader' is either defined or the 'role of a cardamom trader' is envisaged. 35. The term dealer is defined under Section 2 (e) of the Spices Board Act, 1986, and section 2 (c) of the Rules, 1987. That apart, 33/43 https://www.mhc.tn.gov.in/judis W.P.(MD)Nos.27726 and 26544 of 2024Section 2 (b) of the Central Sales Tax Act, 1956, defines dealer as follows: (b) "dealer" means any person who carries on (whether regularly or otherwise) the business of buying, selling, supplying or distributing goods, directly or indirectly, for cash or for deferred payment, or for commission remuneration or other valuable consideration, and includes— (i) a local authority, a body corporate, a company, any co-operative society or other society, club, firm, Hindu undivided family or other association of persons which carries on such business;(ii) a factor, broker, commission agent, del credere agent, or any other mercantile agent, by whatever name called, and whether of the same description as hereinbefore mentioned or not, who carries on the business of buying, selling, supplying or distributing, goods belonging to any principal whether disclosed or not; and(iii) an auctioneer who carries on the business of selling or auctioning goods belonging to any principal, whether disclosed or not and whether the offer of the intending purchaser is accepted by him or by the principal or a nominee of the principal.Explanation I— Every person who acts as an agent, in any State, of a dealer residing outside that State and buys, sells, supplies, or distributes, goods in the State or acts on behalf of such dealer as—(i) a mercantile agent as defined in the Sale of Goods Act, 1930 (3 of 1930), or (ii) an agent for handling of goods or documents of title relating to goods, or 34/43 https://www.mhc.tn.gov.in/judis W.P.(MD)Nos.27726 and 26544 of 2024(iii) an agent for the collection or the payment of the sale price of goods or as a guarantor for such collection or payment,and every local branch or office in a State of a firm registered outside that State or a company or other body corporate, the principal office or headquarters whereof is outside that State, shall be deemed to be a dealer for the purposes of this Act.Explanation 2— A Government which, whether or not in the course of business, buys, sells, supplies or distributes, goods, directly or otherwise, for cash or for deferred payment or for commission, remuneration or other valuable consideration, shall except in relation to any sale, supply or distribution of surplus, un-serviceable or old stores or materials or waste products or obsolete or discarded machinery or parts or accessories thereof, be deemed to be a dealer for the purposes of this Act;]36. The Black's Law Dictionary, 10th Edition1, defines the term “trader” as follows: A “trader” is defined as a (1).A merchant; a retailer; one who buys goods to sell them at a profit. (2). Someone who sells goods substantially in the form in which they are bought; one who has not converted them into another form of property by skill and labor. (3). Someone who, as a member of a stock exchange, buys and sells securities on the exchange floor either for brokers or on his or her own account. (4). Someone who buys and sells commodities and commodity futures for others or for his or her own account in anticipation of a speculative profit. 1Page 107435/43 https://www.mhc.tn.gov.in/judis W.P.(MD)Nos.27726 and 26544 of 2024 37. The scheme of licensing, marketing and conditions to carry on business in cardamom as enumerated under Act, 1986, and Rules, 1987, do not distinguish between the auctioneer/dealer and trader. More particularly, the term 'trader' is not at all defined in either the Act or in the Rules, but it is only the term 'auctioneer' and 'dealer' which has been defined in the aforesaid Act and Rules. Rule 3 makes it clear that, a business of cardamom at the first instance, in any manner can be carried on only by a licensed auctioneer or a licensed dealer and that no producer of cardamom shall sell his produce otherwise through a licensed auctioneer or to a licensed dealer and the same provides that the entire cardamom grown should be routed through the auctions conducted in the auction centers of the Spices Board through auctioneers procured by licensed dealers. Even if the licensed dealers are not prohibited from procuring cardamom directly from the growers / estate owners, they could channel the same for sale only by submitting the same before the auction center through auctioneers for conduct of auction. 38. Thus, it is needless to state that the primary sales of the cardamom should be done by the licensed auctioneers by procuring the same from the growers directly. The dealers are also similarly entitled to procure cardamom from the growers directly. However, the cardamom 36/43 https://www.mhc.tn.gov.in/judis W.P.(MD)Nos.27726 and 26544 of 2024procured could be sold only in the auction centers which are situated at Puttady and Bodinayakanur by submitting the procured cardamom for auction through the licensed auctioneers. Obviously, it is the licensed dealers who could participate in the aforesaid auctions after the fixation of minimum price for the cardamom displayed for auction by the auctioneer and thereafter, the dealers are open to rise their bids and finalize the price of the cardamom displayed for auction. 39. It is only for these licensed dealers the trade of the procured cardamom across the country is open, with the strength of the sale certificate issued by the Spices Board. Any trader purchasing any consignment of spices from these licensed dealer should be accompanied with the sales certificate issued by the Spices Board to the registered dealer concerned from whom the trader has purchased cardamom. The trader in turn cannot conduct secondary trade 'by conducting secondary e-auction', since the same is contrary to the procedure mandated under Rule 3 of Rules, 1987, which provides for the conditions to carry on business in cardamom. Rule 3 specifically prohibits anyone other than a licensed auctioneer or licensed dealer of cardamom who has obtained a license from the Spices Board in Form B in terms of Rule 4 of Rules, 1987, to carry on business as 'auctioneer' or 'dealer' of cardamom. 37/43 https://www.mhc.tn.gov.in/judis W.P.(MD)Nos.27726 and 26544 of 202440. Hence, the right to conduct 'auction' for the purpose of carrying on business of cardamom in 'any form' is permitted only for those licensed auctioneers under Rules, 1987. No other private individuals could conduct auction in any form for the purpose of carrying out the business of cardamom. When the scheme of carrying on the business of cardamom as envisaged in Act, 1986, and Rules, 1987, is conspicuously silent as to the right of the traders who are engaged in secondary sales of cardamom, the said Act and Rules should be interpreted in such a way as to give effect to the scheme of the Act. The Spices Board Act, 1986, is an Act to provide for the constitution of a Board for the development of export of spices and for the control of cardamom industry including the control of cultivation of cardamom and matters connected therewith. When the object of the Spices Board Act, 1986, itself is exclusively for the purpose of control of cardamom industry including the control of cultivation of cardamom, safeguarding the livelihood of cardamom cultivators, the various provisions of the Act and the rules made thereunder for the purpose of regulating the licensing, marketing and conditions of business in cardamom should be interpreted in a manner which would not defeat the object of the Spices Board Act, 1986. Since the Act, 1986, and Rules, 1987, do not define the term trader, but only the terms 'auctioneer' and 'dealer' and in the absence of any clause enumerating for the regulation of secondary trade 38/43 https://www.mhc.tn.gov.in/judis W.P.(MD)Nos.27726 and 26544 of 2024of cardamom procured from the licensed dealers, the legislative casus omissus cannot be filled by judicial interpretation to justify the trade fair which is intended to be conducted by the fourth respondents in an unfair manner defeating the scheme of business of cardamom envisaged under the Act, 1986, and Rules, 1987. In the absence of a definite definition for the term “trader” the 4th respondent under the said term cannot seek any 'right of auction' or conducting e-trade fair unauthorisedly, without the permission of the Spices Board. 41. The Honourable Apex Court in a similar interpretation of Section 6 of the Land Acquisition Act, 1894, in the case of Padmasundar Rao (dead) and others .vs. State of Tamil Nadu and others2, by judgment dated 13.03.2002, has dealt with a case of casus omissus and the relevant portion of the same which is applicable to the facts and circumstances of this case is extracted as follows:“12.The rival pleas regarding rewriting of statute and casus omissus need careful consideration. It is well-settled principle in law that the Court cannot read anything into a statutory provision which is plain and unambiguous. A statute is an edict of the legislature. The language employed in a statute is the determinative factor of legislative intent. The first 22002 (3) SCC 35539/43 https://www.mhc.tn.gov.in/judis W.P.(MD)Nos.27726 and 26544 of 2024and primary rule of construction is that the intention of the Legislation must be found in the words used by the Legislature itself. The question is not what may be supposed and has been intended but what has been said. "Statutes should be construed not as theorems of Euclid". Judge Learned Hand said, "but words must be construed with some imagination of the purposes which lie behind them". (See Lenigh Valley Coal Co. v. Yensavage 218 FR 547). The view was reiterated in Union of India and Ors. v. Filip Tiago De Gama of Vedem Vasco De Gama (AIR 1990 SC 981).13. In Dr. R Venkatchalam and Ors. etc. vs. Dy. Transport Commissioner and Ors. etc. (AIR 1977 SC 842) it was observed that Courts must avoid the danger of a priori determination of the meaning of a provision based on their own preconceived notions of ideological structure or scheme into which the provision to be interpreted is somewhat fitted. They are not entitled to usurp legislative function under the disguise of interpretation.14. While interpreting a provision the Court only interprets the law and cannot legislate it. If a provision of law is misused and subjected to the abuse of process of law, it is for the legislature to amend, modify or repeal it, if deemed necessary. [See Rishabh Agro Industries Ltd. vs. P.N.B. Capital Services Ltd. (2000 (5) SCC 515)]. `The legislative casus omissus cannot be supplied by judicial interpretative process. ......40/43 https://www.mhc.tn.gov.in/judis W.P.(MD)Nos.27726 and 26544 of 202415. Two principles of construction - one relating to casus omissus and the other in regard to reading the statute as a whole appear to be well settled. Under the first principle a casus omissus cannot be supplied by the Court except in the case of clear necessity and when reason for it is found in the four corners of the statute itself but at the same time a casus omissus should not be readily inferred and for that purpose all the parts of a statute or section must be construed together and every clause of a section should be construed with reference to the context and other clauses thereof so that the construction to be put on a particular provision makes a consistent enactment of the whole statute.”42. Fully fortified by the aforesaid judgment in the instant case, the claim of the fourth respondents is that, their right to conduct e-auction and secondary sales of cardamom after having procured cardamom from the licensed dealer, according to their own whims and fancies is protected under 19(1)(g) of the Constitution of India and insisting for conducting the e-trade fair is too unfair since the same is prohibited under Rule 3 of Rules 1987. Accordingly, the fourth respondents in both the writ petitions or any private individuals are prohibited from conducting e-auction privately in cardamom produces in future in any manner. 41/43 https://www.mhc.tn.gov.in/judis W.P.(MD)Nos.27726 and 26544 of 202443. Accordingly, the writ petitions are allowed. No costs. In view of the same, connected miscellaneous petitions are closed. 28.04.2025 NCC : Yes / NoIndex : Yes / NoInternet : YesSmlTo1.The Spices Board, (Ministry of Commerce and Industry Govt. of India) Rep. by its Secretary, Sugandga Bhavan, NH Bypass, PB No.2277 Palarivattom Post, Kochi, Kera2.The Director (Marketing), Spices Board, Sugandga Bhavan, NH Bypass, PB No.2277 Palarivattom Post, Kochi, Kerala.3.The Assistant Director (Marketing), Spices Board, Kurangani Road, Bodinayakanur, Theni District.42/43 https://www.mhc.tn.gov.in/judis W.P.(MD)Nos.27726 and 26544 of 2024L.VICTORIA GOWRI, J., Sml W.P.(MD)Nos.27726 and 26544 of 2024 28.04.202543/43