G. V. GUNAYYA CHETTY & ANR vs V. DASARATHARAMAIAH & ORS.

The Supreme Court upheld the decision of the High Court of Andhra Pradesh in Donde Rama Rao v. State, stating that the main part of clause (iv) of sub-section (1) of Section 5 mandates that members representing traders must be elected by licensed traders in the notified area. The Court clarified that the proviso applies only when a Market Committee is constituted for the first time, and since the new committee was formed after the supersession of the previous one, the order nominating traders was invalid. The appeal was dismissed, affirming the High Court's ruling.