M/S. MAHALUXMI RICE MILLS & ORS. vs STATE OF U.P. & ORS.

The Supreme Court addressed the issue of market fee liability under the U.P. Krishi Utpadan Mandi Adhiniyam, 1964, specifically interpreting Section 17(iii) regarding who is responsible for paying the market fee when agricultural produce is sold to the Government. The Court held that the transaction of selling rice to the Government constitutes a 'transaction of sale' under the Act, thus obligating the trader to pay the market fee. The appeal was dismissed, affirming the demands made by the Market Committee for the payment of the market fee.