Chapter III CONSTITUTION OF MARKET COMMITTEES

1. (1) For every market area, there shall be a market committee. Every market committee shall be a body corporate by the name of "The (name of area and commodities) Market Committee" as may be decided by the Metropolitan Authority. Every committee shall have perpetual succession and a common seal, and may by its corporate name sue and be sued and shall be competent to contract and to acquired, hold and dispose off property, both movable and immovable, and to do all other things necessary for the purposes of this Act.
2. (2) The market committee shall be deemed to be a local authority within the meaning of the term "local authority" as defined in the Bombay General Clauses Act, 1904 (Bom. 1 of 1904).

1. (1) A market committee shall consist of the following members, namely :-
   • (a) six representatives elected by the licensees holding valid licences for carrying on the specified trade in the market yard ;
   • (b) two representatives of the manufactures of the specified commodity or commodities for which the market or market yard is established, nominated by an association or any other organisation recognised by the Metropolitan Commissioner in this behalf ; Provided that, in the absence of any such recognised association or organisation, the representative of the manufacturers shall be nominated by the Metropolitan Commissioner ;
   • (c) if the market area includes any part of the area of any Municipal Corporation, or if the market yard is situated in any part of the area of any Municipal Corporation,-
     • (i) the Municipal Commissioner for such Municipal Corporation ; and
     • (ii) one representative of the Municipal Corporation of that area, elected by the Councillors of that Corporation, from amongst themselves :
   • (d) if the market area includes any part of the area of any Municipal Council or if the market yard is situated in any part of the area of any Municipal Council,-
     • (i) the Chief Officer of such Municipal Council ; and
     • (ii) one representative of the Municipal Council, elected by the Councillors, of that Council, from amongst themselves : Provided that, where the market area includes any parts of the areas of more than one Municipal Council or where the market yard is situated in any parts of the areas of more than one Municipal Council, one representative of the Municipal Councils shall be nominated by the Metropolitan Commissioner ;
   • (e) one representative of the labourers engaged in handling commodities in the market yard nominated by a trade union of such labourers as is recognised by the Commissioner of labour, Maharashtra State : Provided that, if there are more than one such trade union or the absence of any recognised union, the representative shall be nominated by the Commissioner of Labour ;
   • (f) one member of the Lok Sabha elected from a constituency of the Lok Sabha or any part of such constituency, situated within the limits of the market area, nominated by the State Government ;
   • (g) two members of the State Legislature, not being members of the Metropolitan Authority, elected from constituency of the State Legislature, or any part of such constituency, situated within the limits of the market area or residing in the market area, nominated by the State Government ;
   • (h) the Industries Commissioner, Maharashtra State, or his nominee ;
     • (i) one representative of Railways appointed by the Metropolitan Commissioner, in constitution with the General Manager of the Railways operating in the market area ;
   • (j) one representative of the Ministry of Commerce, Government of India, nominated by that Government ;
   • (k) one representative of the Transport Commissioner, Maharashtra State ;
   • (l) one representative of the Metropolitan Authority, other than the Metropolitan Commissioner, nominated by the Authority ;
   • (m) the Chief Executive Officer of the Market Committee.
2. (2) When a market committee is constituted for the first time, all the members thereof shall be nominated by the State Government, as provided by sub-section (1) of section 4.
3. (3) The members shall receive such allowances as may be determined by by-laws for meeting the personal expenditure in attending the meetings of the committee or standing committee or any subcommittee or body thereof, or in performing any other functions as members : Provided that the allowances payable,-
   • (i) to a member who is the member of Parliament shall not exceed the compensatory allowance as defined in the Parliament (Prevention of Disqualifications) Act, 1959 (10 of 1959), payable to him ;
   • (ii) to a member who is the member of the Maharashtra State Legislature shall not exceed the compensatory allowances permissible to him under entry 11 of the Maharashtra Legislature Members (Removal of Disqualifications) Act (Bom. LII of 1956).
4. (4) If any authority, committee, association, union or body fails to elect or nominate any members, the Metropolitan Commissioner shall give notice to them in such manner as he thinks fit, requiring them to elect or nominate a member or members within one month from the date of the notice ; and on the failure again to elect or nominate a member or members within the aforesaid period, the Metropolitan Commissioner shall appoint on behalf to them or any of them, as the case may be, a person or persons who are qualified to be elected or nominated, as the case may be, under sub-section (1) as members.

1. (1) The Executive Committee of the Metropolitan Authority may make regulations generally to provide for or to regulate all matters relating to elections to be held under this Act. The power to make regulations shall be exercisable by the Executive Committee subject to the previous sanction of the State Government as hereinafter provided.
2. (2) Without prejudice to the generality of the foregoing powers, the Executive Committee may make regulations with regard to all or any of the following matters, namely :-
   • (a) the qualifications and disqualifications for voters and candidates for the election ;
   • (b) the preparation, publication and maintenance of list of voters ;
   • (c) the fixation of dates, time and place for various stages of election ;
   • (d) the appointment and duties of returning officers, presiding officers and other staff for election ;
   • (e) the nomination of candidates, form of nomination paper, objection to nominations, scrutiny of nominations and appeals against acceptance or rejection of nomination papers ;
   • (f) the deposits to be made by candidates ;
   • (g) the assignment of symbols to candidates ;
   • (h) the withdrawal of candidature;
     • (i) the appointment of agents of candidates ;
   • (j) the form of ballot paper ;
   • (k) the procedure in contested and uncontested elections ;
   • (l) the manner of recording votes ;
   • (m) the scrutiny of votes, counting or recounting of votes, declaration of results and procedure in case of equality of votes ;
   • (n) the custody and disposal of papers relating to elections ;
   • (o) the circumstances in which poll may be suspended or held afresh ;
   • (p) any other matter relating to elections under this Act.
3. (3) (a) The Executive Committee, whenever it desires to make regulations under this Act, shall by resolution at a special meeting, approve a draft of such regulations.
   • (b) As soon as possible after such resolution is passed the Executive Committee shall display the draft of the regulations on the notice-board of the Office of the Chief Executive Officer and publish a notice in at least two newspapers circulating in the market area and also in such manner, as may in its opinion, be best calculated to inform the public and all persons likely to be affected by the regulations so displayed and inviting their objections and suggestions in respect of the proposed draft within a reasonable period to be specified in such notice.
4. (4) The Executive committee shall consider the objections and suggestions received, if any, and may by a resolution approve the final draft to the regulations.
5. (5) Within seven days of the passing of such resolution, the Chief Executive Officer shall submit the final draft of the regulations approved under sub-section (4) to the State Government and the State Government may sanction the regulations sent to it subject to such modification, if any, as it may think necessary.

The Metropolitan Commissioner shall, by notification in the Official Gazette, publish the names of all the members of the committee, elected or nominated, as the case may be, appointed under sub-section (1) of section 9 and the committee shall be deemed to have been constituted from the date of such publication of names of members : Provided that, if for any reason there is failure to elect or nominate a member on the part of any of the electors or other authority competent to elect or nominate, the committee shall be deemed to have been duly constituted if the name of two-thirds of the total number of members of the committee are published in the Official Gazette, and as regards the names if the remaining members elected, or nominated or appointed under the provisions of sub-section (1) of section 9 thereafter, the Metropolitan Commissioner shall subsequently publish the names of the members in the Official Gazette, as and when, a member is elected or nominated or, as the case may be, appointed.

No election of member (including Chairman and Vice-Chairman) may be called in question, except by a petition presented to the City Civil Court or the Civil Judge (Senior Division) within whose jurisdiction the market yard is situated, by a candidate at the election or by any person entitled to vote at the election, within ten days after the publication of the names of members in the Official Gazette.

1. (1) Except as otherwise provided in this Act, the members of a committee (not being committee constituted for the first time) shall hold office for a period of four years from the date referred to in sub-section (2) : Provided that, the State Government may, by an order in the Official Gazette, extend the term of office of members of any committee for a period not exceeding one year.
2. (2) The term of office of members of a committee shall be deemed to commence on the date of the first meeting of the committee held in accordance with the provisions of sub-section (3).
3. (3) The first meeting of the committee shall be held on such date as may be fixed by the Metropolitan Commissioner, or by the Chief Executive Officer if authorised by him by a general or special order, in that behalf, which date shall be within thirty days from the date on which the names of members are published in the Official Gazette and the Committee is constituted in accordance with the provisions of section 11. Such meeting shall be presided over by the Chief Executive Officer.
4. (4) Notwithstanding anything contained in sub-section (3) such meeting shall not be held before the expiry of the term of office of members of an existing committee.

Any member of the committee may resign his office by tendering his resignation in writing to the Chief Executive Officer and such resignation shall be effective on its receipt by the Chief Executive Officer.

1. (1) The Metropolitan Commissioner may by himself or on the advice of the Chief Executive Officer, remove any member from office if he-
   • (i) is or becomes subject to any of the disqualifications for becoming a member specified in the regulations made under section 10 ; or
   • (ii) is professionally interested or engaged in any case for or against the committee ; or
   • (iii) absents himself from four successive meetings of the committee, except with the leave of absence granted by the committee ; or
   • (iv) has, in the opinion of the Metropolitan Commissioner, been guilty of or neglect or misconduct in the discharge of his duties or any disgraceful conduct ; or
   • (v) has, in the opinion of the Metropolitan Commissioner, become incapable of performing his duties as a member : Provided that, no member shall be removed from office unless he has been given a reasonable opportunity by the Metropolitan Commissioner to show cause why such action should not be taken against him.
2. (2) Any person aggrieved by the decision of the Metropolitan Commissioner may within a period of fifteen days from the date of receipt of the decision of the Metropolitan Commissioner by him, appeal to the State Government, and the orders passed by the State Government on such appeal shall be final : Provided that, no order shall be passed by the State Government in appeal against any member without giving him a reasonable opportunity of being heard.

1. (1) A casual vacancy of a member occurring in the committee due to any reason whatsoever shall be filled by election or nomination or appointment, as the case may be, as provided in sub-section (1) of section 9, within forty-five days of the occurrence of the vacancy : Provided that, if the vacancy occurs within four months preceding the date on which the term of office of the member expires, the vacancy shall not, unless the State Government otherwise direct, be filled.
2. (2) Where a person becomes or is elected or nominated or appointed as a member of the committee by virtue of holding any office or being a member of the Parliament, State Legislature, any local authority, committee, association or body, whether incorporated or not, he shall cease to be a member of the committee, as soon as he ceases to be holder of that office or ceases to be such member, as the case may be.

1. (1) On the expiry of the term or extended term of office of the members of a committee as mentioned in sub-section (1) of section 13, all members of the committee shall vacate their office : Provided that, if for any reasons whatsoever, a committee is not constituted in accordance with the provisions of section 11 before the date of expiry of the term or extended term of office of the members, then the powers and functions of the committee shall, until a committee is so constituted, vest in an administrator appointed by the Metropolitan Commissioner : Provided further that, if the appointment of the administrator is likely to continue for a period of more than three months, the Metropolitan Commissioner shall obtain the approval of the State Government before continuing such appointment beyond three months.
2. (2) The administrator shall receive such monthly salary and allowances from the Market Fund and shall be subject to such conditions of service as the State Government may from time to time determine. When a salaried servant of the State Government is appointed as the administrator, such contribution to his pension, leave and other allowances as may be required by the conditions of his service under the State Government to be made by him or on his behalf, shall be paid to the State Government from the Market Fund.

Every Committee shall have a Chairman and a Vice-Chairman who shall be elected by the members of the committee in accordance with the regulation made under section 10.

The term of office of the Chairman and Vice-Chairman shall be two years from the date of the election or the remainder of their term of office as members, whichever is less, but a retiring Chairman or Vice-Chairman shall be eligible for re-election.

The committee may, subject to the provisions of by-laws made in that behalf, pay to the Chairman and Vice-Chairman an honorarium of such amount as may be specified in the by-laws : Provided that, no honorarium shall be payable to any Chairman or Vice-Chairman, if he is a member of the Parliament or of the State Legislature.

Subject to the provisions of sub-section (1) of section 4 the Chairman and the Vice-Chairman shall be elected in the first meeting of the committee held in accordance with the provisions of sub-section (3) of section 13 and on the expiry of the term of the Chairman and the Vice-Chairman under section 19 or, as the case may be, where there is a vacancy of the Chairman or the Vice-Chairman, they shall be elected by the members in the meeting of the committee to be called by the Chief Executive Officer, within fifteen days from the date on which the term has so expired, or, as the case may be, the vacancy has occurred. Such meeting shall be presided over by the Metropolitan Commissioner.

A Chairman or a Vice-Chairman may resign his office by tendering his resignation in writing to the Chief Executive Officer and the resignation shall be effective on its receipt by the Chief Executive Officer.

A Chairman or a Vice-Chairman shall cease to hold office, if the committee by a resolution passed by a majority of not less than two-thirds of the total number of members of the committee, so decides at a meeting.

If the office of the Chairman or the Vice-Chairman becomes vacant due to any reason, the vacancy shall be filled by election in accordance with the provisions of section 21 : Provided that, the person so elected shall hold office so long only as the member in whose place he is elected would have held office, if the vacancy had not occurred.

1. (1) On the election of a new Chairman or Vice-Chairman, the outgoing Chairman or Vice Chairman, as the case may be, shall immediately hand over charge of their respective office and all papers and property of the committee to the new Chairman, or as the case may be, to the Vice-Chairman.
2. (2) If the outgoing Chairman or Vice-Chairman fails or refuses to hand over charge of his office and all papers and property of the committee as required under sub-section (1), the Metropolitan Commissioner or any officer empowered by him in writing in this behalf may, by order in writing, direct the Chairman or the Vice-Chairman, as the case may be, to forthwith hand over charge of his office and all papers and property of the Committee, if any, in his possession as such Chairman or Vice-Chairman to the new Chairman or Vice-Chairman.
3. (3) If the outgoing Chairman or Vice-Chairman, to whom a direction has been issued under sub-section (2), does not comply with such direction, the Metropolitan Commissioner or any office authorised by him under sub-section (2), may apply to the Executive Magistrate within whose jurisdiction the committee is functioning for seizing and taking possession of papers, funds and property of the committee in the possession of such Chairman or Vice-Chairman.
4. (4) On receipt of an application under sub-section (3), the magistrate may authorise any police officer, not below the rank of a Sub-inspector of Police, to enter and search any place where the papers, funds and property are kept or likely to be kept and to seize them and hand over possession thereof to the new Chairman or Vice-Chairman, as the case may be.

For every market committee, there shall be a standing committee, which shall consist of-

1. (i) the Chairman of the committee, who shall also be the Chairman of the Standing Committee ;
2. (ii) the Chief Executive Officer ; and
3. (iii) three other members to be elected by the committee, from amongst its members.

A committee may by a resolution supported by not less than half the total number of members of the committee, appoint one or more sub-committees, each consisting of such number of members of the committee as the committee may determine, so however that the number of members of a Sub-Committee shall not exceed five.

A committee may, by by-laws made for that purpose, delegate any of its powers to and entrust functions and determine the sphere of duties of the standing committee and the sub-committees : Provided that, the committee shall not delegate to the standing committee or any sub-committee the powers exercisable by it-

1. (a) under sub-section (2) of section 43 ; or
2. (b) under section 44 ; or
3. (c) under section 69.

Notwithstanding anything contained in section 28, but except the proviso thereto, the committee may, by a resolution supported by not less than half the total number of members of the committee, delegate to the standing committee or a sub-committee such of its powers or duties as it may deem necessary, for a period not exceeding six months.

The meetings, quorum and procedure of the committee, standing committee and sub-committee shall be regulated in accordance with the bylaws made for the purpose.

1. (1) During any vacancy in a committee, standing committee or any sub-committee, the continuing members thereof may act as if no vacancy had occurred.
2. (2) No disqualification of, or defect in the election, nomination or appointment of any person acting as the Chairman or Vice-Chairman or a member of the committee, standing committee or subcommittee shall vitiate any act or proceeding of the committee, standing committee or sub-committee, if such act of proceeding is otherwise in accordance with the provisions of this Act ; and such proceedings of the committee, standing committee or sub-committee shall be valid notwithstanding that it is discovered subsequently that some person who was not entitled to do so sat or voted or otherwise took part in the proceedings, provided the majority of such person were entitled to act.
3. (3) No act or proceeding of a committee, standing committee or any of its sub-committees shall be deemed to be invalid on account of any irregularity in the service of notice upon any member provided that the proceedings thereof were not prejudicially affected by such irregularity.
4. (4) Until the contrary is proved, every meeting of a committee, standing committee or any sub-committee shall be deemed to have been duly convened and held.