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SUPREME COURT OF INDIA
K.N. WANCHOO, R.S. BACHAWAT AND J.M. SHELAT, JJ.
Khambhalia Municipality and another Appellants
Versus
The State of Gujarat and another, Respondents.
Civil Appeal No. 1340 of 1966, D/-16-2-1967.
Advocates appeared
Mr. Purshottam Trikamdas, Senior Advocate (Mr. Ravinder Narain, Advocate of M/s. J. B. Dadachanji and Co., with him), for Appellants; Mr. N. S. Bindra, Senior Advocate, (Mr. K. L. Hathi, Advocate and Mr. S. P. Nayyar, Advocate, for Mr. R. H. Dhebar, Advocate, with him), for Respondents.
GUJARAT PANCHAYATS ACT, 1961 - S. 9 - Declaration of local area as nagar or gram - Power of State Government - Scope and extent - Delegation of legislative power - Validity.
Fact of the Case:
The appellant municipality of Khambalia challenged the legality of a notification issued by the Development Commissioner under S. 9 (1) of the Gujarat Panchayats Act, 1961, declaring the area comprised in the appellant municipality to be a nagar. The appellant contended that S. 9 was ultra vires and unconstitutional on the ground of excessive delegation of legislative power to the State Government.
Finding of the Court:
The Court held that S. 9 of the Gujarat Panchayats Act, 1961, suffered from the vice of excessive delegation of legislative power to the State Government. The Court observed that the legislature had not sufficiently indicated the policy which was to guide the State Government in declaring a local area to be a gram or nagar or in the matter of making an inquiry preliminary to the declaration and the framing of the rules for the inquiry and had given a naked and arbitrary discretion to the State Government to declare or not to declare a local area to be a gram or nagar or alter the limits of any nagar or gram or declare that any local area shall cease to be a nagar or a gram.
Issues: Whether S. 9 of the Gujarat Panchayats Act, 1961, suffered from the vice of excessive delegation of legislative power to the State Government.
Ratio Decidendi: The Court held that S. 9 of the Gujarat Panchayats Act, 1961, suffered from the vice of excessive delegation of legislative power to the State Government. The Court observed that the legislature had not sufficiently indicated the policy which was to guide the State Government in declaring a local area to be a gram or nagar or in the matter of making an inquiry preliminary to the declaration and the framing of the rules for the inquiry and had given a naked and arbitrary discretion to the State Government to declare or not to declare a local area to be a gram or nagar or alter the limits of any nagar or gram or declare that any local area shall cease to be a nagar or a gram.
Final Decision: The Court allowed the appeal and quashed the impugned notification.
Judgement
BACHAWAT, J. : (On behalf of himself and Wanchoo, J.) : This appeal arises out of a writ application challenging a notification issued on June 14, 1965, declaring the area of Khambalia municipality in Jamnagar district to be a nagar under S. 9 (1) of the Gujarat Panchayats Act, 1961 (Gujarat Act No. VI of 1962). The Jamnagar district was formerly a part of the ; State of Saurashtra which merged in the State of Bombay in 1956. Before the merger, the State of Saurashtra adopted the Bombay District Municipalities Act, 1901 under which the town of Khambalia was constituted into a municipality. On the bifurcation of the State of Bombay , the district of Jamnagar became a part of the State of Gujarat. The Gujarat Panchayat Act, 1961 was passed on February 24, 1962. The population of Khambalia municipality according to the census of 1961 was 12,249. By a notification, dated August 17, 1962, issued under S. 9 of the Gujarat Panchayats Act, 1961, the local area within the limits of the Khambalia municipality was declared to be a nagar and the municipality ceased to exist. On February 5, 1963, upon the publication of the Gujarat Panchayats (Suspension of Provisions and reconversion of certain local areas into municipal districts) Act, 1962, the Khambalia municipality and other municipalities converted into Nagar Panchayats by notifications under S. 9 (1) of the Nagar Panchayats Act, 1961, stood revived. On February 7, 1963, the Gujarat Panchayat Laws (Amendment) Ordinance 1963 repealed S. 3 of the Gujarat Panchayats (suspension of provisions and reconversion of certain local areas into municipal districts) Act. 1962 and all the provisions of the Gnjarat Panchayats Act, 1961 became again operative. In April 1962, the State Government converted some of the revived municipalities into nagar or gram panchayats, but the Khambalia municipality was not then so converted. Meanwhile, the State Government started proceedings for the supersession of the Khambalia municipality under S. 179 of the Bombay District Municipal Act, 1901 and in this connection there was litigation between the Government and the municipality. On December 23, 1964, the Gujarat Municipalities Act, 1963 (Act No. XXXIV of 1964) was passed, and the Khambalia municipality became a municipality constituted under this Act for the Khambalia municipal borough. On June 14, 1965, the Development Commissioner, Gujarat State, issued a notification under S. 9 (1) of the Gujarat Panchayats Act, l961, declaring "the whole area of the existing limits of the Khambalia municipality in Jamnagar district" to be a nagar with effect from the date of the issue of the notification. This notification was issued by the Development Commissioner after making the prescribed enquiry under S. 9 (1). The effect of the notification was that the entire local area included within the limits of the municipal borough for which the Khambalia municipality was constituted became a nagar. On June 22, 1965, the appellants filed a writ petition in the High Court of Gujarat, praying for an order quashing the notification, dated June 14, 1965 and declaring S. 9 of the Gujarat Panchayats Act, 1961 as ultra vires and unconstitutional, and for other reliefs. The High Court dismissed this application. The appellants now appeal to this Court under a certificate granted by the High Court.
2. To appreciate the contentions raised by learned counsel for the appellants, it is necessary to read S. 9 of the Gujarat Panchayats Act. 1961. That section is in these terms :
"9. (1) After making such inquiries as may be prescribed, the State Government may, by notification in the Official Gazette declare any local area, comprising a revenue village or a group of revenue villages or hamlets forming part of a revenue village, or such other administrative unit or part thereof , -
(a) to be a nagar, if the population of such local area exceeds 10,000 but does not exceed 30,000, and
(b) to be a gram, if the population of such local are
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