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1987 Supreme(SC) 457

SUPREME COURT OF INDIA
A.P.Sen : V.B.Eradi
Khargram Panchayat Samiti
Versus
State Of West Bengal
Case No. : 5675 of 1985
Date of Decision : 4/23/87
Advocates Appeared: Chandra Girish : Chandra Sarat : Das J.R. : Kackar S.N. : Mukherjee D.N. : Ray Tapas : Sinha Dalip : Sinha Parijat

Advocates:
D.N.MUKHERJI, DALIP SINGH, GIRISH CHANDRA, J.R.DAS, PARIJAT SINHA, S.N.KACKAR, SARAT CHANDRA, TAPAS RAY

Headnote:

West Bengal Panchayat Act, 1973 – Section 117 - Special leave - Quashing a resolution – Fairs Price - Ever since a cattle fair called Nagar Cattle Hat is being held on Saturday every week by Nagar Quorania Junior High a charitable educational institution which runs a school and is also engaged in other social activities which attracts a large gathering of buyers and sellers of cattle dealers within district of and even beyond district- Since 1974 respondent a club set up a parallel cattle fair at a place called about two kilometres away (as crow flies) from site of Nagar Cattle Hat on every Saturday known as Cattle Hat - Holding of two rival cattle fairs on same day gave rise to a feeling of rivalry coupled with tension amongst local population as also large number of cattle dealers and peasantry attending cattle fairs and this frequently led to violent conflicts and skirmishes between two rival groups – Held, Upon a representation made to him in District Magistrate caused an inquiry to be held and by his order held that holding of two cattle fairs on same day created serious law and order problem and accordingly directed holding of hats on two different days for preservation of public peace and tranquility - On a writ petition filed by respondent a division bench of High court by its order struck down impugned order of District Magistrate on ground that no such direction could be issued by him as competent authority was - It was observed Reserve Bank of India has followed dictum of Lord in Great Eastern Railway case and reaffirmed principle that doctrine of ultra vires in relation to powers of a statutory corporation have to be understood reason-Ably and so understood whatever may fairly be regarded as incidental to or consequential upon those things which legislature has authorized ought not to be held by judicial construction to be ultra vires – Appeal is dismissed

A.P.SEN,J.

(1) THIS appeal by special leave is directed against the judgment and order of the Calcutta High court dated 2/08/1985 quashing a resolution passed by the Khargram Panchayat Samiti dated 12/04/1985 specifying that the cattle fairs run by the two rival organisations i.e. Nagar Cattle Hat run by Nagar Quorania Junior High Madrassah would be held on Saturday every week and Sherpur Cattle Hat run by Prabartak Parishad on Friday. By the judgment under appeal, a division bench of the High court has held that even though the Panchayat Samiti was vested with the power to grant licence for holding of a hat or fair under S. 117 of the West Bengal Panchayat Act. 1973, still in the absence of a rule framed under the Act it had no power to specify a day on which such hat or fair shall be held. The issue involved is whether the Panchayat Samiti being vested with the authority to grant a licence for the holding of a hat or fair under S. 117 of the Act within the limits of its territorial jurisdiction, must necessarily be held to have the consequential or incidental power to specify a day for the holding of such hat or fair.

(2) THE facts of the case are as follows. Ever since 1933, a cattle fair called Nagar Cattle Hat is being held on Saturday every week by the Nagar Quorania Junior High Madrassah, a charitable educational institution which runs a school and is also engaged in other social activities, which attracts a large gathering of buyers and sellers of cattle dealers within the district of Murshidabad and even beyond the district. Since 1974, respondent 6 a club called Prabartak Parishad, set up a parallel cattle fair at a place called Sherpur, about two kilometres away (as the crow flies) from the site of Nagar Cattle Hat on every Saturday, known as Sherpur Cattle Hat. The holding of two rival cattle fairs on the same day gave rise to a feeling of rivalry coupled with tension amongst the local population as also the large number of cattle dealers and peasantry attending the cattle fairs and this frequently led to violent conflicts and skirmishes between the two rival groups. Upon a representation made to him in 1980, the District Magistrate. Murshidabad caused an inquiry to be held and by his order dated 2/04/1980 held that holding of the two cattle fairs on the same day created serious law and order problem and accordingly directed holding of the hats on two different days for preservation of public peace and tranquillity. On a writ petition filed by respondent 6 Prabartak Parishad. a division bench of the High court by its order dated 2/06/1982 struck down the impugned order of the District Magistrate on the ground that no such direction could be issued by him as the competent authority was the Khargram Panchayat Samiti. It was observed :

THE only authority which is competent to give any direction in this reward is the authority under the West Bengal Panchayat Act. 1973. No such direction has been given by the authority under the said Act. In the circumstances, we set aside the impugned order of the District Magistrate and the judgment of the learned Judge. Appeal is allowed. There will be no order as to costs. It is made clear that this order is without prejudice to any steps that may be taken in accordance with law by the authority under the said Act.

(3) IN compliance with the direction made by the High court, the District Magistrate obviously actuated by consideration of main-tenance of law and order requested the Chairman of the Khargram Panchayat Samiti to take necessary steps as the holding of rival hats in contiguous areas could not be allowed to continue as it save rise to serious law and order problem. A meeting of the Panchayat Samiti was accordingly held on 20/06/1984 and a resolution was passed by a majority of the members that the Nagar Cattle Hat run by Nagar Quorania Junior High Madrassah would be held on Saturday as before and the Sherpur Cattle Hat run by Prabarta









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