Andhra Pradesh High Court
Judges : D.H.NASIR
Gram Panchayat, Kota - Appellant
Versus
A.P.S.R.T.C., Nellore - Respondent
Decided On : 03-27-97
Andhra Pradesh Panchayat raj Act, 1994, - Section 46 - Road Transport Corporation act, 1950 - Section 19 – Offence of punishment – Promotion - Corporation would be rendered incapable undertaking similar work in village Kota and that was one of functions of Panchayat to carry out such work section of Panchayat Raj Act –Court at loss to appreciate argument advanced by Counsel for Panchayat - Not restrictive clause at all - Nature of an enabling provision indicating areas where panchayat could make provisions for any one or more activities as laid down in Clauses - No infirmity is produced on Corporation to provide for any facility in bus stand which could leave open stall holders of Corporation to carry on any such work – Held, Dictum of aforesaid decision does not apply to the statutory body like respondent corporation - As far as respondent corporation is concerned court have discussed above that would be governed by provisions of Transport Corporation act on examining provisions of said Act court have found that activity sought to be embarked upon by respondent Corporation is not prohibited provisions of said Act - On same ground yet another decision of supreme Court in case of Punjab distilling Industries Ltd Registrar of companies was pressed into service by Counsel in which it is laid down that new business contemplated is outside scope of object and has nothing to do even remotely with its existing business amendment of Memorandum of Association Section could not be allowed - On same ground as discussed above respectfully ratio laid down in above case cannot be applied to facts of present case – Petition dismissed
( 1 ) THE writ petitioner is a Gram panchayat of Kota, Nellore District represented by its Executive Officer. The writ petition is filed against the Andhra Pradesh state Road Transport Corporation (for short the Corporation) seeking to restrain them from constructing a market complex within the Bus Stand compound at Kota. Three grounds are urged by the learned Counsel for the Gram Panchayat. Firstly that section 46 of the Andhra Pradesh Panchayat raj Act, 1994, provides that the Gram panchayat may make such provision as it thinks fit for carrying out the requirements of the village in respect of the matters enumerated in Clause (i) to (xxvii ). Under clause (iii), the Gram Panchayat can undertake the work of promotion and development of preprimary education, elementary education, social and health education, cottage industries and trade. The learned Counsel was trying to impress upon the Court that in view of the above provision, the Corporation would be rendered incapable of undertaking similar work in village Kota and that it was one of the functions of the gram Panchayat to carry out such work under section 46 of the Panchayat Raj Act. I am, however, at a loss to appreciate this argument advanced by the learned Counsel for the gram Panchayat. This is not a restrictive clause at all. It is in the nature of an enabling provision indicating the areas where the Gram panchayat could make provisions for any one or more activities as laid down in Clauses (i) to (xxvii ). No infirmity thereby is produced on the Corporation to provide for any facility in the bus stand which could leave open the stall holders of the Corporation to carry on any such work.
( 2 ) THE learned Counsel for the Gram panchayat also endeavoured to invoke article 243 (G) of the Constitution of India to bring home to the Court a proposition that the Legislature of the State was empowered to endow the Panchayats with such powers and authority as may be necessary to function as institutions of self-government and such law may contain provisions for the devolution of powers and responsibilities upon panchayats at the appropriate level, subject to such conditions as may be specified therein, with respect to- a) the preparation of plans for economic development and social justice; b) the implementation of schemes for economic development and social justice as may be entrusted to them including those in relation to the matters listed in the Eleventh Schedule. The learned Counsel also referred to the eleventh Schedule which includes markets and fairs at item No. 22.
( 3 ) READING Article 243 (G) along with eleventh Schedule, no conclusion could be drawn that the power was conferred upon the Gram Panchayat in an exclusive manner to provide for or carry out the aforesaid activities. No infirmity can also be inferred to be arising from the said provisions on the statutory body like the Road Transport corporation to restrain from making any arrangements or providing any facilities for similar activities, to be carried on in the village. The idea behind the entire provision is to lay wide open the field for the Gram panchayat to carry on various activities for the purpose as stated therein. This provision of the Constitution is clearly not intended to impose any curb or restriction on trade and business to be carried out by individuals or even institutions in that village. This submission made by the learned Counsel for the petitioner, therefore, is also found to be devoid of any substance.
( 4 ) THE learned Counsel further drew my attention to the provisions of the Road transport Corporation Act 1950. According to the learned Counsel, the Corporation was not empowered to carry on any activity other than those provided under Section 19 of the said Act, which did not include, according to the learned Counsel for the petitioner, the power to carry on business of selling and producing consumer goods, eatables and other articles. He further submitted that under
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