S. RAJENDRA BABU, J.

( 1 ) BY these petitions the petitioners are seeking for quashing the Notifications at Annexure-A dated 9th August, 1995 and Annexure-B dated 20th October, 1995. They are issued by virtue of the powers under Sections 3 and 9 of the Karnataka Municipalities Act, 1964 (for short the Act ).

( 2 ) ANNEXURE-A proposes to specify certain areas to be smaller urban area of Bidar and the same shall be a City Municipal area of Bidar and calls upon those interested to fife objections to the proposal, it also describes the said smaller urban area as areas coming within the limits specified in Schedule-B to the Notification.

( 3 ) BY Annexure-B the Government of Karnataka specified the smaller urban area stating that objections have been invited by Notification dated 16. 8,1995, and objections received in time have been duly examined. It is stated in the Notification that having regard to :

(i) the population of such area is not less than fifty thousand and not exceeding three lakhs; (ii) the density of population in such area is not less than one thousand five hundred inhabitants to one square kilometer of area; (iii) the revenue generated for local administration from such area from tax and non-tax sources in the year of the last preceding census is not less than Rs. 22,50,000/- per annum or a sum calculated at the rate of Rupees forty five per capita per annum, whichever is higher; (iv) the percentage of employment in non-agricultural activities is not less than fifty percent of the total employment. the City Municipal area of Bidar has been specified, which is a similar urban area coming within the limits mentioned in Schedule-B to the Notification.

( 4 ) ON behalf of the petitioners it is submitted that the Karnataka Panchayat Raj Act was enacted for greater participation of the people pursuant to the constitutional amendments relating to panchayats. In view of the same the Gram Panchayats of Amalpur, Haladkeri and Naubadh have been formed in the Taluk of Bidar; that consequent upon the creation of these Gram Panchayats elections have taken place; the petitioners have been elected as Members of the said Gram panchayats; they have also been further elected as Adhyaksha and Upadhyaksha; they are holding offices and discharging their duties thereof; the villagers are also benefiting substantially from various schemes such as Jawahar Rozgar Yojana, Integrated Rural Development programme, Indira Awas Yojana, B'hagya Jyoti and several other Schemes; for purpose of implementation of these schemes about Rs. 4000 crores have been sanctioned, whereas the municipalities and Corporations get a grant or aid from the State only to an extent of Rs. 160 crores for the development of Municipalities and Corporations, Therefore, it is submitted that people living in villages under Gram Panchayat will be better placed than those of Municipal corporations. The villagers who have a right to decide on what should be the nature of society in which they live whether agrarian, semi rural or urban can decide the same and agriculture being the predominant occupation of more than 75% of people living in such villages, it was not proper on the part of the Government to have included these villages to declare the same as smaller urban area of Bidar. The villagers opposed their areas being converted to a semi-urban area thereby making it a part of Municipality of Bidar. The Gram Panchayats have all passed resolutions opposing the inclusion of these villages in the Muncipal Council. It is submitted that the impugned Notifications have been issued without due application of mind, as the Notifications do not indicate the purpose for which the same is sought to be done and as the purpose had not been indicated and the villagers did not have the necessary opportunity to put forth their grievance. Relying upon the decision in STATE OF ORISSA v. SRIDHAR KUMAR MALLIK AND OTHERS AIR1985 SC 1411 , 1985 (2 ) SCALE317 , (1985 )3 SCC697 , [1985 ]supp2 SCR

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