The main legal principle established in the judgment is that the 'yearly sale value' in Section 109(6) of the Assam Panchayat Act refers to the highest bid value offered by the eligible bidder, empowering the Zilla Parishad to invite tenders and settle properties with a yearly sale value exceeding one lakh.

A.C. Upadhyay, J.

1. This Full Bench has been constituted to resolve the controversy arising from divergent views expressed by this High Court on construction and interpretation of Sub-section (6) of Section 109 of the Assam Panchayat Act, 1994 (hereinafter referred to as 'the Act'). Though the controversy falls within a very narrow compass of interpretation of expression 'yearly sale value', in 'the Act', nonetheless, it entails a question of public importance in view of the confusion produced by conflicting observations of different Benches of this High Court. The expression, 'yearly sale value' is not defined expression in 'the Act', however, Sub-section (6) of Section 109 of the Act provides that if the 'yearly sale value' of the Hats, Ferries and Fisheries, falling under any Anchalik Panchayat, within the jurisdiction of Zilla Parishad exceeds Rs. 1 lakh, it shall be settled by the Zilla Parishad. The moot question which arises for consideration of this Court in this reference are as follows (i) whether yearly sale value would mean the minimum value fixed by the Panchayat while offering the property for settlement by tender or it is the highest value offered by the prospective settlee i.e. eligible highest bidder and (ii) Whether Zilla Parishad is empowered to invite tenders in respect of Hats, Ferries and Fisheries having yearly sale value of rupees more than a lakh.

2. While hearing WA No. 314 of 2008 (Harej Ali and Anr. v. State of Assam and Ors. a Division Bench of this Court presided over by the Chief Justice, being confronted with conflicting views of a Division Bench of this Court in Nagaon Zilla Parishad v. Rezia Begum and Ors. 2006 (Supp) 1 GLT 585, disagreed with the views on the construction of Section 109 of 'the Act', so expressed by the Division Bench and therefore, with utmost respect to the members of the Division Bench, decided to refer the matter to a Bench of appropriate strength in order to resolve the controversy in question once for all. The order of the Division Bench referring the matter to a larger Bench of appropriate strength, reads as follows:

19-11-08. The issue in the appeal is regarding the construction of Section109 Subsection (6) of the Assam Panchayat Act, 1994.

Chapter VII of the said enactment deals with the settlement of Hats, Ghats, Ferries etc. and distribution of proceeds and maintenance and regulation thereof. Section 105 deals with the settlement of Hats. Section 106 deals with the settlement of public Ferries other than Government Ferries. Section107 deals with the settlement of private Hats, Ghats and fisheries. While Sections105 and 106 deal with Hats and public Ferries respectively within the territorial jurisdiction of the Anchalik Panchayat Section 107 deals with Private Hats, Ghats and Fisheries within the jurisdiction of the Gaon Panchayat.

Section 109 deals with settlement of Fisheries of the Anchalik Panchayat. Sections 105, 106 and 109 respectively provide for the process by which the settlements contemplated under each one of those provisions are to be made. Those provisions also deal with the manner in which the proceeds are to be appropriated.

However, Sub-section (6) of Section 109 makes a special provision which reads as follows:

109(6). The Hats, Ferries and fisheries falling under any Anchalik Panchayat within the jurisdiction of Zilla Parishad, the yearly sale value of which is more than rupees one lakh shall be settled by the Zilla Parishad concerned for a period coinciding with and not exceeding one Panchayat Financial year as under Sections105, 106 and 109 in the manner prescribed. The powers of examination and final acceptance of such tenders shall be vested in the Standing Committee as under Section 81(1)(a). The distribution of sale proceeds shall be in the manner as prescribed in the foregoing sections.

Though the above mentioned Sub-section (6) occurs in Section 109 which essentially deals with the settlement of Fisheries of an Anchalik Parishad, Sub-sec