The main legal point established is that the authority to grant the lease of a market is vested in the Board under section 148(3) of the Assam Municipal Act, 1956, and any extension of the lease must have the previous approval of the Board.

In this application under Article 226 of the Constitution, the petitioner Shri Sarat Kumar Neog has challenged the extension of the period of lease of a weekly market under Dhe kiajuli Municipal Board.

2. The Board is under supersession. The consequence of supersession is provided under section 299 of the Assam Municipal Act, 1956, for short 'the Act'. Under section 299(b) of the Act, all the powers and duties which may be exercised and performed by the Board under the Act, be exercised or performed by such person or persons as the State Government may direct. Whatever the designation is given to the person or persons to exercise powers and duties of the Board, he or they shall be deemed to be the Board for the purpose of Act. Therefore, wherever the word "Board" is used in this case we use the same to mean the person or persons appointed by the Government.

The respondent 5 Shri Utpal Saikia was granted lease of the weekly market under Dhekiajuli Municipal Board for one year (1989-90) by the Board. Shri Saikia made an application to the Board for extension of the term of the lease for another one year (1990-91). The Board forwarded the application vide letter dated 27.1.90 (Annexure C to the petition) to the Director Municipal Administration with recommendation. On receipt of the letter, the Director purporting to exercise his powers conferred on him under Rule 2 of the Rules of Procedure for the Sale of Pounds and Markets by Municipal Boards and Town Committees in Assam (for short 'the Rules') made an order to the effect that the period of lease was extended for one year (1990-91) @ 5% above the last year's settlement value. The order was communicated by his letter dated 1.1.90 to the Board. Hence the present writ petition.

3. Sub-section (3) of section 148 of the Act provides:

"The Board may grant a lease according to rules under this section for a period not exceeding three years for the collection of rents, tolls and fees in municipal markets at the rates prescribed by the Board under sub-section (2).".

The amended Rule 2 of the Rules runs:

"The period of the lease for a pound or market shall be one year provided that the Board may, if it think fit, with the previous approval of the Director Municipal Administration let a pound or market for a term not exceeding 3 (three) years." (emphasis added). On reading of sub-section (2) together with Rule 2, it is clear that the authority to grant the lease of a market is the Board. However the term of the lease is to be more than one year, the Board has to exercise the power of the grant of the lease with the previous approval of the Director of Municipal Administration.

4. Before dealing with the rival contentions of the parties it would be important to note here that the question as to whether the Director has power under Rule 2 to extend lease has not been disputed and, therefore, we proceed with the case with the assumption that the Director has jurisdiction to extend the lease.

5. As already stated, if the period of lease is for one year, the Board t»f absolute power to grant the lease of a market. But, if the period of the lease is for more than a year, it is to be made by the Board with the previous approval of the Director. The question which arises now is, - What the expression "with the previous approval" signifies ? The word 'approval' means an act of confirming, ratifying,, assenting, sanctioning, or consenting to some act or thing done by another, (see Black's Law Dictionary . Therefore, the expression "with the previous approval" signifies that there must be an act or thing which is done by one and that act or thing done is to be consented or ratified or confirmed by another. Therefore, if the lease is to be made for a period more than one year, the Board shall decide at least the period and rent which would invite Director to say that the proposal to lease is approved.

6. In the present case, the Board has not made any proposal or has done nothing in the lig