ORDER :

1. The petitioner has filed the petition under Article 226 of the Constitution of India challenging the Notification dated 25.3.2021 (Annexure-1) issued by the Director and Special Secretary, Local Self Government.

2. Learned counsel for the petitioner has submitted that the impugned Notification had not been issued as per Article 243Q of the Constitution of India. Governor was required to issue the notification as per the conditions incorporated in Article 243Q of the Constitution of India.

3. In support of his argument, the learned counsel for the petitioner has placed reliance on the decision of the Hon’ble Supreme Court in the case of Champa Lal v. State of Rajasthan & Ors, 2018 AIR SC 2352, wherein it was held as under:-

“The establishment of municipalities and their organisations is governed by Part IX A (consisting of Articles 243P to 243ZG) of the Constitution of India inserted in the Constitution by the Constitution 74th (Amendment) Act, 1992 with effect from 1.6.1993. Article 243P(e) defines the expression “Municipality” to mean an institution of self-government constituted under Article 243Q. Article 243Q of the Constitution of India declares as follows:

“243Q. Constitution of Municipalities:-

(1) There shall be constituted in every State- (a) a Nagar Panchayat (by whatever name called) for a transitional area, that is to say, an area in transition from a rural area to an urban area;

(b) a Municipal Council for smaller urban area; and

(c) a Municipal Corporation for a larger urban area, in accordance with provisions of this Part:

Provided that a Municipality under this clause may not be constituted in such urban area or part thereof as the Governor may, having regard to the size of the area and the municipal services being provided or proposed to be provided by an industrial establishment in that area and such other factors as he may deem fit by public notification, specify to be an industrial township.

(2) In this article, “a transitional area”, “a smaller urban area” or “a larger urban area” means such area as the Governor may, having regard to the population of the area, the density of the population therein, the revenue generated for local administration, the percentage of employment in non-agricultural activities, the economic importance or such other factors as he may deem fit, specify by public notification for the purposes of this Part.”

7. Article 243Q contemplates the constitution of three different categories of bodies known as (i) Nagar Panchayat for a transitional area, (ii) Municipal Council for a smaller urban areas and (iii) Municipal Corporation for a larger urban area.

8. It is declared under Article 243Q(2) that the expressions “a transitional area”, “a smaller urban area” and “a larger urban area” (hereinafter collectively referred to as “AREAS”) would mean such areas as may be specified by the Governor by a public notification for the purpose of Part IX A of the Constitution of India. Article 243Q(2) further obligates the Governor to have due regard to the various factors mentioned therein before specifying the AREAS i.e. population of the area, the density of the population, the revenue generated in the area for local administration, percentage of employment in non-agricultural activities, the economic importance or such other factors as he may deem fit.

9. It, therefore, appears from the scheme of Article 243Q(2) that the Governor is not free to notify ‘AREAS’ in his absolute discretion but is required to fix the parameters necessary to determine whether a particular AREA is a transitional area or a smaller urban area or a larger urban area with due regard to the factors mentioned above. It is implicit that such parameters must be uniform for the entire State. It is only after the determination of the parameters, various municipal bodies contemplated under Article 243Q(1) could be constituted.”

4. Learned counsel for the petitioner has also placed reliance on the decision of the Division Bench of M