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1953 Supreme(Mad) 359

IN THE HIGH COURT OF JUDICATURE AT MADRAS
Rajamannar, Chief Justice and Venkatarama Ayyar, JJ.
Kandiyil Vania Pudukudi Ramunni Kurup
Versus
The Panchayat Board, Badagara
Writ Petitions Nos. 165, 166, 171, 203 to 207, 219, 220, 223, 224, 225, 228, 233 and 280 of 1952.
Decided On : 13 November 1953

Advocates:
K.V. Venkatasubramania Ayyar, C.S. Swaminathan, T. Rami Reddi, M.K. Nambiar, K. Ramachandra Rao. S. Ramaswami Iyer, K. Raja Iyer, K. Hariharan, N. Gopala Menon, K. Kuttikrishna Menon, K.G. Srinivasa Iyer and K.S. Menon for Petitioners
The Advocate-General (V.K. Thiruvenkatachari) assisted by V.V. Raghavan for the Government Pleader (P. Satyanarayana Raju) on behalf of the Respondent.

Validity of the order of prohibition against private markets.

Headnote:Madras Village Panchayats Act, 1950 - Section 81(1) and section 82(3) -Validity of the order of prohibition of private markets in Panchayats.

       

Venkatarama Ayyar, J.-

These are petitions filed under Article 226 of the Constitution of India and raise the question whether the notification, G.O.No.139 (L.A.) issued by the Government of Madras on 31st January, 1952, is valid. That notification is as follows:

“In exercise of the powers conferred by section 81, sub-section (1) of the Madras Village Panchayats Act, 1950 (Madras Act X of 1950), His Excellency the Governor of Madras nereby appoints the official year 1952-53 as the year after the commencement of which, no person shall continue to keep open a private market in any panchayat area within the jurisdiction of a panchayat.”

The petitioners are owners of private markets in the districts of Malabar, North Arcot, Nellore, Tiruchirapalli and Visakhapatnam. Some of these markets are stated to have been in existence for more that a century. All of them had been run under annual licences granted under the Madras Local Boards Act, XIV of 1920. The petitioners allege that when they applied for renewal of licence to hold the market for the year 1952-53 they were informed by the Panchayat Board, which is the first respondent, that under the provisions of section 81(1) of the Madras Village Panchayats Act (X of 1950) and the notification, dated 31st January, 1952, issued under that section private markets could no longer by conducted and that no licence would be granted for holding them. Their complaint is that section 81(1) of the Act and the notification in question issued thereunder deprived them of their fundamental right to hold and enjoy their property and to carry on business and that they are therefore void as being repugnant to Article 19(1)(f) and (g) of the Constitution. They accordingly pray that a Writ of Mandamus be issued directing the Panchayat Board to issue the necessary licences for holding markets.

The relevant provisions of the Madras Village Panchayats Act X of 1950, hereinafter referred to as the Act, may now be noted: section 1(2) enacts that the Act shall extend to the whole of the State of Madras except, the city of Madras, the Municipalities governed by the District Municipalities Act V of 1920 and cantonments governed by the Cantonments Act of 1924. That is to say, it applies to the whole of the rural’ areas of the State. Under section 1(3), the Act is to come into force on such date as may be appointed by notification. In accordance therewith it has been brought into operation from 1st April, 1951. Sections 80 to 86 of the Act relate to markets. Section 80 provides that the Panchayat may open public markets and levy one or more of the fees as are mentioned therein. Sections 81 and 82 with which we are directly concerned in these petitions are as follows:

"Section 81.(1) No person shall open a new private market after the commencement of this Act, or continue to keep open a private market, after the commencement of such year as the Government may, by notification appoint in this behalf:

Provided that nothing in this sub-section shall apply to any private market, existing on the date of the publication of the notification aforesaid, if the income derived from such market after deducting therefrom the costs of collection and management and such other sums as may be prescribed, has been, and continues to be utilised solely for educational, charitable and religious purposes.

(2) if any question arises as to whether any market falls within the scope of the proviso to subsection (1) or not, the Panchayat shall make a reference thereon to the Government and their decision shall be final.

(3) In lieu of such of the private markets closed in pursuance of sub-section (1), the Panchayat shall provide a public market.

82. (1) No person shall keep open a private market of the nature referred to in the proviso to sub-section (1) of section 81 unless he has obtained a licence from the Panchayat to do so. Such licence shall be renewed every year.

(2)(a) The Panchayat shall grant the licence applied for subject to such condit























































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