PUNJAB & HARYANA HIGH COURT
S.S.Sandhawalia and M.R.Sharma JJ.
Jagdish Rai Monga
Versus
State Of Punjab
Civil Writ Petition No. 2856 of 1980,
Decided On : MAY 17, 1982
PUNJAB TOWN IMPROVEMENT ACT - Section 103 - Dissolution of Improvement Trust - Principles of natural justice - Applicability - Held, that the principles of natural justice are not attracted to the exercise of the power of dissolution of an Improvement Trust under Section 103 of the Punjab Town Improvement Act, 1922.
Fact of the Case:
The Punjab Government issued a notification under Section 103(1) of the Punjab Town Improvement Act, 1922, dissolving 21 Improvement Trusts in the State of Punjab with immediate effect. The Chairman and Trustees of one of the dissolved Trusts filed writ petitions challenging the dissolution on the ground that the principles of natural justice were not followed.
Finding of the Court:
The Court held that the principles of natural justice are not attracted to the exercise of the power of dissolution of an Improvement Trust under Section 103 of the Punjab Town Improvement Act, 1922. The Court reasoned that: * The Chairman and Trustees have no legal right to hold office beyond the dissolution of the Trusts. * There is an implied exclusion of the rule of natural justice because of the provision under Section 72-F of the Act, which confers similar powers of suspension and supersession of a Trust on the Government, but does not require an opportunity to be given to the Trust before such action is taken. * There is no provision in Section 103 of the Act requiring the Government to give an opportunity to the Trust before it is dissolved. * The dissolution of a Trust under Section 103 does not involve any penal, evil, or stigmatic consequences for the Chairman or Trustees. * The Government's decision to dissolve the Trusts was a policy decision based on the opinion that the Trusts were not functioning properly and that it was expedient to dissolve them.
Issues: Whether the principles of natural justice are attracted to the exercise of the power of dissolution of an Improvement Trust under Section 103 of the Punjab Town Improvement Act, 1922.
Ratio Decidendi: The principles of natural justice are not attracted to the exercise of the power of dissolution of an Improvement Trust under Section 103 of the Punjab Town Improvement Act, 1922, because: * The Chairman and Trustees have no legal right to hold office beyond the dissolution of the Trusts. * There is an implied exclusion of the rule of natural justice because of the provision under Section 72-F of the Act, which confers similar powers of suspension and supersession of a Trust on the Government, but does not require an opportunity to be given to the Trust before such action is taken. * There is no provision in Section 103 of the Act requiring the Government to give an opportunity to the Trust before it is dissolved. * The dissolution of a Trust under Section 103 does not involve any penal, evil, or stigmatic consequences for the Chairman or Trustees. * The Government's decision to dissolve the Trusts was a policy decision based on the opinion that the Trusts were not functioning properly and that it was expedient to dissolve them.
Final Decision: The writ petitions were dismissed.
S.S.SANDHAWALIA, J.
1. Is the rule of audi alteram partem attracted inflexibly to the exercise of the power of dissolution of an Improvement Trust under Section 103 of the Punjab Town Improvement Act (hereinafter referred to as the Act ) is the spinal issue which has come to the fore in this set of 8 writ petitions assiduously assailing the dissolution of as many as 21 Improvement Trusts at one stroke within the State of Punjab by a single notification?
2. Learned counsel for the parties are agreed that the issues of law are identical and the facts giving rise thereto are closely similar. It therefore, suffices to advert briefly to those in Civil Writ Petition No.2856 of 1980 (Jagdish Rai Monga V/s. The State of Punjab). Petitioner No. 1 way the Chairman whilst the other three were the trustees of the recently dissolved Bhatinda Improvement Trust. Petitioner No.1 was appointed Chairman initially for a period of one year vide notification dated 4th August, 1978 and was reappointed as such for a period of two years with effect from 10th of August, 1979 by a similar notification (Annexure-P-2). Consequently, it is the claim of the petitioners that the Chairman of the Trust is entitled to remain in office till the 10th of August, 1981, while the tenure of petitioners Nos.2 to 4, who had been elected by the Municipal Committee to the Bhatinda Improvement Trust (hereinafter referred to as the Trust ) extends till 24th of May, 1982. It is averred that the Trust had got sanctioned from the Punjab Government as many as four development and improvement schemes for the Bhatinda Town which were at various stages of their execution and four other schemes were under process when the untimely dissolution of the Trust halted the same in their tracks. Petitioner No.1 further avers that before his appointment as wholetime Chairman he was carrying on a flourishing private business which he had abandoned on his appointment as a wholetime Chairman of the Trust, and further that he had been discharging his duties honestly, efficiently and zealously for the all-round development and improvement of the Bhatinda Town. On the 11th of August, 1980 the Punjab Government issued the impugned notification (Annexure-P-3) under Section 103(1) of the Act, whereby 21 Improvement Trusts in the State of Punjab, including the one at Bhatinda were dissolved with immediate effect. Further in exercise of the power conferred by sub-section 2(c) of the aforesaid section it was further directed that the respective Deputy Commissioners and Sub-Divisional Officers, specified in Column 2, shall perform the functions of the Trust and the Chairman under the Act. It is also the case that before the issuance of the aforesaid notification, the Governor of Punjab also issued the Punjab Town Improvement (Amendment) Ordinance, 1980 (Ordinance No.6 of 1980), copy whereof is Annexure-P-5 to the petition.
3. Petitioner No. 1 claims that he was appointed wholetime Chairman during the regime of Akali-Janata Government and he was an active member of the Janata Party before his appointment as such. It is further his claim that out of the 21 Improvement Trusts in the State of Punjab which stand dissolved by the impugned notification, the Chairmen of 19 Trusts are political persons, belonging either to the Akali Party or to the then Janata Party. It is averred that after coming to power in the mid-term poll of 1980, the Congress Party wanted to remove all the aforesaid Chairmen from their position with the ulterior motive of appointing person belonging to the Congress Party in their place. It is specifically alleged that the Chief Minister and other Cabinet Ministers had been making statements that only those Improvement Trusts would be superseded which were not functioning properly but ultimately the Government decided to remove all the Chairmen by resorting to a method which is wholly illegal and unsustainable in law. It is also the case that the impugned notification has been is
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