JUDGMENT

B. N. Lokur, J. - This petition under Article 226 of the Constitution raises the question of legality of the order of the State Government, dated 17th November, 1966 superseding the Town Area Committee, Captainganj, district Deoria, for a period of two years, under Section 36 (1) of the U. P. Town Areas Act, 1914. The petition came up for hearing before Beg, J. and, although six grounds had been set out in the petition challenging the validity of the order of supersession, it appears that the only ground urged was that the order is invalid as no opportunity was given to the Town Area Committee for submitting its explanation before the order was made. On behalf of the State, the decision of a Single Judge of this court in Iqbal Ahmad v. State of U.P., A.I.R. 1962 Alld. 264 was cited in support of the proposition that no such opportunity need be given before an order of supersession is made. Beg, J., however, felt that the said decision required reconsideration as it was not in conformity with the later pronouncements of this Court as well as of the Supreme Court and referred the whole, case to a larger Bench.

2. The only point urged before us is that in passing the order of supersession, the State Government was exercising a quasi-judicial function and ought to have given an opportunity to the Town Area Committee, before passing the order and the order is also contrary to the fundamental principles of natural justice and fair-play.

3. Section 36 (1) of the Town Areas Act reads thus :-

36 (1) if, in the opinion of the State Government a committee persistently makes default in the performance of the duties imposed on it by or under this or any other Act for the time being in force, or exceeds or abuses its powers, the State Government may, by an order published, with the reasons for making it, in the Official Gazette declare that committee to be in default, or to have exceeded or abused its powers; and supersede it for a period not exceeding two years to be specified in the order."

4. It would be convenient to set out the instances of default committed by the Town Area Committee in the performance of its Statutory duties and the instances of excesses and abuse of power, as mentioned in the order of supersession. The instances of default are :-

"The Committee has failed to-

(1) finalise the preparation of assessment lists for the years 1964-65, 1965-66 and " 1966-67 in accordance with the provisions of Section 15-B of the aforesaid Act and the U. P. Town Area Circumstances and Property Tax (Assessment and Collection) Rules;

(2) utilise the road grant amounting to Rs. 5,000/- sanctioned to it in G. 0. No. 6118-A/XI-C-506-64, dated December 18, 1964, within the prescribed period;

(3) prepare demand and collection registers, monthly accounts, annual balance sheet and report and office order book as required under rules 23, 40, 41, 42 and 54 of the Accounts Rules embodied in the Town Area Manual;

(4) keep minimum working balance as required under rule 58 of the said Accounts Rules; and

(5) to make proper and adequate arrangements for lighting in the town."

The instances of excess and abuse of power are :-

"The Committee has abused and exceeded its powers-

(1) by revising the assessment lists for the years 1962-63 and 1963-64 prepared by the old Committee; and

(2) by allowing the town fund to re-main with unauthorised persons i.e. with Sri Narain Modi, Member of the Committee and Sri Gautam Dubey, Vice-Chairman of the Committee, in utter disregard of the provisions of Rule 2 of the said Accounts Rules."

5. The circumstances leading to the order of supersession are briefly these: on 26th June, 1966, three members of the Town Area Committee, which was formed on the result of general elections held in 1964, made a written representation to the State Government complaining of various irregular acts of commission and omission on the part of the committee, whereupon the State Government directed the District Magistrate, Deoria, to make an enq