The main legal point established is that the exemption clause under Article 243-B(2) of the Constitution is not applicable in the State of Manipur, as the population referred to in the clause is the entire population of the State, and the State Government is under obligation to provide for the constitution of Panchayats at the intermediate level.

JUDGMENT :

1. Heard Mr. Juno Rahman, learned counsel appearing for the petitioners; heard also Mr. N. Kumarjit, learned Advocate General, assisted by Mr. P. Tamphamani, learned counsel; and Mr. H. Debendra, learned G.A. appearing for the respondents.

2. The present petition has been filed seeking amendment of the Manipur Panchayati Raj Act 1994 to provide for a 3-tier system of Panchayati Raj Institutions namely, Gram Panchayat at the Village level, Block Panchayat at the intermediate Level and Zila Parishad at the District Level in place of the existing 2-tier system of Gram Panchayats at the Village Level and Zila Parishad at the District Level in the State of Manipur. In other words, the petitioners are seeking for introduction of the Block Panchayat/Gram Samiti at the intermediate level as provided in other parts of the country on the ground that as Manipur has total population of more than 20 lakhs, the State is under obligation to provide these Panchayat institutions at 3(three) levels.

3. The institution of Panchayati Raj had been in vogue in India since time immemorial and now much importance has been given to the Panchayati system raising it to the Constitutional status by incorporating these institutions in part IX of the Constitution. Article 40 of the Constitution of India provides that the State shall take steps to organize village panchayats and endow them with such powers and authority as may be necessary to enable them to function as units of self-government. Under the Constitution, matters relating to Local Government, that is to say, the constitution and powers of municipal corporations, improvement trusts, district boards, mining settlement authorities and other local authorities for the purpose of local self-government or village administration have been included under Item No. 5 in the State List (List-II), thus empowering the State Government to make necessary laws relating to local self-government or village administration.

4. Manipur Panchayati Raj Institutes have been in existence even since the time when Manipur was a Union Territory with the adoption and implementation of the UP Panchayati Raj Act, 1947. Subsequently, after Manipur was granted Statehood, the Manipur Panchayati Raj Act, 1975 was enacted and implemented which has now been replaced by the Manipur Panchayati Raj Act, 1994, which provides for 2-tier system of Panchayati Raj Institutions, that is at the Gram Panchayat at the Village Level and Zila Parishad at the District Level.

5. It may be noted that before the enactment of the Manipur Panchayati Raj Act, 1994, the Constitution of India was amended by introducing Part IX by Constitution (73rd Amendment) Act, 1992, which specifically deals with the Panchayat; and Part IX-A by the Constitution (74th Amendment) Act, 1992 which specifically deals with the Municipalities. Thus, by introducing Part IX and Part IX-A, the local self-government institutions of Panchayats and Municipalities have been given constitutional status and importance and accordingly, the relevant laws as applicable in the State ought to conform to the Constitutional provisions.

6. Under Part IX of the Constitution which deals with the Panchayats, it has been provided under Article 243-B(1) that there shall be constituted in every State, Panchayats at the village, intermediate and district levels in accordance with the provisions of this Part. Thus, in terms of the provisions of Article 243-B (1), the Panchayati Raj Institutions are to be constituted at the 3(three) levels that is, village, intermediate, and district level. That is the mandate of the Constitution. However, an exception has been carved out under clause (2) of Article 243-B which provides that notwithstanding anything in clause (1), Panchayats at the intermediate level may not be constituted in a State having a population not exceeding twenty lakhs. Because of this provision, in respect of State which has a population less than twenty lakhs, it is not mandatory to