Judgement

SARKARIA, J.:- The main question that arises in these two appeals directed against the common judgment, dated June 26, 1974 of the High Court of Gujarat, is whether the Notification dated March 31, 1974 (for short, the impugned notification) issued by the State Government is invalid on the ground that the condition precedent to the exercise of the power under Section 303-A of the Gujarat Panchayats Act, 1961, (for short, the Panchayats Act) is not satisfied.

2. The Panchayats Act provided for three-tiers of Panchayats. They were, in the descending order: District Panchayats, Taluka Panchayats and Gram Panchayats. The Act provided for indirect election to Taluka Panchayats and partly indirect and partly direct election to the District Panchayats on the basis of Adult franchise. Under Section 17 (2) as amended by Gujarat Act 1 of 1968, the normal term of a Panchayat was five years from the date of the first meeting. This term could be extended by the State Government by a period not exceeding in aggregate one year.

3. The last election to Taluka Panchayats took place in February, 1968 and the Panchayats were constituted on February 28, 1968. Their term was due to expire on February 28, 1978. Similarly, the five year term of the District Panchayats was due to expire on March 31, 1973. By a Resolution dated April 12, 1973, the State Government appointed a high level Committee headed by Jhinabhai Darji to suggest basic reforms in the Panchyati Raj set up. On the interim recommendation of this Committee, the State Government extended the terms of Taluka Panchayats up to August 31, 1973 and those of District Panchayats up to September 30, 1973. The Jhinabhai Darji Committee submitted its final report on September 30, 1972. Thereupon, the Gujarat (Amending) Act 9 of 1978 was passed. This Amending Act made far-reaching changes in the original Act. The indirect elections to the Taluka Panchayats were abolished and provision was made for direct election to all the Panchyats. As it was not possible for administrative reasons to hold elections in accordance with the amended Act, the State Government by an order dated June 21. 1973, extended the term of Taluka Panchayats and District Panchayats till August 31, 1973 and September 30, 1973, respectively By another order, dated October 3, 1973, the terms of both these Panchayats were again extended up to February 28, 1974. Thus the power of the State Government to extend the term of the Taluka Panchayats under Section 17 (2) of the Act had exhausted itself.

4. In the first week of January, 1974, widespread disturbances broke out in the State of Gujarat. There was public agitation against the State Government demanding its resignation and the dissolution of the Gujarat Assembly.

5. On January 25, 1974, the Governor of Gujarat promulgated Ordinance 1 of 1974. It substituted in sub-section (2) of S. 17 of the Act the words "two years for the words "on year . Under the amended provision the Government got the power to extend the term of a Panchayat by two years in the aggregate beyond its normal term of five years.

6. As a result of the mounting public agitation, the State Ministry tendered its resignation on February 9, 1974. On the same date, the President of India by a proclamation under Article 356 of the Constitution assumed all the functions of the State Government.

7. By an order dated February 27, 1974, issued under Section 17 (2) as amended by Ordinance 1 of 1974, the terms of the Taluka Panchayats and District Panchayats were again extended up to March 31, 1974.

8. The State Legislature was dissolved on March 15, 1974. Parliament thereafter passed the Gujarat State Legislature (Delegation of Powers) Act, II of 1974 which vested with effect from March, 27, 1974 powers of the State Legislature in the President of India. In exercise of his powers under Section 3 of this Act, the President enacted Gujarat Panchayats (Amendment) Act 8 of 1974 which came into force on March 31, 1974. It i