STATE OF ASSAM Vs. ASSAM TEA COMPANY LIMITED

JUDGEMENT

(1.) The Assam Tea Company Ltd., owns tea gardens in the village of Nazira in the State of Assam. By a notification dated June 16, 1909, the Government of Bengal (which then had territorial jurisdiction over the territory now within the State of Assam) constituted a Town Committee at Nezira adjacent to the tea garden of the Company. In 1923 the Legislature enacted the Assam Municipal Act 1 of 1923. Section 328 of the Act provided for the constitution of notified areas. By subsection (1) of Section 328 the Provincial Government was authorised by notification, to signify its intention to declare that with respect to some or all of the matters upon which a Municipal fund may be expended, improved arrangements are required within a specified area. After issuing such a notification the Government was competent, after six weeks from the date of publication, and after considering the objections, if any, to declare, by notification, the specified area or any portion thereof to be a notified area Section 4 of the Act authorised the Provincial Government by notification, inter alia to signify its intention to include within a Municipality any local area in the vicinity of the same or exclude from a Municipality any local area comprised therein. Any inhabitant of any part of a local area defined in a notification published under Section 4, was entitled by virtue of Section 5 to raise objections to the proposed action. The Government would after considering the objections, inter alia, include the local area or any part thereof within the Municipality or exclude it therefrom. The provisions of Sections 4 and 5 were not of their own force applicable to a notified area constituted under Section 328 but by virtue of Clause (d) of sub-section (1) of Section 330 it was competent to the Provincial Government to extend to any notified area the provisions of any section of the Act. By sub-section (3) of Section 330 it was provided:

(2.) The Company then filed a petition in the High Court of Assam challenging the validity of the notification. The High Court was of the view that the any had provided all amenities and facilities which a municipality may provide, and since it did not appear that any "improved arrangements" could be provided by the Town Committee the notification issued by the Government was "colourable legislation" and was liable to be struck down in so far as it related to the area of the tea estate belonging to the Company. We have considered in Appeal No. 2052 of 1969 (Reported in AIR 1970 SC 2072), State of Assam v. The Amalgamted Tea Estates Co. Ltd., the correctness of this decision and we have rejected it But Mr. Chagla appearing on behalf of the Company contended that the notification dated January 6, 1964 signifying the intention of tile State Government to include the area belonging to the Company within the Nazira Town Committee and the find notification dated September 30, 1964, were unauthrised because, the provisions of Sections 4 and 5 of the Assam Municipal Act 15 of 1957 were not extended to the Nazira Town Committee by notification issued under sub-section (3) of Section 336 of the Assam Municipal Act. Counsel invited our attention to Section 2 of the Assam Municipal Act, 15 of 1957 as originally enacted. By Section 2 of that Act the Assam Municipal Act, 1923 was repealed; and by Clause (b) of the proviso to that Section it was provided:

(3.) It is unnecessary to consider whether, as suggested by counsel for the State of Assam, by virtue of Section 336 (3) once a notification under Sec. 4 of the Act of 1923 was issued, for all purposes a Town Committee became a municipality and on that account the notification continued to remain in operation. In our judgment, under the provisions of the Assam General Clauses Act, 1915, Section 26 saves the notification in question. Section 26 provides, inter alia: