PETER Vs. PERAYAM PANCHAYAT

JUDGEMENT

(1.) The Perayam Panchayat, to augment its finances, decided by its resolution dt. 25.3.1995 to auction out the right to sell meat within its jurisdiction. The Panchayat area was divided into separate zones for the purpose of this auction. Petitioners, who are conducting meat stalls on the basis of the licences issued by the same Panchayat, are attacking the validity of the notification issued by the Secretary of the Panchayat to auction out the rights in pursuance of the resolution. The question is whether the Panchayat has got the power to auction out the right to vend meat in the teeth of the relevant statutory provisions and the constitution.

(2.) Petitioners, 5 in number, are conducting meat stalls within the area of Perayam Panchayat. They have been conducting the meat stalls for the last 5 to 15 years. This is being done after getting licences from the Panchayat and after paying the licence fees. They had applied for renewal of licences for the period 1995-96. But because of Ext. P4 notification, their licences had not been renewed. The Panchayat, by resolution dt. 31.3.1995, decided to auction out the right to vend meat on the ground that it would fetch more income to the Panchayat. In pursuance of the resolution, Ext. P4 notification was issued indicating the place where meat stalls are allowed and inviting tenders for the same. Clause.10 of Ext. P4 notification is significant, in that it is stated therein that the Panchayat will issue licence only for those persons, who have bid the right in the auction to be conducted. By Ext. P6, the date of auction was postponed to 9.5.1995.

(3.) The original Petition is filed praying for quashing the auction notifications and for a declaration that the Panchayat is not entitled to auction out the right to conduct the meat stalls. There is yet another prayer to issue licences to the petitioners after collecting the licence fees. According to the petitioners, Panchayat has got the right to auction the stalls only if there is a public market. Since there is no public market, they have no right to auction.