NARODA NAGAR PANCHAYAT AHMEDABAD Vs. STATE OF GUJARAT

JUDGEMENT

(1.) In this group of nine Writ Petitions the petitioners are three Nagar Panchayats and six Gram Panchayats constituted under the Gujarat Panchayats Act 1961 (hereinafter referred to as the Panchayats Act) The challenge in the petitions is directed toward two sets of notifi- cations; (1) six notification each dated May 6 1975 issued by the State Government in exercise of the powers conferred by sec. 16 of the Gujarat Industrial Development Act 1962 (hereinafter referred to as the G.I.D.C. Act) and published in the Gujarat Government Gazette dated May 7 1975 declaring inter alia that the provisions relating to notified areas as contained in Chapter XVI-A of the Gujarat Municipalities Act 1963 (hereinafter referred to as the Municipality Act) and other specified provisions of that Act shall extend to and be brought into force in six indu- strial areas notified by the State Government under the G. I. D. C. Act and directing that the provisions of the Panchayat Act which were in force in the said industrial areas shall cease to apply thereto; and (2) six notifications each dated May 4 1975 issued by the Development Commissioner Gujarat State in exercise of the delegated powers of the State Government under sub-sec. (2) of sec. 9 of the Panchayats Act and published in the Gujarat Government Gazette dated May 6 1975 excluding local areas which constituted the afore-mentioned six industrial areas from the respective limits of the petitioner-Panchayats. Since common questions of law arise in all these petitions; they were heard together and they are being disposed of by this common judgment.

(2.) In order to appreciate the merit of the challenge it would be necessary at the very outset to refer to the relevant statutory provisions. Each of the petitioner-Panchayat is established and constituted under sec. 3 read with secs. 12 and 13 of the Panchayats Act. They have been desig- nated as Nagar Panchayats or Gram Panchayats as the case may be in accordance with the description of the local area under their jurisdiction as per provisions of sec. 9. They are the local authority for the purposes of the administration pertaining to local Government in the areas comp- rised within their jurisdiction. They inter alia levy and collect taxes and perform functions and duties assigned to them under the Panchayats Act. For the purposes of the present case it would be necessary to set out sub-sec. (2) of sec. 9 of the Panchayats Act which reads as under:

(3.) The Gujarat Legislature has enacted the G.I.D.C. Act and it came into force on August 9 1962 As the long title and preamble of the said Act lays down it is an Act to make special provision for securing the orderly establishment of industries in industrial areas and industrial estates in the State of Gujarat and to assist generally in the organisation thereof and for that purpose to establish an Industrial Development Corporation and for purposes connected with the matters aforesaid. The Act extends to the whole of the State of Gujarat. Sec. 2 clause (d) defines Corporation to mean the Gujarat Industrial Development Corporation established under sec. 3 (hereinafter referred to as the Corporation). Sec. 2 clause (g) defines industrial area to mean any area declared to he an industrial area by the State Government by notification in the Official Gazette which is to be developed and where industries are to be accommodated. Sec. 2 clause (h) defines industrial estate to mean any site selected by the State Government where the Corporation builds factories and other buildings and makes them available for any industries or class of industries. Sec. 3 provides for the establishment and incorpora- tion of the corporation for the purposes of securing and assisting in the rapid and orderly establishment and organisation of industries in industrial areas and Industrial estates in the State of Gujarat. Sec. 13 prescribes the functions of the Corporation and accordingly the Corporation has inter alia generally to promote and assist in the rapid and orderly establishment growth and development of industries in the State of Gujarat and for that purpose to establish and manage industrial estates at place selected by the State Government to develop industrial areas selected by the State Government and make them available for undertakings to establish themselves to develop land on its own account or for the State Government for the purpose of facilitating the location of industries thereon and to undertake schemes or works either jointly with other corporate bodies or institut- ions or with Government or local authorities or on any agency basis in furtherance of the purposes for which the Corporation is established and all matters connected therewith. Sec. 14 deals with the powers of the Corporation and it inter alia authorises the Corporation to acquire and hold movable and immovable properties to provide or cause to be provided amenities and common facilities in industrial estates and industrial areas and construct and maintain or cause to be maintained works and buildings there- fore to make available buildings on hire or sale to industrialists or persons intending to start industrial undertakings and to do such other things and perform such acts as it may think necessary or expedient for the proper conduct of its business and the carrying into effect the purposes of the G.I.D.C. Act. Sec. 16 is material for the purposes of these petitions and it reads as follows:- Notwithstanding anything contained in the provisions for the time being in force relating to notified areas in the Gujarat Municipalities Act 1968 the State Govern- ment may by notification in the official Gazette