AHMEDABAD MUNICIPALITY Vs. MULCHAND

JUDGEMENT

(1.) THIS revision application raises the important question of the necessity of impleading the Provincial Government in a suit filed by or on behalf of a superseded local authority. The suit out of which this application arises was filed by the Municipal Borough of Ahmedabad against its contractor Mulchand to recover Rs. 46-14-0 by way of damages for loss caused by his negligence by; reason of which the plaintiff had to pay damages to one Sakrabhai Motichand. The suit was filed in the Court of the Registrar of the Small Causes Court, Ahmedabad, and when it was pending, the Government of Bombay, in exercise of its powers under Sub-rule (1) of Rule 38-B of the Defence of India Rules, 1939, issued a notification superseding the Ahmedabad Municipality and appointing the Collector of Ahmedabad to exercise all. the powers and duties of the Municipality under Clause (b) of Sub-rule (2 ). A few days later Mr. Whitworth was appointed as the Administrator of the Municipality under that clause, and he took over the charge from the Collector on September 7, 1942. He applied to the Court to be joined as plaintiff No.2. He was added as plaintiff No.2, but on the defendant's objection, the Court held that the Government of Bombay was a necessary party, and refused to proceed with the suit until the Government of Bombay was added as a defendant. The plaintiffs have now come in revision against that order.

(2.) SUB-rule (1) of Rule 38-B of the Defence of India Rules, 1939, empowers the Provincial Government to supersede a local authority under certain circumstances for such period as it may think necessary. SUB-rule (2) provides that when such an order of supersession has been made under SUB-rule (1) (a) all the members of the local authority shall, as from the date of supersession vacate their offices as such members; (b) all the powers and duties which may, by or under any law for the time being in force, be exercised or performed by or on behalf of the local authority shall, until the local authority is reconstituted. . . be exercised and performed by such person or persons as the Provincial Government may direct; (c) all property vested in the local authority shall until the local authority is reconstituted. vest in the Provincial Government.