(1.) This Letters Patent Appeal arises out of an order upholding Section 3(1) of Punjab Municipal Corporation Law (Extension of Chandigarh) Act, 1994 (hereinafter referred as '1994 Corporation Act'), Section 1(2) of Capital of Punjab (Development and Regulation) Act, 1952 (hereinafter referred to as 'Capital Act') and the Notification dated 27.7.1994, specifying the territorial area of Municipal Corporation of Chandigarh, as well as extension of Capital Act to Union Territory of Chandigarh, where the existence of gram sabhas and gram panchayats ceased and thereby further vesting gram sabhas properties in the Municipal Corporation of Chandigarh.
(2.) Broadly-speaking, same Notifications were challenged in civil writ petition No. 4701 of 1995 by the residents of Notified Area Committee, Mani Majra on the similar grounds. The principal questions of law raised in the civil writ petition and in the Letters Patent Appeal and other civil writ petitions Nos. 3218 of 1989, 754 of 1993 & 17778, 4423 and 4666 of 1994 can fairly be regarded as common. This Letters Patent Appeal, CWP No. 4710/1994 and other writ petitions are disposed of by this Judgment. Facts stated in the impugned Judgment in the Letters Patent Appeal, emerge as thus:-
(3.) Punjab Gram Panchayat Act, 1952 (hereinafter referred to as 1952 Punjab Act') was extended to Union Territory of Chandigarh on 10.1.1993. Elections to the gram panchayats were held for the term to expire some time in 1998. In conformity with the object of Seventy-third Constitutional Amendment for taking democracy to the grassroots, 1952 Punjab Act was repealed by Punjab Panchayati Raj Act, 1994 (hereinafter referred to as '1994 Panchayati Raj Act'). Notified Area Committee of Mani Majra was constituted as far back as in April, 1972 under the Punjab Municipal Act, 1911 (hereinafter referred to as '1911 Municipal Act') which was applicable to Union Territory of Chandigarh. In the year 1976, Punjab Municipal Corporation Act, 1976 (hereinafter referred to as '1976 Municipal Corporation Act') was enacted, which was extended to Union Territory of Chandigarh as well. Later, by enacting 1994 Corporation Act, 1976 Corporation Act was extended to Chandigarh. Municipal Corporation for the Union Territory of Chandigarh was constituted. Gram Panchayats of Badheri, Buterala and part of Notified Area Committee, Mani Majra ceased to exist. The constitution of the Corporation, ceasure of the gram panchayats as well as part of Notified Area Committee of Mani Majra were challenged by way of civil writ petitions, inter alia on the grounds: (1) By constitution of the Corporation, the five-year term of the petitioners to gram panchayat had been curtailed in violation of principles of natural justice i.e. petitioners' civil rights were adversely affected without granting an opportunity of hearing to them. Thus, the constitution of the Corporation is void. (2) Effecting ceasure of gram panchayats amounts to dissolution thereof and thus is violative of Section 15(2) and 211 of 1994 of Panchayati Raj Act, read with Article 243(N) of the Constitution of India. Dissolution of gram panchayats can only be effected by a resolution of Legislature. There could not be a curtailment of term of gram Panchayats or that of its members. (3) The Panchayats cannot be deprived of their properties without compensation and without framing rules for disposal thereof. The same could not have been vested in the Corporation as it amounts to violation of Article 31(A) of the Constitution of India. (4) Section 3(1) of the 1994 Corporation Act and Section 1(2) of the Capital Act are ultra vires the Constitution of India because of conferring and exercise of unbridled and excessive legislative power by way of delegated legislative power without providing any policy or guidelines for its exercise.