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1985 (4) TMI 319

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..... constitutional validity of s. 54 of the Bombay Town Planning Act 1954 (for short the Act) and Rule 27 of the Bombay Town Planning Rules 1955 (for short the Rules). By a notification dated 21st July , 1965 the State Government of Gujarat sanctioned the final Town Planning Scheme in respect of certain areas lying within the limits of Borough Municipality of Ahmedabad and directed that the said Final Scheme shall come into force on 1st September , 1965. The lands in the possession of the appellants were allotted or reserved for construction of roads and other public purposes in that Scheme and therefore , being lands required by the Municipal Corporation they vested absolutely in Municipal Corporation (local authority) free from all encumb .....

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..... s it laid down the procedure which did not conform to principles of natural justice. The High Court has negatived both the grounds of challenge. As : regards ground (a) , relying upon the decision in Wolver- hampton New Water Works case reported in ( 1859) 6 B. (N.S.) 336 and observations of Willes J. therein (appearing at page 356 of the Report) the High Court took the view that the rights of the local authority (to own and obtain possession of such lands) with the corresponding liability of the occupants to suffer-eviction therefrom did not exist under the law prior to the making of the Final Scheme , that such rights and liabilities were created for the first time by the Final Scheme which is to be read as part of the Act and since .....

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..... the Rules. Counsel for the appellants fairly conceded the validity of the High Court's view on the first ground of challenge to s. 54. It was only in regard to the second ground of challenge that he pressed one more aspect before us on the basis of which he contended that s. 54 read with Rule 27 may have to be struck down. He urged that even proceeding on the basis that s. 54 impliedly required a hearing to be given and consequently such a requirement could be read into Rule 27 which was a subordinate piece of legislation , there was no corrective machinery provided for by way of an appeal or revision to any superior authority against an adverse order that may be passed by the local authority acting under Rule 27 and in the absence o .....

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..... of appeal or revision by itself would not make the power unreasonable or arbitrary , much less would render the provision invalid. Regard will have to be had to several factors , such as , on whom the power is conferred-whether on a high official or a petty officer , what is the nature of the power-whether the exercise thereof depends upon the subjective satisfaction of the authority or body on whom it is conferred or is it to be exercised objectively by reference to some existing facts or tests , whether or not it is a quasi-judicial power requiring that authority or body to observe principles of natural justice and make a speaking order etc; the last mentioned factor particularly ensures application of mind on the part of the authority or .....

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..... emical Industries Another V. Union of India and Others.( [9801] 1 S.C.R. 61.) In this case s. 14B of the Employees Provident Fund and Miscellaneous Provisions Act 1952 which conferred power upon the Central Provident Fund Commissioner to levy and recover punitive damages from a defaulting employer was challenged on the ground that within the limit of 100% of the defaulted amount it conferred naked and unguided power on the Commissioner to impose any quantum of damages as he fancied that no reasons were required to be given by him for such imposition and that no appellate or revisional review was prescribed against any adverse order that may be made by him and as such the section was violative of Art. 14 of the Constitution. Negativing the c .....

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..... es and it is at the stage of execution of a town planning scheme that the power of summary eviction of occupants who have ceased to be entitled to occupy the plots in their occupation has been conferred upon the Local Authority itself-a highly responsible body , and that the power is required to be exercised by it in objective manner (it is to be found by reference to the Final Scheme and its interpretation whether the occupants are occupying lands which they are not entitled to occupy , ). Further we are in agreement with the High Court that the power conferred upon the Local Authority is a quasi-judicial power which implies that the same has to be exercised after observing the principles of natural justice , that is to say , the decision .....

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