TMI Blog1987 (4) TMI 481X X X X Extracts X X X X X X X X Extracts X X X X ..... chal Pradesh Municipal Act, 1968 by including portions of these four villages for such purpose. Initially the Sub Divisional Officer of the area reported against such a move by saying that the villages were inhabited by agriculturists, the population was small, panchayats were already functioning in the area and there was not sufficient non-agricultural activity in the area which would justify these villages to come under a notified area but later the State Government decided to constitute a notified area within the meaning of Section 256 of the Act and on 31-3-1982 such a notification was published. Petitioners thereupon challenged the validity of the notification by filing an application under Article 226 of the Constitution before the Hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in a notified area and there must be a town to form the nucleus of a notified area. It is not disputed that these four villages from out of which portions have been taken out to constitute the notified areas was already within Gram Panchayats duly constituted under statute. Once these areas are constituted into a notified area under the municipal Act, the areas now included in the notified area would necessarily be taken out from the jurisdiction of the Gram Panchayats. The villagers who were elected to the Gram Panchayats and were holding office would, as a consequence of the Constitution of the notified area, cease to be in office so far as the Gram Panchayats are concerned. Chapter XII of the Municipal Act dealing with notified areas pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... el has raised a more serious issue namely denial of an opportunity of being heard before the notified areas has been constituted Since Section 256 of the Act requires certain aspects to be satisfied before a notified area can be constituted, factual determination had to be made as to whether those statutory conditions were satisfied Ours is a democratic polity. At every level, from the villages up to the national level; democratic institution have been introduced The villages are under Gram Panchayats, urban areas under Municipalities and Corporations, districts are under Parishads for the State the is a Legislature and for the entire country, we have the Parliament People residing within Gram Panchayats have their electoral rights to exerc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... action taken under Section 417-A of the Orissa Municipal Act in constituting a notified area was being examined. The Court, referring to the statutory scheme, found : The extension of the Orissa Municipality Act to an area other than a municipality is a matter of serious moment to the residents of the area. It results in the provision of amenities and conveniences necessary to civil life and their regulation by a local body. But the Act also provides for the imposition of taxes of different kinds on the residents. The tax structure does not embody an integrated unified impost expressed in a single tax measure. Different kinds of taxes are contemplated by the Act. The scheme set forth in Chapter XXX-A of the Act intends that before the Go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e their objections to the proposal of the State Government. We do not see how it can be otherwise.... It is a fact that the Orissa Act provides in clear terms a right of hearing whereas Section 256 of the Himachal Act makes no such provision but the settled position in law is that where exercise of a power results in civil consequences to citizens, unless the statute specifically rules out the application of natural justice, the rules of natural justice would aply. We accept the submission on behalf of the appellants that before the notified area was constituted in terms of Section 256 of the Act, the people of the locality should have been afforded an opportunity of being heard and the administrative decision by the State Government sho ..... X X X X Extracts X X X X X X X X Extracts X X X X
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