TMI Blog1995 (10) TMI 229X X X X Extracts X X X X X X X X Extracts X X X X ..... d. Incidentally, Local authority has also been defined in Section 2(J) of the Haryana Housing Board Act, 1971 as under: (J) 'Local authority' means a municipality constituted under the Punjab Municipal Act, 1911 (Punjab Act 3 of 1911), or a Gram Panchayat constituted under the Punjab Gram Panchayat Act, 1952 (Punjab Act 4 of 1953), or a Panchayat Samity or a Zilla Parishad constituted under the Punjab Panchayat Samities and Zilla Parishad Act, 1961 (Punjab Act 3 of 1961), or an Improvement Trust Improvement under the Punjab Act 4 of 1922). Both the definitions are conclusive in nature and only those bodies including the Municipal Board or a Gram Panchayat etc. Will be treated as Local authority as are mentioned therein. But there is a significant difference in as much as the words Authority legally entitled to or entrusted by the Government with, the control or management of a Municipal or Local Fund which are found in the definition contained in the General Clauses Act are not found in the definition of Local Authority in the Haryana Housing Board Act, 1971. Concept of Local Authority is also found contained in Entry 5, List II of the Seventh Sc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n a Body having and possessing, practically all the attributes of a Municipal Board or the District Board so far as their independent existence is concerened. Similarly, in the definition of Local Authority in the Haryana Housing Board Act, 1971, it has been provided that it shall mean the Municipality, Gram Panchayats, Panchayat Samitis, Zila Parishads and Improvement Trusts. It hardly requires to be mentioned that the Municipal Board, the Gram Panchayat or a Panchayat Samiti or a Zilla Parishad, or for that matter, Improvement Trust, referred to in this definition are, at least, partially, if not wholly, elected bodies. In Municipal Corporation of Delhi v. Birla Cotton Spinning and Weaving Mills, Delhi and Anr. (1968 (3) S.C.R.251), Hidayatullah,J. (as he then was ) observed as under: Local bodies are subordinate branches of governmental activity. They are democratic institutions managed by the representatives of the people. They function for public purposes and take away a part of the government affairs in local areas. They are political sub- divisions and agencies which exercise a part of state functions. As they are intended to carry on local self- government th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nies provided by government or obtained by borrowing or otherwise. What is essential is that control or management of the fund must vest in the authority. Since this decision will equally apply to the definition of Local Authority set out in the Haryana Housing Board Act, 1971 as that definition is substantially similar to the definition of Local Authority in the General Clauses Act, it is in the light of the above principals that it has to be seen whether the Haryana Housing Board answers the attributes specified above so as to be treated a local authority within the meaning of Section 32(iv) of the Payment of Bonus Act. The Haryana Housing Board Act, 1971 in its preamble states that it is an Act to provide for measures to be taken to deal with and satisfy the need of housing accommodation. The Statement of Objects and Reasons set out at the time of introduction of the Bill in the Legislative Assembly indicate, inter alia, as under: Next to food and clothing housing is the basic necessity of mankind. The housing problem has become serious on account of the phenomenal increase in population. Repid industrialisation has led to the congestions in urban areas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Chapter III of the Act deals with the Housing Schemes. Section 20 provides as under: 20. Duty of Board to undertake housing schemes.-- Subject to the provisions of this Act and subject to the control of the State Government, the Board may incur expenditure and undertake works in any area for the framing and execution of such housing schemes as it may consider necessary from time to time or as may be entrusted to it by the State Government. The exercise of power by the Board in framing and executing Housing Schemes is not only subject to the provisions of the Act but also subject to the control of the State Government. The matters which may be provided for in a Housing Scheme are indicated in Section 21 which include laying or re-laying of the land, construction and re-construction of buildings, construction and alteration of streets and back lanes, drainage, water supply and lighting of the area included in the Scheme, Parks, playing fields' sanitary arrangements etc. The accounts of the Board are to be audited by such persons as are deputed by the Government (See sub-section (2) of Section 61) and the Board does not seem to have any choice in the matter except to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act relevant portions of which are re-produced below: 71. Power of government to give direction to Board.-- The State Government may give the Board such directions as in its opinion are necessary to expedient for carrying out the purposes of this Act, after giving an opportunity to the Board to state its objections, if any to such directions and after considering the said objections and it shall be the duty of the Board to comply with such directions. 72. Control of State Government over Board. (1) The State Government shall exercise superintendence and control over the Board and its officers and may cail for such information as it may deem necessary and, in the event of its being satisfied that they Board is not functioning properly and is abusing its powers and is guilty of corruption of mismanagement, it may, by notification, suspend the Board: Provided that the Board shall be reconstituted, within a period of one year from the date of its suspension, in the prescribed manner. (2) When the Board is suspended under sub-section (1), the following consequences shall ensue, namely:- (a) ...................... (b) ...................... ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... analogy the Haryana Housing Board cannot be treated to be a local authority as the extent of control of the State Government under which the Board has to function is so prominently pervasive that it is almost destructive of its independence which will also be apparent from the fact that in the matter of settlement of its Annual Programmes, Budget and Establishment schedule, the Board has to obtain the sanction of the State Government under Section 24 of the Act. The supplementary budget and programme, if any, has also to be sanctioned by the State Government. We need not refer to other provisions as the provisions already referred to above are sufficient to bring home the point that Haryana Housing Board does not have even the semblance of independence which are normally possessed by local self Governments, like Municipal Boards or District Boards etc. The Board also does not even partially consist of elected representatives of the people. The Board, no doubt, has the power to levy and realise Betterment Charges (See Section 40 to Section 43 of the Act) and various amount of money due from presons in possession of the properties of the Boards by way of rent etc. are recover ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bihar and Orissa Mining Settlement Act, 1920 is a body corporate having perpetual succession and a common seal with power to hold and acquire property. It consists of not less than seven and not more than eleven members of whom not less than two and not more than four are elected by owners of mines within the Mining Settlement, three non-officials selected by the State Government and two or more members but not exceeding four nominated of the State Government. The Chairman of the Board is to be appointed by the State Government from among the members of the Board. A fund called 'The Mining Settlment Funds' is formed for every mining settlement and the fund vests in the Board. The fund consists of sums charged by the Board under the Act from land-owners, etc. as also sums allotted to the Board from the State Revenuse; sums borrowed by the Board under the Local Authorities Loans Act; Grants received from local authorities, associations and private persons, etc. The Board appoints Health officers as well as Sanitary Inspectors. The Board can impose taxes like Latrine taxes and also make yearly assessment. There are certain powers conferred on the State Government under the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... local areas and on account of this definition, the High Court, after referring to the definition of the Local Authority in Section 4(25) of the U.P. General Clauses Act, held that Jal Sansthan was a Local Authority which was to be treated at par with Municipal Corporation etc. for the purposes of Local Self- Government. It may be pointed out that under Section 18 of the Act, Jal Sansthan consists of, amongst others, three Sabhasads of the Nagar Mahapalika nominated by the State Government. Sabhasads, under the U.P. Nagar Mahapalika Abhihiyam, Municipal Corporation. Learned counsel for the appellant also relied upon the decision of Mahavir and others vs. State of u.p. and others AIR 1979 Allahabad 3 in which Mandi Samiti constituted under the U.P. Krishi Utpadan Mandi Adhiniyam was held to be a Local Authority for purposes of Land Acquisition Act. Significantly, Section 12(2) of the Adhiniyam contains a deeming provision that the Committee shall Acquisition Act, 1894 and any other law for the time being in force . (Emphasis supplied). This case is, therefore, clearly distinguishable. Our attention was next drawn to the decision of the Mysore High Court in Workmen of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch was next cited before us, it was not disputed that Calcutta Metropolitan Development Authority was a Local Authority within the meaning of Section 3(3) of the General Clauses Act. All the aforesaid decisions of Various High Court, therefore, do not help counsel for the appellant as all of them are clearly distinguishable. Moreover, the decision of this Court in Union of India and Ors. vs. R.C. Jain and Anr. (1981 (2) SCR 854) which has already been referred to above by us was not referred to in any of these decisions as those decisions were rendered prior to the decision of this Court except the Allahabad decision in Kandriya Nagrik Samiti, Kanpur (supra) in which also this decision was not noticed. R.C. Jain's case (supra) was, however, noticed by the Bombay High Court in Krishi Utpanna Bazar Samiti vs. Income Tax Officer and Others (158 ITR 742) in which the Hon'ble Judges after considering the scheme of the Maharashtra Agricultural Produce Marketing (Regulation) Act, 1963 and after scrutinizing the tests laid down by this Court in R.C. Jain's case observed as under: The Market Committee clearly satisfies all these tests. It is a body corporate having ..... X X X X Extracts X X X X X X X X Extracts X X X X
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