G H CHAMPA LAL versus STATE OF RAJASTHAN AND ORS.

Citation: [2018] 5 S.C.R. 628 · Decided: 26-04-2018 · Supreme Court of India · Bench: JASTI CHELAMESWAR · Disposal: Disposed off

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Judgment (excerpt)

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SUPREME COURT REPORTS
[2018] 5 S.C.R.
CHAMPA LAL
v.
STATE OF RAJASTHAN AND ORS.
(Civil Appeal No. 4554 of 2018)
APRIL 26, 2018
[J. CHELAMESWAR AND SANJAY KISHAN KAUL, JJ.]
Constitution of India:  Art.243Q – Interpretation of –
Notification dated 6.10.2008 envisaging upgradation of Gram
Panchayat of Napasar Village as Nagar Palika (Municipality) –
On challenge to the validity of said Notification, the State withdrew
it by Notification dated 18.09.2009 – Validity of Notification dated
18.09.2009 challenged – Fresh Notification issued again for
establishing a Nagarpalika for the Napasar village – Validity of,
challenged – Held: Art.243Q contemplates constitution of three
different categories of bodies known as Nagar Panchayat for a
transitional area, Municipal Council for a smaller urban areas and
Municipal Corporation for a larger urban area – It is declared
under Art.243Q(2) that the expressions “a transitional area”, “a
smaller urban area” and “a larger urban area” (‘Areas’) would
mean such areas as may be specified by the Governor by a public
notification for the purpose of Part IX A of the Constitution of India
– Art.243Q(2) further obligates the Governor to have due regard
to the various factors mentioned therein before specifying the Areas
i.e. population of the area, the density of the population, the revenue
generated in the area for local administration, percentage of
employment in non-agricultural activities, the economic importance
or such other factors as he may deem fit – It, therefore, appears
from the scheme of Art.243Q(2) that the Governor is not free to
notify ‘Areas’ in his absolute discretion but is required to fix the
parameters necessary to determine whether a particular Area  is a
transitional area or a smaller urban area or a larger urban area
with due regard to these factors – Such parameters must be uniform
for the entire State – It is only after the determination of the
parameters, various municipal bodies contemplated under
Art.243Q(1) could be constituted – In the absence of any
notification which meets the requirements of Art.243Q(2), the entire
   [2018] 5 S.C.R. 628
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exercise undertaken by the State of Rajasthan in upgrading the
Napasar village Gram Panchayat to be a Nagarpalika is
unconstitutional – Therefore, the initial notification dated 6.10.2008
itself is unsustainable and, thus, the legality of various actions which
followed that notification and the judgments of the High Court which
examined the legality of those actions, need not be examined – All
such subsequent action of the State which led to litigation suffer
from a fundamental constitutional flaw – The impugned judgments
of the High Court rendered without examining the true scope and
scheme of Part IXA of the Constitution and more particularly
Art.243Q(2) are per incuriam – Rajasthan Municipalities Ordinance,
2008 – s.3(1)(A) – Municipalities.
Disposing of the appeals, the Court
HELD: 1. The establishment of municipalities and their
organisations is governed by Part IX A (consisting of Articles
243P to 243ZG) of the Constitution of India inserted in the
Constitution by the Constitution 74th (Amendment) Act, 1992
with effect from 1.6.1993. Article 243P(e) defines the expression
“Municipality” to mean an institution of self-government
constituted under Article 243Q. Article 243Q contemplates the
constitution of three different categories of bodies known as (i)
Nagar Panchayat for a transitional area, (ii) Municipal Council for
a smaller urban areas and (iii) Municipal Corporation for a larger
urban area.  It is declared under Article 243Q(2) that the
expressions “a transitional area”, “a smaller urban area” and “a
larger urban area” (‘Areas’) would mean such areas as may be
specified by the Governor by a public notification for the purpose
of Part IX A of the Constitution of India.  Article 243Q(2) further
obligates the Governor to have due regard to the various factors
mentioned therein before specifying the Areas i.e. population of
the area, the density of the population, the revenue generated in
the area for local administration, percentage of employment in
non-agricultural activities, the economic importance or such other
factors as he may deem fit.  It, therefore, appears from the scheme
of Article 243Q(2) that the Governor is not free to notify ‘Areas’
in his absolute discretion but is required to fix the parameters
necessary to determine whether a particular AREA is a
transiti

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