LexSAIJ GRAM PANCHAYAT versus STATE OF GUJARAT AND ORS.
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SAU GRAM PANCHAYAT A v. STATE OF GUJARAT AND ORS. JANUARY 27, 1999 [MRS. SUJATA V. MANOHAR AND G.B. PATTANAIK, JJ.) B Industrial Law : Gujarat Industrial Development Act, 196rSection 16-Notification issued notifying Kaloi Industrial Area as notified aretr-Another Notification, C excluding the notified area from Gram Panchayat-Consolidated tax recovered by the proposed notified area authority-Government resolution passed-Notifications and Government resolution challenged as contrary to Part IX and XI-A of the Constitution-Writ Petition dismissed by High Court-Held, no violation of Constitutional provision-Constitution of India D 195()-l'art IX-XIA, Article 243 : Gujarat Municipalities Act, 1963-Section 264(A) : Gujarat Panchayat Act, 1961, Section 9(2)~ Notified area declared-Civil consequences-Opportunity of hear- ing-People of the area concerned-Natural justice-Audi Alteram Par- E tern-Held, long drawn out exchange of views, consultations, consideration of objections and decision to provide revenue to Gram Panchayat constitute sufficient compliance of natural justice-Adminis- trative Law. Statute law-Inter se conflicf-Vujarat Industrial Development Act, 196rSection 16-Notifications--Notified area declared under Gujarat Municipalities Act-Excluding the said area from Gram Panchayat-Held, Gujarat Industrial Development Act operates in a totally different sphere. Hence no inter se conflict. The Gujarat Industrial Development Act, 1962 was enacted to make special provision for securing the orderly establishment and organization of Industries in State. The Gujarat Municipalities Act, 1963 was amended, in view or the insertion of parts IX and XI A of the Constitution, which F G dealt with the Panchayats and Municipalities respectively. H 263 A B c D E 264 SUPREME COURT REPORTS [1999] 1 S.C.R. On 07-09-1993 State of Gujarat issued two notifications one under section 16 of the Gujarat Industrial Development Act, 1962 declaring that Kaloi Industrial Area as a notified area under Section 264-A of the Gujarat Municipalities Act, 1963 and another notification excluding the notified area from Saij Gram Panchayat under Section 9(2) of the Gujarat Panchayat Act, 1961. Earlier the State Government had issued a Govern- ment resolution dated 30.8.1993 stating that 1/3rd of the amount recovered as consolidated tax by the proposed notified area authority shall be used for the benefit of the Gram Panchayat. The appellant-Saij Gram Panchayat filed a writ petition for quashing the notification and government resolu- tion. High Court dismissed the writ petition. Hence this appeal. On behalf of the appellant, it was contended that if any area forms a part of panchayat under Part IX of the Constitution, it cannot be treated as an industrial township under Part XI-A of the Constitution; that clause 2(1) of Article 243 applies to urban areas only, not to a transitional area; and that the Respondent State did not follow certain procedure prescribed in Gujarat Municipalities Act before enforcing the provisions relating to notified area. It was also contended by the appellants that before any notification issued under the Gujarat Industrial Development Act a hear- ing should be given to the residents because notifying an area has civil consequences. Dismissing the appeal, this Court HELD : 1.1. There is no violation of any constitutional provision; the notifications and the Government resolution in question are valid. [271-H] p 1.2. Under Chapter 3 of the Gujarat Industrial Development Act 1962 G the Gujarat Industrial Development Corporation has been given power inter alia to develop land for the purpose of facilitating the location of industries and commercial centres. It has been given the power to provide amenities and common facilities in such areas including provisions of roads, lighting, water supply, drainage facilities and so on. It may do this either jointly with Govetnment or local authorities or on an agency basis in furtherance of the purpose for which the corporation is established. The industrial area thus has separate, provision for municipal· services being provided by the In- dustrial Development Corporation once such an area is deemed notified area under Gujarat Municipalities Act 1964. It is equated with an industrial H township under Part IXA of the Constitution where municipal services may SAIJ GRAMPANCHAYATv. STATE be provided by industries.
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