SHRI RADESHYAM KHARE & ANOTHER versus THE STATE OF MADHYA PRADESH & OTHERS
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.. • • .. Ghaio /!fall 6- So11s v. 1'he Sltde of Delhi ~ Others D,.sC.j. Seplembt:r 30. • • • .. • 1440 , • , ••• STJPREME COUB.T RE;PORTS • • [1959] business by :Messrs. Army a,.11d '.Ila vy St-0~e:o still remains unfilled. The applications of the appellants and other applicants were for a grant of L-2 license for 1954/ 1955. That year has gone ptist and accordingly in the changed eircumstances wo direct. the Chief Commis- sioner ~o fill ap the vacancy ctrnsed by the closure of the business by ?.fossrs. Army and Xavy Stores by inviting applications from intending licensees including the appellitnts and Messrs. Gainda Mall Hem ltaj and granting the oame to the most suitable party .• We, therefore, accept this appP1~l, reverse the order of the High Court and issue a mandamus to the effect afore- said and also direct the respondents Xos. l to 4 lo pay the appellant.s' costs of this appeal and of the proceed. ings int.he High Court out of which this appeal ha~ arisen. Messrs. Gainda '.\Iall Hem Raj arc to hear their own costs throughout. Appeal allowed . • • • SHRI RADESH1A'.ll 'KHARE & ANOTHER•• v. • THE STATE OF !llADHYA PHADESH & OTHEHS (S. H. DAS c. J., BHAGWATI, s. K. DAS, ,J. L. KAPUR and 81.'BBA RAo ,JJ.) Municipality -- Appoi11tmmt of Excwtivc OJJiccr •by State Go·,:crnmcnt--lf an adtninistrafi;,·c act-C. J>. and Berar i'funicipali- ties Act, 1922 (Act I I of 1922). ss. 53A and 57. , • The n1ain point for clt~ci:;ion in this appeal by the lttunicipal Comn1ittcc of Dhamtari and its Prcsi<lcnt \\·as, \\·hcther in appoint- ing an Executive Officer in exercise of its po,,·ers under s. 53A of the C. P. and Bei;ar }!unicipalities Ac$, 1922, the State Go\'crn- 1nr.nt acted iii a judicial capacity or in an administra~ve one . Complai.tng been made against the appellants, the a<ldi- tiona~ ollcctor \Vas directed to hold an enquiry and on his •r~pOrt the State Go,·crnn1i;nt, by a notilicatiou un<lcr that secti~n. apppin(cd all' Executive Officer of the Municipal Com- mittee for !8 Tnonth;> ,,·ith specified po\l,·crs and duJies. The ·~ppellants were gi\'en notice of the said enqlliry, filed objections • .. .. • • • • • •. ' • .. •, > • ' • • • • ' S.C.R .• .SUPREfy[E copRT REPOR'CS 1441 and the Presiq,ent was pe•sonally present on some occasions during the enquiry. The notific"ation charged the appellants with incompetency as well as abnse of power. Against that Shri Radeshyam notification the appellants moved tne High Court under Art. 226 Khare & Another of the Constitution for a writ of certiorari quashing the same, v. but their application was rejected by the Judge sitting singly. The State of An appeal under the Letters Patent against his deci'j,iOn was Madhya Pradesh summarily dismissed. It was contended before this Court on & Others behalf of the appellants that, (1) although the notification pur- ported to be one under s. 53A of the Act, it was in effect and reality one under s. 57 of the Act, that (2) it was, therefore, in- cumbent on the Government under s. 57(5) of the Act to afford the appellants an opportunity to furnish explanation and that (3) even if the notification was one under s. 53A of the Act, the Government was bound by the rules of natural justice to give the appellants an opportunity to defend themselves. Held (per curiam), that ss. 53A and 57 of the C. P. and llerar Municipalities Act, 1922, differed materially in their scope and effect, but it was not obligatory under either of them for the Government to take any action at all. Although a finding of incompetency of the Municipal Committee was a condition pre- cedent to action under both the sections, the Government was free to choose its remedy as the occasion demanded and it could .not be conteri<ied that because a notification made under s. 53A of the Act, along with a finding of incompetency, contained some instances of abuse of power"as well, it must be held to have been made u01der s. 57 of the Act. • • Nor could the vesting of power in the Executive Officer by <t:he notification, however substantial in character, be said, in effect and reality, to amount to a dissolution of the Municipal Committee under s. 57 of the Act. Per Das C.J. and Kapur ].-The real test whether the State Government functioned in a quasi-judicial capacity or in an administrative capacity in exercising its powers under s. ·53A of the Act was whether the sta
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