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STATE OF ASSAM versus ASSAM TEA CO. LTD.

Citation: [1971] 1 S.C.R. 931 · Decided: 21-08-1970 · Supreme Court of India · Bench: J.C. SHAH · Disposal: Appeal(s) allowed

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Judgment (excerpt)

D 
11 
931 
STATE OF ~AM 
v. 
ASSAM TEA CO. LTD. 
August 21, 1970 
[J. c. SHAH, K. s. HEGDE AND A. N. GROVER, JJ.] 
Assam General Cltlu.res Act (2 of 1915), s. 2~Notification UJJ4ed 
under Assam Municipal Act, 1923-1!n3...Act repealed and 
Auam 
Municipal 
Act, 1957, enacted-Whether notification under 192S·Act 
deemed to be in force under 1951-Act. 
· 
Under ss. 4 and 5 of the Assam Municipal ACt, 1!123, the Provincial 
Government was authorised to signify its intention to include within a 
municipality any local area in its vicinit:t, and, after' considelring any 
objections to the proposed action to so mclude. tbe area. 
Section 328 
provided for the constitution of notified areas. Sections 4 and 5 were not 
applicable to a notified area but the Provincial Government could extend 
to any notified area any section of the Act by virtue of s. 330(1}(d). 
Under s. 330(3), for the purpose of any section so extended, tbe town 
committee constituted for !IUCb notified area would be deemed to be a 
Municipal Board. In 1957, the 1923-Act was repealed and was replaced 
by the Assam Municipal Act, 1957. 
· 
' 
The respondent owned tea gardens in the village of NazirJ. . In . 
1909, a town committee was constituted at Nazira adjacent to the, tea 
~arden. In 1951, by a notification issued by the GoYemment..pf Assam, 
s.4(1)(b) and (c) and s.5(1) and (2)(b) of the 1923-Act were c-
tended to the not&ied area committee including the Nazira Tovm Com-
. mittee. 
On January 6, 1964, a notification was issued under th~ J9S7-
Act to revise the boundaries of the notified area at Nazira, and after con-
sidering the objections of the respondent on September 30, 1964; .. by a 
final notification, a part of its tea estate was incorporated within the 
Nazira Town Committee. 
On the question whether notifications dated January 6 · 1964 and 
September 30, 1964 were unauthorised, because, ss. 4 and 5 ~f 19S7-Act, 
corresponding to ss. 4 and 5 of the 1923-Act, were not extended to the 
notified area on these dates, 
' 
. 
HELD: There is no express provision i9 the 1957 Act which super~ 
oedes the notification issued in 1951 un¥r the 1923-Act nor is the 
continuance of the notification 
inconsistent with any provision in the 
1957-Act. Therefore, under s. 26 of the Assam G~Mteral Qauses Act, 
1915, the 1951 notification continues in : orce and must be deemed to 
have been issued under the 1957-Act. Hence the State Government was 
competent, in exercise of the power conferred upon it by the 1957-Act, 
to include within the area of the Town Committee any local area conti-
guous to it, [934 H; 935 A] 
CIVIL APPELLA1E JURISDICTION: 
Civil Appeal No. 435 of 
·1970. 
Appeal by · ~pecial l~aye. from the judgmeJl~ and orde~ da!e~ 
¥arch 28, 1969 of the Assam and Nagalaild H1gb Court m Civll 
:Rule No. 183 of 1965. · · 
·· 
· 
· · ·. · 
' · ·' · 
SUPREME COURT REPORTS 
[1971] 1 s~c.R.-
Nattnit Lal,- for the appellant. 
M. C. Chagla~ P. K. Goswami and R. Gopalakrishnan, for the 
respondent. 
B. Datta,. for the intervener . 
. The Judgment of the Court was delivered by 
Shah, J. 
The Assam Tea Company Ltd owns tea gardens 
in the viUage of Nazira in the State of Assam. By a notifica· 
tion dated June 16, 1909, the Government of Bengal (which 
then had territorial jurisdiction over the territory now within the 
. State of Assam) constituted a Town Committee at Naziru 
adjacent to the tea garden of the Company. In 1923 the Legis-
lature enacted the Assam Municipal Act I 
of 1923. 
Section 
328 of the Act provided for the constitution of notified areas .. 
By sub-s. ( 1) of s. 328 the Provincial Government was autho-
rised by notification, to signify its intention to declare that with 
respect to some or all of the matters upon which a municipal 
fund may be expended1 improved arrangements are _required 
within a specified area. 
After issuing such a notification 
the 
Government was competent, after six weeks from the date of 
publication, and 1fter considering the objections, if 
any, 
to 
declare, by notification, the speCified area or any portion thereof 
to , be a notified area. Section 4 of the Act authorised the 
Provincial Government by notification, inter (llia, to signify its 
intention to include within a municipality any local area in the 
vicinity of the same or exclude fr<_?m a municipality any local 
area comprised therein. 
Any inhabitant of any part of a local 
area defined in a notification published under s. 4. was entitled 
c 
E. 
by virtue

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