SUNDARJAS KANYALAL BHATIJA & ORS. versus COLLECTOR, THANE, MAHARASHTRA & ORS.
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SUNDARJAS.KANYALAL BHATIJA & ORS. v. COLLECTOR, THANE, MAHARASHTRA & ORS. JULY 13, 1989 [G.L. OZA AND K. JAGANNATHA SHETTY, JJ.) Constitution of lndia-1950. Articles 32, 136, 226 and 141-Judicial Review-Part of the Con- stitutional scheme-Law to be made clear, certain and consistent. Rules A B of natural justice-Not applicable to legislative action plenary Β·or subordinate-Requirement of hearing not implied in exercise oflegisfa- C tive powers. Bombay Provincial Municipal Corporation Act 1949-Section 3-Draft notification-Merger of municipal areas into Corporation issuance of-Government not entitled to hear the parties. On June 19, 1962, the Government of Maharashtra issued a drall notification under Section 3(3) of the Bombay Provincial Municipal Corporation Act, 1949 and thereby proposed the formation of "Kalyan Corporation", by merging of municipal areas of Kalyan, Ambarnath, Domoivali and Ulhasnagar. The proposal was resented to by the residents of the said areas and many objections and representa- tions by persons, companies and authorities including the municipal bodies of Ambarnath, and Ulhasnagar were made. So far as Ulhasnagar was concerned it was stated that Sindhi Community after partition has settled at Ulbasnagar and to keep the identity of' Sindhies distinct, they D E had formed All India Sindhi Panchayat Federation. The said Federa- . tion challenged the draft notification by a Writ Petition before the High F Court. On an assurance being given by the Government before the High Court that the representation made by the Federation would be duly considered, the Writ Petition was allowed to be withdrawn. As per the assurance, the Federation was given personal hearing on their re- presentation. Only the Federation was heard, none of the other representationistS was afforded any hearing though their objections were duly considered. After considering the matter in the manner aforesaid, G the Government decided to exclude Ulhasnagar from the proposed Corporation and accordingly a notification under section 3(2) of the Act was issued. The Corporation was th:is Constituted excluding Ulhas- nagar. Save as aforesaid no other alteration was made in the noti- fication. 405 H 406 SUPREME COURT REPORTS [1989] 3 S.C.R. A The Residents of Ambarnath municipal area were not satisfied. They moved the High Court challenging the validity of the notification issued under section 3(2) of the Act. Their main contention was that there has been hostile discrimination in the matter as only the Federa- tion was heard and none else. They also asserted that the establish- ment of a Corporation without Ulhasnagar, keeping in view the B geographical contiguity was- unintelligibe and incomprehensible. c According to them it was arbitrary and opposed to the object of the Act. Federation and others interested in the proceedings were allowed to intervene and they supported the stand taken by the Government which was the main respondent. The State pleaded that the formation of Corporation was an ex- tension of the legislative process and as such section 3 was a piece of conditional legislation, and the notification issued in exercise of that power cannot be said to have been vitiated by non-compliance with the principles of natural justice. According to the State it was not obligatory D for the State to issue a preliminary notification over again before the final notification excluding Ulhasnagar was issued. The High Court took the view that the decision to exclude Ulhasnagar was taken by the State abruptly and in an irrational manner and that the decision was against the object of the Act. On the legality of E the procedure followed by the Government, the High Court held that once a decision was taken, it was obligatory on the part of the Govern- ment to reconsider the proposal as a whole so for as the rest of the areas were concerned. The High Court without quashing the impugned notification F directed the State Government to reconsider the proposal under sub- section (3) of the Act either to exclude or include any area and accord- ingly make amends in the notification. It was also directed that the Petitioners and the Federation be given a reasonable opportunity of being heard before any final decision in the matter is taken. Against the aforesaid decision of the High Court only interveners have preferred O these appeals. The State and Kelyan City Corporation have
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