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[Cites 7, Cited by 99]

Supreme Court of India

B.N. Shankarappa vs Uthanur Srinivas And Ors on 21 January, 1992

Equivalent citations: 1992 AIR 836, 1992 SCR (1) 286, AIR 1992 SUPREME COURT 836, 1992 (2) SCC 61, 1992 AIR SCW 635, (1992) 1 JT 389 (SC), (1992) 1 SCR 286 (SC), 1992 (1) SCR 286, (1992) 1 RRR 316

Author: A.M. Ahmadi

Bench: A.M. Ahmadi, K. Ramaswamy, R.M. Sahai

           PETITIONER:
B.N. SHANKARAPPA

	Vs.

RESPONDENT:
UTHANUR SRINIVAS AND ORS.

DATE OF JUDGMENT21/01/1992

BENCH:
AHMADI, A.M. (J)
BENCH:
AHMADI, A.M. (J)
RAMASWAMY, K.
SAHAI, R.M. (J)

CITATION:
 1992 AIR  836		  1992 SCR  (1) 286
 1992 SCC  (2)	61	  JT 1992 (1)	389
 1992 SCALE  (1)213


ACT:
     Karnataka	Zila Parishads, Taluk  Panchayats  Samithis,
Mandal	Panchayats  and Nyaya Panchayats  Act,	1983-Section
4(1),  (2)  read with Section 14 of  the  Karnataka  General
Clauses	 Act, 1897-Deputy Commissioner-Powers  under-Whether
he  can exercise the power to specify the  headquarter	from
time to time-Location of headquarter of a  Mandal-Discretion
of authority-Scope of-Interference by Court when  discretion
exercised arbitrarily.
     Karnataka	Zila  Parishads, Taluk	Panchayat  Samithis,
Mandal	Panchayats  and Nyaya Panchayats Act,  1983  Section
4(2)read with Section 14, the Karnataka General Clauses Act,
1897-Construction-Whether  powers  under  exhaust  once	  a
Mandal initially constituted and its headquarter specified.



HEADNOTE:
     On	  16.1.1986,  the  Deputy  Commissioner	  issued   a
notification  constituting a Mandal under section 4  (1)  of
the  Karnataka	Zila Parishads,	 Taluk	Panchayat  Samithis,
Mandal	Panchayats  and	 Nyaya	 Panchayats  Act,  1983	 and
located the headquarter of the Mandal at Mudiyannur.   Later
on  exercising	powers	under section 4 (3) of	the  Act  he
changed the headquarter to Uthanpur.
     On	 14.12.1987  a writ petition (W.P.No.  7685/86)	 was
filed challenging the decision of the Deputy Commissioner.
     The  High Court dismissed the petition holding that  on
passing	 a  resolution my Mandal to change  the	 headquarter
from  the  existing  place  to	another	 place,	 the  Deputy
Commissioner  was to consider if he would like	to  exercise
power under section 4(2) of the Act.
     The Mandal passed a fresh resolution and thereupon	 the
Deputy	Commissioner issued a notification under  section  4
(2)  of the Act for change of headquarter and  on  20.1.1988
the draft notification was published in the Gazette.
     The respondents 1 to 10 filed a writ petition (W.P.  No
1888/88)
						       287
before	the High Court challenging the	draft  notification.
The writ petition was dismissed.
     Considering  the resolution and the objections  to	 the
notification,	the  Deputy  Commissioner   issued   another
notification  under  section  4	 (2)  of  the  Act  and	 the
headquarter  of	 the  Mandal was changed  from	Uthanpur  to
Mudiyannur.
     The respondents challenged the notification by   filing
a revision application under section 4 (3) of the Act  which
was dismissed by the Divisional Commissioner.
     The respondents moved the High Court in W.P. No. 77  of
1989 challenging the order of the Deputy Commissioner.
     The  Single  Judge	 of the	 High  Court  dismissed	 the
petition,  against  which  an appeal was  filed	 before	 the
Division Bench of the High Court.
     The  Division  Bench allowed the  appeal  following  an
earlier	 decision of the High Court in Writ Application	 No.
2564 of 1987 dated 28.5.1991.
     The  correctness of the decision of the Division  Bench
of  the High Court was challenged in this appeal by  special
leave.
     The appellant contended that once the power to  specify
the headquarter was conferred on the Deputy Commissioner  by
Section 4 (1) of the Act, it could be exercised from time to
time  by  virtue  of section 14	 of  the  Karnataka  General
Clauses	 Act,1897; that the scheme of section 4 of  the	 Act
should	be  construed  with the aid of	section	 14  of	 the
General	 Clauses  Act  in such a manner as not	to  leave  a
vacuum	 for  the  exercise  of	 power	for  a	 change	  of
headquarter;  that  if the High Court's view  was  approved,
there  could be no power vested in any authority  whatsoever
for   changing	 or  specifying	 the  headquarter   of	 the
reconstituted  Mandal which vacuum might lead  to  avoidable
complications;	and that once the legislature  invested	 the
Deputy	 Commissioner	with  the  power  to   specify	 the
headquarter under section 4 (1), subject to the modification
by the Commissioner under section 4 (3), the power to  alter
the  headquarter  of the Mandal from time to  time,  if	 the
occasion so required, must be read into it.
						     288
     The respondents submitted that while sub-section (2) of
Section	 4  of	the  Act  in  terms  empowered	the   Deputy
Commissioner to alter the headquarter of the Mandal  because
the  headquarter  once specified under section	4(1)  should
remain unaltered; that the act designedly did not confer any
power on any authority whatsoever to change the	 headquarter
once specified under section 4 (1).
     Allowing the appeal, this Court,
     HELD   :  1.01  Section  4	 (1)  empowers	the   Deputy
Commissioner to do two things, namely (i) to declare an area
as a Mandal, and (ii) to specify its headquarter. [293 B]
     1.02 The power conferred by sub-section (2) of  Section
4 of the Karnataka Zila Parishads, Taluk Panchayat Samithis,
Mandal	Panchayats  and Nyaya Panchayats Act,  1983  can  be
exercised where there is a change in the areas of the Mandal
either	by addition or reduction in the area.  Under  clause
(c) of sub-section (2) of Section 4, the Deputy Commissioner
is  also  invested with the power to alter the name  of	 any
Mandal. [293 D-E]
     1.0  The scheme of sub-section (2) of Section  4  would
show that when there is any increase or decrease in the area
of  any	 Mandal,  the Deputy  Commissioner  may,  after	 the
previous   publication	of  the	 proposal  by  notification,
exercise  that power and rename the Mandal, if so  required.
[293 E]
     1.04   If	the  situation	so  demands  and  there	  is
justification  for  altering the place	of  headquarter,  it
would  be open to the Deputy Commissioner to exercise  power
under  section 4 (1) of the Act read with Section 14 of	 the
General Clauses Act to meet the situation. [294 C]
     1.05  The word `also' preceding the words `specify	 its
headquarter'  cannot be understood to convey that the  power
once  exercised would stand exhausted.	Such a	construction
sought	to be placed by counsel for the respondent does	 not
accord	with  the  language of	the  provision.	  It  merely
conveys	 that  when the Deputy	Commissioner  constitutes  a
Mandal	for the first time it will be necessary for  him  to
specify its headquarter also. [293 B-C]
     1.06 The power to specify the headquarter conferred  on
the  Deputy Commissioner can be exercised from time to	time
as occasion
						       289
requires by virtue of section 14 of the General Clauses Act.
[293 C-D]
     1.07 The ultimate decision as to the place or  location
of  Mandal headquarter is left to the Government  to  decide
and conferment of discretion upon the concerned authority in
that  behalf  must  necessarily	 leave	the  choice  to	 the
discretion  of the authority and it would not be proper	 for
the  courts to interfere with the discretion  so  exercised.
This  is not to say that the discretion can be exercised  in
an arbitrary or whimsical manner without proper	 application
of mind or for ulterior or malafide purpose.  If it is shown
that  the discretion was so exercised it would certainly  be
open to the courts to interfere with the discretion but	 not
otherwise. [293 H; 294 A-B]
     2.	 The  absence  of the power in	sub-section  (2)  of
Section	 4  to	specify	 the  headquarter  afresh  does	 not
necessarily  mean that once the initial constitution of	 the
Mandal	takes  place and the headquarter is  specified,	 the
power  is  exhausted,  notwithstanding	section	 14  of	 the
General Clauses Act. If such an interpretation is placed  on
the  scheme  of	 section 4 of the  Act	neither	 the  Deputy
Commissioner nor any other authority will thereafter be able
to  alter  and	specify	 any other  place  as  the  Mandal's
headquarter.   Such  a view would create a vacuum  and	even
when  a	 genuine need for specifying any  other	 headquarter
arises,	 the  authorities  will	 not  be  able	to  exercise
power  for want of a specific provision in the Act and	that
may  lead to avoidable hardship and complications.   It	 is,
therefore,  essential that the provision of the Act be	read
in  a  manner so as to ensure that such a  vacuum  does	 not
arise  and the power is retained in the concerned  authority
which can be exercised should a genuine need arise. [293  F-
H]
     J.R. Raghupaty & Ors. v. State of A.P. & Ors., [1988] 4
SCC 364, referred to.



JUDGMENT:

CIVIL APPELLATE JURISDICTION: Civil Appeal No. 378 of 1992.

From the Judgment dated 31.7.1991 of the Karnataka High Court in Writ Appeal No. 1224 of 1990.

Santosh N. Hegde and P.Mahale for the Appellants. A.K. Subbiah, Ranji Thomas, K.V. Mohan, M Veerappa and K.H. Nobin Singh for the Respondents.

290

The Judgment of the Court was delivered by AHMADI, J. Special leave granted.

This appeal is directed against the judgment of the High Court of Karnataka dated 31 st July, 1991, whereby the Division Bench allowed the Writ Appeal setting aside the decision of the learned Single Judge and held, relying on the judgment in Writ Appeal No. 2564 of 1987 decided on 28th May, 1991, that Section 4 (2) of the Karnataka Zila Parishads, Taluk, Panchayat Samithis, Mandal Panchayats and Nyaya Panchayats Act, 1983 (hereinafter referred to as `the Act') does not confer any power in the Deputy Commissioner to change the headquarter of any Mandal. It is this view taken by the Division Bench of the High Court that is put in issue in the present appeal. For the purpose of disposal of this appeal we may notice a few relevant facts.

The Act came into force w.e.f. 14'th August, 1984. Thereafter, on 16th January, 1986 a notification was issued by the Deputy Commissioner in exercise of power conferred by Section 4 (1) of the Act constituting a Mandal, named Mudiyannur Mandal, and located its headquarter at Mudiyannur. However, the Divisional Commissioner changed the headquarter to Uthanpur while exercising power under Section 4 (3) of the Act. Thereupon a writ petition was filed on 14th December, 1987, being Writ Petition No. 7685/86, challenging the said decision of the Divisional Commissioner. That Writ petition was dismissed by the High Court observing: if the Mandal so desires it may pass a resolution to change the headquarter from the existing place to another place whereupon it will be open to the Deputy Commissioner to consider if he would like to exercise power under Section 4 (2) of the Act. Pursuant thereto a fresh resolution was passed whereupon the Deputy Commissioner issued a notification under Section 4 (2) of the Act for change of headquarter which was published in the Government Gazette of 20th January, 1988. On the issuance of the said draft notification respondents Nos. 1 to 10 filed a writ petition, being Writ Petition No. 1888/88, challenging the said draft notification. That writ petition was also dismissed by the High Court. The Deputy Commissioner after considering the resolution of the Mandal and the objections received in response to the draft notification from respondents Nos 1 to 10 passed an order declaring Mudiyannur as the headquarter of the Mandal. To give effect to his decision, a notification under Section 4 (2) of the Act was issued on 23rd July, 1988 whereby the headquarter was changed from Uthanpur to Mudiyannur. Once again the respondent Nos 1 to 10 challenged that notification by a revision application filed under Section 4 (3) 291 of the Act. The Divisional Commissioner exercising power under the said provision dismissed the revision application whereupon a Writ Petition no 77 of 1989 was taken to the High Court. A learned Single Judge of the High Court dismissed the writ petition. An appeal was carried to the Division Bench of the High Court. the Division Bench allowed the appeal by the impugned judgment dated 31 st July, 1991 following an earlier decision in Writ Appeal No. 2564 of 1987 rendered on 28th May, 1991. It is the correctness of this decision which we are called upon to examine.

Section 4 (1) as it stood before its amendment on 4th October, 1985 empowered the Deputy Commissioner to declare any area comprising a village or group of village having the required population to be a Mandal for the purposes of the Act. That sub-section did not carry a provision empowering the Deputy Commissioner to specify the headquarter of the Mandal. By the amendment brought about in that provision by Act 3 of 1986 w.e.f. 4th October, 1985, this power was specifically conferred on the Deputy Commissioner. The amended Section 4 (1) reads as under :

"(1) Subject to the general or special orders of the Government, the Deputy Commissioner, if in his opinion, it is expedient to declare any area comprising a village or group of village having a population of not less than eight thousand and not more than twelve thousand to be a Mandal, may, after previous publication, declare such area as a Mandal for the purposes of this Act and also specify its headquarter."

On a plain reading of this provision, it becomes obvious that the Deputy Commissioner was empowered not only to declare a village or group of villages as a Mandal but also to specify its headquarter. We then come to sub- section (2) which empowers the Deputy Commissioner, at the request of the Mandal concerned, or otherwise, to increase or decrease the area of any Mandal, by including within or excluding from such Mandal any village or group of villages or alter the name of any Mandal or declare that any area shall cease to be a Mandal after previous publication of the proposal by a notification in the Gazette. This sub-section confers power on the Deputy Commissioner to increase or diminish the area of any Mandal and to alter the name of any such Mandal but it does not in so many words confer power to specify the headquarter of such reconstituted Mandal. Sub- section (3) of section 4 empowers the Commissioner either on an application made within thirty days from the date of the notification by an aggrieved party or in exercise of suo moto power after giving a reasonable opportunity of being heard to the applicant or the Mandals 292 concerned, revise the orders of the Deputy Commissioner passed under sub-section (1) or sub-section (2), as the case may be, and may also, if he considers necessary, modify it as provided in the third proviso to subsection (1) Every order so passed revising or modifying the order of the Deputy Commissioner shall be published in the Official Gazette. We are not concerned with the third proviso to sub- section 4.

Sub-section (1) of Section 4, therefore, empowers the Deputy Commissioner to declare any village or group of villages as a Mandal and to specify its headquarter. After the constitution of the Mandal and on the headquarter being specified under this sub-section, if any change, is to be effected in the area of the Mandal either by increasing or reducing its size, the power has to be exercised under sub-section (2) of Section 4 of the Act. That sub-section also empowers the Deputy Commissioner to alter the name of the Mandal. It was submitted by the counsels for the respondents that while this sub-section in terms empowers the Deputy Commissioner to alter the name of the Mandal, it does not empower him to alter the headquarter of the Mandal because the headquarter once specified under sub-section (1) of Section 4 must remain unaltered since the Act designedly does not confer any power on any authority whatsoever to change the headquarter once specified under sub-section (1) of Section 4. This submission was countered by the learned counsel for the appellant by inviting our attention to Section 14 of the Karnataka General Clauses Act, 1897 (hereinafter called `the General Clauses Act'. that provision reads as under:

"Where by any Mysore or Karnataka Act made after the commencement of this Act, any power is conferred then that power may be exercised from time to time as occasion requires."

Counsel for the appellant submitted that once the power to specify the headquarter is conferred on the Deputy Commissioner by sub-section (1) of Section 4 of the Act it can be exercised from time to time by virtue of the said Section 14 if the occasion so requires. He, therefore submitted that this Court should construe the scheme of Section 4 of the Act with the aid of Section 14 in such a manner as not to leave a vacuum for the exercise of power if need arises for a change of headquarter. He submitted that if, the view taken by the High Court is approved, a situation may arise when even after a change takes place in the size of the Mandal area there would be no power vested in any authority whatsoever for changing of specifying the headquarter of the reconstituted Mandal which vacuum may lead to avoidable complications. He, therefore, submitted that once the legislature has invested the Deputy Commissioner with the power to 293 specify the headquarter under sub-section (1) of Section 4, subject to the modification which the Commissioner may choose to make under sub-section (3) of Section 4, the power to alter the headquarter of a Mandal from time to time if the occasion so requires must be read into it. We think there is a considerable force in this submission.

As pointed out earlier, Section 4(1) empowers the Deputy Commissioner to do two things, namely, (i) to declare an area as a Mandal, and (ii) to specify its headquarter. The word `also' preceding the words `specify its headquarter' cannot be understood to convey that the power once exercised would stand exhausted. Such a construction sought to be placed by counsel for the respondent does not accord with the language of the provision. It merely conveys that when the Deputy Commissioner constitutes a Mandal for the first time it will be necessary for him to specify its headquarter also. This power to specify the headquarter conferred on the Deputy Commissioner can be exercised from time to time as occasion requires by virtue of Section 14 of the General Clauses Act. The attention of the High Court was not drawn to the provision in Section 14 when it disposed of the Writ Appeal No. 2564 of 1987 and Writ Petition No 375 of 1989 on 28 th May, 1991. It is true that the power conferred by sub-section (2) of Section 4 can be exercised where there is a change in the area of the Mandal either by addition or reduction in the area. Under clause (c) of sub-section (2) of Section 4 the Deputy Commissioner is also invested with the power to alter the name of any Mandal. The scheme of subsection (2) would, therefore, show that when there is any increase or decrease in the area of any Mandal, the Deputy Commissioner may, after the previous publication of the proposal by notification, exercise that power and rename the Mandal, if so required. The absence of the power in sub-section (2) of section 4 to specify the headquarter afresh does not necessarily mean that once the initial constitution of the Mandal takes place and the headquarter is specified the power is exhausted, notwithstanding section 14 of the General Clauses Act. If such an interpretation is placed on the scheme of section 4 of the Act neither the Deputy Commissioner nor any other authority will thereafter be able to alter and specify any other place as the Mandal's headquarter. Such a view would create a vacuum and even when a genuine need for specifying any other headquarter arises, the authorities will not be able to exercise power for want of a specific provision in the Act and that may lead to avoidable hardship and complications. It is, therefore, essential that we read the provision of the Act in a manner so as to ensure that such a vacuum does not arise and the power is retained in the concerned authority which can be exercised should a genuine need arise. In J.R. Raghupathy & Ors. v. State of A.P. others, [1988] 4 SCC 364 this Court observed that the ultimate decision as 294 to the place or location of Mandal headquarter is left to the Government to decide and conferment of discretion upon the concerned authority in that behalf must necessarily leave the choice to the discretion of the said authority and it would not be proper for the courts to interfere with the discretion so exercised. This is not to say that the discretion can be exercised in an arbitrary or whimsical manner without proper application of mind or for ulterior or malafide purpose. If it is shown that the discretion was so exercised it would certainly be open to the Courts to interfere with the discretion but not otherwise.

We are, therefore, of the opinion that if the situation so demands and there is justification for altering the place of headquarter, it would be open to the Deputy Commissioner to exercise power under Section 4(1) of the Act read with section 14 of the General Clauses Act to meet the situation. We, therefore, allow this appeal, set aside the impugned order of the Division Bench of the High court and restore the order of the learned Single Judge directing that the writ petition, which gave rise to the writ appeal, shall stand dismissed. However, in the facts and circumstances of the case there will be no order as to costs.

V.P.R.					     Appeal allowed.
						       295