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CaseMinister › Judgments › Supreme Court › 1989 › Sundarjas Kanyalal Bhatija & Ors. v. Collector, Thane, Mahar

Sundarjas Kanyalal Bhatija & Ors. v. Collector, Thane, Maharashtra & Ors.

Supreme Court of India · 13 July 1989 · [1989] 3 S.C.R. 405

Court
Supreme Court of India
Decided
13 July 1989
Reported as
[1989] 3 S.C.R. 405
Result
Appeal(s) allowed
Bench
Shetty, K.J. (J)
Length
14 pages
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PETITIONER:
SUNDARJAS KANYALAL BHATIJA & ORS.
Vs.
RESPONDENT:
COLLECTOR, THANE, MAHARASHTRA & ORS.
DATE OF JUDGMENT13/07/1989
BENCH:
SHETTY, K.J. (J)
OZA, G.L. (J)
CITATION:
1990 AIR 261 1989 SCR (3) 405
1989 SCC (3) 396 JT 1989 (3) 57
1989 SCALE (2)7

ACT

Constitution of India----1950.

Articles 32, 136, 226 and 141--Judicial Review--Part of the Constitutional scheme--Law to be made clear, certain and consistent. Rules of natural justice--Not applicable to legislative action plenary or subordinate--Requirement of hearing not implied in exercise of legislative 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.

HEADNOTE

On June 19, 1962, the Government of Maharashtra issued a draft 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 representations 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 Ulhasnagar and to keep the identity of Sindhies distinct, they had formed All India Sindhi Panchayat Federation. The said Federation challenged the draft notification by a Writ Petition before the High 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High Court that the representation made by the Federation would be duly considered, the Writ Petition was allowed to be withdrawn.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 representation. 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, 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 thus Constituted excluding Ulhasnagar. Save as aforesaid no other alteration was made in the notification. 406

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 Federation was heard and none else. They also asserted that the establishment of a Corporation without Ulhasnagar, keeping in view the geographical contiguity was unintelligibe and incomprehensible. 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 extension 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 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 the procedure followed by the Government, the High Court held that once a decision was taken, it was obligatory on the part of the Government 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 directed the State Government to reconsider the proposal under subsection (3) of the Act either to exclude or include any area and accordingly 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 these appeals. The State and Kelyan City Corporation have not appealed.

Counsel for the appellants reiterated the stand taken by the Government before the High Court and urged that the State had a wide discretion in the selection of areas for constituting the Corporation and the Court cannot interfere with such discretion. State’s power to consti- 407 tute a corporation is legislative in character and rules of natural justice have no application. It was urged that the state had complied with all the statutory requirements and it was not necessary for the state to go through that exercise again. It was further urged that the decision of this Court has been disregarded and a binding decision of a coordinate bench of the same Court in Village Panchayat Chikalthane & Anr. v. State of Maharashtra has been ignored. Allowing the appeals, this Court,

HELD: In our system of judicial review which is a part of our constitutional scheme, this Court holds it to be the duty of Judges of superior Courts and tribunals to make the law more predictable. The question of law directly arising in the case should not be dealt with apologetic approaches. The law must be made more effective as a guide to behaviour. It must be determined with reasons which carry convictions within the Courts, professions and public otherwise the lawyers would be in a predicament and would not know how to advise their clients. Subordinate Courts would find themselves in an embarrassing position to choose between the conflicting opinions. The general public will be in a dilemma to obey or not to obey such law and it ultimately fails into disrepute. [417D-F]

It is needless to state that the judgment of superior Courts and Tribunals must be written only after deep travail and positive vein. One should never let a decision go unless he is absolutely sure it is right. The law must be made clear, certain and consistent. But ceritude is not the test of certainty and consistency does not mean that there should be no word of new content. The principle of law may develop side by side with new content but not in consistencies. There could be waxing and waning the principle depending upon the pragmatic needs and moral yearings. Such development of law particularly is inevitable in our developing country. [417G-H; 418A-B]

The rules of natural justice are not applicable to legislative activity plenary or subordinate. The procedural requirement of hearing is not implied in the exercise of legislative powers unless hearing was expressly prescribed. [419F]

The High Court, therefore, was in error in directing the Government to hear the parties who are not entitled to be heard in law; section 3 of the Bombay Provincial Municipal Corporation Act 1949. [419F-G] The Government in the exercise of its powers under section 3 is 408 not subject to the Rules of natural justice any more than is legislature itself. [419F]

Mahadeolal Kanodia v. The Administrator General of West Bengal, A.I.R. (1960) S.C.p. 926; Sri Bhagwan and Anr. v. Ram Chand and Anr., A.I.R. (1965) S.C. 1767 at 1773; Union of India v. Raghbir Singh, [1989] 2 S.C.C. 754; The Nature of Judicial Process by Benjamin N. Cardozo; Bates v. Lord Heilsham of St. Marylebone and Others, 1, W.L.R. 1373; Tulsipur Sugar Co. Ltd. v. The Notified Area Committee, Tulsipur, [1980] 2 S.C.R. 1111 and Baldev Singh v. State of Himachal Pradesh, [1987] 2 S.C.C. 510, referred to.

JUDGMENT

CIVIL APPELLATE JURISDICTION: Civil Appeal No. 5736 of 1985 & C.A. No. 508/1986.

From the Judgment and Order dated 14.8.1985 of the Bombay High Court in Civil Writ Petition No. 3420 of 1983. N.N. Keswani and R.N. Keswani for the Appellants.

G. Ramaswamy Additional Solicitor General, S.K. Dholakia, Shishir Sharma, P.H. Parekh, A.S. Bhasme and V.B. Joshi for the Respondents. The Judgment of the Court was delivered by

K. JAGANNATHA SHETTY, J. The case involved in these two appeals, with leave, seems indeed straight forward enough, but the High Court of Bombay made it, as we venture to think, unsatisfactory and in a sense against judicial propriety and decorum.

The facts which are of central importance may be stated as follows.

On June 19, 1982, the Government of Maharashtra issued a draft notification under sec. 3(3) of the Bombay Provincial Municipal Corporation Act, 1949 (the "Act"). The draft notification proposed the formation of what is termed as "Kalyan Corporation" (the "Corporation"). It suggested the merging of Municipal areas of Kalyan, Ambarnath, Domoivali and Ulhasnagar. Against this proposal, there were many objections and representations from persons, companies and the authorities. Ambarnath and Ulhasnagar Municipal bodies and also some of the residents therein submitted their represen- 409 tations. They objected to the merger of their municipal areas into the Corporation. It is said that in Ulhasnagar Municipal area, Sindhies are predominant. In 1947, they were the victims of partition of the country. Being uprooted from their home land, they have since settled down at Ulhasnagar. They have formed union or federation called the All India Sindhi Panchayat Federation. It is interested in having a separate identity for Ulhasnagar. The Federation challenged the said draft notification by a writ petition before the Bombay High Court. The writ petition was not disposed of on merits. It was permitted to be withdrawn on an assurance given by the Government. The Government gave the assurance that the representatives of the Federation would be given an opportunity of being heard before taking a final decision. As per the assurance, they were given personal hearing on their representations. The others who have filed similar representations were not heard. But their objections or representations were duly considered. Thereupon, the Government decided to exclude Ulhasnagar from the proposed Corporation. Accordingly, a notification under sec. 3(2) of the Act was issued. The Corporation was thus constituted without Ulhasnagar. That was the only alteration made in the proposal earlier notified. All other areas indicated in the draft notification were merged in the Corporation.

The residents of Ambarnath Municipal areas were not satisfied. They were, perhaps, more worried by the exclusion of Ulhasnagar than the inclusion of their own area. They moved the High Court under Article 226 of the Constitution challenging the notification issued under sec. 3(2) of the Act. They inter-alia, contended that the action of the Government affording an opportunity of being heard only to the Federation and not to other objectors was contrary to Article 14. It was a hostile discrimination to hear only one of the objectors. They asserted that the establishment of the Corporation without Ulhasnagar Municipal area, having regard to the geographical contiguity was unintelligible and incomprehensible. It was arbitrary and opposed to the object of the Act. They also contended that there ought to have been a fresh draft notification after taking a decision to exclude Ulhasnagar from the proposal. With similar contentions and for the same relief, there was another writ petition before the High Court. It was filed by the National Rayon Corporation Limited which is a company located within the Municipal limits of Ambarnath.

The Sindhi Panchayat Federation was not a party to the writ petitions. It was, however, allowed as an intervener. Some other persons who were interested in the outcome of the writ petitions were 410 also permitted to intervene in the proceedings. They supported the stand taken by the Government which was the main respondent in the writ petitions.

The State in its counter affidavit resisted the petitioners’ claim raising several grounds. The first point to be noted in this context is this:

"That the formation of Municipal Corporation

under sec. 3 of the Act is an extension of the

legislative process and, therefore, sec. 3 is

nothing but a piece of conditional legisla-

tion. The principles of natural justice will

not apply to such legislative function nor it

could be imparted into it even by necessary

implication. The petitioners have not chal-

lenged the validity of the sub-section (2) of

sec. 8 of the Act and even otherwise the said

validity has been upheld by a Division Bench

of this Court (Shah and Deshpande, J J) in

writ petition No. 706-A of 1982 (The Village

Panchayat Chikalthane and Anr. v. The State of

Maharashtra and Anr. decided on 23/24 Decem-

ber, 1982. Therefore, it cannot be said that

the notification issued in exercise of the

said legislative power is vitiated by non-

complaince with the principles of natural

justice. The conditions laid down by sec. 3

are fully complied with; a preliminary notifi-

cation was issued as contemplated by sub-

section (4) of sec. 3 of the Act; the objec-

tions and suggestions made by the various

citizens and persons were duly considered by

the State Government and thereafter the final

notification was issued. In the very nature of

things there is bound to be difference and

variance between the preliminary notification

and the final notification. Only because the

Ulhasnagar Municipal Council is excluded from

the final notification, it cannot be said that

there was any major departure from the prelim-

inary notification or it was necessary to

issue a preliminary notification over again

before the final notification was issued in

that behalf."

The second factual point to be noted is this:

"Due to partition of India in 1947, the Sindhi

people have been uprooted from their homeland

and with hard labour they have settled them-

selves in different parts of the country. One

can appreciate their feelings about their

anxi-

411

ety to maintain their separate entity. If such

a large part is forcibly included in the

Corporation ignoring their sentiments and

wishes, it may not result in smooth working of

the proposed Corporation which is necessary

for proper development. It is, therefore,

desirable to constitute the new Kalyan Corpo-

ration without including Ulhasnagar for the

time being."

The High Court was not impressed with the above reasonings. The High Court said that the decision to exclude Ulhasnagar was taken by the Government abruptly and in an irrational manner. The decision was arbitrary and against the purpose of the Act. On the legality of the procedure followed by the Government, the High Court said:

"Once that decision was taken, it was obliga-

tory on the part of the Government to recon-

sider the proposal as a whole so far as the

rest of the areas are concerned."

Reference was also made to the report of the "Sathe Commission" to fortify the conclusion that Ulhasnagar could not have been isolated. The "Sathe Commission" was a one man Commission appointed by the State Government to enquire and report on the establishment of new Municipal Corporations. The Commission in its report among others, seems to have indicated that Kalyan, Ulhasnagar and Ambarnath are one contiguous stretch of territory with a length of about 8 kms. from North-West to South-East.

The High Court then made some general observations as to the purpose for which Municipal Corporations should be constituted went on:

"It was the avowed policy after independence

to change the socio-economic map of the vil-

lage and town. A corporate life can only be

ensured if there is a corporate conscience and

an attitude to live together. City is an

epitome of the social world where all belts of

civilization interest along its avenues. A

Municipal Corporation is ....... in nature,

where people belonging to different castes,

creeds, religious and language want to live

with each other. Town planning cannot be

denominational or fractional. It is not a

museum of human beings otherwise Harijan

Bastis, Mominpures and such other Mohallas

will have to be preserved to maintain its

separate identity and the socio

412

economic map of the village or city will never

change. It cannot be forgotten that we are

heading towards a global village. By saying

this, we do not want to belittle the achieve-

ments of sacrifice of the Sindhi Community.

However, that is not very relevant for decid-

ing the question of the establishment of a

Municipal Corporation. Its main object is to

ensure better municipal government of the

city. It appears that Government was also

aware of this and this seems to be the reason

why the decision "for the time being is perti-

nent and clearly indicates that the Government

wanted to reconsider the issue at a later

stage. However, unfortunately till today

Government has not taken any decision in that

behalf."

The High Court, however, felt that it was not necessary to quash the notification establishing the Corporation. This is how the conclusion was reached:

"It will not be fair to quash the notification

as a whole and unsettle the Municipal Adminis-

tration. In our view, that is also not neces-

sary since from the affidavit of the Govern-

ment, it is clear that the decision taken in

that behalf was tentative, i.e., for the time

being and it is not all-time permanent deci-

sion. Under sub-section (3) of sec. 3 of the

act, the State Government has power to exclude

or include any area specified in the notifica-

tion issued so far as Ambarnath Town is con-

cerned, reconsideration of the present case of

the whole matter was absolutely necessary when

the decision to exclude the Ulhasnagar Munici-

pal Council from the proposed Municipal Corpo-

ration, ,though tentative in nature, was

taken."

Finally, the operative portion of the Order was put in the following terms:

"Therefore, without setting aside the final

notification, we direct the State Government

to reconsider the proposal under sub-sec. (3)

of sec. 3 of the Bombay Provincial Municipal

Corporations Act either to exclude or include

any area, within a period of six months from

today. The writ of mandamus to be issued

accordingly. It is needless to say that after

the necessary steps are taken under sec. 3(3)

of the Act, the State Government shall make

the necessary

413

amends in the notification issued.

XXX XXX XXX XXX

XXX XXX XXX XXX

"In the result, therefore, the rule is made

partly absolute and the State Government is

directed to exercise its power under sec. 3

sub-sec. (3) of the Act in accordance with law

within a period of six months. It is needless

to say that the petitioners will be entitled

to raise objections and make their suggestions

in that behalf after a notification under

sub-sec (3) read with sub-sec (4) of sec. 3 of

the Act is issued. Since the popular local

self-Government is not in existence in any of

the Municipal Councils or even in the newly

established municipal corporation and having

regard to the peculiar facts and circumstances

of the case, in our view, this is a fit case

where the petitioners of these two petitions

and All India Sindhi Panchayat Federation

should be given a reasonable opportunity of

being heard before any final decision in the

matter is taken."

Against the judgment of the High Court, the State Government has not preferred any appeal. The Kalyan City Corporation though vitally concerned with the matter, has also not appealed to this Court. The present appeals are only by those who were impleaded as interveners in the writ petitions.

We have heard counsel for all parties and gave our best attention to the questions raised by the appellants. Counsel for the appellants reiterated the stand taken by the Government before the High Court. He urged that the State has a wide discretion in the selection of areas for constituting the Corporation and the Court cannot interfere with such discretion. The Court has no jurisdiction to examine the validity of the reason that goes into the decision of the Government. The power to constitute Municipal Corporations under sec. 3 of the Act is legislative in character. It is an extension of legislative process for which rules of natural justice have no application. He said that the Government in the instant case has complied with the statutory requirements and it was not expected to do anything more in the premises. And, at any rate, it is wholly unnecessary according to the counsel to go through that exercise again as the High Court has suggested. 414

The other limb of the argument of counsel for the appellants relates to the manner in which the High Court disposed of the matter. it was said that a decision of this Court has been disregarded and a binding decision of a co-ordinate Bench of the same Court has been ignored.

The grievance of the appellants’ counsel, in our opinion, is not wholly unjustified.At the beginning of the judgment, we have said that the High Court rendered the judgment in a sense against the judicial propriety and decorum. We were not happy to make that observation, but constrained to say so in the premise and background of the case. It may be noted that the result of the writ petitions before the High Court turns on the nature and scope of the power conferred on the Government under sec. 3 of the Act. A Division Bench of the High Court has taken the view that that power is in the nature of legislative process. That judgment was rendered on 23/24 December, 1982, by a Bench consisting of Shah and Deshpande, JJ. It was in writ petition No. 706-A of 1982--The Village Panchayat Chikalthana and Another v. The State of Maharashtra and Another, In that case, the challenge was to the validity of sec. 3(2) of the Act on the ground that it suffers from the vice of excessive delegation for want of guidelines for the exercise of power. Repelling the contention, it was held that sec. 3 is in the nature of a conditional legislation and, therefore, laying down the policy or guidelines to exercise the power was unnecessary. It was emphasized that the exercise of power under sec. 3(2) is conditioned by only two requirements, viz., (1) previous publication as contemplated by sub-sec. (4) of sec. 3 of the Act, (2) issuance of a notification by the Government after such previous publication. Once the Government publishes such a notification, the legislation becomes complete and the other provisions of the Act are ipso facto attracted to the Corporation so constituted. This was the view taken by the High Court in Chikalthane case. To reach that conclusion, the learned judges relied upon the decision of this Court in Tulsipur Sugar Company, case 1980 2 SCR 1111.

The attention of the High Court in the present case was drawn to the decision in Chikalthane, case. Counsel for the State and interveners seemed to have argued that the present case really fell fairly and squarely within what was said there. They were indeed on terra firma since the decision in Chikalthane case was a clear authority against every contention raised by the petitioners. Faced with this predicament, counsel for the petitioners urged before the High Court that their case should be referred to a larger Bench to reconsider the deci- 415 sion m Chikalthane, case. But learned Judges, (Dharmadhikari and Kantharia, J J) did not heed to that submission. They neither referred the case to a larger Bench nor followed the view taken in the Chikalthane, case. It was not as if they did not comprehend the issue to be determined and the principle to be applied. They were very much aware of it when they remarked:

"In our opinion, once it is accepted that this

is a piece of conditional legislation, then it

will have to be held that the principle of

natural justice would not apply to such a case

as held by the Division Bench of this Court in

village Panchayat Chikalthane’s case nor it

could be said that because under a mistaken

notice the Federation was heard, the denial of

such a right to the petitioners will amount to

hostile discrimination within the contempla-

tion of Article 14 of the Constitution of

India."

After referring to these simple legal principles, it is unfortunate that the issue at stake was little explored. The key question raised in the case was side-tracked and a new strategy to interfere with the decision of the Government was devised. The learned Judges directed the Government to publish again a draft notification for reconsideration of the matter. They gave liberty to the writ petitioners and the interveners to submit their representations. They observed that "this is a fit case where the parties should be given a reasonable opportunity of being heard." They did not quash the impugned notification, but told the Government to make necessary changes in the light of fresh consideration. All these directions were issued after recording a positive finding that the exclusion of Ulhasnagar from the Corporation was arbitrary and irrational. The net result of it is that there is now no discretion with the Government to keep Ulhasnagar away from the Corporation.

It would be difficult for us to appreciate the judgment of the High Court. One must remember that pursuit of the law, however glamorous it is, has its own limitation on the Bench. In a multi-judge court, the Judges are bound by precedents and procedure. They could use their discretion only when there is no declared principle to be found, no rule and no authority. The judicial decorum and legal propriety demand that where a learned single judge or a Division Bench does not agree with the decision of a Bench of co-ordinate jurisdiction, the matter shall be referred to a larger Bench. It is a subversion of judicial process not to follow this procedure. 416

Deprecating this kind of tendency of some judges, Das Gupta, J., in Mahadeolal Kanodia v. The Administrator General of West Bengal, AIR 1960 SC 926 said (at 941):

"We have noticed with some regret that when

the earlier decision of two Judges of the same

High Court in Deorajin’s case, 58 Cal WN 64

(AIR 1954 Cal 119) was cited before the

learned Judges who heard the present appeal

they took on themselves to say that the previ-

ous decision was wrong, instead of following

the usual procedure in case of difference of

opinion with an earlier decision, of referring

no less than legal propriety form the basis of

judicial procedure. If one thing is more

necessary in law than any other thing, it is

the quality of certainty. That quality would

totally disappear if Judges of co-ordinate

jurisdiction in a High Court start overruling

one another’s decision."

The attitude of Chief Justice, Gajendragadkar, in Lala Shri Bhagwan and Anr. v. Ram Chand and Anr., AIR 1965 SC 1767 was not quite different (at 1773):

"It is hardly necessary to emphasize that

considerations of judicial propriety and

decorum require that if a learned single judge

hearing a matter is inclined to take the view

that the earlier decisions of the High Court,

whether of a Division Bench or of a single,

Judge, need to be reconsidered, he should not

embark upon that enquiry sitting as a single

judge, but should refer the matter to a Divi-

sion Bench or, in a proper case, place the

relevant papers before the Chief Justice to

enable him to constitute a larger Bench to

examine the question. That is the proper and

traditional way to deal with such matters and

it is rounded on healthy principles of judi-

cial decorum and propriety. It is to be re-

gretted that the learned Judges departed from

this traditional way in the present case and

choose to examine the question himself."

The Chief Justice Pathak, in a recent decision stressed the need for a clear and consistent enunciation of legal principle in the decisions of a Court. Speaking for the Constitution Bench Union of India v. Raghubir Singh, [1989] 2 SCC 754 learned Chief Justice said (at 766):

"The doctrine of binding precedent has the

merit of pro-

417

moting a certainty and consistency in judicial

decisions, and enables an organic development

of the law, besides providing assurance to the

individual as to the consequence of transac-

tions forming part of his daily affairs. And,

therefore, the need for a clear and consistent

enunciation of legal principle in the deci-

sions of a Court."

Cardozo propounded a similar thought with more

emphasis:

"1 am not to mar the symmetry of the legal

structure by the introduction of inconsisten-

cies and irrelevancies and artifical excep-

tions unless for some sufficient reason, which

will commonly by some consideration of history

or custom or .policy or justice. Lacking such

a reason, I must be logical just as I must be

impartial, and upon like grounds. It will not

do to decide the same question one way between

one set of litigants and the opposite way

between another" (The Nature of the Judicial

Process by Benjamin N. Cardozo p.33) In our system of judicial review which is a part of our Constitutional scheme, we hold it to be the duty of judges of superior courts and tribunals to make the law more predictable. The question of law directly arising in the case should not be dealt with apologetic approaches. The law must be made more effective as a guide to behaviour. It must be determined with reasons which carry convictions within the Courts, profession and public. Otherwise, the lawyers would be in a predicament and would not know how to advise their clients. Subordinate courts would find themselves in an embarrassing position to choose between the conflicting opinions. The general public would be in dilemma to obey or not to obey such law and it ultimately falls into disrepute.

Judge learned Hand has referred to the tendency of some judges "who win the game by sweeping all the chessmen off the table". (The Spirit of Liberty by Alfred A. Knopf, New York (1953) p. 131). This is indeed to be deprecated. It is needless to state that the judgment of superior courts and Tribunals must be written only after deep travail and positive vein. One should never let a decision go until he is absolutely sure it is right. The law must be made clear, certain and consistent. But certitude is not the test of certainty and consistency does not mean that there should be no word of new content. The principle of law may develop side by side with new content but not 418 with inconsistencies. There could be waxing and wanning the principle depending upon the pragmatic needs and moral yearnings. Such development of law particularly, is inevitable in our developing country. In Raghubir Singh, case, learned Chief Justice Pathak had this to say (1989) 2 SCC 754 at 767:

"Legal compulsions cannot be limited by exist-

ing legal propositions, because, there will

always be, beyond the frontiers of the exist-

ing law, new areas inviting judicial scrutiny

and judicial choice-making which could well

affect the validity of existing legal dogma.

The search for solutions responsive to a

changed social era involves a search not only

among competing propositions of law, or

competing versions of a legal proposition, or

the modalities of an indeterminacy such as

"fairness" or "reasonableness" but also among

propositions from outside the ruling law,

corresponding to the empirical knowledge or

accepted values of present time and place,

relevant to the dispensing of justice within

the new parameters.

And he continued:

The universe of problems presented for judi-

cial choicemaking at the growing points of the

law is an expanding universe. The areas

brought under control by the accumulation of

past judicial choice may be large. Yet the

areas newly presented for still further

choice, because of changing social, economic

and technological conditions are far from

inconsiderable. It has also to be remembered,

that many occasions for new options arise by

the mere fact that no generation looks out on

the world from quite the same vantage-point as

its predecessor, nor for that matter with the

same perception. A different vantage point or

a different quality of perception often re-

veals the need for choicemaking where formerly

no alternatives, and no problems at all, were

perceived."

Holmes tells us:

"The truth is, that the law is always ap-

proaching, and never reaching, consistency. It

is forever adopting new principles from life

at the end, and it always retains old ones

from history at the other, which have not yet

been absorbed or

419

sloughed off. It will become entirely consist-

ent only when it ceases to grow." (Holmes the

Common Law, p. 36 (1881).

Apart from that the judges with profound responsibility could iII-afford to take stolid satisfaction of a single postulate past or present in any case. We think, it was Cicero who said about someone "He saw life clearly and he saw it whole"; The judges have to have a little bit of that in every case while construing and applying the law.

Reverting to the case, we find that the conclusion of the High Court as to the need to reconsider the proposal to form the Corporation has neither the attraction of logic nor the support of law. It must be noted that the function of the Government in establishing a Corporation under the Act is neither executive nor administrative. Counsel for the appellants was right in his submission that it is legislative process indeed. No judicial duty is laid on the Government in discharge of the statutory duties. The only question to be examined is whether the statutory provisions have been complied with. If they are complied with,, then, the Court could say no more. In the present case the Government did publish the proposal by a draft notification and also considered the representations received. It was only thereafter, a decision was taken to exclude Ulhasnagar for the time being. That decision became final when it was notified under Section 3(2). The Court cannot sit in judgment over such decision. It cannot lay down norms for the exercise of that power. It cannot substitute even "its juster will for theirs."

Equally, the rule issued by the High Court to hear the parties is untenable. The Government in the exercise of its powers under Section 3 is not subject to the rules of natural justice any more than is legislature itself. The rules of natural justice are not applicable to legislative action plenary or subordinate. The procedural requirement of hearing is not implied in the exercise of legislative powers unless hearing was expressly prescribed. The High Court, therefore, was in error in directing the Government to hear the parties who are not entitled to be heard under law.

Megarry, J., in Bates v. Lord Hailsham of St. Marylebone and Ors., [1972] 1 WLR 1373 while dealing with the legislative process under Section 56 of the Solicitors Act, 1957 said (at 1378):

"In the present case, the committee in ques-

tion has an entirely different function: it is

legislative rather than

420

administrative or executive. The function of

the committee is to make or refuse to make a

legislative instrument under delegated powers.

The order, when made, will lay down the remu-

neration for solicitors generally and the

terms of the order will have to be considered

and construed and applied in numberless cases

in the future. Let me accept that in the

sphere of the so-called quasi-judicial the

rules of natural justice run, and that in the

administrative or executive field there is a

general duty of fairness. Nevertheless, these

considerations do not seem to me to affect the

process of legislation, whether primary or

delegated. Many of those affected delegated

legislation, and affected very substantially,

are never consulted in the process of enacting

that legislation; and yet they have no remedy.

Of course, the informal consultation of repre-

sentative bodies by the legislative authority

is a commonplace; but although a few statutes

have specifically provided for a general

process of publishing draft delegated legisla-

tion and considering objections (see, for

example, the Factories Act 1961 Schedule 4), I

do not know of any implied right to be con-

sulted or make objections, or any principle

upon which the courts may enjoin the legisla-

tive process at the suit of those who contend

that insufficient time for consultation and

consideration has been given. I accept that

the fact that the order will take the form of

a statutory instrument does not per se make it

immune from attack, whether by injunction or

otherwise; but what is important is not its

form but its nature, which is plainly legisla-

tive."

There are equally clear authorities on this point from this Court. The case in Tvlsipur Sugar Co. Ltd. v. The Notified Area Committee, Tulsipur, [1980] 2 SCR 1111 was indeed a hard case. But then, this Court did not make a bad law. There a notification dated August 22, 1955 was issued under Section 3 of the U.P. Town Area covering the petitioner’s factory. Consequently, the octroi was levied on goods brought by the factory management into the limits of Town Area Committee. The Company questioned the validity of that notification. The case pleaded was that the company had no opportunity to make representation regarding the advisability of extending the limits of the Town Area Committee. Venkataramiah, J., as the present learned Chief Justice then was, while rejecting the contention observed (111920): 421

"The power of the State Government to make a

declaration under Section 3 of the Act is

legislative in character because the applica-

tion of the rest of provisions of the Act to

the geographical area which is declared as a

town area is dependent upon such declaration.

Section 3 of the Act is in the nature of a

conditional legislation. Dealing with the

nature of functions of a non-judicial authori-

ty, Prof. S.A. De Smith in Judicial Review of

Administrative Action (third edition) observes

at page 163: "However, the analytical classi-

fication of a function may be a conclusive

factor in excluding the operation of the audi

alteram partem rule. It is generally assumed

that in English law the making of a subordi-

nate legislative instrument need not be pre-

ceded by notice or hearing unless the parent

Act so provides."

In Baldev Singh v. State of Himachal Pradesh, [1987] 2 SCC 510 a similar question arose for consideration. An attempt was made to constitute a notified area as provided under Section 256 of the Himachal Pradesh Municipal Act, 1968, by including portions of the four villages for such purposes. The residents of the villages who were mostly agriculturists challenged the validity of the notification before the High Court on the ground that they had no opportunity to have their say against that notification. The High Court summarily dismissed the writ petition. In the appeal before this Court, it was argued that the extension of notified area over the Gram Panchayat limits would involve civil consequences and therefore, it was necessary that persons who would be affected thereby ought to be given an opportunity of being heard. Ranganath Misra, J., did not accept that contention, but clarified (at 515):

"We accept the submission on behalf of the

appellants that before the notified area was

constituted in terms of Section 256 of the

Act, the people of the locality should have

been afforded an opportunity of being heard

and the administrative decision by the State

Government should have been taken after con-

sidering the view of the residents. Denial of

such opportunity is not in consonance with the

scheme of the rule of law governing our socie-

ty. We must clarify that the hearing contem-

plated is not required to be oral and can be

by inviting objections and disposing them of

in a fair way." The principles and precedents thus enjoin us not to support the 422 view taken by the High Court. We may only observe that the Government is expected to act and must act in a way which would make it consistent with the good administration. It is they, and no one else--who must pass judgment on this matter. We must, therefore, leave it to the Government.

In the result and for the reasons stated, we allow the appeals and set aside the judgment of the High Court. In the circumstances of the case, we make no order as to costs. Y. Lal Appeals allowed. 423

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