JUDGEMENT
Bachawat, J. -
(1.) This appeal arises out of a writ application challenging a notification issued on June 14, 1965, declaring the area of Khambalia municipality in Jamnagar district to be a nagar under S. 9 (1) of the Gujarat Panchayats Act, 1961 (Gujarat Act No. VI of 1962). The Jamnagar district was formerly a part of the ; State of Saurashtra which merged in the State of Bombay in 1956. Before the merger, the State of Saurashtra adopted the Bombay District Municipalities Act, 1901 under which the town of Khambalia was constituted into a municipality. On the bifurcation of the State of Bombay , the district of Jamnagar became a part of the State of Gujarat. The Gujarat Panchayat Act, 1961 was passed on February 24, 1962. The population of Khambalia municipality according to the census of 1961 was 12,249. By a notification, dated August 17, 1962, issued under S. 9 of the Gujarat Panchayats Act, 1961, the local area within the limits of the Khambalia municipality was declared to be a nagar and the municipality ceased to exist. On February 5, 1963, upon the publication of the Gujarat Panchayats (Suspension of Provisions and reconversion of certain local areas into municipal districts) Act, 1962, the Khambalia municipality and other municipalities converted into Nagar Panchayats by notifications under S. 9 (1) of the Nagar Panchayats Act, 1961, stood revived. On February 7, 1963, the Gujarat Panchayat Laws (Amendment) Ordinance 1963 repealed S. 3 of the Gujarat Panchayats (suspension of provisions and reconversion of certain local areas into municipal districts) Act. 1962 and all the provisions of the Gnjarat Panchayats Act, 1961 became again operative. In April 1962, the State Government converted some of the revived municipalities into nagar or gram panchayats, but the Khambalia municipality was not then so converted. Meanwhile, the State Government started proceedings for the supersession of the Khambalia municipality under S. 179 of the Bombay District Municipal Act, 1901 and in this connection there was litigation between the Government and the municipality. On December 23, 1964, the Gujarat Municipalities Act, 1963 (Act No. XXXIV of 1964) was passed, and the Khambalia municipality became a municipality constituted under this Act for the Khambalia municipal borough. On June 14, 1965, the Development Commissioner, Gujarat State, issued a notification under S. 9 (1) of the Gujarat Panchayats Act, l961, declaring "the whole area of the existing limits of the Khambalia municipality in Jamnagar district" to be a nagar with effect from the date of the issue of the notification. This notification was issued by the Development Commissioner after making the prescribed enquiry under S. 9 (1). The effect of the notification was that the entire local area included within the limits of the municipal borough for which the Khambalia municipality was constituted became a nagar. On June 22, 1965, the appellants filed a writ petition in the High Court of Gujarat, praying for an order quashing the notification, dated June 14, 1965 and declaring S. 9 of the Gujarat Panchayats Act, 1961 as ultra vires and unconstitutional, and for other reliefs. The High Court dismissed this application. The appellants now appeal to this Court under a certificate granted by the High Court.
(2.) To appreciate the contentions raised by learned counsel for the appellants, it is necessary to read S. 9 of the Gujarat Panchayats Act. 1961. That section is in these terms:
"9. (1) After making such inquiries as may be prescribed, the State Government may, by notification in the Official Gazette declare any local area, comprising a revenue village or a group of revenue villages or hamlets forming part of a revenue village, or such other administrative unit or part thereof , -
(a) to be a nagar, if the population of such local area exceeds 10,000 but does not exceed 30,000, and
(b) to be a gram, if the population of such local area does not exceed 10,000.
(2) After consultation with the Taluka panchayat, the district panchayat and the nagar or gram panchayat concerned (if already constituted) the State Government may, by like notification, at any time -
(a) include within, or exclude from, any nagar or gram, any local area or otherwise alter the limits of any nagar or gram; or
(b) declare that any local area shall cease to be a nagar or gram ;
and thereupon the local area shall be so included or excluded, or the limits of the nagar or gram so altered or, as the case may be, the local area shall cease to be a nagar or gram."
(3.) Rule 2 of the Gujarat Panchayats (Declaration of nagar or gram) Inquiry Rules, 1962, prescribes the inquiry to be made by the State Government under Section 9 (1). It reads:
"2. Inquiry by State Government.- (1) Before declaring any local area to be a nagar or gram under sub-s. (1) of S. 9 of the Act, the State Government shall make inquiries as to-
(1) the population and the ordinary land revenue of the revenue village or each of the revenue villages or hamlets, or as the case may be, any other administrative unit or part thereof, comprised in the local area;
(2) whether the revenue villages or hamlets or other administrative units or parts thereof can be conveniently grouped so as to form a gram or nagar, as the case may be;
(3) for the purpose of sub-r. (l) the District Development Officer or where there is no such officer the Collector when so required by the State Government, shall submit to the State Government a statement in the form appended hereto". ;