D.S.Lamba, J. - (1.) THE following notification by the Local Government Department (Committees Punjab dated 3rd September, 1975, was published in the Punjab Government Gazetted (Extraordinary),dated 4th September, 1975: - LOCAL GOVERNMENT DEPARTMENTCommitteesNotificationThe 3rd September, 1975. No. 9325 -CI(ASO) -75/28674. -Whereas it had been brought to the notice of the Government that Municipal Committee, Adampur, in the Jullundur District, had become incompetent to perform and had made persistent defaults in the performance of its statutory duties and exceeded its powers within the meaning of Section 238 of the Punjab Municipal Act, 1911 ;
(2.) AND whereas the Municipal Committee, Adampur, Vide Punjab Government Memo. No. 269 -CI(ASO) -75/15667, dated the 4th May, 1975, was conveyed the various reasons calling upon it to show cause why the Committee should not be suspended under Section 238 of the Punjab Municipal Act, 1911 ; And whereas, the Government has considered, the reply of the Municipal Committee and is of the opinion that for the reasons given in the Schedule below, considered jointly and severally, the Municipal Committee has been found to be incompetent to perform and has persistently made default in the performance of duties imposed on it by and under the Punjab Municipal Act, 1911, and has exceeded its powers; Now, therefore, in exercise of the powers conferred by Section 238 of the Punjab Municipal Act, 1911, the Governor of Punjab hereby directs that the said Municipal Committee of Adampur in Jullundur district, shall be suspended with immediate effect for a period of one year and directs that all powers and duties of the said Committee shall, till the committee remains under suspension, be exercised and performed by an Administrator and hereby appoints the Deputy Director, Local Government, Jullundur as Administrator of the Municipal Committee, Adampur in addition to his duties till the appointment of a whole time Administrator. SCHEDULE (1) In accordance with the provisions of Section 25 of the Punjab Municipal Act, 1911, the Municipal Committee was required to hold at least twelve meetings, but, unfortunately it held only 8 meetings during the period 1st April, 1973 to 31st March, 1974. Again, during the period 1st April, 1974 to 30th September, 1974 only two meetings had been held the first meeting was held on 5th July 1974 and the 2nd on 22nd July, 1974 whereas, six such meetings should have been held. No action was taken by the Committee for the amendment of business bye -laws and the Sub -Committee constituted for this purpose was very late. The Municipality has also failed to hold the election of its Vice -President. This shows that the Committee has made default in the holding of timely meetings. (2) From the statement of the financial position, given below, it transpires that there has been progressive decrease of income of the Municipal Committee, showing that the Municipal Committee had loose financial control and lacked strict supervision of leadage of Municipal revenues: JUDGEMENT_8_LAWS(P&H)7_1976.htm The following statement for the year 1974 -75 shows that the income of the Committee had been registering a dramatic fall, as compared to previous years and all this is attributed to loose grips of the committee over its finances JUDGEMENT_8_LAWS(P&H)7_11976.htm Income in respect of House Tax during the year 1972 -73 was Rs. 89,400 whereas such income during the year 1973 74 was Rs. 25,279, showing an abrupt downward trend, whereas the income should have registered an appreciable rise. (3) The Committee has not revised its previous rates of house Tax and thus, the Committee has failed to tap its own resources to augment its income. The Committee has also failed to realize its arrears on account of House Tax amounting to Rs. 55,036 upto 30th September, 1974. The Committee has, therefore, defaulted in this respect. (4) The Committee has not adopted the new Model Octroi Schedule which it was required to adopt within 45 days of the issue of Government instructions. This shows incompetence of the Municipal Committee to raise its own sources of income. (5) Cases of lax evasion for the period April 1974 to September 1974 was simply eleven. The number of such cases is insignificantly low as compared to such cases, numbering 54 in 1971 -72, twelve in 1972 -73, and 28 in 973 -74. This shows lack of supervision being exercised by the Committee. The validity of the above notification suspending the Municipal Committee, Adampur, is being challenged by the Petitioners in this writ petition under Article 226/227 of the Constitution, praying for the issuance of a writ in the nature of Certiorari, quashing the impugned notification and also for the issuance of a writ in the nature of Mandamus or any other appropriate writ, order or direction, directing respondents No. 1 and 2, i.e. The State of Punjab and the Deputy Commissioner, Jullundur, respectively, not to suspend the legally elected Committee and to do their duty in accordance with law.
(3.) THE Petitioners have pleaded that they are the duly elected members of the Municipal Committee, Adampur, District Jullundur (hereinafter referred to as the Committee.) The elections were held on 18th June 1972 and the oath of office was administered to them on 7th July, 1972. Shri Swaran Singh, Respondent No. 3, was elected President of the Committee. Though the Petitioners were performing their duty for the benefit of the public and, in spite of various beneficial schemes, the income of the Committee was not allowed to dwindle and no fresh tax were imposed, yet a show -cause notice purporting to be under Section 238(3) of the Punjab Municipal Act, 1911 (hereinafter called the Act) was served on the President, Respondent No. 3. The Petitioners later on learnt that Respondent No. 3 had submitted a reply thereto to the Deputy Commissioner and the State Government controverting the charge in the show cause notice. There grievance was that the President did not call any meeting of the Committee to consider the show cause notice which he was duty -bound to do, and he sent the reply on his own without consulting the Petitioners. It has been further averred that the Deputy Commissioner commented on the show -cause notice and the State Government acted illegally and without jurisdiction in accepting the comments of the Deputy Commissioner without giving an opportunity to the Petitioners to independently explain the charges leveled against the Committee which is corporate body and has existence of its own. The State Government mis -stated in the impugned notification that notice had been issued to the Committee, and for uterior reasons issued the notification in question. The Petitioners claim that the work of the Committee was being supervised by the Sub Divisional Officer (Civil) and the Deputy Commissioner Jullundur, in the exercise of their supervisory control, from time to time, but neither of them had earlier in their reports ever pointed out the substance of any of the charges leveled against the Committee. The financial position of the Committee, according to them, was not correctly depicted in the notification. In paragraph 8 of the petit on the Petitioners have given facts and figures to show that the recovery of House -tax, and octopi income had progressively increased during the month of June, July, August and September for three years viz 1973, 1974 and 1975, and also in respect of toll -tax during these months in the years 974 and 975 Similarly the number of cases regarding vasion of taxes during the years 1971 -72 1972 -73 and 1973 -74 has also been furnished. By quoting these figures an attempt has been made to show that there had been no acts of omission and commission on the part of the Committee in the performance of its functions, rather the Committee was vigilant in increasing its income and to check the evasion of taxes. The Petitioners have further challenged the impugned action on the following grounds: - (1) That Shri Harbhjan Singh, M.L.A., who was elected as an independent candidate against Shri Kulwant Singh (who was being supported by the Congress and the Communist party of India), was opposed by the Petitioners also at the time of election, that after his election, Shri Harbhajan Singh joined the Congress and to wreck vengeance on the Petitioners, he, in league with the authorities, got the present show -cause notice issued, and that he being a favorite of the State Government and the Deputy Commissioner did not allow the Petitioners to function, the motive behind all this being that when an Administrator was appointed, he would have full say in the affairs of the Committee. (2) That the show -cause notice purporting to be under Section 238(3) of the Act was served on the President, Respondent No. 3, and not on the Committee which is a corporate body and has existence of its own in the eyes of law. (3) That Respondent No. 3 submitted a reply to the show -cause notice, but did not call any meeting of the Committee to consider the charges which he was duty bound to do before sending the reply. (4) That the Committee has been suspended by simply repeating the charges as stated in the show -cause notice and without judicial approach which the State Government while performing its quasi -judicial functions was bound to have and that no order giving the process of reasoning by which the explanation of the President was found unsatisfactory is indicated and the whole thing has been done in a cryptic and arbitrary manner.;