S.J.MUKHOPADHAYA, J. - (1.) As all these four writ petitions relate to constitution of Municipal Corporation at Jamshedpur and in three of them the notification inviting objection for constitution of such Municipal Corporation at Jamshedpur is under challenge and common question of law being involved, they were heard together and are being disposed of by this common judgment.
(2.) Out of these four analogous writ petitions, two, namely, W.P.(PIL) No. 4388 of 2003 and W.P.(PIL) No. 364 of 2006 have been preferred as public interest litigation. In W.P.(PIL) No. 4388 of 2003 prayer has been made to direct the State to replace Jamshedpur Notified Area Committee by duly elected Municipal Body (Corporation) in accordance with the provisions, contained in Part-IX A of the Constitution of India. In W.P.(PIL) No. 364 of 2006 prayer has been made to declare the Notification dated 6th December, 2005 as illegal and unconstitutional and to command the respondents to declare Jamshedpur Township as an "Industrial Township" as per Article 243Q of the Constitution of India. One Shalkhan Murmoo in W.P.(C) No. 872 of 2006 has also challenged the same Notification dated 6th December, 2005 on the ground that the same is violative of the Constitution of India and the provisions of "Panchayat (Extension of Scheduled Areas) Act, 1996" (hereinafter to be referred as 'PESA, 1996') as well as the provisions of "Jharkhand Panchayat Raj Act, 2001". Fourth writ petition i.e. W.P.(C) No. 517 of 2006 has been preferred by the Tata Steel Ltd. (earlier known as Tata iron & Steel Company) for a declaration that Section 2(1) of the Bihar Municipal Corporation Act, 1978 (Bihar Act 12 of 1978) ultra vires Article 243Q read with Article 243ZF of the Constitution of India, as the same is not in consonance with the aforesaid constitutional provisions. It has also challenged the Notification dated 6th December, 2005, published by the Government of Jharkhand in the official Gazette dated 8th December, 2005, whereby and whereunder, a draft proposal has been published for declaration and formation of Jamshedpur Municipal Corporation over the areas, falling under Jamshedpur and Mango Notified Area Committees and Jugsalai Municipality and for that purpose the State of Jharkhand has invited objections and suggestions from the persons, to be affected by the said Notification. Prayer has also been made for a direction on the respondent-State to issue an appropriate Notification under Sub-section (4) of Section 4 of the Bihar and Orissa Municipal Act, 1922 and to declare Jamshedpur Township as an "Industrial Township", as envisaged under Section 3(11 A) of the said Act and to appoint a Committee to cany out the aims and object of the said Act and to carry out the purpose of the Act in the "Industrial Township".
(3.) W.P.(C) No. 517 of 2006: The petitioner Tata Steel Ltd. is a company, registered under the Companies Act, 1956. Its steel plant at Jamshedpur was established in the year, 1907 by Sir Jamshed Ji N. Tata. According to the petitioner, with regard to the township at Jamshedpur, the vision of the founder of the Company was clear from the letter written to his son Dorabji in the year, 1902, an extract of which reads as follows: "Be sure, to lay wide streets planted with shady trees, every other of a quick growing variety. Be sure that there is plenty of space for lawns and gardens, reserve large areas for football, hockey and parks, earmark areas for Hindu temples, Mohammedan mosques and Christian churches " (II) The planning of town and vision was emphasized by the petitioner, giving reference to a letter dated 25th November, 1919, written by T.W. Tutwiler, the then General Manager of the Board of petitioner-Company, relevant portion of which is quoted hereunder: "..............The survey is now complete, making it possible for the first time to discuss in an intelligent manner the planning of the large area, namely, that above mentioned, which in the nature of things forms a distinct unit from the town planner's point of view, namely, the point of view which considers the location of residences, schools, shopping areas, parks, playgrounds, burial grounds, the provision of water supply and drainage, and all the other needs of a large town........" (III) It appears that in exercise of power, conferred under Section 388(1) of the Bihar and Orissa Municipal Corporation Act, 1922 the town of Jamshedpur was declared as a "Notified Area" by Notification No. 5960-LSG dated 21st June, 1924. It was subsequently extended vide Notification Nos. 6068-LSG dated 25th June, 1924; 5913 dated 14th July, 1926; 4N/U/601/82-4006 dated 10th August, 1984. It was reconstituted from time to time with last re-constitution of "Jamshedpur Notified Area Committee", made vide Notification No. 1103/90/468/ Na. Vi.Vi. dated 11th March, 1992 and the said Committee continued to function until it was dissolved in the year, 1988. (IV) According to the petitioner, the municipal facilities in the township of Jamshedpur were and are being provided by the petitioner Company, the Head of the Town Division of the petitioner Company used to be nominated as the Chairman of the Jamshedpur Notified Area Committee. The majority of the members nominated in the Committee were representatives of the petitioner Company. The Heads of the Public Health Department and Town Planning and Engineering Department of the petitioner's Company, besides others, were nominated members of the Jamshedpur Notified Area Committee and functioned as Health Officer and Engineer respectively. The Jamshedpur Notified Area Committee had limited functions, such as, registration of vehicles, registration of births and deaths, approval of the building plans, enforcing public health measures and to provide licence to hazardous trades. Along with the plant of Tata Steel other major industries also came up in Jamshedpur, such as, Tata Motors Ltd., Tata Pigments Ltd., Tinplate Company of India Ltd., Lafarge India Ltd., Timken India Ltd., Indian Steel and Wire Products etc. Besides, other Industries and Small Scale Industries, ancillary to these major industries, are located in and around the town of Jamshedpur. The employees of the industries, developed around the town of Jamshedpur, also reside in Jamshedpur and avail the municipal facilities, provided by the petitioner Company. (V) According to the petitioner, various services are being provided by the Tata Steel since its inception for the last nine decades with the help of structured departments and skilled manpower, which are: (i) Water & Wastewater Management: Through its infrastructure to provide "River-to-River" water & Wastewater Management, the Company provides water for industrial usage and potable water to citizens. It also collects, treats and disposes sewage with the help of two modern sewage treatment plants, which treat wastewater to environmental standards, the only town in India where 100% of the sewage can be collected and treated, before disposal. The potable water quality confirms to BIS and WHO standards. Water is also supplied in tankers to the citizens, whenever extra water is required during personal and community function and also in cases of shortage and breakdowns. (ii) Planning, Engineering and Construction: The petitioner Company has wide experience in the area of town planning and construction ranging from roads, bridges, stadium, flats and flat complexes, bungalows, schools and hospitals. The Road Management Department caters to a 524 km. Road network. Besides, on the periphery of the town outside the leased area, the company has constructed the Mango bridge (Jai Prakash Narayan Setu), access road for approaching the railway station, outer peripheral road from Sakchi River Pump House to River's meet road, Sonari. It has also Constructed WBM and RCC roads in Bagan Area, etc. to facilitate movement of people and transportation of industrial products. (iii) Power Services Division: The petitioner Company has taken appropriate measures to ensure that the streets across the town are well lit. It takes special caution and care to maintain the lights. The power supply for the street lighting is uninterrupted with the infrastructural support and ability to respond emergency with facilities like alternate power supply and back ups . The availability of power in Jamshedpur is 99.8% amongst the best in the country. (iv) Public Health and Horticulture Services: According to the petitioner, the company has introduced an efficiently managed system for handling Municipal Solid Waste and Bio-Medical Wastes. They are disposed of at the designated dumping sites, which are maintained in an eco-friendly manner. The company also provides 100% elimination of mosquito breeding sites, sustained immunization level at 98% (benchmark in the country), a green cover which is one of the highest in any urban area surveillance and investigation of cases of communicable diseases and health and hygiene measures at eating houses. Health, Education etc. are given regularly to the residents of the town. Conservancy and sanitation services like sweeping of streets, cleaning of drains, sewer lines are also done effectively. The results of above mentioned measures are reflected in no/low incidences of various communicable diseases like polio, diphtheria, measles, malaria, typhoid, dengue etc. (v) Other Facilities: The petitioner company runs a veterinary hospital and has created and maintained children parks, public toilets and controls traffic islands. The company maintains five big parks, seventeen small parks and number of islands and verges for beautification of the town. Regular Programmes for tree plantation are carried out in all residential and non-residential areas. Jamshedpur has highest green cover amongst the urban areas. Over 10,00,000 tree saplings have been planted in the town during the past 10 to 15 years. The high standard of life in Jamshedpur is established by the fact that the town of Jamshedpur has been certified as ISO 14001 for the quality of civic ambience and all other facilities, such as, wide approach roads, greenery in the town, planning of the town, health and hygiene, solid waste management, quality of potable water, quality of uninterrupted supply of electricity etc. The Tata Steel, according to the petitioner, is extremely conscious of environmental issues and frequently carries out programmes in this regard. In a recent survey, conducted by AC Nielsen-ORG Marg on the "Quality of Life" in Jamshedpur vis-a-vis other developed cities like Chandigarh, Bangalore and Pune, Jamshedpur has been voted next to Chandigarh on parameters, such as, Power, Water, Sewage and Green Cover. A copy of survey report of various parameters has been enclosed as Annexure 5 to the writ petition. (VI) On behalf of the petitioner it was also submitted that in a meeting held on 10th August, 1999 in the Chamber of the Chief Secretary to the Government of Bihar between the State authorities and the Company, it was decided that Jamshedpur and Bokaro will be declared to be Industrial Townships. Such decision was also communicated by letter No. 2811 dated 2nd August, 2000. Inspite of such decision taken by the erstwhile State of Bihar, in a recent meeting held on 8th October, 2005 under the Chairmanship of the Hon'ble Minister, Incharge of Urban Development Department, Jharkhand, Ranchi, a different decision was taken ignoring the earlier decision of the State. (VII) Learned counsel for the petitioner company further submitted that in the recent agreement by which the State Government has renewed the lease in favour of the company for further thirty years, it has been mentioned that the petitioner company is to provide municipal services to the people, residing in the area and, in fact, providing such facilities of water and waste management; planning, engineering and construction; power services; public health and horticulture services etc., as detailed above. (VIII) It appears that a writ petition being Writ Petition (Civil) No. 154 of 1988 was filed by one Jawaharlal Sharma [petitioner in analogous W.P.(PIL) No. 4388 of 2003] before the Supreme Court for converting the Jamshedpur Notified Area Committee into a Municipality. The State of Bihar, in the said writ petition, filed a counter affidavit and took plea that as per the lease agreement of 1984 the petitioner company is to render municipal services and without powers, privilege and right the company could not have the requisite control over the town of Jamshedpur, which is necessary to carry out its function. The Supreme Court by order dated 21st August, 1989 directed the State of Bihar to issue a notification under Section 390A of the Municipal Act, declaring its function to convert Jamshedpur Notified Area Committee into a Municipality and to invite objections. Pursuant thereto, Notification No. 4806 dated 23rd November, 1990 was issued in this regard against which a writ petition being C.W.J.C. No. 156 of 1991 was preferred before the Patna High Court. The case was admitted and interim order was passed on 11th January, 1991 against which S.L.P.(C) No. 14677 of 1993 was preferred before the Supreme Court. During pendency of S.LP.(C) No. 14677 of 1999, C.W.J.C. No. 156 of 1991 was finally disposed of and the Patna High Court by order dated 25th November, 1992 directed the State of Bihar to consider and dispose of all the objections. (IX) In the meantime, with effect from 1st June, 1993 the Constitution (Seventy-fourth Amendment) Act, 1992 came into effect, as a result of which Part-IX A was added in the Constitution, which deals with constitution of Municipalities. Article 243P while defines Municipal Areas, Municipality etc., Article 243Q relates to constitution of Municipalities, relevant portion of which reads as under: "243P. Definitions.- In this Part, unless the context otherwise requires,- (a) 'Committee' means a Committee constituted under article 243S; (b) 'district' means a district in a State; (c) 'Metropolitan area' means an area having a population of ten lakhs or more, comprised in one or more districts and consisting of two or more Municipalities or Panchayats or other contiguous areas, specified by the Governor by public notification to be Metropolitan area for the purposes of this Part; (d) 'Municipal area' means the territorial area of a Municipality as is notified by the Governor; (e) 'Municipality' means an institution of self-government constituted under article 243Q (f) 'Panchayat' means a Panchayat constituted under article 243B; (g) 'population' means the population as ascertained at the last preceding census of which the relevant figures have been published. "243Q. Constitution of Municipalities.- (1) There shall be constituted in every State.- (a) a Nagar Panchayat (by whatever name called) for a transitional area, that is to say, an area in transition from a rural area to an urban area; (b) a Municipal Council for a smaller urban area; and (c) Municipal Corporation for a larger urban area, in accordance with the provisions of this Part: Provided that a Municipality under this clause may not be constituted in such urban area or part thereof as the Governor may, having regard to the size of the area and the municipal services being provided or proposed to be provided by an industrial establishment in that area and such other factors as he may deem fit, by public notification, specify to be an industrial township. (2) In this article, 'a transitional area', 'a smaller urban area' or 'a larger urban area' means such area as the Governor may, having regard to the population of the area, the density of the population therein, the revenue generated for local administration, the percentage of employment in non-agricultural activities, the economic importance or such other factors as he may deem fit, specify by public notification for the purposes of this Part." (X) Article 243ZF provides that any provision of any law relating to Municipalities in force in a State immediately before the commencement of the Constitution (Seventy-fourth Amendment) Act, 1992, inconsistent with the provisions of the said Part, shall continue to be in force until amended or repealed by a competent Legislature or other competent authority or until the expiration of one year from such commencement, whichever is earlier, which reads as under: "243ZF. Continuance of existing laws and Municipalities.-Notwithstanding anything in this Part, any provision of any law relating to Municipalities in force in a State immediately before the commencement of the Constitution (Seventy-fourth Amendment) Act, 1992, which is inconsistent with the provisions of this Part, shall continue to be in force until amended or repealed by a competent Legislature or other competent authority or until the expiration of one year from such commencement, whichever is earlier: Provided that all the Municipalities existing immediately before such commencement shall continue till the expiration of their duration, unless sooner dissolved by a resolution passed to that effect by the Legislative Assembly of that State or, in the case of a State having a Legislative Council, by each House of the Legislature of that State." (XI) In regard to the Municipalities, three sets of law were continuing in the erstwhile State of Bihar, namely, (i) Bihar & Orissa Municipal Corporation Act, 1922 (B. & O. Act 7 of 1922); (ii) Patna Municipal Corporation Act, 1951 (Bihar Act 13 of 1952) & (iii) The Bihar Municipal Corporation Act, 1978 (Bihar Act 12 of 1978). After "Constitution (Seventy-fourth Amendment) Act, 1992", the State of Bihar made certain amendments in Bihar & Orissa Municipal Corporation Act, 1922 vide Act 2 of 1995. Sub-section (1 lA)-"Industrial Township" (meaning) was inserted in Section 3 of the Act, 1922, which reads as follows: "Sec.3. Definitions.- In this Act, unless there be something repugnant in the subject or context- xx xx xx xx "[(11A) "Industrial township" means such urban area or part thereof as the State Government may, having regard to the size of the area and the Municipal services being provided or proposed to be provided by an industrial establishment in that area and such other factors as the State Government may deem fit, by public notification, specify to be an Industrial township."]" (XII) Sub-section (4) to Section 4 was also added in the said Act, 1922, which read as follows: "Sec. 4. Declaration of intention to constitute or alter limits of Municipality.- xx xx xx xx [(4) The State Government may, having regard to the size of the area and the Municipal services being provided or proposed to be provided by an industrial establishment in that area and such other factors as may be deemed fit, by public notification, specify, to be an industrial township and for such urban area or part thereof no declaration under this section shall be made.]" (XIII) In the Patna Municipal Corporation Act, 1951 similar amendment was made by the State of Bihar vide Act 1 of 1995 and Sub-sec. (va) "Industrial township" (meaning) was inserted in Sec. 4 (Definitions Section), as quoted hereunder: "Sec. 4. Definitions- In this Act, unless there is anything repugnant in the subject or context,- ["(va) "Industrial township" means such urban area or part thereof as the State Government may, having regard to the size of the area and the municipal services being provided or proposed to be provided by an industrial establishment in that area and such other factors as the State Government may deem fit, specify, by public notification, to be an industrial township."]" (XIV) Though the aforesaid amendment was made in two of the Acts, namely, Bihar & Orissa Municipal Corporation Act, 1922 and Patna Municipal Corporation Act, 1951, making provisions for "industrial township", no such amendment was made in Bihar Municipal Corporation Act, 1978. In this background, it was submitted by the counsel for the petitioner that in absence of any amendment, made in the Bihar Municipal CorporationAct, 1978, in consonance with the first proviso to Article 243Q, making provision for "industrial township" Section 2(1) of the Bihar Municipal Corporation Act, 1978 ultra vires Article 243Q read with Article 243ZF of the Constitution. (XV) Learned Advocate General for the State of Jharkhand while disputed the aforesaid submission, took the following grounds for dismissing the writ petition: (i) The petitioner company has not come with clean hands. It always tried to stall creation of Municipality at Jamshedpur. Indirectly the company circumvented the orders, passed by the Patna High Court and Supreme Court; (ii) The petitioner company having agreed for a Municipal Corporation at Jamshedpur in a meeting, held on 8lh October, 2005, cannot challenge the Notification dated 6th December, 2005; (iii) There being no cause of action to prefer the writ petition, the writ petition is premature as no final decision has been taken on the objections, preferred by the parties and merely objections have been called for by the impugned Notification dated 6th December, 2005 and (iv) The petitioner, having already filed an objection against the Notification dated 6th December, 2005, submitted to the jurisdiction of the State, now cannot take recourse of a writ petition for challenging the same very notice. (XVI) It was also submitted by the learned Advocate General that Sec. 2 of the Bihar Municipal Corporation Act, 1978 is not ultra vires. (XVII) This Court is not inclined to reject the writ petition on the preliminary objection, as raised by the learned Advocate General. So far as different orders, passed by Patna High Court and Supreme Court, are concerned, all such orders were passed prior to "Constitution (Seventy-fourth Amendment) Act, 1992", which came into force on 1" June, 1993. So far as objection to the Notification dated 6lh December, 2005 is concerned, the said notification having been challenged by other petitioners i.e. Jamshedpur Citizens Forum in W.P.(PIL) No. 364 of 2006 and Shalkhan Murmoo in W.P.(C) No. 872 of 2006, this Court is required to decide the question of legality and propriety of such Notification dated 6th December, 2005. Further, the petitioner having raised the constitutional validity of Sec. 2 of the Bihar Municipal Corporation Act, 1978 and such issue not having been raised earlier, this Court is also required to decide such issue. (XVIII) Admittedly, all the three Acts relating to Municipality, namely, Bihar & Orissa Municipal Corporation Act, 1922, Patna Municipal Corporation Act, 1951 and Bihar Municipal Corporation Act, 1978 are in force in the State immediately before the commencement of the "Constitution (Seventy-fourth Amendment) Act, 1992". Generally, any provision of law, if inconsistent with the provisions of the Constitution, is ultra vires to the Constitution. However, in order to meet the requirement of Article 243Q, if any existing law is found to be inconsistent, every State/ competent Legislature/competent Authority has been empowered to amend or repeal such inconsistent provision of law. One year time from the date of commencement of the "Constitution (Seventy-fourth Amendment) Act, 1992 i.e. up to 1st June, 1994, was allowed vide Article 243ZF. That means even if any provision of law, relating to Municipality in force in a State, is inconsistent with the provision of Part-IXA of the constitution, such inconsistent provision shall also continue to remain in force till it is amended or repealed and/or otherwise up to 1st June, 1994. In this background, even if Sec. 2(1) of the Bihar Municipal Corporation Act, 1978 is held to be not consistent with Part-IXA of the Constitution, still it cannot be held to be ultra vires of the Constitution but it can only be declared to have lost its force on expiration of one year from the date of commencement of "Constitution (Seventy-fourth Amendment) Act, 1992" i.e. since 1st June, 1994. Only on the ground that a statute has not been amended in terms of the Constitution, no provision can be held to be ultra vires of the Constitution. Such provision of law will have to be tested to find out whether such provision ultra vires Constitution or not. Sec. 2(1) of the Bihar Municipal Corporation Act, 1978 enables the State Government to constitute a Municipal Corporation in an area for providing better organized and coordinated civil facilities. The State Government may by notification in the official Gazette declare any area, including the area of any other Municipality and/or the Notified Area Committee with such other contiguous area, to be a Municipal Corporation. This provision is consistent with Part-IXA of the Constitution, including Article 243Q. If by amendment no similar provision is introduced in Sec.2 like proviso to Article 243Q(1)(c), that will not render Sec. 2 ultra vires of Article 243Q. Part- IXA of the Constitution, as introduced by the "Constitution (Seventy-fourth Amendment) Act, 1992", including Article 243Q, is a mandate of Constitution and all States are bound to give effect to it by constituting Municipality for a transitional area, smaller urban area and larger urban area, except villages/rural areas, where Panchayats are to be constituted. Therefore, the submission made by the petitioner company that Sec. 2(1) of the Bihar Municipal Corporation Act, 1978 ultra vires the Constitution cannot be accepted and, as such, such plea is rejected. (XIX) The other plea, as has been taken, that though other statutory provisions, such as, B. & 0. Municipal Act, 1922 and Patna Municipal Corporation Act, 1951 have been amended, no such amendment has been made in the Bihar Municipal Corporation Act, 1978, cannot be a ground to interfere with Sec. 2 of the Act. A statutory provision cannot be held to be violative of Article 14 on the basis of comparison with similar provision, contained in other statute of other State or any Central Legislature [refer Supreme Court's decision in the case of Prabhakaran Nair v. State of Tamil Nadu, reported in (1987)4 SCC 238 : AIR 1987 SC 2117]. Thus, the submission as, raised by the counsel for the petitioner on the basis of comparison, made vide amendment in two other Acts, has no leg to stand and such submission is also rejected. (XX) So far as Article 243Q is concerned, it has already been held that Part-IXA of the Constitution, including the aforesaid Article, is a mandate of Constitution. Every State is bound to constitute a Municipality for a transitional area', 'smaller urban area' and 'larger urban area', in accordance with the provisions of Part-IXA. "If a statute invests a public officer with authority to do an act in a specified set of circumstances, it is imperative upon him to exercise his authority in a manner, appropriate to the case when a party interested and having a right to apply moves in that behalf and circumstances for exercise of authority are shown to exist. Even if the words used in the statute are prima facie enabling, the courts will readily infer a duty to exercise power which is invested in aid of enforcement of a right-public or private of a citizen". This is the finding of the Supreme Court in the case of Hriday Narain v. I. T.Officer, Bareilly, reported in AIR 1971 SC 33. (XXI) Whether an authority can be compelled to exercise the discretionary power was the question for determination before the Supreme Court in the case of Commissioner of Police v. Gordhandas, reported in AIR 1952 SC 16. Having noticed the discretion vested in the Commissioner of Police under Rule 250, which had been conferred upon for public reasons involving the convenience, safety, morality and welfare of the public at large, the Supreme Court held that an enabling power of that kind, conferred for public reasons and for the public benefit, coupled with a duty to exercise it when the circumstances so demanded, it was a duty which could not be shirked or shelved nor could it be evaded; performance of it could be compelled. (XXII) In the case of Maharastra v. Jalgaon Municipal Council, reported in (2003) 9 SCC 731 : AIR 2003 SC 1659 the Supreme Court having noticed Part-IXA of the Constitution of India, held as follows: "4. Part IXA came to be inserted into the Constitution of India by Seventy-fourth Amendment w.e.f. 1-6-1993. This Part contemplates constitution of Nagar Panchayats, Municipal Councils and Municipal Corporations in every State. The three tools of local self-Government are contemplated by the Constitution to administer a transitional area, a smaller urban area and a larger urban area respectively. Article 243-Q(2) defines these three areas to mean such areas as the Governor may having regard to the population of the area, the density of the population therein, the revenue generated for local administration, the percentage of employment in non-agricultural activities, the economic importance or such other factors as the Governor may deem fit specify by public notification for the purpose of Part IXA. We are concerned with smaller or larger urban areas based whereon a Municipal Council or a Municipal Corporation, respectively, shall be constituted. It is not disputed that so far as the factor of population is concerned, the bench mark dividing the areas to be administered by Municipal Council or by Municipal Corporation, as the case may be, is the population of three lakhs. The urban area having population less than three lakhs is a smaller urban area to be administered by Municipal Council and an urban area having a population of not less than three lakhs is a larger urban area to be administered by a Municipal Corporation." (XXIII) From the aforesaid decision of the Supreme Court and Article 243Q, the following facts emerge: (i) A Nagar Panchayat to be constituted for a transitional area i.e. an area in transition from a rural area to an urban area; (ii) A Municipal Council to be constituted for a smaller urban area; and (iii) A Municipal Corporation to be constituted for a larger urban area. (XXIV) A Municipality under Clause 1 of Article 243Q may not be constituted in an urban area or part thereof, as the Governor having regard to the size of the area and municipal services being provided or proposed to be provided by an industrial establishment and on such other factors, as he may deem fit, by public notification specify to be an "Industrial Township". (XXV) A "Transitional Area", "Smaller Urban Area" or a "Larger Urban Area" is to be notified by the Governor having regard to the population of the area, density of the population therein, the revenue generated for local administration, the percentage of employment in non-agricultural activities, economic importance or such other factors, as the Governor may deem fit. (XXVI) On the other hand, from bare perusal of Sec. 2 of the Bihar Municipal Corporation Act, 1978 the following facts emerge: (i) For providing better organized and coordinated civil facilities and municipal administration, the State Government may declare any area including the area of any other Municipality with such other contiguous area to be a Municipal Corporation; (ii) The State Government may alter the limits of such Municipal Corporation by issuance of notification; and (iii) For alteration of limits of Municipal Corporation, a draft of proposed notification is required to be published in the official Gazette for information to the public in general, inviting objections and suggestions. (XXVII) If both the aforesaid provisions i.e. Article 243Q of the Constitution of India and Sec. 2 of the Bihar Municipal Corporation Act, 1978 are read together then it will be evident that the State/Governor/Competent authority for constitution of a Municipality is required to take the following steps, one after another: (i) The Governor having regard to the population of the area, density of the population therein, revenue generated for local administration, percentage of the employment in non-agricultural activities, the economic importance or such other factors, as he may deem fit, will first determine and specify whether the area will be treated to be a transitional area or smaller urban area or a larger urban area, in terms of Clause (2) of Article 243Q; (ii) After such decision, taken by the Governor under Clause (2) of Article 243Q but before publication of final notification under Article 243Q (2), the State Government will publish a draft of the proposed notification under Article 243Q(2) of the Constitution in the official Gazette for the information of all persons, likely to be affected therefrom, inviting objections and suggestions in terms of Sec. 2(3)(a) of the Bihar Municipal Corporation Act, 1978; (iii) On expiry of a period of six weeks and after considering objection or suggestion, if any, as may be received by the State Government within the said period, if so necessary, the Governor may issue public notification, specifying that area to be an "Industrial Township", in terms of proviso to Clause l(c) of Article 243Q of the Constitution of India; (iv) If the Governor having regard to the size of the area and taking into consideration the municipal services as being provided or proposed to be provided by an industrial establishment in that area and such other factors, as he may deem fit, is of the opinion that no notification under "Industrial Township" is required to be issued, in such case after taking into consideration the objections, as may be received, and, if so required, after making such amendment in the draft, final notification under sub-section (2) to Article 243Q read with Sec. 2(3)(b) of the Bihar Municipal Corporation Act, 1978 is to be issued; (v) Once it is decided and public notification is issued, specifying the area to be an "Industrial Township", in such case there shall be no Municipality in the said area. The concerned industrial establishment of that area will provide the municipal services to all persons, living in that area; (vi) If no public notification declaring such area as "Industrial Township" is issued, the State Government will take steps for constitution of Municipalities in terms of Clause (1) of Article 243Q of the Constitution read with Sec. 2(1) of the Bihar Municipal Corporation Act, 1978. (XXVIII) In the present case, no decision has been taken by the Governor of the State, taking into consideration the population of the area, the density of the population therein, revenue generated for the local administration, the percentage of employment in non-agricultural activities, the economic importance and other facts, as to Whether the area in question will be declared to be a transitional area or a smaller urban area or a larger urban area, as required under Clause (2) of Article 243Q of the Constitution of India. Without such decision of the Governor, the State Government has issued the proposed draft notification dated 6th December, 2005 under sub-sections (1) and (2) of Sec. 2 of the Bihar Municipal Corporation Act, 1978. There is nothing on record to suggest that the matter was placed before the State Government (Cabinet) to take decision for the purposes of advising the Governor of the State. It appears that a meeting was held on 8th October, 2005 under the Chairmanship of the Hon'ble Minister, Urban Development Department of the State, in which some of the officers and heads of the Industries took part. In the said meeting a decision was taken for constitution of Municipal Corporation in the area, which was circulated by the Urban Development Department, Govt. of Jharkhand, Ranchi vide letter No. 2598 dated 12th November, 2005 (Annexure 17 to the writ petition). On the basis of such decision taken under the Chairmanship of the Hon'ble Minister of Urban Development Department of the State of Jharkhand and without any advice or decision of the Governor of the State, the impugned notification was issued on 6th December, 2005 and published in the official Gazette on 8th December, 2005. (XXIX) In the preceding paragraphs we have discussed as to how steps to be taken in terms of Article 243Q read with Sec. 2 of the Bihar Municipal Corporation Act, 1978. The aforesaid procedure has not been followed in the present case, while notification dated 6th December, 2005 was issued. In this background, the notification, in question, cannot be upheld.;