ivil Appeal No 5675 of 1985
From the Judgment and Order dated 281985 of the Cal cutta High Court in Appeal from Original Order Tender No 165 of 1985
SN Kaicker
Girish Chandra and Mrs Sarala Chandra for the Appellants
Tapas Roy Parijat Sinha DN Mukherjee Dalip Sinha and JK Das for the Respondents
The Judgment of the Court was delivered by SEN J
This appeal by special leave is directed against the judgment and order of the Calcutta High Court dated August 2 1985 quashing a resolution passed by the Khargram Panchayat Samiti dated April 12 1985 specifying that the cattle fairs run by two rival organisations re
Nagar Cattle Hat run by Nagar Quorania Junior High Madrassah would be held on Saturday every week and Sherpur Cattle Hat run by Prabartak Parishad on Friday
By the judgment under 1210 appeal a Division Bench of the High Court has held that even though the Panchayat Samiti was vested with the power to grant licence for holding of a hat or fair under section 117 of the West Bengal Panchayat Act 1973
still in the absence of a rule framed under the Act it had no power to specify a day on which such hat or fair shall be held
The issue involved is whether the Panchayat Samiti being vested with the authority to grant a licence for the holding of a hat or fair under section 117 of the Act within the limits of its terri torial jurisdiction must necessarily be held to have the consequential or incidental power to specify a day for the holding of such hat or fair
The facts of the case are as follows
Ever since 1933 a cattle fair called Nagar Cattle Hat is being held on Satur day every week by the Nagar Quorania Junior High Madrassah a charitable educational institution which runs a school and is also engaged in other social activities which attracts a large gathering of buyers and sellers of cattle dealers within the district of Murshidabad and even beyond the district
Since 1974 respondent No 6 a club called Prabar tak Parishad set up a parallel cattle fair at a place called Sherpur about two kilometres away as the crow flies from the site of Nagar Cattle Hat on every Saturday known as Sherpur Cattle Hat
The holding of two rival cattle fairs on the same day gave rise to a feeling of rivalry couple with tension amongst the local population as also the large number of cattle dealers and peasantry attending the cattle fairs and this frequently led to violent conflicts and skirmishes between the two rival groups
Upon a repre sentation made to him in 1980 the District Magistrate Kurshidabad caused an inquiry to be held and by his order dated April 2 1980 held that holding of the two cattle fairs on the same day created serious law and order problem and accordingly directed holding of the hats on two differ ent days for preservation of public peace and tranquility
On a writ petition filed by respondent No 6 Prabartak Parishad a Division Bench of the High Court by its order dated June 2 1982 struck down the impugned order of the District Magistrate on the ground that no such direction could be issued by him as the competent authority was the Khargram Panchayat Samiti
It was observed The only authority which is competent to give any direction in this regard is the authority under the West Bengal Panchayat Act 1973
No such direction has been given by the authority under the said Act
In the circumstances we set aside the impugned order of the District Magistrate and the judgment of the learned Judge
Appeal is allowed
1211 There will be no order as to costs
It is made clear that this order is without prejudice to any steps that may be taken in accordance with law by the authority under the said Act
 In Compliance with the direction made by the High Court the District Magistrate obviously actuated by consideration of maintenance of law and order requested the Chairman of the Khargram Panchayat Samiti to take necessary steps as the holding of rival hats in contiguous areas could not be allowed to
continue as it gave rise to serious law and order problem
A meeting of the Panchayat Samiti was accord ingly held on June 20 1984 and a resolution was passed by a majority of the members that the Nagar Cattle Hat run by Nagar Quorania Junior High Madrassah would be held on Satur day as before and the Sherpur Cattle Hat run by Prabartak Parishad being of recent origin would be held on Friday
Thereupon respondent No 6 filed another writ petition in the High Court challenged the impugned resolution of the Panchayat Samiti
A learned Single Judge by his judgment and order dated January 14 1985 quashed the impugned resolution of the Panchayat Samiti on the ground that it acted in breach of the rules of natural justice while reserving liberty to the Panchayat Samiti to come to a decision afresh after affording an opportunity to respondent No 6 Prabar tak Parishad to have its say before it
Aggrieved the appellant preferred an appeal and applied for stay
A Divi sion Bench of the High Court by its order dated March 19 1985 admitted the appeal but declined to grant stay
and directed that the Panchayat Samiti should in the meanwhile comply with the order of the learned Single Judge
As a consequence Khargram Panchayat Samiti was constrained to give effect to the direction made by the learned Single Judge
It accordingly issued notices to the contending parties ie both Nagar Quorania Junior High Madrassah and Prabartak Parishad requiring them to submit their claims for consideration
and also fixed a date being April 12 1985 for hearing
On that date
the Panchayat Samiti at its open meeting heard the representatives of the parties and scruti nised the documents placed before it
After considering the claims of both the parties and the material record it passed a resolution that the Nagar Cattle Hat would be held as before on Saturday every week and the Sherpur Cattle Hat would be held on Friday and directed the Executive Officer to incorporate such a condition in the licence granted to the two organisations for holding the cattle fairs on these days
Again respondent No 6 filed a writ petition before the High Court challenging the aforesaid resolution dated April 12 1985
A learned Single Judge by his judgment dated June 19 1985 dismissed the writ petition in view of the pendency of the appeal before the 1212 Division Bench pursuant to whose direction the aforesaid resolution had been passed
Respondent No 5 then moved the Division Bench for restraining Khargram Panchayat Samiti from giving effect to the said resolution
The Division Bench by its judgment under appeal quashed the impugned resolution dated April 12 1985 of Khargram Panchayat Sami ti
It held that although in terms of section 117 of the Act the Panchayat Samiti was vested with the power of granting a licence for the holding of a hat or fair by the framing of rr 7 8 and 9 of the West Bengal Panchayat Samiti Adminis tration Rules 1984 the power of the Panchayat Samiti is confined to making provision for maintenance of sanitation health and hygiene in the market area which is the essence of the power under section 117 and further that in the absence of a provision in the rules in that behalf it had no power to specify a day on which such hat or fair should be held
It accepts that when a power is conferred on a statutory authority
it necessarily carries with the other incidental or ancillary powers and holds that the Panchayat Samiti being vested with the power to grant a licence under section 117 of the Act had been conferred the power under rr 7 8 and 9 to making provision for sanitation health and hygiene in the market area which is the essence of the power and there fore the Panchayat Samiti had tile power to see that sanita tion health and hygiene are properly maintained and looked after and nothing more
In repelling the contention that the specification of a day for the holding of a hat or fair was consequential to the power to grant a licence under section 117 of the Act it observed there can be no doubt that when a power is conferred on a statutory authority such power will also include other incidental or ancil lary powers without the exercise of which the main power cannot be exercised
In the instant case however
Panchayat Samiti has been con ferred with a power to see that sanitation health and hygiene are properly maintained and looked after
The provisions of Rule 9 of the Rules as stated already imposed certain terms and conditions on the grant of license for holding a market or hat but all these terms and conditions relate to maintenance or sanitation health and hygiene or supply of water or making proper lighting arrangement
The essence of power is therefore the main tenance of sanitation health and hygiene
Many incidental powers may be exercised by the Panchayat Samiti which are directly related to the exercise of the maintenance of sanita tion health and hygiene
Such powers are not provided for under Rule 9 yet they could be exercised by the Panchayat Samiti in exercise of 1213 its power under Rule 9 incidentally
But in our opinion
the Panchayat Samiti cannot exercise a power which has no connection whatsoever with sanitation health and hy giene
The reason for fixing different days viz Fridays and Saturdays for the holding of the two hats viz apprehended breach of peace has no connection whatsoever with the question of sanitation health and hygiene
Exercise of such assumed power cannot be said to be incidental or ancillary to the main power for the imposition of terms and condi tions of a licence
In case any broach of peace takes place
it will be a concern of the District Magistrate to take steps for the same
 In our judgment the view taken by the High Court that although the Panchayat Samiti was vested with the power to grant a licence for the holding of a hat or fair under section i 17 of the Act yet it had no consequential or incidental power to specify a day for holding of such hat or fair is manifestly erroneous and cannot be supported
It failed to appreciate that under the Act the power of general adminis tration of the local area vests in the Panchayat Samiti only to grant a licence to hold a hat or fair under section 117 of the Act but such power of general administration necessarily carries with it the power to supervise control and manage such hat or fair within its territorial jurisdiction
The conferment of the power to grant a licence for the holding of a hat or fair under section 117 of the Act includes the power to make incidental or consequential orders for specification of a day on which such hat or fair shall be held
The deci sion of the High Court runs counter to the well accepted principles
It overlooks that the statutory bodies like the Panchayat Samiti enjoy a wide incidental power  ie they may do every thing which is calculated to facilitate or is conductive or incidental to the discharge of any of their functions  and the doctrine of ultra vires is not to be applied narrowly
It is well accepted that the conferral of statutory powers on these local authorities must be con strued as impliedly authorising everything which could fairly and reasonably be regarded as incidental or conse quential to the power itself
See de Smith s Judicial Review of Administrative Action
4th edn p 95
HWR Wade s AdminiStrative Law 5th edn p 217
Craies on Statute Law 6th edn p 276
Attorney General vs Great Eastern Railway   Baroness Wenlock vs River Dee Co De Smith in his celebrated work Judicial Review of Administrative Action 5th edn
at p 95 puts the law tersely in these words 1214 The House of Lords has laid down the principle that whatev er may fairly be regarded as incidental to
or consequent upon
those things which the Legislature has authorised
ought not unless expressly prohibited to be held by judicial construction to be ultra vires
 This principle was
enunciated by Lord Selborne in Attorney General vs Great Eastern Railway supra in these words The doctrine of ultra vires ought to be reasonably
and not unreasonably understood and applied and whatever may be fairly regarded as incidental to
or consequential upon those things which the legislature has authorised ought not unless expressly prohibited to be held by judicial con struction
to be ultra vires
 These words have been quoted by Professor wade in his monumental work Administrative Law
5th edn
at p 2 17 and also by Craies on Statute Law 6th edn
p 276
Craies also refers to the observations of Lord Watson in Baroness Wenlock vs River Lee Co supra to the effect Whenever a corporation is created by Act of Parliament with reference to the purposes of the Act and solely with a view to carrying these purposes into execution I am of opinion not only that the objects which the corpora tion may legitimately pursue must be ascer tained from the Act itself but that the powers which the corporation may lawfully use in furtherance of these objects must either be expressly conferred or derived by reasonable implication from its provisions This Court in VT Khanrode  Ors
vs Reserve Bank of India  has followed the dictum of Lord Sel borne in Great Eastern Railway s case and reaffirmed the principle that the doctrine of ultra vires in relation to the powers of a statutory corporation have to be understood reasonable and so understood whatever may fairly be regard ed as incidental to or consequential upon those things which the legislature has authorised ought not unless expressly prohibited to be held by judicial construction to be ultra vires
It had earlier been laid down by a Con stitution Bench of the case of State of Uttar Pradesh vs
Batuk Dee Pati Tripathi  Anr  that a power to do a thing necessarily carries with it the power to regulate the manner in which the thing may be done
The High Court failed to apreciate that the power to grant a licence for the holding of a hat or fair under section 117 of the Act necessarily carries with it the power to specify a day on which such hat or fair shall be held
Such power to 1215 specify a day must be held to be a power incidental to or consequential upon the principal power of issuing a licence under section 117 of the Act for holding of a hat or fair
The rules or the absence of it do not detract from the substan tive power conferred by a statute
The essence and content of the power of a Panchayat Samiti under section 117 of the Act is issuance of a licence for the holding of a hat or fair and not mere maintenance of sanitation health and hygiene as held by the High Court
For these reasons we have no hesitation in reversing the judgment of the High Court
The appeal must accordingly succeed and is allowed
The judgment and order passed by the High Court are set aside and the writ petition is dismissed
No costs
APJ Appeal al lowed


Summary:
Ever since 1933 a cattle fair called Nagar Cattle Hat is being held on Saturday every week by the Nagar Quorania Junior High Madrassah
Since 1974 respondent No 6 a club called Prabartak Parishad set up a parallel cattle fair at Sherpur about two kilometres away from the site of Nagar Cattle Hat on every Saturday known as Sherpur Cattle Hat
The holding of two rival cattle fairs on the same day gave rise to feeling of rivalry couple with tension and this frequently led to violent conflicts and skirmishes between the two rival groups
Upon a representation made to him the District Magis trate Murshidabad caused an inquiry to be held and held that holding of the two cattle fairs on the same day created serious law and order problem and accordingly directed holding of the hats on two different days for preservation of public peace and tranquility
a writ petition filed by the respondent No 6 the High Court struck down the order of the District Magistrate on the ground that no such direction could be issued by him as the competent authority was the Khargrar Panchayat Sami ti
In compliance with the directions made by the Court the Panchayat Samiti passed a resolution that the Nagar Cattle Hat run by Nagar Quorania Junior High Madrassah would be held on Saturday and the Sherpur Cattle Hat run by Prabartak Parishad would be held on Friday
1208 Respondent No 6 filed another writ petition challenging the said resolution
A Single Judge quashed the resolution of the Panchayat Samiti on the ground that it acted in breach of the rules  of natural justice while reserving liberty to the Panchayat Samiti to come to a decision afresh after affording an opportunity to respondent No 6
The appeal preferred by the Panchayat Samiti was admit ted but the Division Bench declined to grant stay and directed that the Panchayat Samiti should
comply with the order of the Single Judge
Consequently the Panchayat Samiti issued notices to the contending parties requiring them to submit their claims for consideration
The Panchayat Samiti after considering the claims of both parties and the material record passed a resolution that the Nagar Cattle Hat would be held on Saturday every week and the Sherpur Cattle Hat would be held on Friday and directed the Execu tive Officer to incorporate such a condition in the licence granted to the two organisations for holding the cattle fairs on these days
Again respondent No 6 filed a writ petition challeng ing the resolution dated April 12 1985
A Single Judge dismissed the writ petition
Respondent No 6 then moved the Division Bench for restraining the Panchayat Samiti from giving effect to the said resolution
The Division Bench quashed the resolution dated April 12 1985 holding that although in terms of section 117 of the Act the Panchayat Samiti was vested with the power of granting a licence for the holding of a hat or fair by the framing of rr 7 8 and 9 of the West Bengal Panchayat Samiti Administration Rules 1984 the power of the Panchayat Samiti is confined to making provision for maintenance of sanitation health and in the market area which is the essence of the power under section 117 and further that in the absence of a provision in the rules in that behalf it had no power to specify a day on which such hat or fair should be held
Allowing the Appeal HELD 1
The view taken by the High Court that although the Panchayat Samiti was vested with the power to grant a licence for the holding of a hat or fair under section 117 of the West Bengal Panchayat Act 1973 yet it had no consequential or incidental power to specify a day for holding of such hat or fair is manifestly erroneous
1213C D 2
The power to grant a licence for the holding of a hat or fair under section 117 of the Act necessarily carries with it the power to specify a day on which such hat or fair shall be held
Such power to specify a day must be held to be a power incidental or consequential upon the principal power of issuing a licence under section 117 of the Act for holding of a hat or fair
1214H 1215A 1209 3
The rules or the absence of it do not detract from the substantive power conferred by a statute
1215A B 4
The essence and content of the power of a Panchayat Samiti under section 117 of the Act is issuance of a licence for the holding of a hat or fair and not mere maintenance of sanitation health and hygiene as held by the High Court
1215B 5
It is well accepted that the conferral of statutory powers on local authorities must be construed as impliedly authorising everything which could fairly and reasonably be regarded as incidental or consequential to the power itself
1213F G 6
The doctrine of ultra vires is not to be applied nar rowly
1214B C De Smith s Judicial Review of Administrative Action 4th edn p 95 HWR Wade s Administrative Law 5th edn p 217 Craies on Statute Law 6th edn p 276 Attorney General vs Great Eastern Railway   Baro ness Wenlock vs River Dee Co  VT Khanzode  Ors
vs Reserve Bank of India  and State of Uttar Pradesh vs Batuk Deo Pati Tripathi  Anr  relied upon