*THE HON’BLE MR. JUSTICE L.NARASIMHA REDDY + WRIT PETITION Nos. 23185 & 24399 OF 2008 % 10-11-2008 Between: The Ganapavaram Gram Panchayat & others …petitioners AND The Govt. of A.P., rep.by its Secretary, Panchayat Raj Department, Secretariat, Hyderabad & others ...Respondents ! COUNSEL FOR THE PETITIONERS : Sri Dammalapati Srinivas ^ COUNSEL FOR THE RESPONDENTS: G.P. for Panchayat Raj and Sri D. Prakash Reddy, learned Senior Counsel < Gist: > Head Note: ? CITATIONS: -Nil- THE HON’BLE SRI JUSTICE L.NARASIMHA REDDY WRIT PETITION Nos. 23185 & 24399 OF 2008 COMMON ORDER: Section 115 of the A.P. Panchayat Raj Act (for short “the Act”) and the relevant Rules empower the Grampanchayats, to provide for public parking places and cart stands, within its limits. Power is also conferred upon the Grampanchayats to permit any person, to collect the fee; or to otherwise assign contract, in this regard. The rules, relating to public parking places and cart stands, etc, in Grampanchayat areas (for short “the Rules”), are issued vide G.O.Ms.No.67 dated 7.2.1996.. With a view to augment its resources, the Grampanchayat of Ganapavaram, framed bye-laws for levy of fee on the vehicles that enter the village for the purpose of loading or unloading. The necessary resolution, in this regard, was passed on 3.10.2006. Objections were invited and thereafter, ﬁnal resolution was passed by the Grampanchayat on 28.11.2006. It was submitted to the District Panchayat Oﬃcer, for approval. Through his proceedings dated 23.3.2007, the District Panchayat Oﬃcer accorded approval, to the extent of levying fee on the vehicles, which are parked in the places earmarked by the Grampanchayat. This was followed by a resolution of the Grampanchayat dated 8.2.2008, and correspondence between the Grampanchayat and the District Panchayat Officer. The Grampanchayat conducted auction on 15.9.2008, for the purpose of awarding the contract of collecting the fee on the vehicles. It was ultimately awarded to an individual, vide proceedings dated 24.9.2008. M/s.Dhanalaxmi Group of Industries established within the limits of the panchayats, approached the District Panchayat Oﬃcer, complaining that the Grampanchayat and its contractor are levying fee on the vehicles that reach the business establishment, and that there is no power for such a step. The District Panchayat Oﬃcer granted stay, vide his proceedings dated 10.10.2008. W.P.No.23185 of 2008 is ﬁled by the Grampanchayat, challenging the orders of stay granted by the District Panchayat Officer. W.P.No.24399 of 2008 is ﬁled by some industrial establishments in the village, including M/s.Dhanalaxmi Group of Industries, challenging the very levy of the fee on the vehicles. Sri Dammalapati Srinivas, learned counsel for the Grampanchayat, submits that the contract was awarded, only after taking approval from the District Panchayat Oﬃcer, and that there was no justiﬁcation for him, to stay the levy of fee. He contends that the appeal itself was dismissed on 10.10.2008 and still, the order of stay was granted. He submits that the levy of fee by the Grampanchayat is strictly in accordance with the Act and the Rules. Sri D. Prakash Reddy, learned Senior Counsel, appearing for the petitioners in W.P.No.24399 of 2008, and M/s.Dhanalaxmi Group of Industries, the 5th respondent in W.P.No.23185 of 2008, contends that the levy, contemplated under Section 115 of the Act and the Rules is very limited in purport, and the contract awarded by the Grampanchayat is beyond the scope of its powers. He contends that it is only when the Grampanchayat has earmarked place for parking of the vehicles and the vehicles are parked in it, that reasonable fee can be levied, and by no stretch of imagination, the Grampanchayat is entitled to levy fee on loading and unloading the vehicles, that too parked on private places. Learned Government Pleader for Panchayat Raj submits that the District Panchayat Oﬃcer made it amply clear that the levy can be only, in respect of vehicles parked in the open places, provided for by the Grampanchayat. The provisions of the Act and the Rules that have a bearing on the controversy in these writ petitions, are extracted hereunder: “115. Public landing places, cart-stands etc:- Subject to such rules as may be prescribed the Gram Panchayat may:- a) provide public landing places, halting places, and cart-stands (which last expression includes stands for animals and vehicles of any description including motor vehicles) and levy fees for their use. Provided that it shall be open to the gram panchayat to permit any person to compound such fees by paying in lieu thereof such lumpsum amount as may be fixed by the gram panchayat. b) where any such place or stand has been provided prohibit the use for the same purpose by any person within such distance thereof, of any public places or the sides of any public road, as the gram panchayat may, subject to the control of the Commissioner specify.” Rule 1: - (1) When a Gram Panchayat proposes to provide a public halting place or cart- stand, it shall submit an application to the District Collector. The application shall contain:- a) The survey number, extent and classiﬁcation of the land in which the Gram Panchayat proposes to provide the halting place or cart-stand and shall be accompanied by a sketch indicating the position of the lands with reference to the important roads and other lands in the neighbourhood; and b) any other particulars which the District Collector may specifically require. 2:- (1) A public road or any of the sides thereof shall not ordinarily be declared as a public halting place cart stand: Provided that, in special cases, the District Collector may in consultation with the authority in whom the road is vested permit Gram Panchayat to provide a halting place or cart-stand on such public road or side thereof, if in his opinion there is suﬃcient space available for road purposes, after making such provision. (2) No Gram Panchayat shall declare the entire village to be a public halting place or cart- stand and levy fees for their use. 3:- (Omitted as not necessary) 4:- (1) When a Gram Panchayat provides a public halting place or cart-0stand it shall publish the fact in the village and in the District Gazette concerned with information as to the place where it is provided and the rates of fees payable for its use. A notice specifying the rates prescribed by the Gram Panchayat, the name of the person authorized to collect fees therein, and the prohibited distance, shall be put up on a notice board in a conspicuous place in such public halting place or cart-stand. (2) The Gram Panchayat may also auction the public halting places or cart-stands or the like to any private person and authorize him to collect the fees as may be ﬁxed by the Gram Panchayat the rates of which shall not exceed specified in rule 5.” From a perusal of these provisions, it becomes clear that the Grampanchayat is empowered to levy fee, only on the vehicles that are parked in the places speciﬁcally earmarked, in accordance with the Rules. In its resolution passed on 3.10.2006 and 28.11.2006, the Grampanchayat did not make this aspect clear. On the other hand, the resolution is worded in very wide terms, enabling it to levy fee on the loading and unloading of the vehicles. Section 115 of the Act and the Rules do not confer power upon the Grampanchayat to levy fee on loading and unloading of the vehicles. While according approval, the District Panchayat Oﬃcer, vide his proceedings dated 7.5.2008, made it amply clear that the levy can be only on the vehicles, that are parked in the open places earmarked by the Grampanchayat. At least after these proceedings, the Grampanchayat ought to have taken steps to restrict its proposed activity. However, in its proceedings dated 24.9.2008, the Panchayat authorized levy of fee on the vehicles, which enter the village with goods, and those, which leave the village after unloading. An attempt is made by Mr.Srinivas, learned counsel, to water down this aspect, by making a reference to two conditions. When the main contract is couched in wide terms, the two conditions cannot restrict its scope. The District Panchayat Oﬃcer ought to have evinced little more interest, and made things very clear, while according approval. Further, granting stay, even while dismissing the appeal, presents an instance of totally unsatisfactory way of exercise of statutory power. Therefore, the writ petitions are disposed of, directing that; a) The power of the Grampanchayat is limited to levy fee only on those vehicles, which are parked in an area notiﬁed and earmarked by the Grampanchayat, and the order dated 10.10.2006 passed by the District Panchayat Officer, shall stand vacated, to that extent. b) The Grampanchayat shall not be entitled to levy any fee on the vehicles that are loaded or unloaded in the village, or parked in any other places. c) If the Grampanchayat intends to notify any portion of the public road also as parking place, it shall be open to it to approach the competent authority to seek approval, in accordance with the relevant provisions of law. There shall be no order as to costs. _____________________ 10th November 2008 Note: Issue C.C. in three days. L.R. copies to be marked. (B/o) PAN