Case: Mgr Industries Asso.  Vs. State Of U P

the 1976 Act in consonance with proviso to Article 243Q(1).Section 12A specifically provides that:“....where an industrial development area or any part thereof is specified to be an industrial township under the proviso to clause (1) of Article 243Q of the Constitution, such industrial development area or part thereof, if included in a Panchayat area, shall, with effect from the date of notification made under the said proviso, stand excluded from such Panchayat area and no Panchayat shall be constituted for such industrial development area or part thereof.......”.Section 12A thus, specifically contemplates issuance of notification under proviso to clause (1) of Article 243Q and exclusion from Panchayat area is consequent and dependent upon such notification. Notification under proviso to clause (1) of Article 243Q has to be subsequent to declaration of an area as industrial development area, which itself indicates that declaration of development area under 1976 Act is not sufficient to treat an area as an industrial township. As noted above, industrial township as contemplated by Article 243Q(1) proviso has to be specifically a public notification after consideration of relevant statutory ingredients referred therein. The exclusion of industrial development area from Panchayat has a serious consequence since persons residing within the industrial development area are immediately deprived of facilities and benefits extended to them by the respective Panchayats. The deprivation of the said benefits has to be thus a conscious decision in accordance with condition as contained in Article 243Q. In the case before us, it has not been pleaded that any notification referable to proviso to Article 243(Q)(1) has yet been issued. The Division Bench of the High Court has also referred to and relied upon an earlier judgment of the Allahabad High Court in Rishipal (supra). In the above case, the appellants who were residents of industrial development area prayed for direction that no election for constituting Panchayat in various villages including the said industrial development area should be allowed since, notification under Section 2(d) of the 1976 Act has already been issued on 11th July, 1989. The State Government categorically stated that no notification under proviso to Article 243Q(1) has been issued. The Division Bench of the High Court referring to Section 12A has rejected the contention and dismissed the writ petition. In paragraphs 6,7 and 8 following was stated:“6. From a plain reading of Section 12A of the Act it is clear that after declaration of any industrial development area u/s. 2 (d) of the Act two things are required for excluding them from existing panchayat area. First is, specification to be an industrial township and secondly a notification under Proviso to Article 243Q of the Constitution of India.7. From Section 12A it further reveals that if the said area is included in panchayat area, such area with effect from the date of notification made under proviso (proviso to Article 243Q) stands excluded from such panchayat. Thus, specification to be an industrial township as well as a notification under proviso to Article 243Q are condition precedent for excluding from any panchayat area. There is nothing on the record to come to conclusion that the area in question has been specified as an industrial township. Further no notification, as stated by Chief Standing Counsel, has been issued under proviso to Article 243Q by the State Government, hence, question of exclusion of the area from panchayat area does not arise.8. Merely because the villages in question are covered u/s. 2 (d) does not ipso fActo exclude them from panchayat area. As noted above neither it has been specified as Industrial Township nor a notification under Article 243Q has been issued. The relief claimed by the writ petitioner in the writ petition cannot be granted.”16. It shall also be relevant to refer the judgment of this Court in Saij Gram Panchayat vs. State of Gujarat and others, 1999 (2) SCC 366 , where this Court had occasion to consider the proviso to Article 243Q subclause (1) in the context of Gujarat Industrial Development Act, 1962. After insertion of Part IXA in the Constitution, the Gujarat Municipalities Act, 1962 was also amended by adding Section 264A. It was provided under Section 264A that notified area means an urban area or part thereof specified to be an industrial township area under the proviso to Article 243Q(1) of the Constitution of India.Paragraphs 10 and 11 of the judgment are extracted below:"10. The Gujarat Municipalities Act, 1962 was amended on 2081993 in view of the insertion of Part IXA in the Constitution. Section 264A was substantially amended. It now provided:“264A. For the purpose of this chapter, notified area means an urban area or part thereof specified to be an industrial township area under the proviso to clause (1) to Article 243Q of the Constitution of India.”Thus, as a result of this amendment in the Gujarat Municipalities Act, as industrial area under the Gujarat Industiral Development Act, which is notified under Section 16 of the Gujarat Industrial Development Act, would become a notified area under the new Section 264A of the Gujarat Municipalities Act and would mean an industrial township area under the proviso to clause(1) of Article 243Q of the Constitution of India.11. On 791993, the Government of Gujarat issued a notification under Section 16 of the Gujarat Industrial Development Act declaring Kalol Industrial Area as a notified area under Section 264A of the Gujarat Municipalities Act. By another notification of the same date 791993, the Government of Gujarat excluded the notified area from Saij Gram Panchayat under Section 9(2) of the Gujarat Panchayats Act, 1961.”Thus, for treating industrial area as industrial township notification under proviso to Article 243Q(1) was contemplated which is also the statutory scheme under the 1976 Act.17. In view of the aforegoing discussion, we are of the view that it was rightly held by the High Court that exemption under Article 12A of the 1976 Act was not available in the facts of the above case. The appellants were not entitled for the reliefs claimed in the writ petition.

Decision (1 = appeal accepted, 0 = rejected): 0

Explanation:
0[ds]7. From Section 12A it further reveals that if the said area is included in panchayat area, such area with effect from the date of notification made under proviso (proviso to Article 243Q) stands excluded from such panchayat. Thus, specification to be an industrial township as well as a notification under proviso to Article 243Q are condition precedent for excluding from any panchayat area. There is nothing on the record to come to conclusion that the area in question has been specified as an industrial township. Further no notification, as stated by Chief Standing Counsel, has been issued under proviso to Article 243Q by the State Government, hence, question of exclusion of the area from panchayat area does not arise.8. Merely because the villages in question are covered u/s. 2 (d) does not ipso fActo exclude them from panchayat area. As noted above neither it has been specified as Industrial Township nor a notification under Article 243Q has been issued. The relief claimed by the writ petitioner in the writ petition cannot be granted.It shall also be relevant to refer the judgment of this Court in Saij Gram Panchayat vs. State of Gujarat and others, 1999 (2) SCC 366 , where this Court had occasion to consider the proviso to Article 243Q subclause (1) in the context of Gujarat Industrial Development Act, 1962. After insertion of Part IXA in the Constitution, the Gujarat Municipalities Act, 1962 was also amended by adding Section 264A. It was provided under Section 264A that notified area means an urban area or part thereof specified to be an industrial township area under the proviso to Article 243Q(1) of the Constitution of India.Paragraphs 10 and 11 of the judgment are extractedThe Gujarat Municipalities Act, 1962 was amended on 2081993 in view of the insertion of Part IXA in the Constitution. Section 264A was substantially amended. It nowFor the purpose of this chapter, notified area means an urban area or part thereof specified to be an industrial township area under the proviso to clause (1) to Article 243Q of the Constitution ofas a result of this amendment in the Gujarat Municipalities Act, as industrial area under the Gujarat Industiral Development Act, which is notified under Section 16 of the Gujarat Industrial Development Act, would become a notified area under the new Section 264A of the Gujarat Municipalities Act and would mean an industrial township area under the proviso to clause(1) of Article 243Q of the Constitution of India.11. On 791993, the Government of Gujarat issued a notification under Section 16 of the Gujarat Industrial Development Act declaring Kalol Industrial Area as a notified area under Section 264A of the Gujarat Municipalities Act. By another notification of the same date 791993, the Government of Gujarat excluded the notified area from Saij Gram Panchayat under Section 9(2) of the Gujarat Panchayats Act,for treating industrial area as industrial township notification under proviso to Article 243Q(1) was contemplated which is also the statutory scheme under the 1976 Act.17. In view of the aforegoing discussion, we are of the view that it was rightly held by the High Court that exemption under Article 12A of the 1976 Act was not available in the facts of the above case. The appellants were not entitled for the reliefs claimed in the writ petition