03 October 1974
Supreme Court
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STATE OF GUJARAT Vs JAMNADAS G. PABRI AND ORS. ETC.

Case number: Appeal (civil) 1356 of 1974


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PETITIONER: STATE OF GUJARAT

       Vs.

RESPONDENT: JAMNADAS G. PABRI AND ORS.  ETC.

DATE OF JUDGMENT03/10/1974

BENCH: SARKARIA, RANJIT SINGH BENCH: SARKARIA, RANJIT SINGH CHANDRACHUD, Y.V.

CITATION:  1974 AIR 2233            1975 SCR  (2) 330  1975 SCC  (1) 138

ACT: Gujarat Punchayat Act (1 of 1961) S. 17 (2) and 303  A-Scope of Interpretation  of statues Meaning of by reason of  to  hold elections and ’expedient’

HEADNOTE: Section 17(2) of the Gujarat Panchayata Act, 1961,  provides that the normal term of a panchayat is 5 years from the date of its first meeting and that the term could be extended  by the  State Government by a period not exceeding one year  in the aggregate. The  5-year term of the Taluka Panchayats and  the  District Panchayats  in  the appellant-State were due  to  expire  on February  28,  1973 and March 31, 1973  respectively.   They were  extended first upto August 31, 1973 and September  30, 1973  and  then  upto February 28, 1974  and  January  1974. Widespread  disturbances  broke  out in the  State  and  the Governor  promulgated  an  Ordinance  by  which  the   State Government was given power to extend the terms of panchayats for 2 years instead of one.  On February 9, 1974, the  State Ministry  resigned  and the President of India  assumed  all functions  of  the  State  Government.   The  terms  of  the panchayat were extended upto 31st March 1974. The  State legislature was dissolved on March 15,  1974  and Parliament passed the Gujarat State Legislature  (Delegation of Powers) Act, 1974.  Under a. 3 of this Act, the President enacted  Gujarat Panchayats (Amendment) Act, 1974 which  in- serted  s.  303A in the 1961 Act.  On March  31,  1974,  the Government issued a notification under s. 303A, that whereas the State Government is satisfied that a situation exists by reason  of disturbances whereby it is not expedient to  hold elections  for  the reconstitution of  the  panchayats,  the State  government orders that all the powers and  duties  of taluka   panchayats  should  be  exercised  by  the   Taluka Development  Officer and of the District panchayats  by  the District Development Officer. The   respondents   who   are   presidents   of   panchayats successfully challenged the notification in the High  Court, on the basis that the condition precedent to the exercise of the power under the section was not satisfied. Allowing the appeal to the Court,

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HELD  :  (1) An analysis of s. 303A(1) shows that  before  a declaration could be made thereunder, two requirements  must be  fulfilled  : (a) existence of a situation by  reason  of disturbances  in the State; and (b) the satisfaction of  the State  government relatable to such a situation, that it  is not expedient to hold elections for the reconstitution of  a panchayat   after  the  expiry  of  its  term.   The   first requirement  is an objective fact, which, if disputed,  must be  established objectively as a condition precedent to  the exercise  of  the  power; and the second is  an  opinion  or inference drawn from that objective fact.  It is a matter of subjective  satisfaction  of  the  government  and  is   not justiciable.    Once   a  reasonable  nexus   between   such satisfaction   and   the  facts   constituting   the   first requirement  is  shown,  the exercise of the  power  by  the government, not being colourable or motivated by  extraneous considerations, is not open to judicial review. [335H-336B] (2)  If  the  language of a statute is  susceptible  of  two constructions, the one fulfils the object is to be preferred to the alternative which frustrates it. [337H] (3)  In  view  of  the particulars stated  in  the  Counter- affidavit  it  is clear that the disturbances in  the  State continued   throughout  March  1974.   Assuming   that   the disturbances abated after the dissolution of the Assembly on March 15, 1974 the 331 abnormal  situation,  which  was the direct  result  of  the disturbances  must have continued to exist throughout  March 1974.   The section speaks of the existence of  a  Situation ’by reason of’ disturbances.  The expression indicates that the  ’disturbances’ and the ’situation’ must be  proximately connected  as  cause  and effect. it is  sufficient  if  the situation  is the immediate outcome of the disturbances  and that it subsists. [336G-H] (4)The  phrase ’to hold elections’, understood in  a  wide sense,  will include all steps such as delimitation  of  the constituencies, the compilation of electoral rolls etc which are  a  necessary  preliminary  to  the  actual  conduct  of elections,  whereas  in a restricted sense, it  would  cover only  the actual holding of elections.  The word  ’expedient has  also  several  shades  of meaning.   It  could  not  be contended  for  the respondents that the  phrase  should  be understood  in  the restricted sense, that  is,  that  power under  s. 303A is exercisable only after the  completion  of preparatory steps preliminary to the holding of an election, and  that since that stage had not yet been reached  in  the present  case,  the power could not be  exercised.   Section 303A has been designed to enable the Government to get  over a    difficult   situation   surcharged    with    dangerous potentialities  and  hence  the  Court  must  construe   the expression  therein, in keeping with the context and  object of  the provision, in their widest amplitude, and eschew  an interpretation  which  attenuates the power or  impairs  its efficacy.  The statute places no fetter on the discretion of the government in the exercise of the power. [338B-E, G] (5) Further the Court cannot sit in appeal over the  opinion of  the State Government as to the inexpediency  of  holding elections.   All that the Court could enquire  was,  whether the condition precedent, which is, an objective fact to the exercise of the power existed. [338E-F] (6)The respondents could not also contend that the  impugned notification  is not relatable to the situation existing  by reason of the disturbances and that the power wag  exercised for an extraneous reason, namely, that the terms of the pan- chayats were expiring on March 31, 1974, because;

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(a)the  reference  to  the ter= of  the  panchayats  in  the impugned  notification is only the recital of a  feet  which constituted  another facet of the situation arising  out  of the disturbances; [339B-C] (b)the  real  and dominant reason for the  exercise  of  the power is contained in the 2nd paragraph of the  notification namely,  the  existence  of a situation  by  reason  of  the disturbances; and [339B-C] (c)the counter-affidavit on behalf of the appellant  pleaded that the disturbances continued also in March 1974 and  that it was not expedient in the circumstances to hold  elections and  that  the  efforts  made  by  the  government  to  hold elections   were  thwarted  by  the  supervention   of   the disturbances. [339D-E] (7)The  purpose of s. 17(2) is to ensure the  continuity  of the panchayats, where as the object of 8. 303A is to  confer powers  regarding  dissolution  of  panchayats  in   special situations.  Therefore, even if the Government had the power under S. 17(2) to extend the terms of the panchayats, beyond March 31, 1974, it could not be said in the circumstances of the  case that in choosing to act under s.  303A  government acted  maliciously.  In the counter-affidavit on  behalf  of the government, it wag stated that one of the demands of the agitators was that the terms of the panchayats should not be extended  further,  This  weighed  with  the  government  in deciding  that  it was not politic in  the  then  prevailing conditions to extend the terms of the panchayats.  Thus  the government  exercised its powers under s. 303A only  because of  the peculiar situation arising out of the  disturbances. [339H, 340 D-F]

JUDGMENT: CIVIL APPELLATE JURISDICTION : Civil Appeal No. 1356-1357 of 1974. From the Judgment and Order dated the 26th June, 1974 of the Gjarat High Court in Spl.  Civil Appls.  Nos. 420 and 411 of 1974. N.M.  Phadke,  M. N. Shroff and J.  R.Nanawati,  for  the Appellants (In both the appeals). 332 I  M.  Nanawati, P. H. Parekh, Sunanda  Bhandare  and  Manju Jaitley, for Respondent No. 1 (In CA No. 1356/74). M.C.  Bhandare, P. H. Parekh, Sunanda Bhandare and  Manju Jailley, for Respondents Nos.  1 and 9 (in CA No. 1357/74). The Judgment of the Court was delivered by SARKARIA,  J.,-The  main question that arises in  these  two appeals  direct against the common judgment, dated June  26, 1974  of  the  High  Court  of  Gujarat,  is,  whether   the Notification  dated March 31, 1974 (for short, the  impugned notification)  issued by the State Government is invalid  on the  ground that the condition precedent to the exercise  of the  power  under  s. 303A of the  Gujarat  Panchayats  Act, 1961,(for short, the Panchayats Act) is not satisfied. The  Panchayats Act provided for three-tiers of  Panchayats. They  were, in the descending order :  District  Panchayats, Taluka Panchayats and Gram Panchayats.  The Act provided for indirect  election to Taluka Panchayats and partly  indirect and partly direct election to the District Panchayats on the basis  of  Adult  franchise Under s.17  (2)  as  amended  by Gujarat  Act, 8 of 1968, the normal term of a panchayat  was five  years from the date of its first meeting.   This  term could  be extended by the State Government by a  period  not exceeding in aggregate one year.

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The  last  election  to  Taluka  Panchayats  took  place  in February  1968  and  the  Panchayats  were  constituted   on February  28, 1968 Their term was due to expire on  February 28,  1973.   Similarly, the five year term of  the  District Panchayats  was  due  to  expire on March  31  1973.   By  a Resolution  dated  April  12,  1973,  the  State  Government appointed  a high level Committee headed by Jhinabhai  Darji to  suggest basic reforms in the Panchayati Raj set-up.   On the  interim  recommendation  of this  Committee  the  State Government  extended  the terms of  Taluka  Panchayats  upto August  31,  1973  and those of Distirct  Pan  chayats  upto September 30, 1973.  The Jhinabhai Darji Committee submitted its  final  report  on September  30,  1972.   Thereupon,the Gujarat  (Amending) Act 9 of 1973 was passed.  It came  into force  on  April  23, 1973.  This  Amending  Act  made  far- reaching   changes  in  the  original  Act.   The   indirect elections  to  the  Taluka  Panchayats  were  abolished  and provision  was  made for direct elections to  all  the  Pan- chayats.  As it was not possible for administrative  reasons to  hold elections in accordance with the amended  Act,  the State  Government by an order dated June 21, 1973,  extended the  term of Taluka Panchayats and District Panchayats  till August  31,  1973 and September 30, 1973  respectively.   By another  Order,  dated October 3, 1973, the  terms  of  both these Panchayats were again extended upto February 28,  1973 Thus the power of the State Government to extend the term of the  Taluka  Panchayats  under  s.  17(2)  of  the  Act  had exhausted itself. In the first week of January, 1974, widespread  disturbances broke  out  in  the  State of  Gujarat.   There  was  public agitation   against  the  State  Government  demanding   its resignation and the dissolution of the Gujarat Assembly. 333 On  January  26, 1974, the Governor of  Gujarat  promulgated Ordinance 1 of 1974.  It substituted in sub-s. (2) of s.  17 of  the Act the words "two years" for the words "one  year". Under the amended provision the Government got the power  to extend the term of a Panchayat by two years in the aggregate beyond its normal term of five years. As  a  result of the mounting public  agitation,  the  State Ministry  tendered its resignation on February 9, 1974.   On the  same  date, the President of India  by  a  proclamation under  Article  356  of the  Constitution  assumed  all  the functions of the State Government. By  an order dated February 27, 1974, issued under s.  17(2) as  amended by Ordinance 1 of 1974, the terms of the  Taluka Parchayats and District Pancbayats were again extended  upto March 31, 1974. The  State  Legislature  was dissolved on  March  15,  1974. Parliament  thereafter passed the Gujarat State  Legislature (Delegation  of  Powers) Act, 11 of 1974 which  vested  with effect  from March 27, 1974 powers of the State  Legislature in the President of India.  In exercise of his powers  under s.  3 of this Act, the President enacted Gujarat  Panchayats (Amendment) Act 8 of 1974 which came into force on March 31, 1974.   It  inserted  s. 303A in  the  Panchayat  Act  which provides :               " 303A.(1) Notwithstanding anything  contained               in  this  Act  or the rules  or  by-laws  made               thereunder,   if  at  any  time,   the   State               Government  is  satisfied  that  a   situation               exists by reason of disturbances in the  whole               or any part of the State of Gujarat, whereby-               (i) *  *          *     *               (ii)It is not possible or expedient to  hold

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             elections   for   the  reconstitution   of   a               panchayat on the expiry of its term;               the  State Government may, by notification  in               the  Official Gazette; make a  declaration  to               that effect.               (2)A   notification   issued   under   sub-               section(1) in relation to any panchayat  shall               remain in force for such period, not exceeding               six months, as may be specified therein :               Provided  that if the State Government  is  of               the opinion that it is necessary so to do,  it               may, by order and for reasons to be  mentioned               therein, extend, from time to time, the period               so   specified,   so,   however,   that    the               notification  shall not in any case remain  in               force for more than one year in the aggregate.               (3)On  the  issue of a  notification  under               subsection (1) in reason to any panchayat,-               (a)   all the members of such panchayat  shall               vacate their                office as such members;               (b)   all  the  powers  and  duties  of   such               panchayat shall,,               during the period when such notification is in               force, be-               3 34               exercised and performed by such officer of the               State Government as it may, by order,  specify               in that behalf.               (4)The  State Government shall, before  the               expiry   of  the  period  specified   in   the               notification  issued under  sub-section(1)  or               extended under the proviso to sub-section (2),               as the case may be, take steps for the purpose               of reconstituting the panchayat in the  manner               provided in this Act."               Purporting   to  act  under  s.   303-A,   the               Government  issued  on  March  31,  1974,  the               impugned notification               "No  KP/74-81  /PRN  (HLC)/4-JHI-Whereas   the               terms of all Taluka and District Panchayats in               the State of Gujarat except that of the  Dangs               District Panchayat expire on 31st March, 1974;               And  Whereas  the  Government  of  Gujarat  is               satisfied that a situation exists by reason of               disturbances  in  the whole of  the  State  of               Gujarat  whereby it is not expedient  to  hold               elections for the reconstitution of any of the               taluka  and  district  panchayats  whose  term               expires on the aforesaid date;               Now,  therefore.  in exercise  of  the  powers               conferred  by  Section  303A  of  the  Gujarat               Panchayats  Act 1961 (Guj.  VI of  1962),  the               Government of Gujarat hereby-               (1)makes  a  declaration that  a  situation               exists by reason of disturbances in the  whole               of  the  State of Gujarat whereby  it  is  not               expedient   to   hold   elections   for    the               reconstitution  of  any  of  the  taluka   and               district panchayats whose term expires on 31st               March, 1974 on the expiry of their term;               (2)directs  that  the declaration  made  as               aforesaid  shall remain in force for a  period               of six months; and               (3)orders that all the powers and duties of

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             each  of  the taluka and  district  panchayats               whose term expires on 31st March 1974,  shall,               with effect from the expiry of their term till               this  notification is in force,  be  exercised               and performed,-               (i)in  relation  to a taluka  over  which  the               taluka panchayatof   its  term,  by   the               Taluka Development Officer postedunder  the               taluka panchayat concerned; and               (ii)in  relation to a. district  over  which               the district pan-               chayatconcerned had authority immediately               before the expiry of its term, by the District               Development Officer posted under the  district               panchayat concerned.               By  order and in the name of the  Governor  of               Gujarat               R. B. SHUKLA,               Secretary to Government." 335 Two  writ petitions under Articles 226 of  the  Constitution mere  filed  in the High Court of Gujarat to  challenge  the aforesaid  notification..  One  of these was  filed  by  the President  of Baroda District Panchayat Baroda etc. and  the other  by the President of Jamnagar District  Panchayat  and ors.  The petitions were heard by a Division Bench which  by a  common  judgment  accepted  the  same  holding  that  the impugned  notification "was illegal. invalid and bad in  law because the condition precedent to the exercise of the power under s. 303A viz., holding elections for the reconstitution of the Panchayats on the expiry of their terms has not  been satisfied".  Against that judgment, the State of Gujarat has preferred  these  appeals on the strength of  a  certificate granted by the High Court, The High Court held that "election" within the contemplation of  section  303A(1)  is restricted to the  process  of  the actual conduct of the election, commencing with the issue of the  notification calling the election and terminating  with the declaration of the result of the election.  In its  view the delimitation of constituencies or wards, preparation  of electoral  rolls, and framing of rules for conducting  elec- tions, being stages prior to the election, do not form  part of  the  process.  of holding election.   With  this  narrow construction  of  the phrase "to hold elections",  the  High Court approached, the problem thus               "A reading to s. 303-A makes it clear that the               two  objective  facts are (1)  the  factum  of               disturbances in the, State by reason of  which               a   situation  exists  and  (2)   holding   of               elections  for reconstitution  of  panchayats.               Both  these  factors  are  open  to   judicial               review.   The satisfaction of  the  Government               with regard to the existence of a situation by               reason  of the disturbances or in  respect  of               non-possibility  or  inexpediency  of  holding               elections  is  subjective  and  not  open   to               judicial review, The holding of elections  for               the   reconstitution  of  Panchayats   is   an               objective  fact.   The  constitution  ’of  the               panchayats is not only the objective fact  but               holding   of  election  thereto  is  an   also               objective matter.  The State Government has to               establish   both  these  points   to   justify               invocation  of  power  under s.  303A  and  to               justify   the   legality   of   the   impugned

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             notification.   in  the,  instant   case   the               condition  precedent of holding elections  for               the  reconstitution of the panchayats  is  not               fulfilled.  The stage of holding elections for               the  reconstitution of the panchayats had  not               reached   at  the  time  when   the   impugned               notification was issued.  On that date it  was               not   possible  to  hold   elections   because               preliminary   stages   in   connection    with               elections were not completed.  Constitution of               wards,   reservation  of  seats   for   women,               scheduled  caste  and  scheduled  tribes   and               voters’  lists  were  not formed  or  made  or               prepared. in absence of all these  preliminary               matters, the question of holding of  elections                             cannot arise." We are unable to agree with this reasoning.  An analysis  of s.303A (1) would show that before a declaration referred  to in  that sub-section can be made, two requirements  must  be fulfilled  :  (1) existence of a situation by  reason  of  a disturbances in the whole or any part of the State ; (2) the satisfaction of the State Government relatable to such 336 a situation, that it is not expedient to hold elections  for the reconstitution of a panchayat on the expiry of its term. The first requirement is an objective fact and the second is an  opinion  or inference drawn from that fact.   The  first requirement, if disputed, must be established objectively as a  condition  precedent to the exercise of the  power.   The second  is  a  matter  of  subjective  satisfaction  of  the Government and is not justifiable.  Once a reasonable  nexus between  such  satisfaction and the facts  constituting  the first requirement is shown, the exercise of the power by the Government, not being colourable or motivated by  extraneous considerations,is  not  open to judicial review.   Thus  the question  that could be objectively considered by the  Court in  this  case  was  :  Did  a  situation  arising out  of disturbances  exist in the State of Gujarat on the  date  of the impugned notification ? The fact that there were serious disturbances throughout the State  of Gujarat in January and in the first  fortnight  of March, 1974. has not been seriously disputed by the  learned Counsel  for  the respondents.  From  the  counter-affidavit filed  on  behalf  of  the  State,  it  appears  that  these disturbances   continued  throughout  March,   1974.    Shri Satyendra Shah, Joint Secretary to Government of Gujarat has sworn  that  "disturbances on a wide scale occurred  in  all parts of the State-both in the urban as well as in the rural areas,.  resulting  in loss of human life  and  considerable damage  to  property.   This  ultimately  resulted  in   the resignation of the Ministry on the 9th February 1974 and the issuance  by the President of India of a Proclamation  under article 356 of the Constitution assuming to himself all  the functions of the State Government.......... The disturbances continued also in March, 1974." in  a further affidavit it is stated that an  agitation  for dissolution of the Panchayats, whose normal terms of  office had expired, continued even in the last days of March, 1974. An  instance  of Kutch Panchayat which on  account  of  such agitation, was unable to assemble for the budget meeting  at Bhui  has been cited.  Even Shri Jamnadas Pabri, one of  the writ  petitioners, who was the President of that  Panchayat, was  not  able  to attend his office, on  account  of  these abnormal  conditions in February and March 1974, except  for one day.

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in view of these particulars stated in the counter-affidavit it  is ,clear that the disturbances in the State of  Gujarat continued  throughout  March 1974, and even on the  date  of issue  of  the impugned notification the  situation  in  the State was anything but normal. Assuming   that  the  disturbances  had  abated  after   the dissolution  of  the State Assembly on March 15,  1974,  the abnormal  situation  in  the State,  which  was  the  direct product  of the disturbances. continued to exist  throughout March  ’1974.  Sufficient time was therefore,  required  for the  situation to limp back to normalcy.  It is to be  noted that s. 303A(1), speaks of the existence of a situation  "by reason  of"  disturbances.  The expression  "by  reason  of" indicates  that the ’disturbances and the situation must  be proximately connected as cause and effect.  The  ’situation’ envisaged   by   this  sub-section,   therefore,   may   not necessarily be conterminous with the disturbances.                             337 It  is sufficient if the situation is the immediate  outcome of  the disturbances, and it subsists.  The situation  after such  massive and violent disturbances would continue to  be "disturbed" for some time even after the-abatement or  overt cessation of the disturbances. Mr. Phadke, learned Counsel for the appellant-State contends that  since  the satisfaction of the Government  as  to  the inexpediency  of  holding elections was  not  a  justiciable matter, the giving of a wide or narrow meaning to the phrase "to hold elections" in s. 303A would not affect the point at issue.   The High Court, it is contended, erred in  treating the completion of the preliminaries, such as compilation  of electoral  rolls and formation of constituencies,  virtually as  a  condition  precedent to the exercise  of  the  power, though the only condition precedent laid down by the statute which  could  be  tested  by  objective  standards  was  the existence of the situation created by the disturbances. Mr.  Nanawati,  learned Counsel for the  respondents  (whose arguments  have been adopted by Mr. Bhandare, appearing  for respondents  1  and 9), submitted that the  High  Court  was right in holding that the preliminaries such as delimitation of  constituencies  etc. belong to a stage anterior  to  the conduct  of elections and therefore do not fall  within  the ambit of the phrase "to hold elections".  The point  pressed into argument, is that s. 303A presupposed that the election machinery  was  ready  and all  the  preliminary  steps  for holding  the elections, such as compilation of  the  voters’ lists  and formation of wards etc., had been completed  but the   process   of  election  had  not  yet   started   when disturbances  intervened.   Since  that stage  had  not  yet reached, the power could not be exercised. It  may  be remembered that s. 303A is in the nature  of  an emergency provision.  It was designed to tide over a  crisis of  unprecedented  magnitude.  "Reasons for  the  Enactment" issued by the Government run as follows:-               "The extended terms of the Taluka and District               Panchayats  in the State of Gujarat expire  on               31st March, 1974.  These Panchayats have  been               functioning  for more than one year after  the               expiry  of the in normal term of  five  years.               However, the recent disturbances in the  State               have created an atmosphere which is  congenial               neither to the continuance of these panchayats               for a further period nor for holding elections               for  their reconstitution.  It is,  therefore,               considered    necessary   to    entrust    the               administration of these panchayats temporarily

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             to officers appointed by the State  Government               The  present measure seeks to  ......  empower               the State Government .... for carrying on  the               administration  of the affairs of  panchayats               in certain special circumstances... Now it is wall-settled that if the language of a statute  is susceptible of two constructions, the one which fulfils  its object   is  to  be  preferred  to  the  alternative   which frustrates  it.   This canon is of  particular  significance while interpreting an emergency measure of the kind before 338 us. in a recent English case Cannon Street Ltd. v. Singer  & Friedlander   Ltd.  (1)  While  considering  the   uncertain language  in a statutory instrument made under an  Act  with the  long  title "An Act to authorise  measures  to  counter inflation".  Meggary J. refused to put on it a  construction which would make the countering of inflation "so  capricious and easily escapable". In  the  provision under consideration the phrase  "to  hold elections"  can  be understood both in a wide and  a  narrow sense.  Its wide connotation will include all steps such  as the  delimitation  of  constituencies,  the  compilation  of electoral  rolls etc. which are a necessary  preliminary  to the  actual conduct of elections. in the  restricted  sense, this   phrase  would  cover  only  the  actual  holding   of elections.   Again,  the  word  "expedient"  used  in   this provision, has several shades of meaning.  In one dictionary sense,  "expedient" (adj.) means "apt, and suitable  to  the end  in  view",  "practical and  efficient"  ;  "politic"  ; "profitable"  advisable", "fit, proper and suitable  to  the circumstances  of the case".  In another shade, it  means  a device "characterised by mere utility rather than principle, conducive  to  a special advantage rather than  to  what  is universally   right"   (see  Webster’s   Now   International Dictionary). Since s. 303A has been designed to enable the Government  to get  over  a difficult situation surcharged  with  dangerous potentialities,  the  Court  must  construe  the   aforesaid phrases  in  keeping  with the context and  object  of  this provision,  in their widest amplitude.  Under the  provision the Legislature has given to the Government a  discretionary power  to meet the challenge of an  extraordinary  situation arising out of the disturbances.  The Court therefore  would eschew  an  interpretation which attenuates  that  power  or impair its efficiency. Nor  would the Court sit in appeal over the opinion  of  the State   Government  as  to  the  "inexpediency  of   holding elections".   The  statute  has made that  matter  the  sole preserve  of  the  Government.  All  that  the  Court  could enquire  was,  whether the condition precedent which  is  an objective  fact to the exorcise of this power, existed.   By no  stretch of imagination could it be said that  the  power under  s.  303 is exercisable only after the  completion  of preparatory steps preliminary to the holding of an election. The  statute places no such fetter on the discretion of  the Government  to  the exercise of the power.   We,  therefore, negative the contentions canvassed by Mr. Nanawati. Learned  Counsel for the respondents next contended that  it has   been  the  positive  case  of  the  State   that   the preliminaries   to   the  holding  of   elections   required substantial  time  and  that was why  ordinance  1  of  1974 promulgated  on January 25, 1974 had conferred power on  the State Government to extend the terms of District and  Taluka Panchayats by one year more with effect from March 31,  1974 and February 25, 1974, respectively.  With reference to  the

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first   preamble  of  the  impugned  notification,   it   is contended, that it shows that the power (1)  (1974) 2 W. L R. 545 (Ch.  D.) 339 was  exercised not because of any situation arising  out  of the disturbances but for an extraneous reason, namely,  that the  terms  of  all  Taluka  and  District  Panchayats  were expiring  on  the  31st March 1974.  In  this  view  of  the matter,  says the Counsel, the impugned notification is  not relatable  to  the  situation  existing  by  reason  of  the disturbances. This  contention  also  is devoid of force.   In  the  first place. the opening paragraph of the impugned notification is a  recital of a fact which constituted another fact  of  the situation  arising out of the disturbances.   Secondly,  the real  and dominant reason for the exercise of the  power  is contained   in  the  2nd  paragraph  of   the   notification (reproduced earlier in the judgment).  The circumstances and reasons  which  weighed with the Government in  issuing  the impugned  notification  have been set out  in  the  counter- affidavits  of  the  Joint Secretary,  Mr.  Shah.   We  have referred to the same earlier.  We will however like to point out that although it was stated therein that Government,  on being so advised, was of the view that after the 31st  March 1974,  the  Government oil account of the cessation  of  the operation  of  Ordinance 1 of 1974, would have no  power  to extend  the terms of the Panchayats further, it was  pleaded that  as "the disturbances continued also in March 1974,  it was felt by the Government that it was not expedient in  the then  circumstances  to  hold elections to  the  Taluka  and District Panchayats. In para 60 of the counter, the Joint Secretary has explained how the efforts made by the Government to hold the elections were  thwarted  by  the supervention  of  the  disturbances. Avers he :               "I  deny that no efforts were at all  made  to               hold elections of the Taluka Panchayats or the               District Panchayats before March 31, 1974.  in               fact  the  process of  holding  elections  was               initiated as early as in August 1973, when the               Development   Commissioner  called   for   the               proposals  for  the  delimitation  of  consti-               tuencies from the Collectors.  The Development               Commissioner had also instructed Collectors to               consult   talika   Panchayats   and   district               Panchayats while formulating the proposals  of               delimitation   of  the   constituencies.    An               Assistant  Development  Commissioner   visited               most  of the districts to expedite the  formu-               lation  of those proposals.  In the  meantime,               the  terms of taluka panchayats  and  district               panchayats  was first extended  upto  28-21974               and  then extended upto 31-3-1974 as  set  out               here   above.   However,  due  to   widespread               disturbances throughout the State of  Gujarat,               the situation was such that it was not expedi-               ent  to hold elections for the  reconstitution               of any of the taluka and district panchayats." In the counter it is also stated that one of the demands  of the agitators was that the terms of the panchayats, who, had served more than their normal terms, should not be  extended further.  That weighed with the Government in deciding  that it  was  not politic in the then  prevailing  conditions  to extend  the terms of the panchayats which on account of  the extensions had already been continued for an preiod of

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7-M255Sup.CI/75 340 about  seven years.  The Joint Secretary made this point  in the  counter  by citing illustration of  Baroda  Corporation thus :               "The  example of Baroda Municipal  Corporation               where  the term of that body was extended  for               the seventh year and where corporators held to               resign  per pressure was also in the  mind  of               the  Government.  The  Government  accordingly               decided  in the overall interest of the  State               and the Panchayati Raj not to extend the terms               of taluka and district panchayats." The  averments in Paragraphs 2 and 6C (quoted above) in  the counter-affidavit of the Joint Secretary between  themselves furnish  a  complete answer to the  contention  advanced  on behalf of the Respondents. The  further  point canvassed by Mr. Nanawati is  that  even assuming  there  were two powers with the  Government  in  a situation  where  elections could not be held,  in  whatever sense  the  word  election is construed, resort  to  a  more drastic and undemocratic provision itself exhibits matice in law.   This  argument was advanced before  the  High  Court, also,  and was negatived.  We also do not find any merit  in it. The  Constitutional validity of the provisions of  ss.  303A and  s. 17(2) has not been assailed before us.   As  rightly point  out  by  Mr. Phadke, S. 17(2)  and  303A  operate  in separate fields.  Their objects are also different.  Whereas the  purpose of s. 17(2) is to ensure the continuity of  the panchayats,  the  object  of s. 303A  is  to  confer  powers regarding   dissolution  of  panchayats,  in   the   special situation  created  by the disturbances and  to  enable  the Government to carry on the administration of the affairs  of the   panchayats  through  State  officers,  pending   their reconstitution.   It  has been repeatedly averred  in  cate- gorical terms in the counters that the Government  exercised its  power under s. 303A in view of the  peculiar  situation arising out of the disturbances.  Even if the Government had the  power  under  s.  17(2) to  extend  the  terms  of  the panchayats  beyond March 31, 1974, it could not be  said  in the circumstances of the case, that in choosing to act under s. 303A, it had acted maliciously, the operational fields of these  two provisions being so different and divergent.   We would, therefore, overrule this contention, also. These,  then,  are  the reasons in  support  of  our  Order, announced  on 27th September., 1974, whereby we had  allowed these appeals and set aside the judgment of the High  Court, leaving the parties to bear their own costs throughout. We  hope  that the Government will take prompt  measures  to hold  there  elections expeditiously and will not  use  this judgment   as   an   excuse  to   postpone   the   elections indefinitely.  On 27th September, 1974, when we declared our order,  we  had asked Counsel for the  State  Government  to impress upon his clients the need, especially in the present climate, to preserve the democratic processes. V.P.S. Appeals Allowed. 341