Full Judgment Text
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PETITIONER:
AFZAL ULLAH
Vs.
RESPONDENT:
THE STATE OF UTTAR PRADESH
DATE OF JUDGMENT:
20/09/1963
BENCH:
GAJENDRAGADKAR, P.B.
BENCH:
GAJENDRAGADKAR, P.B.
SUBBARAO, K.
WANCHOO, K.N.
SHAH, J.C.
DAYAL, RAGHUBAR
CITATION:
1964 AIR 264 1964 SCR (4) 991
CITATOR INFO :
R 1970 SC1173 (45)
R 1971 SC2039 (14)
R 1974 SC1281 (8)
R 1977 SC1884 (26)
ACT:
United Provinces Municipalities Act, 1916 (No. II of
1916),ss. 298.299(1) and bye-law cl. 3(a)-"Market" meaning
of- Whether bye-law ultra vires.
HEADNOTE:
The appellant-accused was charged with committing the
offence under s.299(1) of the United Provinces
Municipalities Act, read with cl.3(a) of the relevant bye-
laws framed by Respondent No.2. The case against the
appellant was that he was running a market Within the
Municipal area in which vegetables, fruits, fish and grains
were sold. It was alleged that he was bound to take a
licence for the aforesaid market under cl. 3(a) of the
relevant bye-laws and since he had failed to do so, he had
committed a breach of the said bye-laws. He was tried by
the Tehsildar of Tanda on the said charge. The Tehsildar
acquitted him. The Tehsildar held that he was running only
a grain market and Respondent No. 2 (the Municipality) had
no power to make bye-laws for the running of a purely grain
market and so the impugned bye laws were ultra vires. On
appeal, the High Court set aside the. order of acquittal and
convicted the appellant under s. 299(1) of the Act read with
cl. 3(a) of the relevant bye-laws. It has been
65-2 S C India/64
992
found by both courts below in the present case that on the
plot belonging to the appellant, more than four shops arc
kept and they sell food grains.
HELD : (i) These shops standing on the plot of the appellant
constitute a market within bye-law 3 (a).
(ii)There is no substance in the contention that the
impugned bye-law 3(a) is invalid because it is inconsistent
with s. 241(1) of the Act. There is no justification for
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adding the word "only" to the last part of s. 241 (1) of the
Act. If the word "only" cannot be added to the said
section, then it must follow that in addition to the bye-
laws made under heading F to s. 298, the Board may make
other bye-laws in respect of the markets failing within the
purview of s. 241(1), provided, of course, the said bye-laws
arc otherwise valid under s. 298.
(iii)Section 241(1) does not apply to the market which
is run on the appellant’s plot because it is a market for
sale of grains.
(iv)There can be no doubt that cl. (d) of s. 298(2)(F) of
the Act conferred power on respondent No. 2 to make a bye-
law in regard to the establishment, regulation, and
inspection of the market such as is run on the plot
belonging to the appellant. If cl. (d) is held to justify
the making of the impugned bye-law 3(a), the other clauses
which prescribe the- procedure for the application of
licences, their grant and other incidental matters would be
valid under cl. (d) of s. 298(2)(F) of the Act. Therefore,
there is no doubt that the impugned bye-law 3(a) and the
other cognate bye-laws are justified by cls. (d) and (dd) of
s. 298(2)(F) of the Act.
(v)It is now well-settled that the specific provisions
such as are contained in the several clauses of s. 298(2)
are merely illustrative and they cannot be read as
restrictive of the generality of powers prescribed by s.
298(1). If the impugned bye-laws come within the purview of
s. 298(1) of the Act, it cannot be said that the powers
enumerated under s. 298(2) control the general words used by
s. 298(1).
The impugned bye-laws in regard to the markets framed by
respondent No. 2 arc for the furtherance of municipal
administration under the Act, and so, would attract the
provisions of s. 298(1).
Emperor v. Sibnath Banerji & Ors., A.I.R. 1945 P. C. 156,
relied on.
(vi)The validity of the bye-laws must be tested by reference
to the question as to whether the Board had the power to
make those bye-laws. If the power is otherwise established,
the fact that the source of the power has been incorrectly
or inaccurately indicated in the preamble to the bye-laws,
would not make the bye-laws invalid.
P. Bglakotish v. Union of India. [1958] S.C.R. 1052followed,
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(vii)The plea of malafides cannot be permitted to be
raised for the first time in appeal for the reason that for
proving malafides the appellant ought to have made
appropriate allegations at the stage of trial and led
evidence to prove them.
JUDGMENT:
CIVIL APELLATE JURISDICTION : Civil Appeal No. 1 of 1962.
Appeal by special leave from the Judgment and order dated
August 29, 1961, of the Allahabad High Court in Criminal
Appeal No. 379 of 1961.
B. C. Misra, for the appellant.
C. B. Agarwala and C. P. Lal, for the respondent No.
September 20, 1963. The judgment of the Court was delivered
by
GAJENDRAGADKAR, J.-This appeal by special leave raises a
short question about Validity of bye law No. 3 and other
relevant bye-laws framed by respondent No. 2, the Municipal
Board of Tanda, on the 21st January, 1958. The appellant
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Chaudhari Afzal Ullah is a resident of Tanda and owns a
piece of land and superstructures standing on it along with
the compound, in the town of Tanda. On his own land, within
the compound, he has established a market in which food-
grains are sold. The Chairman of respondent No. 2 served a
notice on the appellant calling upon him to obtain a licence
for running the said market, and on the failure of the
appellant to comply with said notice, respondent No. 2
initiated criminal proceedings against the appellant. The
appellant was tried by the Tehsildar of Tanda (Cr. Case No.
141/1960). The case against the appellant was that he was
running a market in which vegetables, fruits, fish and
grains were sold. It was alleged that under the relevant
bye-laws, the appellant was bound to take a licence and
since he had failed to do so, he had committed a breach of
the said bye-laws and hid thus rendered himself liable to be
punished under section 299(1) of the United Provinces
Municipalities Act, 1916 (No. II of 1916) (hereinafter
called ’the Act’). The said Tehsildar held that the
prosecution had failed to prove the fact that in the market
established on the plot belonging to the appellant,
vegetables, fruits and fish were sold; evidence showed that
only grains were sold in the shops
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run in that market. The Tehsildar further held that there
was nothing in the Act which empowered respondent No. 2 to
make bye-laws for the running of a purely grain market, and
so, his conclusion was that the relevant bye-laws which were
alleged to have been contravened were ultra vires. That is
why the Tehsildar acquitted the appellant.
Respondent No. 2 then preferred an appeal against the said
-order of acquittal in the High Court of Allahabad. It was
urged on its behalf that though the shops situated on the
plot belonging to the appellant sold only grains, they
constituted a market within the meaning of the relevant bye-
laws and it was obligatory upon the appellant to take a
licence under the said relevant bye-laws. Respondent No. 2
also contended that the Tehsildar was in error in holding
that it had no power to make bye-laws even in regard to a
purely grain market. These pleas have been upheld by the
High Court, with the result that the order of acquittal
passed in favour of the appellant has been set aside and he
has been convicted under s. 299(1) of the Act read with
clause 3(a) of the relevant bye-laws. The High Court has
sentenced the appellant to pay a fine of Rs. 20/-; in
default, it has ordered that the appellant should undergo
simple imprisonment for one week. It is against this order
that the appellant has come to this Court, and in addition
to respondent No. 2, the Board, lie has impleaded the State
of U.P. as respondent No. 1.
Mr. Misra for the appellant contends that the High Court was
in error in coming to the conclusion that the relevant bye-
laws are valid. He urges that the said bye-laws are
invalid, because they are outside the authority conferred on
respondent No. 2 to make bye-laws by s. 298 of the Act, and
he further argues that they are invalid for the additional
reason that they are inconsistent with s. 241 of the Act.
Before dealing with these contentions, it would be relevant
to consider the said bye-laws, indicate their scheme and
refer to the specific bye-laws with which we are concerned.
These bye-laws purport to have been framed under section 298
A(a), (b), (c) and j(d) of the Act. The preamble to the
’bye-laws avers that the said bye-laws had been sanctioned
by the Commissioner as required by section 301(2) of the
Act’. The bye-laws thus framed are seventeen in number and
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in addition, they contain a clause prescribing the penalty,
Bye-
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law 3(a) reads thus:-
"No person shall allow any land or building in his
possession or control within the limits of the Tanda
Municipality to be used as a market or shop for the sale of
vegetables, fruits and grains unless a licence has
previously been obtained from the Board in this behalf."
There is an explanation to this bye-law which shows that
"market" means and includes any place or places for buying
and selling, inter alia, grains where more than four stalls
or shops are kept on any plot of land owned by the same
owner or owners, or where wholesale transaction by way of
auction or sale of more than twenty maunds is carried on.
It is thus clear that if on any plot, more than four stalls
or shops are kept and they sell grains, they constitute a
market within bye-law 3(a). It has been found by both the
courts below in the present case that on the plot belonging
to the appellant, more than four shops are kept and they
sell grains. Thus, there can be no doubt that these shops
constitute a market within bye-law 3(a). It is not disputed
that if bye-law 3(a) is valid, the appellant would be under
an obligation to obtain a licence as required by it.
Bye-law 3(b) provides that no person shall sell or expose
for sale any fruit, vegetable or grain in any market or shop
(not licenced by the Board) and not being a Municipal market
or shop.
Bye-law 4 prescribes conditions which have to be satisfied
before a licence can be granted. Bye-law 5 specifies the
officer who can act as a licensing officer. Bye-law 6
requires that the place occupied by the shops shall be pro-
perly paved and drained. Bye-law 7 authorises the relevant
authorities to inspect the shops. Under bye-law 8, sale of
vegetables, fruits and grains which are rotten or unfit for
human consumption is prohibited. Bye-law 9 requires the
shop-keepers to remove rotten stuff and prescribes that the
shops shall be kept clean and tidy. Under bye-law 10, sale
of certain fruits and vegetables can be stopped if such sale
is likely to spread disease or may prove injurious to
health. Similarly, under bye-law 11, a person suffering
from contagious disease can be prevented from working on the
shop for the sale of fruits, vege-
996
tables and grains. Bye-law 12 prescribes the penalty of.
forfeiture of-. licence if any rubbish or other injurious
matter is allowed to be collected or deposited by a shop-
keeper. Bye-law 13 provides that on an application for
licence, the licensing officer may either grant the licence
or for reason to be recorded refuse to grant it. Under bye-
law 14, the power to cancel or suspend a licence is given to
the licensing officer. Bye-law 15 provides for an appeal
against certain orders, whereas bye-law 16 prescribes a fee
for granting a licence which may amount up to Rs. 1,000/-
depending upon the services rendered by the Board. Under
bye-law 17, the life of the licence is limited to a year
ending on March 31 next following the date from which it
takes effect. The concluding paragraph provides for a
penalty for breach of any of the bye-laws and prescribes
that a fine up to 500/- may be imposed and if the breach
continues, a fine of Rs. 10/- every day may follow. That,
in sliort, is the scheme of the bye-laws.
Let us now look at the relevant sections of die Act before
addressing ourselves to the question as to whether the
impugned bye-law 3(a) and the other bye-laws passed by it
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arc ultra-vires. There arc only two sections of the Act
which are relevant for our purpose in the present appeal;
they are sections 241 and 298. Section 241(1) reads thus :-
"The right of any person to use any place, within the limits
of a municipality, other than a municipal market, as a
market or shop for the sale of animals, meat or fish
intended for human food, or as a market for the sale of
fruit or vegetables, shall be subject to bye-laws (if any)
made under heading F of s. 298."
Section 298 confers power on the Board to make bye-laws.
Section 298 (1) reads thus :-
"A board by special resolution may, and where required by
the State Govt. shall, make bye-laws applicable to the whole
or any part of the municipality, consistent with this Act
and with any rule, for the purpose of promoting or
maintaining the health, safety, and convenience of the
inhabitants of the municipality and for the furtherance of
municipal administration under this Act."
997
Section 298(2)-F which consists of six sub-clauses deals
with bye-laws which can be made in respect of markets,
slaughterhouses, sale of food, etc. The two sub-clauses of
s. 298(2)-F which are material read thus :-
"(d) Providing for the establishment, and except so far as
provision may be made by bye-laws under sub-had (c) for the
regulation and inspection of markets and slaughter-houses,
of livery stables, of encamping grounds of sarais, of flour-
mills, of bakeries, of places for the manufacture,
preparation or sale of specified articles of food or drink,
or for keeping or exhibiting animals for sale or hire or
animals of which the produce is sold, and of places of
public entertainment or resort, and for the proper and
cleanly conduct of business therein;
(d ) Prescribing the conditions subject to which,
and the circumstances in which, and the areas
or locality in respect of which, licences for
the purposes of sub-head (d) may be granted,
refused, suspended, or withdrawn, and fixing
the fees payable for such licences, and
prohibiting the establishment of business
Places mentioned in sub-head (d) in default of
licence granted by the board or otherwise than
in accordance with the conditions of a licence
so granted."
Mr. Misra contends that bye-law 3(a) is invalid, bbecause it
is inconsistent with s. 241(1). For the purpose of this
argument, he assumes that the said bye-law is not justified
by any of the clauses of s. 298(2)-F. He argues that s. 241
provides that the appellant’s right to use his own place for
the purpose of running a market can be regulated only by a
bye-law which is framed under s. 298(2)-F and by no other
bye-law. The form in which the argument is thus presented
at once discloses the fact that Mr. Misra is adding the word
"only" to the last part of s. 241(1). When s. 241(1)
provides that the right of a person to run a market as
therein indicated shall be subject to bye-laws, if any, made
under heading F of F, 298, Air. Misra assumes that it means
that the regulation can be imposed only by bye-laws made
under the said heading. We see no justification for adding
the word CC only" in that behalf. If the word "only" cannot
be added to the said section, then it must follow that in
addition to.
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the bye-laws made under heading F to s. 298, the Boardmay
make other bye-laws in respect of the markets falling within
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the purview of s. 241(1), provided, of course, the said bye-
laws are otherwise valid under s. 298. That is the first
answer to Mr. Misra’s argument.
The second answer is that s. 241(1) does not apply to the
market which is run on the appellant’s plot, because it is
not a market for the sale of fruits or vegetables, or for
the sale of animals, meat or fish intended for human food;
it is a market for sale of grains and such a market does not
appear to be included under section 241(1).
Besides, as we will presently point out, the impugned bye-
law can be justified under s. 298(2)-F (d) & (dd) and,
therefore, even if s. 241(1) was held to be applicable to
the market of the appellant, the requirement of the said
section is satisfied. Therefore, we do not think there is
any substance in the contention that the impugned bye-laws
are invalid because they are inconsistent with s. 241(1).
The next point to consider is whether these bye-laws are
justified by s. 298. We have already read clauses (d) &
(dd) of s. 298(2)-F. Section 298(2)-F deals, inter alia,
with markets, and in the absence of any definition of the
word "market" prescribed by the Act, it would be legitimate
to take the word "market" occurring in s. 298 (2)-F (d) in
its dictionary meaning. If four or more shops are selling
grains on the plot belonging to the appellant, they make a
market in the ordinary sense of the word and clause (d)
confers power on the Board to make bye-laws providing for
the establishment, and for the regulation and inspection of
markets. There can be no doubt that the power to regulate
the establishment of markets which is specified in this
clause would sustain the relevant bye law framed by
respondent No. 2. Mr. Misra attempted to argue that the
markets referred to in this clause must be markets run for
the sale of specified articles of food or drink, or keeping
or exhibiting animals for sale, and he suggested that this
condition was not satisfied by the market in question. In
our opinion, this argument is entirely misconceived. What
the clause purports to do is to authorise the making of bye-
laws providing for the establishment, regulation and
inspection of markets and several other places. The latter
clause on which Mr. Misra, relies
999
does not qualify the word "markets" which occurs in the
earlier part. Therefore, there can be no doubt that clause
(d) conferred power on respondent No. 2 to make a bye-law in
regard to the establishment, regulation and inspection of
the market such as is run on the plot belonging to the
appellant.
Clause (dd) which flows as a consequence of clause
(d)empowers the Board to prescribe the conditions subject to
which and the circumstances in which licence may be granted,
and if clause (d) is held to justify the making of the
impugned bye-law 3(a), the other clauses which Prescribe the
procedure for the application of licences, their grant and
other incidental matter would be valid under clause (dd).
The scheme of the six clauses under heading F is clear.
Clauses (a) to (c) deal, with places which are used as
slaughter houses or as markets or shops for the sale of
animals and other commodities mentioned in clause (a).
Clause (b) in Particular deals with a bye-law which pres-
cribes the conditions subject to which places mentioned in
clause (a) should be run; and clause (c) deals with a bye
law providing for the inspection of such places. Clause (d)
is wider in its sweep and it takes in places covered by
clause (a) and adds some other Places, such as markets in
their generic sense. Therefore, there is no doubt that the
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impugned bye-law 3(a) and the other cognate bye-law are
justified by clauses and (dd) of- s. 298(2)-F.
Even if the said clauses did Dot justify the impugned bye-
law, there can be little doubt that the said bye-laws would
be justified by the general power conferred on the Boards by
s. 298(1). It is now well-settled that the specific
provisions such as are contained in the several clauses of
s. 298(2) are merely illustrative and they cannot be readas
restrictive of the generality of powers prescribed by s.
298(1) vide Emperor v. Sibnath Banerji & Ors. (1). If the
powers specified by s. 298 (1) are very wide and they take
in within their scope bye-laws like the ones with which we
are concerned in the present appeal, it cannot be said that
the powers enumerated under s. 298(2) control the general
words used by s. 298(1). These latter clauses merely
illustrate and do not exhaust all the powers conferred on
the Board,
(1) A.I.R. 1945 P.C. 156.
1000
so that any cases not falling within the powers specified by
section 298(2) may well be protected by s. 298(1), provided
of course, the impugned bye-laws can be justified by refer-
ence to the requirements of s. 298(1). There can be no
doubt that the impugned bye-laws in regard to the markets
framed by respondent No. 2 are for the furtherance of
municipal administration under the Act, and so, would
attract the provisions of s. 298(1). Therefore we are
satisfied that the High Court was right in coming to the
conclusion that the impugned bye-laws are valid.
It is true that the preamble to the bye-laws refers to
clauses A (a), (d) & (c) and J (d) of s. 298 and these
clauses undoubtedly are inapplicable; but once it is shown
that the impugned bye-laws are within the competence of
respondent No. 2, the fact that preamble to the bye-laws
mentions clauses which are not relevant, would not affect
the validity of the bye-laws. The validity of the bye-laws
must be tested by reference to the question as to whether
the Board had the power to make those bye-laws. If the
power is otherwise established, the fact that the source of
the power has been incorrectly or inaccurately indicated in
the preamble to the bye-laws, would not make the bye-laws
invalid (vide P. Balakotaiah v. Union of India & Other) (1).
Mr. Misra then attempted to argue that the relevant bye-laws
have been passed mala fide out of spite and enmity for the
appellant. His contention was that the appellant’s shop is
the only shop in the locality and bye-law 3(a) has been
passed maliciously in order to hit the appellant. We do not
think we can allow this point to be raised for the first
time in appeal. No doubt Mr. Misra referred to the fact
that Aftab Ahmad has admitted that there is no other grain
market in Sakrawal except the one run by the appellant, but
that, in our opinion, can hardly afford a basis on which the
plea of mala fides could be judged. Sakrawal appears to be
a locality in the town of Tanda, and so, a statement even if
it is taken at its face value, cannot possibly justify the
assumption that there is only one grain market ill the whole
of the town of Tanda. Besides, for proving mala fides the
appellant ought to have made appropriate allegations at the
stage of trial and led evidence to prove them.
(1) [1958] S.C.R. 1052.
1001
Therefore, the plea of mala fides cannot be permitted to be
raised.
Mr. Misra then suggested that bye-law 16 which prescribes
fee up to Rs. 1,000/- is invalid, because it is unreasona-
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ble. Even this plea cannot be considered at this stage for
two reasons: it has not been raised in the courts below and
it is patently premature, because no fee has yet been
imposed ,on the appellant; besides, the said bye-law merely
authorises the Board to levy a fee up to Rs. 1,000/-, but it
specifically adds that the amount levied by way of fee would
depend upon the services rendered by the Board. That is why
it would be impossible to deal with the attack against this
bye-law in the abstract.
Mr. Misra also argued that the High Court should have
allowed his client to take two additional points before it.
These pleas are that the bye-laws had not been published in
the local paper as required by section 94(3) of the Act and
had not been made by a special resolution as required by s.
298(1). As the High Court has pointed out, these are pleas
of fact and should have been taken at the trial. In our
opinion, therefore, the High Court was fully justified in
not allowing the appellant to take these pleas for the first
time at the appellate stage.
The result is, the appeal falls and is dismissed.
Appeal dismissed
1002