Holding

The power to specify the headquarter of a Mandal under Section 4(1) of the Act can be exercised from time to time as occasion requires, by virtue of Section 14 of the Karnataka General Clauses Act, and is not exhausted by the initial specification.

Summary

The case concerned the powers of the Deputy Commissioner under the Karnataka Zila Parishads, Taluk Panchayat Samithis, Mandal Panchayats and Nyaya Panchayats Act, 1983 to specify and later change the headquarter of a Mandal. The Deputy Commissioner initially fixed the headquarter at Mudiyannur, later altered it to Uthanpur, and subsequently reverted it back, prompting multiple writ petitions and revisions. The High Court held that Section 4(2) did not empower the Deputy Commissioner to change the headquarter, a view affirmed by the Division Bench. On appeal, the Supreme Court examined whether the power under Section 4(1) is exhausted after the first specification and whether Section 14 of the Karnataka General Clauses Act allows the power to be exercised from time to time. The Court held that the Deputy Commissioner may alter the headquarter when justified, reading Section 4(1) in conjunction with Section 14, and that the discretion is not exhausted. Consequently, the Supreme Court allowed the appeal, set aside the Division Bench order and restored the Single Judge’s dismissal of the writ petition.

Issues considered

Whether the power conferred on the Deputy Commissioner by Section 4(1) of the Act to specify the headquarter of a Mandal is exhausted after the initial specification.
Whether Section 4(2) of the Act confers any power to alter the headquarter of a reconstituted Mandal.
Whether the Deputy Commissioner may exercise the power to change the headquarter from time to time under Section 14 of the Karnataka General Clauses Act, 1897.
The extent to which courts may interfere with the discretionary power exercised by the Deputy Commissioner.

Legislation cited

Karnataka General Clauses Act, 1897s. 14
Karnataka Zila Parishads, Taluk Panchayat Samithis, Mandal Panchayats and Nyaya Panchayats Act, 1983s. 4(1), s. 4(2), s. 4(3)

Subjects

Deputy CommissionerMandalheadquarterSection 4Karnataka Zila Parishads ActGeneral Clauses Actadministrative discretionjudicial review

Judgment

A B.N. SHANKARAPPA
v.
UTHANUR SRINIVAS AND ORS.

JANUARY 21, 1992

B [A.M. AHMADI, K.RAMASWAMY AND R.M. SAHA!, JJ.]

Karnataka Zita Parishads, Taluk Panchayats Samithis, Manda/
Panchayats and Nyaya Panchayats Act, 1983-Section 4(1), (2) read with
Section l 4 of the Karnataka General Clauses Act, l 897-Deputy
Commissioner--Powers under-Whether he can exercise the power to
c spec!/Y the headquarter from time to time-location of headquarter of a
-)'~
Mandal-Discretion of authority-8cope of--lnterference by Court when
discretion exercised arbitrarily. '

Karnataka Zila Parishads, Taluk Panchayat Samithis, Manda[
Panchayats and Nyaya Panchayats Act, l 983-Section 4(2) read with
D Section 14, the Karnataka General Clauses Act, 1897-Con- struction--
Whether powers under exhaust once a Manda/ initially constituted and its
headquarter specified.

On 16.1.1986, the Deputy Commissioner issued a notification
constituting a Manda! under section 4 (1) of the Karnataka Zila
E Parishads, Taluk Panchayat Samithis, Manda! Panchayats and Nyaya
Panchayats Act, 1983 and located4he headquarter of the Mandal at
Mudiyannur. Later on exercising powers under section 4 (3) of the
Act he changed the headquarter to Uthanpur.

On 14.12.1987 a writ petition (W.P.No. 7685/86) was filed chal-
F lenging the decision of the Deputy Commissioner.

The High Court dismissed the petition holding that on passing
a resolution by Mandal to change the headquarter from the existing _,,,'(
place to another place, the Deputy Commissioner was to consider if
he would like to exercise power. under section 4 (2) of the Act.
G
The Mand al passed a fresh resolution and thereupon the Deputy
Commissioner issued a notification under section 4 (2) of the Act for
change of headquarter and on 20.1.1988 the draft notification was
published in the Gazette.

H The respondents 1 to 10 filed a writ petition (W.P.No. 1888/8.8) (
..,..__
286
SHANKARAPPA v. SRINJVAS 287
before the High Court challenging the draft notification. The writ A
petition was dismissed.

Considering the resolution and the objections to the notifica-
tion, the Deputy Commissioner issued another notification under
section 4 (2) of the Act and the headquarter of the Mandal was
changed from Uthanpur to Mudiyannur. · B

The resp1mdents challenged the notification by filing a revision
application under section 4 (3) of the Act which was dismissed by
the Divisional Commissioner.

The respondents moved the High Court in W.P. No. 77 of 1989 C
challenging the order of the Deputy Commissioner.

The Single Judge of the High Court dismissed the petition,
against ~hich an appeal was filed before the Division Bench of the
High Court.
D
The Division Bench allowed the appeal .following an earlier
decision of the High Court in Writ Application No. 2564 of 1987
dated 28.5.1991.

The correctness of the decision of Division Bench of the High
Court was challenged in this appeal by special leave. E

The appellant contended that once the power to specify the
headquarter was conferred on the Deputy Commissioner by Section
4 (1) of the Act, it could be exercised from time to time by virtue of
section 14 of the Karnataka General Clauses Act, 1897; that the
scheme ·of section 4 of the Act should be construed with the aid of F
section 14 of the General Clauses Act in such a manner as not to
. " leave a vacuum for the exercise of power for a change of headquarter;
that if the High Court's view was approved, there could he no power
vested in any authority whatsoever for changing or specifying the
headquarter of the reconstituted Mandal which vacuum might lead
to· avoidable complications; and that once the legislature invested G
the Deputy Commission with the power to specify the headquarter
under section 4 (1), subject to the modification by the Commis-
sioner under section 4 (3), the power to alter the headquarter of a
Manda! from time to time, if the occasion so required, must be read H
into it.
288 SUPREME COURT REPORTS [1992] I S.C.R.

A The respondents submitted that while sub-section (2) of Sec-
tion 4 of the Act in terms empowered the Deputy Commissioner to
alter the headquarter of the Mandal because the headquarter once
specified under section 4(1) should remain unaltered; that the act
designedly did not confer any power on any authority whatsoever to
change the headquarter once specified under section 4 (1).
B
Allo'fing the appeal, this Court,

HELD : 1.01 Section 4 (1) empowers the Deputy Commissioner
to do two things, namely (i) to declare an area as a Mandal, and (ii)
to specify its headquarter. [293 BJ
c
1.02 The power conferred by sub-se~tion (2) of Section 4 of
the Karnataka Zila Parishads, Taluk Panchayat Samithis, Mandal
Panchayats and Nyaya Panchayats Act, 1983 can be exercised where
there is a change in the areas of the Mandal either by addition or
reduction in the area. Under clause (c) of sub-section (2) of Section
D 4, the Deputy Commissioner is also in'vested with the power to alter
the name of any Mandal. [293 D-El

1.03 The scheme of sub-section (2) of Section 4 would show
that when there is any increase or decrease in the area of any Mandal,
the Deputy Commissioner may, after the previous publication of the
E . proposal by notification, exercise that power ,and rename the Mandal,
if so required. (293 El

1.04 If the situation so demands and there is justification for
altering the place of headquarter, it would be open to the Deputy
Commissioner to exercise power under section 4(1) of the Act read
F with Section 14 of the General Clauses ~ct to meet the situation.
µNC] ~
1.05 The word 'also' preceding the words 'specify its
headquarter' cannot be understood to convey that the power once
exercised would stand exhausted. Such a construction sou~ht to be
G placed by counsel for the respondent does not accord with the lan-
guage of the provision. It merely conveys that when the Deputy
Commissioner constitutes a Mandal for the first time it will ·be nec-
essary for him to specify its headquarter also. [293 B-C]

1.06 The power to specify the headquarter conferred on the
H Deputy Commissioner can be exercised from time to time as occa-
SHANKARAPPA v. SRINIVAS 289

-~· sion requires by virtue of section 14 of the General Clauses Act. A
[293 C-D]

1.07 :-The ultimate decision as to the place or location ofMandal
headquarter is left to the Government to decide and conferment of
discretion upon the concerned authority in that behalf must neces-
sarily leave the choice to the discretion of the authority and it .would B
not be proper for the courts to interfere with the discretion so
exercised.This is not to say that the discretion can be exercised in
an. arbitrary or whimsical manner without proper application of
mind or for ulterior or malafide purpose. If it is shown thai the
discretion was so ex'ercised it would certainly be open to the courts
to interfere with the discretion but not otherwise. [293 H; 294 A-BJ C
2. The absence of the power in sub-section (2) of Section· 4 to
specify the headquarter afresh does not necessarily mean that once
the initial constitution of the Mandal takes place and the headquarter
is specified, the power is exhausted, notwithstanding section 14 of
the General Clauses Act. If such an interpretation is placed on the D
scheme of section 4 of the Act neither the Deputy Commissioner nor
any other authority will thereafter he able to alter and specify any
other place as the Mandal's headquarter. Such a view would create
a vacuum and even when a genuine need for specifying any other
headquarter arises, the authorities will not be able to exercise power
for want of a specific provision in the Act and that may lead to E
avoidable hardship and complications. It is, therefore, essential that
the provision of the Act he read in a manner so as to ensure that
such a vacuum docs not arise and the power is retained in the
concerned authority which can be exercised should a genuine need
arise. [293 F-H]
F
-"'R. RaJ;l111pat/1y & Ors. v. Stare q( A.I'.& Ors., [1988] 4 SCC 364,
referred to.

CIVIL APPELLATE JURJSDICTION: Civil Appeal No. 378of1992.

From the Judgment dated 31.7.1991 of the Kamataka High Court in G
Writ Appeal No. 1224of1990.

Santosh N. Hegde and P. Mahale for the Appellants.

A.I<. Subbiah, Ranji Thomas, K.V. Mohan, M. Veerappa and K.H.
Nobin Singh for the Respondents. H
290 SUPREME COURT REPORTS (1992] 1 S.C.R.

A The Judgment of the Court was delivered by

AHMADI, J. Special leave granted.

This appeal is directed against the judgment of the High Court of
Kamataka dated 3 lst July, 1991, whereby the Division Bench allowed the
B Writ Appeal setting aside the decision of the learned Single Judge and
held, relying on the judgment in Writ Appeal No.2564 of 1987 decided on
28th May, I991, that Section 4 (2) of the Karnataka Zila Parishads, Taluk,
Panchayat Samithis, Manda! Pancbayats and Nyaya Panchayats Act, 1983
(hereinafter referred to as 'the Act') does not confer any power in the
Deputy Commissioner to change the headquarter of any Manda!'. It is this
c view taken by the Division Bench of the High Court that is put in issue in
the present appeal. For the purpose of disposal of this appeal we may
notice a "few relevant facts.

The Act came into force w.e.f. 14th August, l 984. Thereafter, on
16th January, 1986 a notification was issued by the Deputy Commissioner
D in exercise of power conferred by Section 4 (1) of the Act constituting a
Mandal, named Mudiyannur Manda!, and located its headquarter at
Mudiyannur. However, the Divisional Commissioner changed the headquarter
to Uthanpur while exercising power under Section 4 (3) of the Act. There-
upon a writ petition was filed on 14th December, 1987, being Writ Peti-
tion No. 7685/86, challenging the said decision of the Divisional Com-
E missioner. That Writ petition was dismissed by the High Court observing:
a
if the Manda! so desires it may pass resolution to change the headquarter
. from the existing place to another place whereupon it will be open to the
Deputy Commissioner to consider if he would like to exercise power
under Section 4 (2) of the Act. Pursuant thereto a fresh resolution was
F passed whereupon the Deputy Commissioner issued a notification under
Section 4 (2) of the Act for change of headquarter which was published in
the Government Gazette of 20th January, 1988. On the issuance of the
said draft notification respondents Nos. I to 10 filed a writ petition, being
Writ Petition No. I 888/88, challenging the said draft notification. That
writ petition was also dismissed by the High Court. The Deputy Commis-
G sioner after considering the resolution of the Manda! and the objections
received in response to the draft notification from respondents Nos. I to l 0
passed an order declaring Mudiyannur as the headquarter of the Manda!.
To give effect to his decision. a notification under Section 4 (2) of the Act
was issued 011 23rd July, 1988 whereby the headquarter was changed from
Uthanpur to Mudiyannur. Once again the respondent Nos. I to l 0 chal-
H lenged that notification by a revision application filed under Section 4 (3)
SHANKARAPPA v. SRINIVAS !AHMADI, J.) · 291

of the Act. The Divisional Commissioner exercisini,i power under the said A
provision dismissed the revision application whereupon a Writ Petition
No. 77 of 1989 was taken to the High Court. A learned .Single Judge of
the High Court dismissed the writ petition. An appeaLwas. carried to_the_
Division Bench of the High Court. The Division Bench allowed the
appeal by the impugned judgment dated 3 lst July, 1991 following an
earlier decision in Writ Appeal No. 2564 of 1987 rendered on 28th May,
1991. It is the correctness of this decision which we are called upon to
examine.

Section 4 (I) as it stood before its amendment on 4th October, 1985
empowered the Deputy Commission~r to declare any area comprising a
village or group of villages having the required population to be a Manda! . C
for the purposes of the Act. That sub-section did not carry a provision
empowering the Deputy Commissioner to specify the headquarter of the
Manda!. By the amendment brought aboui in that provision by Act 3 of
1986 w.e.f. 4th October, 1985, this power was specifically conferred on
the Deputy Commissioner. The amended Section .4 ( 1) reads as under:.
D
"(I) Subject to the general or .special orders of the Govern-
ment, the Deputy Commissioner, if, in his opinion, it is expe-
dient to declare any area comprising a village or group of
villages having a population of not less than eight thousand
and not, more than twelve thousand to be a Manda!, may, after
previous publication; declare such area as. a Manda! for the
E
purposes of this Act and also specify itsl!eadquarter.'.'

On a plain reading of this provision, it becomes obvious that the
Deputy Commissioner .was empowered not only to declare a village or
group of villages as a Manda! but also to specify its headquarter. We then
come to sub-section (2) which empowers the Deputy Commissioner, at the
F
request of the Manda! concerned, or otherwise, to increase or decrease the
area of any Manda!, by including within or excluding from such Manda!
any village or group of villages or alter the name of any Manda! or
declare that any area shall cease to be a Manda! after previous publication
of the proposal by a notification in the Gazette. This sub-section confers
G
power on the Deputy. Commissioner to increase or diminish the area of
any Manda! and to alter the name of any such Manda! but it does not in so
many words confer power to specify the headquarter of such reconstituted
Manda!. Sub-section (3) of Section 4 empowers the Commissioner either
on an application made within thirty days from the date of the notification
by an aggrieved party or in exercise of suo 111010 power after giving a
H
reasonable opportunity of being heard. to the applicant or the ·Mandals
292 SUPREME COURT REPORTS [1992] I S.C.R.

A concerned, revise the orders of the Deputy Commissioner passed under
sub-section (I) or sub-section (2), as the case may be, and may also, if he
-considers necessary, modify it as provided in the third proviso to sub-
secti~n (I). Every order so passed revising or modifying the order of the
Deputy Commissioner shall be published in the Official Gazette. We are
not concerned with the third proviso to sub-section 4.
B
Sub-section (I) oF Section 4, therefore, empowers the Deputy Com-
missioner to declare any village or group of villages as a Manda! and to
specify its headquarter. After the constitution of the Manda! and on the
headquarter being specified under this sub-section, if any change, is to be
effected in the area of the Manda! either by increasing or reducing its size,
c the power has to be exercised under sub-section (2) of Section 4 of the
Act. That sub-section also empowers the Deputy Commissioner to alter
the name of the Manda!. It was submitted by the counsels for the respond-
ents that while this sub-section in terms empowers the Deputy Commis-
sioner to alter the name of the Mandal, it does not empower him to alter
the headquarter of the Manda! because the headquarter once specified
D under sub-section ( l) of Section 4 must remain unaltered since the Act
designedly does not confer ally power on any authority whatsoeve(to
change the headquarter once specified under sub-section(!) of Section 4.
This submission was countered by the teamed counsel for the-appellant by
inviting our attention to Section 14 of the Karnataka General Clauses Act,
1897 (hereinafter called 'the General Clauses Act'). That provision reads
E as under:

.. Where by any Mysore or Kamataka Act made after the com-
mencement of this Act, any power is conferred then that power
may be exercised froin time to time as occasion requires."
F Counsel for the appellant submitted that once the power to specify
the headquarter is conferred on the Deputy Commissioner by sub-section
(I) of Section 4 of the Act it can be exercised from time to time by virtue -~
. of the said Section 14 ifthe occasion so requires. He, therefore, submitted
that this Court should construe the scheme of Section 4 of the Act with the
aid of Section 14 in such a manner as not to leave a vacuum for the
G exercise of power if need arises for a change of headquarter. He submitted
that if, the view taken by the High Court is approved, a situation may
arise when even after a change takes pla_ce in the size of the Manda! area
there would be no power vested in any authority whatsoever for changing
or specifying the headquarter of the reconstituted Manda! which vacuum
may lead to avoidable complications. He, therefore, submitted that once
H the legislature has invested the Deputy Commissioner with the power to
,SHANKARAPPA v. SRINIVAS [AHMADI, J,] 293

specify the headquarter under sub-section,(!) of Section 4, subject to the A
modification which the Commissioner may choose to make under sub-
section (3) of S'ection 4, the power to alter the headquarter of a Manda!
from time to time if the occasion so requires must be read into it We
think there is a considerable force in this submission.

As pointed out earlier Section 4(1) empowers the Deputy Commis- B
sioner to d6 two things, namely, (i) to declare an area as a Manda!, and
(ii) to specify its headquarter. The word 'also' preceding the words 'specify
its headquarter' cannot be understood to convey that the power once exer-
cised would ·stand exhausted, Such a construction sought to be placed by
counsel for the respondent does not accord with the language of the provi-
sion, It merely conveys that when the Deputy Commissioner constitutes a C
Mandal for the first time it will be necessary for him to specify its headquarter
also. This power io specify the headquarter conferred on the Deputy Com-
missioner can be exercised from time to time as occasion requires by
virtue of Section 14 of the General Clauses Act The attention of the High
Court was not drawn to the provision in Section 14 when it disposed of
the Writ Appeal No. 2564 ofl987 and Writ Petition No.375 of'l9S9 on D
28th May, 1991, It is true that the power conferred by sub-section (2) of
Section 4 can be exercised where there is a change in the area of the
~-
Manda! either by addition or reduction in the area. Under clause (c) of
sub-section (2) of Section 4 the Deputy Commissioner is also invested
with the power to alter the name of any MandaL The scheme of sub-
section (2) would, therefore, show that when there is any increase or E
decrease in the area of any Manda!, the Deputy Commissioner may, after
the previous publication of the proposal by notification, exercise that
power and rename the Manda!, if so required, The absence of the power in
sub-section (2) of, section 4 to specify the headquarter afresh does not
necessarily mean that once the initial constitution of the Manda] takes
place and the headquarter is specified the· power is exhausted, notwith- F
standing section 14 of the General Clauses Act If such an interpretation is
placed on the scheme of section 4 of the Act neither the Deputy Commis-
sioner nor any other authority will thereafter be able to alter and specify
any other place as the Mandal's headquarter, Such a view would create a
vacuum and even when a genuine need for specifying any other headquarter
arises, the authorities will not be able tO exercise power for Want of a G
specific provision in the Act and that may lead to avoidable hardship and
complications. It is. therefore, essential that we· read the provision of the
Act in a manner so as to ensure that such a vacuum does not arise and the

L power is retained in the concerned authority which can be excercised
should a genuine need arise. In JR Raghupathy & Ors. v, State of A.P
others, [1988] 4 sec 364 this Court observed that the ultimate decision as H
294 SUPREME COURT REPORTS I J992] I S.C.R.

A to the place or location of Manda! headquarter is left to the Government ~
to decide and conferment of discretion upon the concerned authority in
that behalf must necessarily leave the choice to the discretion of the said
authority and it would not be proper for the courts to interfere with the
discretion so exercised. This is not to say that the discretion can be exer-
cised in an arbitrary or whimsical manner without proper application of
B mind or for ulterior or malafide purpose. If it is shown that the discretion
was so exercised it would certainly be open to the Courts to interfere with
the discretion but not otherwise.

We are, therefore, of the opinion that ifthe situation so demands and
there is justification for altering the place of headquarter, it would be open
C to the Deputy Commissioner to excercise power under Section 4(1) of the
Act read with section 14 of the General Clauses Act to meet the situation.
We, therefore, allow this appeal, set aside the impugned order of the
Division Bench of the High court and restore the order of the learned
Single Jugde directing that the writ petition, which gave rise to the writ
appeal, shall stand dismissed. However, in the facts and.circumstances of
the case there will be no order as to costs.

V.P.R. Appeal allowed.