NAGAR PANCHAYAT, KURWAI & ANR.versusMAHESH KUMAR SINGHAL AND ORS.

                         [2013] 8 S.C.R. 290


A              NAGAR PANCHAYAT, KURWAI & ANR.
                                   v.
              MAHESH KUMAR SINGHAL AND ORS.
                 (Civil Appeal No. 7821 of 2013)
                        SEPTEMBER 6, 2013
B
         [K.S. RADHAKRISHNAN AND A.K. SIKRI, JJ.]

          Municipalities - Madhya Pradesh Municipalities Act,
    1961 - s.358(7)(m) - Appellant- Nagar Panchayat - If justified
C   in demanding any fee, for parking of motor, trucks and buses
    in the bus stand, owned and maintained by it - Held:
    Municipalities need funds for carrying out various welfare
    activities and for said purpose, it can always utilize its assets
    in a profitable manner to its advantage so that various welfare
o   activities entrusted to it under law could be properly addressed
    and implemented - Bus stand was provided by the Nagar
    Panchayat for benefit of all vehicle owners and the
    passengers, spending public money - Nagar Panchayat has
    to get a reasonable return for its upkeep and maintenance -         -·
E   Article 243W(a)(i) and (ii) read with Entry 17 of the Twelfth
     Schedule of the Constitution and clause (7)(m) of s.358 of the
     Madhya Pradesh Municipalities Act and the general principle
     that nobody has a fundamental right to use the land belonging
    to another without the latter's permission or paying for it, if
F    demanded, give ample powers to the Nagar Panchayat to
     impose parking fee for parking the vehicles in the Bus stand
    owned and maintained by it - However, if the Nagar Panchayat
     is demanding exorbitant or unreasonable parking fee without
     any quid pro quo, the same can always be challenged in
G    accordance with law - Constitution of India, 1950 - Article
     243W(a)(i) and (ii); Twelfth Schedule, Entry 17 - Motor
     Vehicles Rules, 1994 - Rule 203 and Rule 204.
        Municipalities - Madhya Pradesh Municipalities Act,
    1961 - Nagar Panchayat - Powers of - Held: Nagar Panchayat
H                                 290
  NAGAR PANCHAYAT, KURWAI v. MAHESH KUMAR 291
                  SING HAL
is a unit of self-government, which is a sovereign body having   A
both constitutional and statutory status - It has considerable
powers to carry out schemes for economic development and
social justice.
      Bus stand was constructed on the land owned by the
·appellant Nagar Panchayat. The appellant in exercise of         8
 the powers conferred under Section 357(3) read with
 Section 349(2), 357 (5) and 358(4) (b) and (d) of Madhya
 Pradesh Municipality Act, 1961, imposed parking fee on
 the owners of vehicles, motors, trucks, buses, matadors
 etc. Following that a notice was issued by the appellant        C
 demanding Rs.20/- per day or Rs.600/- per month,
 imposing entry fees on motors, trucks, buses and
 matadors parked in the bus stand. Challenging the same,
 writ petition was preferred by the vehicle owners before
 the High Court, seeking a writ of certiorari to quash the       D
 above-mentioned bye-law and also for a direction to the
 Nagar Panchayat not to collect any fees from the
 petitioners.
     A Single Judge of the High Court found no merit in
                                                                 E
the writ petition arid dismissed the same. The Division
Bench allowed Writ Appeal, holding that Section 349 of
Act of 1961 does not confer any power to impose the
licence fees for the use of bus stand and the same is not
covered under Sections 358(4)(b) and (d) or (7) (m) of the
Act of 1961, and hence the present appeal by the Nagar           F
Panchayat.
    The question which arose for consideration was
whether the appellant-Nagar Panchayat was justified in
demanding any fee, for the parking of the motor, trucks          G
and buses in the bus stand, owned and maintained by
the Nagar Panchayat.
    Allowing the appeals, the Court
     HELD: 1.1. Nobody has a fundamental right to use            H
    292     SUPREME COURT REPORTS             (2013) 8 S.C.R.


A   the land belonging to another without the latter's
    permission or paying for it, if demanded. [Para 5] [295-E]
         1.2. The respondents are operating their vehicles with
    the stage carriage permits granted by the competent
    authority under the Motor Vehicles Act. As per the
8   provisions of the Motor Vehicles Act the State
    Government or any other authorized authority has
    jurisdiction to determine a place at which a motor vehicle
    be parked, either indefinitely or for a specified time for
    taking up and alighting passengers. Rule 203 and Rule
C   204 of the Motor Vehicles Rules, 1994 provide for
    maintenance and management of the parking places and
    make the concerned local authorities responsible for the
    said purpose. As per the conditions of the permit they are
    required to commence the journey of their vehicles from
D   the bus stand or place fixed for getting and alighting
    passengers. Such a condition has been imposed on the
    licence by the authorities under the Motor Vehicles Act
    since operators would commence the journey of their
    respective vehicles on the routes from the bus stand only
E   and would not stop the vehicles on the streets, causing
    inconvenience to the public. Since vehicle operators
    started using the bus stand, Nagar Panchayat passed the
    Resolution, charging the parking fees for the purpose of
    maintaining of bus stand and providing other f~cilities.
F    [Para 6] [295-F-H; 296-A-B]
       1.3. Nagar Panchayat is a unit of self-government,
  which is a sovereign body having both constitutional and
  statutory status. Article 2430 and 243W(a)(i) and (ii) read
  with Entry 17 in Tenth Schedule of the Constitution,
G confer considerable powers on the Nagar Panchayat to
  carry out various schemes for economic development
  and social justice. Municipalities need funds for carrying
  out the various welfare activities and for the said purpose,
  it can always utilize its assets in a profitable manner to
H its advantage so that various welfare activities entrusted
      NAGAR PANCHAYAi, KURWAI v. MAHESH KUMAR               293
                      SINGHAL
     to it under law could be properly addressed and               A
     implemented. Bus stand has been provided by the Nagar
     Panchayat for the benefit of all vehicle owners and the
     passengers, spending public money. Nagar Panchayat
     has to get a reasonable return for its upkeep and
     maintenance. [Para 8) [297-E-G]                               B
       1.4. Clause 7(m) of Section 358 of the Madhya
  Pradesh Municipalities Act, 1961, empowers the
  municipality to regulate or prohibit the use of any ground
  under its control and it does not compel anybody to use
  it as halting place of vehicles. Article 243W(a)(i) and (ii)     C
  read with ~ntry 17 of the Twelfth Schedule of the
  Constitution and clause (7)(m) of Section 358 of the
  Madhya Pradesh Municipalities Act, 1961 and the general
  principle that nobody has a fundamental right to use the
  land belonging to another without the latter's permission        D
  or paying for it, if demanded, give ample powers to the
· Nagar Panchayat to impose parking fee for parking the
  vehicles in the Bus stand owned and maintained by it.
  Needless, if the Nagar Panchayat is demanding
  exorbitant or unreasonable parking fee without any quid          E
  pro quo, the same can always be challenged in
  accordance with law. [Para 14) [299-H; 300-A-B, C-E]
         Municipal Board, Hapur and others v. Jassa Singh and
     others (1996) 10 SCC 377: 1996 (5) Suppl. SCR 547 - relied
     on.                                                           F

         Municipal Council, Bhopal v. Sindhi Sahiti Multipurpose
     Transport Co-op. Society Ltd. and another(1973) 2 SCC 478:
     1974 (1) SCR 274 and Municipal Council, Manasa v. M.P.
     State Road Transport Corpn. And another (1997) 11 SCC         G
     640 - held ~napplicable.
                         Case Law Reference:
      1996 (5) Suppl. SCR 547     relied on           Para 9
      1974 (1) SCR 274            held inapplicable   Para 10      H


.'
    294       SUPREME COURT REPORTS               [2013] 8 S.C.R.


A    (1997) 11 SCC 640             held inapplicable     Para 10
        CIVIL APPELLATE JURISDICTION : Civil Appeal No.
    7821 of 2013.
        From the Judgment & Order dated 01.05.2008 of the High
B   Court of Madhya Pradesh, Jabalpur Bench at Gwalior in Writ
    Appeal No. 458 of 2007.
                                WITH
    C.A. No. 7822 of 2013
c       T.S. Doabia, Jagjit Singh Chhabra, Ashutosh K. Singh,
    Sushil Kumar Jain, Puneet Jain, Chrsti Jain for the Appellants.
        Rishi Malhotra, Mishra Saurabh, Rani Chhabra for the
    Respondents.
D
          The Judgment of the Court was delivered by
          K.S. RADHAKRISHNAN, J. 1. Leave granted.
          2. We are in these cases concerned with the question
E   whether the appellant, Nagar Panchayat, Kurwai (in Civil
    Appeal No. 7821 of 2013 @ SLP(C) No.20997 of 2008) is
    justified in demanding any fee, for the parking of the motor,
    trucks and buses in the bus stand, owned and maintained by
    the Nagar Panchayat.
F       3. The High Court held that Nagar Panchayat has no
    power to collect that amount and allowed the writ appeal against
    which the Nagar Panchayat has come up with this appeal.
       4. The appellant in exercise of the powers conferred under
  Section 357(3) read with Section 349(2), 357 (5) and 358(4)
G (b) and (d) of Madhya Pradesh Municipality Act, 1961, imposed
  parking fee on the owners of vehicles, motors, trucks, buses,
  matadors etc. Following that a notice was issued by the
  appellant demanding Rs.20/- per day or Rs.600/- per month,
  imposing entry fees on motors, trucks, buses and matadors
H parked in the bus stand. Chanenging the same, writ petition was
 NAGAR PANCHAYAT, KURWAI v. MAHESH KUMAR 295
      SINGHAL [K.S. RADHAKRISHNAN, J.]
preferred by the vehicle owners before the High Court of              A
Madhya Pradesh at Jabalpur, seeking a writ of certiorari to
quash the above-mentibned bye-law and also for a direction
to the Nagar Panchayat not to collect any fees from the
petitioners. The learned Single Judge found no merit in the writ
petition and same was dismissed on 10.07.2007. Aggrieved              B
by the same, writ petitioners took up the matter in Writ Appeal
No.458 of 2007, which was allowed by the Division Bench,
holding that Section 349 of Act of 1961 does not confer any
power to impose the licence fees for the use of bus stand and
the same is not covered under Sections 358(4)(b) and (d) or           c
(7) (m) of the Act of 1961. Respondents are merrily using the
bus stand owned and maintained by the Nagar Panchayat, free
of cost, not bothering about its maintenance and upkeep. The
question is, can a court, on the basis of such an interpretation
sideline the larger public interest and deny the right of the Nagar
                                                                      0
Panchayat to claim parking fees which can be utilized for the
benefit of people?
     5. We, before examining the question, shall not forget t.he
basic fundamental principle that nobody has a fundamental
right to use the land belonging to another without the latter's       E
permission or paying for it, if demanded.
     6. The respondents are operating their vehicles with the
stage carriage permits granted by the competent authority
under the Motor Vehicles Act. As per the provisions of the Motor
Vehicles Act the State Government or any other authorized             F
authority has jurisdiction to determine a place at which a motor
vehicle be parked, either indefinitely or for a specified time for
taking up and alighting passengers. Rule 203 and Rule 204 of
the Motor Vehicles Rules, 1994 provide for maintenance and
management of the parking places and make the concerned               G
local authorities responsible for the said purpose. As per the
conditions of the permit they are required to commence the
journey of their vehicles from the bus stand or place fixed for
getting and alighting passengers. Such a condition has been
imposed on the licence by the authorities under the Motor             H
    296       SUPREME COURT REPORTS                 [2013] 8 S.C.R.


A   Vehicles Act since operators would commence the journey of
    their respective vehicles on the routes from the bus stand only
    and would not stop the vehicles on the streets, causing
    inconvenience to the public. Since vehicle operators started
    using the bus stand, Nagar Panchayat passed the Resolution,
B   as already indicated, charging the parking fees for the purpose
    of maintaining of bus stand and providing other facilities. Bus
    stand, as already indicated, was constructed on the land owned
    by the Nagar Panchayat.

         7. The Constitution (74th Amendment) Act, 1992 Part IXA
C   which deals with Municipality, came into force on 20.Q4.1993.
    Article 243P(e), 2430 and Article 243W(a)(1)(4) are relevant
    and hence extracted below:
          "243P(e): "Municipal" means an institution of self-
          government constituted under Article 2430.
D
          243Q. Constitution of Municipalities.-(1) There shall be
          constituted in every State,-
          (a) a Nagar Panchayat (by whatever name called) for a
          transitional area, that is to say, an area in transition from
E
          a rural area to an urban area;

          (b) a Municipal Council for a smaller urban area; and

          (c) a Municipal Corporation for a larger urban area,
F         in accordance with the provisions of this Part:

          243W - Powers, authority and responsibilities of
          Municipalities, etc. - Subject to the provisions of this
          Constitution, the Legislature of a State may, by law,
          endow-
G
          (a) The Muni~ipalities with such powers and authority as
          may be necessary to enable them to function as institutions
          of self-government and such law may contain provisions
          for the devolution of powers and responsibilities upon
H         Municipalities, subject to such conditions as may be
 NAGAR PANCHAYAT, KURWAI v. MAHESH KUMAR 297
      SINGHAL [K.S. RADHAKRISHNAN, J.]
     specified therein, with respect to -                            A
      (i)    the preparation of plans for economic development
             and social justice;
      (ii)   the performance of functions and the
             implementation of schemes as may be entrusted           B
             to them including those in relation to the matters
             listed in the Twelfth Schedule.
     (b) The Committees with such powers and authority as
     may be necessary to enable them to carry out the
     responsibility conferred upon them including those in           C
     relation to the matters listed in the Twelfth Schedule."
     Twelfth Schedule was inserted w.e.f. 01.06.1993. Entry 17
therein reads as follows:
     "Entry 17 - Public amenities including street lighting,         D
     parking lots, bus stops and public conveniences."
      8. Nagar Panchayat is, therefore, a unit of self-government,
which is a sovereign body having both constitutional and
statutory status. Article 2430 and 243W(a)(i) and (ii) read with     E
Entry 17, confer considerable powers on the Nagar Panchayat
to carry out various schemes for economic development and
social justice. Municipalities need funds for carrying out the
various welfare activities and for the said purpose, it can always
utilize its assets in a profitable manner to its advantage so that   F
various welfare activities entrusted to it under law could be
properly addressed and implemented. Bus stand has been
provided by the Nagar Panchayat for the benefit of all vehicle
owners and the passengers, spending public money. Nagar
Panchayat has to get a reasonable return f~r its upkeep and          G
maintenance.
     9. We may, in this connection, refer to the decision of this
Court in Municipal Board, Hapur and others v. Jassa Singh
and others (1996) 10 SCC 377, wherein this Court while
interpreting the provisions of U.P. Municipalities Act, 1916 in      H
    298       SUPREME COURT REPORTS                 [2013] 8 S.C.R.


A   the light of the Constitutional (?3rd Amendment) Act, 1992
    (actually ?4th Amendment Act) upheld the right of the
    Municipality in levying the bus stand fee in respect of stage
    carriage. The operative portion of the same reads as follows:
          "Even under the recent amendment brought by the
B
          Constitution (?3rd Amendment) Act, 1992 which came into
          force w.e.f. 20-4-1993, it imposes the statutory
          responsibilities on the municipalities. Article 243-P(d)
          defines "municipal area" to mean the territorial area of a
          municipality as is notified by the Governor. Article 243-
c         W(a)(i) envisages that subject to the provisions of the
          Constitution, the legislature of a State may, by law, endow
          the municipalities with such powers and authority as may
          be necessary to enable them to function as institutions of
          self-government and such law may contain provisions for
D         the devolution of powers and responsibilities upon
          municipalities, subject to such conditions, as may be
          specified therein, with respect to the preparation of plans
          for economic development and social justice. Entry 17 of
          the Twelfth Schedule provides for public amenities
E         including street lighting, parking lots, bus-stops and public
          conveniences. Thus, the Constitution enjoins the
          appropriate legislature to provide for preparation of the
          plans for economic development and social justice
          including power to provide public amenities including street
F         lighting, parking lots, bus-stops and public conveniences.      --
          On such public amenities including bus-stops having been
          provided by the municipalities, as is a statutory duty, it is
          the duty of the user thereof to pay fee for service rendered
          by the municipality."
G      10. Vehicle owners placing reliance on the Judgments of
  this court reported in Municipal Council, Bhopal v. Sindhi
  Sahiti Multipurpose Transport Co-op. Society Ltd. and another
  (1973) 2 SCC 478 and Municipal Council, Manasa v. M.P.
  State Road Transport Corpn. And another ( 1997) 11 SCC
H 640, questioned the powers of the Nagar Panchayat in
 NAGAR PANCHAYAT, KURWAI v. MAHESH KUMAR 299
      SINGHAL [K.S. RADHAKRISHNAN, J.]
demanding the parking fee, while using the bus stand and         A
enjoying the facilities.
     11. Noticeably both the above-mentioned Judgments were
dealing with demands made prior to the Constitutional (74th
Amendment) Act, 1992 by which Part IXA was incorporated.
    12. This Court.i'n Municipal Council, Bhopal (supra), held   B
that M.P. Municipal Council Act does not empower a
municipality to pass a bye law declaring certain place as a
Municipal bus stand and cannot compel the persons plying
motor buses or for hire to park the buses anywhere within the
municipal limits except at the municipal bus stand for the C
purpose of taking up or setting down of passengers. Court
further heid that if a Municipality provides for a Bus stand
without compelling anybody to use it, a fee can be charged on
bus operators using it voluntarily. In Municipal Council, Manasa,
the question which came up for consideration was whether a o
municipal council is competent to levy toll tax on motor vehicles
in view of the provisions contained in Section 6 of the M.P.
Motor Vehicles Taxation Act, 1947, which has been extended
to the whole of M.P. by the Madhya Pradesh Taxation Laws
(Extension) Act, 1957. The Court took the view that Madhya E
Pradesh Motor Vehicles Taxation Act is a special enactment
while the Madhya Pradesh Municipalities Act is a general
enactment and that the provisions of Section 127(1)(iii) and
Section 6 are to be read in a way that both can stand together.
Consequently, the words "tax on vehicles" used in Section F
127(1)(iii) of the Madhya Pradesh Municipalities Act was held
to mean vehicles other than motor vehicles.
     13. Above-mentioned Judgments, on facts as well as on
law, do not apply to the facts of the present case, especially in
view of to the 74th Constitutional Amendment and in view of G
Section 358(7)(m) of the M.P. Municipality Act, which was not
properly addressed in those cases.
    14. We have already dealt with the scope of the 74th
Constitutional Amendment Act. Section 358(7)(m), has to be
read in the light of the Constitutional Amendment Act. Clause    H
    300       SUPREME COURT REPORTS                 [2013] 8 S.C.R.


A   7(m) of Section 358 of the Madhya Pradesh Municipalities Act,
    1961, empowers the municipality to regulate or prohibit the use
    of any ground under its control and it does not compel anybody ·
    to use it as halting place of vehicles. Section 358(7)(m) of the
    Madhya Pradesh Municipalities Act, 1961 is extracted
B   hereinbelow:
          "358(7)(m) : regulating and prohibiting the stationing of
          carts or picketing of animals on any ground under the
          control of the Council or the using of such ground as halting
          place of vehicles or animals or as a place for enactment
c         or the causing or permitting of any animal to stay and
          imposition of fee for such use."
    Article 243W(a)(i) and (ii) read with Entry 17 of the Twelfth
    Schedule and clause (7)(m) of Section 358 and the general
    principle that nobody has a fundamental right to use the land
D   belonging to another without the latter's permission or paying
    for it, if demanded, in our view, give ample powers to the Nagar
    Panchayat to impose parking fee for parking the vehicles in the
    Bus stand owned and maintained by it. Needless to say; if the
    Nagar Panchayat is demanding exorbitant or unreasonable
E   parking fee without any quid pro quo, the same can always be
    challenged in accordance with law.
          15. The High Court of Madhya Pradesh at Jabalpur
    disposed of the Writ Appeal No.147 of 2010 placing reliance
    on the Judgment of this Court in Municipal Council, Bhopal
F   (supra). The facts of Civil Appeal No. 7822 of 2013@ SLP(C)
    No.18332 of 2010 are also identical. Since we have found no
    illegality in demanding the parking fee in using the Bus stand
    in Civil Appeal No. 7822 of 2013 @ SL(C) No.20997 of 2008,
    Civil Appeal No. 7822 of2013@ SLP(C) No.18332 of 2010
G   is liable to be allowed. Consequently, both the appeals are
    allowed. The judgments of the High Court are accordingly set
    aside and the Resolution passed by the appellants imposing
    the bus stand fee is upheld. However, there will be no order as
    to costs.
H   B.B.B.                                          Appeals allowed.