ORDER
B. Seshasayana Reddy, J.
1. Puttur Gram Panchayat is the petitioner and it is represented by its Sarpanch. Conversion of Puttur Grampanchayath into Municipality is assailed in the writ petition. Consequently, cancellation of resolutions passed by the Grampanchayath opposing the upgradation of Grampanchayath to Municipality are also assailed in the writ petition.
2. The Collector and District Magistrate-3rd respondent sent proposals regarding upgradation of Putur and surrounding eight Grampanchayats namely 1) Cherlopalli 2) Chinnarajukuppam 3) Radhapalem 4) Veerappareddipalem (Bathalavari Kandriga) 5) Namdimangalam and 6) Pillaripattu 7) Thimmapuram of Puttur Mandal and 8) Kondalcheruvu of Narayanavanam Mandal as Puttur municipality. He also furnished a brief gist of area, population, density, economic importance and other factors to substantiate the proposals for conversation of the Grampanchayats as Municipality. Thereupon, the Government issued Memo No. 2107/Pts-IV/A1/2005-1, dated 28-2-2005 to the District Panchayath Officer to furnish resolutions of all the Grampanchayaths for taking further action. In turn District Panchayath Officer-4th respondent requested the Divisional Panchayath Officer to obtain the resolutions of the said Grampanchayaths. A Gram Sabha was conducted in Putur Grampanchayath on 13-3-2005. The proposals for conversion of Grampanchayath to Municipality was opposed by the Grama Sabha. Thereafter, Puttur Grampanchayat passed a resolution on 14-3-2005 opposing conversion of the Grampanchayat to Municipality. Of the nine Grampanchayaths which are proposed to be upgraded as Putur Municipality, three Grampanchayats namely Puttur, Veerappareddipalem and Kondalcheruvu opposed the proposals and passed resolutions to that effect. The Government of Andhra Pradesh, Panchayath Raj and Rural Development (Pts.IV) Department-1st respondent issued show-cause notices to the three Grampanchats as to why the resolutions passed by them cannot be cancelled. Putur Grampanchayat submitted explanation to the show-cause notice. The Government after considering the explanation and the material placed on record cancelled the resolutions passed by Putur Grampanchayat and Veerappareddipalem Grampanchayats in exercise of power conferred under Section 246(1) of the Andhra Pradesh Panchayat Raj Act, 1994 (Act 13 of 1994) and issued G.O.Ms.No. 229 dated 23-6-2005 de-notifying Puttur Grampanchayat and the surrounding Grampanchayats in exercise of the powers conferred under Clause-1 of Sub-section (2) of Section 3 of Andhra Pradesh Panchayat Raj Act, 1994 (Act 13 of 1994). Thereafter G.O.610 dated 24-6-2005 came to be issued notifying the areas covered under the area of Putur Grampanchayat Cheriopalli Grampanchayat, Chinnarajukuppam Grampanchayat, Rachapalem Grampanchayat, Veerappareddipalem Grampanchayat, Nadimangalam Grampanchayat, Pillaripattu Grampanchayat and Thimmapuram Grampanchayat of Chittoor District as smaller urban area. Thereby Putur Municipality is deemed to have been constituted under Sub-section (1) of Section 3 of the Act. Assailing the conversion of Puttur Grampanchayat to Municipality, the instant writ petition has been filed by invoking the jurisdiction of this Court under Article 226 of the Constitution of India.
3. Sarpanch of the Grampanchayat is sworn to the writ affidavit. It is stated in the writ affidavit that the proposals for conversion of Putur Grampanchayat to Municipality have been submitted at the instance of MLA of Puttur. It is further stated that 40% of the population of Putur Grampanchayat are weavers and their livelihood is weaving, and not textile as stated by the Collector-District Magistrate. Because of severe drought situation in and around Puttur Mandal for the last four years, the agricultural activities in the Grampanchayat have come to a grinding halt and therefore, the agriculturists migrated to Puttur village and eking out there livelihood by manual labour. In nutshell, cancellation of the resolutions passed by the Grampanchayat opposing conversion of the Grampanchayat into Municipality and issuance of consequential order in G.O. Ms. No. 610, dated 24-6-2005 are arbitrary, discriminatory, mala fide and contrary to law. Paras 8 and 9 of the writ affidavit read as follows :
“It is submitted that since the proposals for upgradation of Puttur Gram Panchayat into Municipality was sent by the District Collector, vide his letter dated 14-2-2005, at the instance of local MLA Sri Gaali Muddukrishnama Naidu, with false and misleading information that the citizens of the Puttur major Gram Panchayat along with the surrounding 8 minor Grampanchayats are depending upon the trade and that Puttur is an important trading center for textile and consumer goods and that the proposed area has urban outlook and it is fit for conversion as a Municipality, the Government have mechanically accepted the said proposals and issued the said notice dated 24-5-2005 calling upon the petitioner and other two Gram Panchayats to show-cause as to why the resolutions passed by them opposing the upgradation of Puttur Gram Panchayat into Municipality cannot be cancelled, and since the whole issue is politically motivated at the instance of the local MLA of Puttur and the Government have already predetermined to upgrade Puttur Gram Panchayat into Municipality, even though there are no bona fides in the said proposals submitted by the District Collector, the petitioner has filed W.P.No. 12005 of 2005 in this Hon’ble Court on 7-6-2005 to call for the records relating to the Letter Roc.No. 1394/2001 a5 (Pts) dated 14-2-2005 of the Collector and District Magistrate, Chittoor and as well as the Government Memo No. 2380/Pts. IV/A1/2005-4 dated 24-5-2005 and after perusing the same to set aside by declaring them as arbitrary, unjust and contrary to law and with all other consequential benefits.
It is submitted that as apprehended by the Petitioner, the first respondent has accepted the proposals of the District Collector and issued the impugned orders in G.O. Ms. No. 228, PR & RD (Pts.IV) Dept., dated 23-6-2005 mechanically cancelling the resolutions dated 14-3-2005 and 2-6-2005, passed by Puttur Gram Panchayat and as well as Veerappareddipalem Grampanchayat, without even considering the detailed explanation dated 2-6-2005 submitted by the petitioner, in support of the resolution dated 2-6-2005″.
4. Respondents 1 and 2 filed counter-affidavits. One D. Rama Krishna, Deputy Secretary to Government, has sworn to the counter-affidavit filed on behalf of the 1st respondent. It is stated in the counter-affidavit that a show-cause notice was issued to the petitioner Grampanchayat by the Government in Memo No. 2380/Pts.IV/A1/ 2005-4, dated 24-5-2005 as to why the resolutions passed by the petitioner Grampanchayat should not be cancelled. After considering the explanation of the Grampanchayat, the Government issued G.O. Ms. No. 228 PR & RD (Pts.IV) Dept., dated 23-6-2005 cancelling resolutions of the Grampanchayat, dated 14-3-2005 and 2-6-2005. It is further stated in the counter-affidavit that upgradation of the petitioner Grampanchayat into Municipality is as per law.
5. One N.P. Ch. Bhaskara Rao, Assistant Secretary to Government, in Municipal Administration Department, has sworn to the counter-affidavit filed on behalf of the 2nd respondent. It is stated in the counter-affidavit that the District Collector, Chittoor in his letter No. 1394/2001/ A5 (Pts)., dated 14-2-2005 has submitted the particulars of Puttur Gram Panchayat including 8 surrounding Gram Panchayats for conversation as Municipality. As per Rule 3 of A.P. Transitional Area and Smaller Urban Area Factor Criteria Rules, 1994, a Transitional Area has been notified as provided under Clause 42-(a) of Section 2 of the A.P. Municipalities Act, 1965. It is trite to refer Para 10 of the counter-affidavit and it is thus :
“Basing on the report received from the Commissioner and Director of Municipal Administration, and the said rules, the issue has been examined and circulated to Panchayat Raj Department for their consent. The Panchayat Raj Department has agreed to constitute the Puttur Gram Panchayat as Smaller Urban Area under Clause (42-a) of Section 2 of the A.P. Municipalities Act, 1965 since the particulars of the Gram Panchayat has fulfilled the criteria fixed. Accordingly the Government in Municipal Administration and Urban Development Department have declared the areas covered under the erstwhile Puttur Gram Panchayat of Chittoor District as smaller Urban Area with immediate effect and thus Puttur Municipality is deemed to have been constituted under Sub-section (1) of Section 3 of the A.P. Municipalities Act, 1965 in the A.P. Gazette vide G.O. Ms. No. 610 M.A. & UD (Elec. II) Dept., dated 24-6-2005 and accordingly the Commissioner of Printing Department has published the same in the A.P. Gazette. Subsequently, in G.O. Ms. No. 612 M.A. & UD (Elec. II) Dept., dated 24-6-2005, Sub-section (1) of Section 7 of the said Act. Government have appointed Executive Director, B.C. Corporation, Chittoor as Special Officer to the newly constituted Puttur Municipality to exercise the powers and discharge the duties and perform the functions of the council and its chair person, its wards committees, its committees referred to in Sections 43 and 74 of the said Act and Commissioner. Accordingly, the Execution Director, B.C. Corporation, Chittoor as Special Officer has taken over the charge of Puttur Municipality as Special Officer to perform the duties as assigned”.
6. Heard learned Counsel for the petitioner and learned Government Pleader for Panchayat Raj and Rural Development appearing for the respondents.
7. The learned Counsel appearing for the petitioner submits that the notification issued in G.O. Ms. No. 610, dated 25-6-2005 is not in accordance with the provisions of the Andhra Pradesh Municipalities Act, 1965 and Andhra Pradesh Transitional Area and Smaller Urban Area Fixation of Criteria Rules, 1995. He nextly submits that notification issued in G.O.Ms.No. 610 is also bad for the reason of non-mentioning the grade of the Municipality. He further contends that the explanations offered by the Grampanchayat to the show-cause notice for conversion of the Grampanchayat to Municipality were not properly considered by the Government and thereby the Government erred in upgrading the petitioner Grampanchayat to Municipality. In support of his submissions, reliance has been placed on the Division Bench decision of our High Court in D. Suryanarayana v. Government of A.P. Municipal Administration Department, (DB). In elaborating his arguments, he refers Clause 42-a of Section 2 of A.P. Municipalities Act, 1965 (for brevity the Municipalities Act) to convince that the notification issued in G.O. Ms. No. 610 is not in accordance with the said clause.
8. Per contra the learned Government Pleader for Panchayat Raj and Rural Development submits the functions discharged by the Government in conversion of Grampanchayath into Municipality are administrative and not quasi-judicial and therefore, the authority is not expected to give detailed reasons while discharging its administrative functions. He further submits that the notification challenged in the decision relied on by the petitioner and the notification issued in the instant case are distinct and the notification issued in the instant case is in accordance with Clause 42-(a) of Section 2 of the A.P. Municipalities Act, 1965. In support of his submissions, reliance has been placed on the decision of a Division Bench of our High Court in K. Nagabhushanam v. Collector, Krishna District, .
9. Proposals for conversion of upgradation of Puttur Grampanchayat and the eight other Grampanchayats into Puttur municipality were sent by the District Collector, Chittoor. Along with the proposals, he furnished statistics to substantiate the proposals. Thereafter, the Government directed the District Panchayath Officer, Chittoor, to furnish resolutions of all the Grampanchayat for taking necessary actions. Among the nine Grampanchayats, only three Grampanchayats including the petitioner Grampanchayat opposed the conversion of Grampanchayath into Municipality and passed resolutions to that effect. The Government after issuing show-cause notice to the three Grampanchayath including the petitioner Grampanchayath cancelled the resolutions and there after de-notified Puttur Grampanchayath under G.O. Ms. No. 228, dated 23-6-2005. Later issued G.O. Ms. No. 610 dated 24-6-2005 notifying the area covered under erstwhile Puttur Grampanchayat and other surroundings eight Grampanchayats as smaller urban area. The principal submission of the learned Counsel for the petitioner is that the notification issued in G.O. Ms. No. 610 is not in consonance with Clause 42(a) of Section 2 of the Andhra Pradesh Municipalities Act, 1965. Copious references have been made to the decision of a Division Bench of our High Court in D. Suryanarayana’s case (supra) above to buttress his submission. Chapter 1 of Andhra Pradesh Municipalities Act deals with the constitution of Municipalities. The entire chapter consists of only two sections i.e., Sections 3 and 3-A. Section 3 is relevant and it reads as follows :
“Constitution of Municipalities :(1) Where a notification is issued specifying an area as a smaller urban area under Clause (42-a) of Section 2, a Municipality shall be deemed to have been constituted for such area:
Provided that a Municipality under this clause may not be constituted in such urban area or part thereof as the Governor may, having regard to the size of the area of the Municipal Services being provided or proposed to the provided by an industrial establishment in that area and such other factors as he may deem fit, by public notification, specify to be an Industrial Township.
(2) Where any local area which is within the jurisdiction of any other local authority is constituted as or included in a Municipality, the Government may pass such orders as they may deem fit as to the transfer to the Council of such Municipality, or disposal otherwise, of the assets or institutions of any such local authority in the local area and as to discharge of the liabilities, if any, or such local authority relating to such assets or institutions.
(3) Where any local area is excluded from a Municipality and included within the jurisdiction of any other local authority, the Government may pass such orders as they deem fit, as to the transfer to such local authority or disposal otherwise, of the assets or institutions of such Municipality in the local area and as to the discharge of the liabilities, if any, of such municipality relating to such assets or institutions.
(4) Every local area which at the commencement of the Andhra Pradesh Municipal Laws (Amendment) Act, 1995 has been constituted into a Municipality shall, until the criteria for specifying a transitional area and small urban area are prescribed be deemed to have been specified as a smaller urban area under Clause (42-a) of Section 2 and a Municipality of the same grade existing as at such commencement shall be deemed to have been constituted under this Act.
Provided that after the criteria for specifying a transitional area and smaller urban area are prescribed, if a local area which is deemed to have been specified as a smaller urban area does not satisfy the criteria therefore, but satisfies the criteria, for specifying as a transitional area then it shall be competent for the Governor to specify such local area as a transitional area and thereupon a Nagar Panchayat shall be deemed to have been constituted for such transitional area”.
10. What is required under Section 3 is issuance of notification specifying the area as smaller urban area under Clause 42-(a) of Section 2. Once notification is issued, municipality shall be deemed to have been constituted for such area. Clause 42(a) defines transitional area or small urban area and it reads as follows :
“(42-a) ‘transitional area’ or a ‘smaller urban area’ means such area as the Governor may, having regard to the population of the area, the density of the population therein, the revenue generated for local administration, the percentage of employment in non-agricultural activities the economic importance or such other factors as he may deem fit, specify by public notification for the purposes of this Act, subject to such rules as may be made in this behalf.
11. It is the contention of the learned Counsel for the petitioner that the notification issued in G.O. Ms. No. 610, dated 24-6-2005 is not in consonance of Clause 42(a) of Section 2. Much emphasis has been laid on the decision of a Division Bench of our High Court in D. Suryanarayana’s case (supra). The notification that fell for consideration in the cited decision reads as follows :
“In exercise of the powers conferred by Clause (42-a) of Section 2 of the Andhra Pradesh Municipal Act, 1965 (Act VI of 1965) the Governor of Andhra Pradesh having regard to the factors mentioned in the
Andhra Pradesh, Transitional area, and smaller urban areas (fixation of Criteria) Rules, 1995 hereby specifies the areas comprised in the Gram Panchayats mentioned in the Schedule hereunder to be the Palasa-Kasibugga Nagar Panchayat with immediate effect.
SCHEDULE
Sl.No. Name of the Grampanchayat
(1) Palasa
(2) Kasibugga
(3) Mogilipadu
(4) Chinabadam
(5) Thallabadra
(6) Antharakudda
12. While considering the said notification it has been observed by the Division Bench of our High Court in the cited decision that there was absolutely no indication in the impugned notification as to the specification of the transitional area. In other words, the State ought to have first of all specified this Grampanchayat as transitional area and such transitional area would be deemed to be constituted as Nagar Panchayat under Section 2.
13. Let me refer the notification issued in G.O. Ms. No. 610 dated 24-6-2005 and it is thus:
“In exercise of the powers conferred by Clause (42-a) of Section 2 of the Andhra Pradesh Municipalities Act, 1965 (Andhra Pradesh Act 6 of 1965), read with Rule 3 of the Andhra Pradesh Transitional Area and Smaller Urban Areas (Fixation of Criteria) Rules, 1995 issued in G.O. Ms. No. 39, M.A. & U.D. Department, dated the 3rd February, 1995, the Governor of Andhra Pradesh hereby specifies the areas covered under the erstwhile Puttur Gram Panchayat, Cheriopali Gram panchayat, Chinnarajukuppam Grampanchayat, Rachapalem Grampanchayat, Veerappareddipalem Grampanchayat, Nadimangalam Grampanchayat, Pillaripattu Grampanchayat and Thimmapuram Gram panchayat of Chittoor District as smaller urban area with immediate effect, and thus Puttur Municipality is deemed to have been constituted under Sub-section (1) of Section 3 of the aforesaid Act.”.
14. A close reading of the notification reveals that the area covered under the erstwhile nine Grampanchayats have been declared as small urban area with immediate effect. It is inconsonance with Clause 42(a) and Section 2 of the Municipalities Act. It is clear from the notification that firstly the area covered under the erstwhile Grampanchayath has been notified as small urban area and thereafter, the area is deemed to have been constituted as Municipality. The notification in the decision cited above and the notification challenged in the case on hand are distinctive. Therefore, the cited decision has no application to the facts of the case on hand. I am of the considered opinion that the Government rightly first declared the area covered under the erstwhile Grampanchayats as smaller urban area with immediate effect. Once such a notification is issued, the Municipalities would be deemed to have been constituted under Section 3 of the Act. With regard to the next submission that the explanation submitted by the Grampanchayat has not been considered extensively, I do not see any substance in his contention for the reason that the functions discharged by the Government with regard to conversion of Grampanchayat into the Municipality are administrative and are not quasi judicial and therefore authorities are not expected to give detailed reasons.
15. A feeble argument has been advanced that grade of the Puttur Municipality has not been notified and therefore, the notification impugned in the writ petition is bad. Section 2(22) of the Act defines Municipalities and it reads as follows:
“Municipality means Municipality of such grade as declared by the Government from time to time by notification in Andhra Pradesh Gazette on the basis of its income and such other criteria as may be prescribed”.
16. The question of grading the municipality arises after constitution of the municipality and not simultaneously. Therefore, the submission made by the learned Counsel for the petitioner has no substance.
17. In the result, the writ petition is devoid of merits and accordingly, the same is hereby dismissed. No order as to costs.