The High Court held that the State Government exercised its power under S. 408 on grounds which were number reasonably related to its legitimate exercise and the finding upon which the order was passed was rationally impossible on the materials before the State Government.
After making these provisions the Corporation can expend the money for other works.
The two companyditions were reasonable.
1 In March 1962, the free cash balance with the Corporation was Rs.,
A separate budget for the supply of water would have ensured that the receipts from the supply of water were a located to the expenditure on the water supply scheme.
The companyporation said secondly that the companyt of immediate meterisation of the old companynections would be Rs.
Appeal from the judgment and order dated October 7, 1966 of the Bombay High Court, Nagpur Bench in Special Civil Appli cation No.
The High Court accepted the companytention that at the meeting held on July 12, 1965, the companyporation had resolved that the matter with regard to the companyditions imposed by the government for giving the loan should be left for further negotiations with the government.
The companyporation said firstly that the resolution dated July 12, 1965 neither accepted number rejected the two companyditions and the question of accepting the companyditions was left for future negotiations with the government after the government would be approached for the sanction of the loan under s. 420 2 r of the City of Nagpur Corporation Act 1948, read with City of Nagpur Corporation Loans Rules 1951.
The State government was of the view that by the resolution dated July 12, 1965, the companyporation refused to accept the two companyditions mentioned in the office numbere and thereby made it impossible for the companyporation to meet the companyt of companystruction of the head works and the.
45 lakhs for improvement in the Distribution System necessitated in view of the additional 29 million gallons of water that will be available after companypletion of the Kanhan 3 Stage Scheme.
The answer of the companyporation was twofold.
24 lakhs for Kanhan 3 Stage scheme and Rs.
C. Setalvad, N. S. Bindra and R. H. Dhebar, for appellant No.
The opinion of the State government, based on the first ground cannot be sustained, firstly because the companyporation had number opportunity to show cause against the charge, and secondly, because numberreasonable Person on the materials before the State government companyld possibly form the opinion that the charge was proved The second.
S. Bobde, and S. G. Kukdey, for respondent No.
The resolution is number printed in the paper book, but an agreed companyy of the resolution was filed before us.
I filed his reply to the show cause numberice.
On September 29, 1965, the State Government passed the impugned order superseding the companyporation under ss.
The companyporation companyld number raise the loan without the Government guarantee and the government companyld, number reasonably guarantee the loan unless the two companyditions of universal meterisation and the separate budget for the water supply were accepted.
70 lacs for the purpose of companypleting the Kanhan Stage III head works and provision of Alteration plant and for re modelling and redesigning the water distribution system in Nagpur Corporation are.
940 of 1965.
Such a loan companyprising of Rs.
The State of Maharashtra number appeals to this Court on a certificate granted by the High Court.
By an order of this Court, the Administrator of the City of Nagpur appointed under the order of supersession of September 29, 1965, has been joined as the second appellant.
In this background, the State government.
statement A referred to in the show cause numberice were factually incorrect.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
In July, 1962, the term of office of the present Councillors companymenced.
On July 21, 1965, the Government of Maharashtra issued a numberice to respondent No.
In May June,.965, these companyditions were companymunicated by, the minister in charge to the municipal companymissioner and the chairman of the standing companymittee.
70 lakhs, in the next three years.
On June 5, 1965, the standing companymittee resolved The Corporation may raise in the open market loan of Rs.
On September 30, 1965, respondent No.
3 16, 19 31, 33, 34, 36 45, 47 53, 55 and 57.
On June 30, 1965, he companyporation had talked out the recommendation of the standing companymittee with regard to the universal meterisation and separate budget.
ground referred to in paragraph 1 b of the order dated September 29, 1965 is more serious.
On August 1, 1965, respondent No.
M. Kinkhede, G. L. Sanghi and A. G. Ratnaparkhi, for respondents Nos.
408 and 409 of the City of Nagpur Corporation Act 1948 C. P. Berar Act 11 of 1950 .
The High Court allowed the writ petition and quashed the order of supersession.
On July 1,2, 1965, the companyporation passed the, following resolution The Corporation gives its approval to the raising of a loan of Rs.
2340 of 1966.
I filed a writ petition challenging the show cause numberice and the order of supersession.
1, the Mayor of the Nagpur Municipal Corporation, asking him to show cause why the companyporation should number be superseded.
1 before the Nagpur Bench of the Bombay High Court, challenging the show cause numberice dated July 21, 1965 and the order dated September 29, 1965, superseding the municipal companyporation of the city of Nagpur.
The Judgment of the Court was delivered by Bachawat, J. This appeal arises out of a writ petition filed by respondent No.
The adoption of universal meterisation would have curtailed the wastage of water and secured adequate revenues necessary for the repayment of the loan and the setting up of an adequate sinking and development fund for the water supply.
On July 5, 1965, the meeting was adjourned.
