 the territorial councils bill, 1956(as introduced in lok sabra)  lok sabra corrige~ma to the territorl'!l counciis bill, 1956 (as introduced in 10k sabha)1 page 5, in the marginal heading to clause 19,-for "penalty" read "fin2lity" 2 page 20, line 14,-for "rules" read "bye-laws" 3 page 21, line 3,-for "to these provisions" read "the provisions of thisact ll 4 page 23, line 2,-ill "section 63" ~ "section 64" nej,r delhi, the 14th december, 1956 ai't1cletot-mt:lftna4·  ,, !!i3~,lif'",,~ '," ' '",'  " _" of the owner of such place notwithstanding 1fa~' ' no common regulation for the concourse of buyers and sellers and whether or not any control il exerciaed over the business of,  the territorial councils bill, 1956 a billto provide for the establishment of territorial councils in certain union territories be it enacted by parliament in the seventh year of the republic of india as follows:- chapter i preliminarys 1 (1) this act may be called the territorial councils act, 1956 short tide (2) it extends to the union territories of ,himachal pradesh, ~~e= manipur and tripura ment (3) it shall come into force in each of the union territories on such date as the central government may, by notification in the 100ftlcial gazette, appoint; and difterent dates may be appointed for different union territories 2 in this act, unless the context otherwise requires-(1) "administrator" means the administrator of a union territory; 15 (2) "article" means an article of the constitution; (3) "building" includes a house, out-house, stable, latrine, urinal, shed hut, wall (other than boundary wall) and any other structure, whether of masonry, bricks, wood, mud or other material but does not include any portable or t~mporary shelter; :ao (4) "constituency" means a territorial council constituency provided by order made under section 4 for the purpose of  elections to the territorial council; (5) "market" includes any place where persons assemble for the sale of or for the purpose of exposing for sale, meat, fish, 11 fruit, vegetables, animals intended for human food or any other articles of human food' whatsoever with or without the consent of the owner of such place notwithstanding that there may be no common regulation for the concourse of buyers and sellers and whether or not any control is exercised over the business of or the persons frequenting, the market by the owner of the place or by any other persons; (6) "01bcial gazette" means tb:e gazette of the union territory concerned; (7) "person" does not include a body of persons; s (8) "territorial council" means a territorial council constituted under this act; (9) "union territory" means any of the union territories of  himachal pradesh, manipur and tripura; (10) "vehicle" includes a carriage, cart, van, dray, truck, 10 hand-cart, bicycle, tri-cycle, motor vehicle and every wheeled conveyance which is used or is capable of being used on a street  chapter n constitttt'ion op teurrorial council!3 (1) for each union territory there shall be a territorial~' council as from such date as the administrator may, by notiftoation in the oftlcial gazette, appoint in this behalf cobltitution of territorial coun~ cui and their com· poaidoq (2) the total number of seats in the territorial council tg be ftlled by persons chosen by direct election on the basis of adult suffrage from territorial constituencies shall be forty in the cue of ao the territorial councll of himachal pradesh add thirty in the cue of the territorial council of manipur or of tripura: provided that of the total number of such seats in the territorial council of himachal pradesh twelve seats shall be reserved for the scheduled castes aj (3) the central government may nominate not more than four persons to be members of any territorial council 4 the central government shall, by order, determine-delimitation of codltitu· edciea (a) the constituencies into which a union territory shall be divided for the purpose of election of members to the territorial 30 council of ,that territory; (b) the extent of each constituency; (c) the number of seats allotted to each constituency; and (d) the number of seats, if any, reserved for the scheduled castes in each constituency in tpe union territory of himachal 33 pradesh 5 the central government may, from time to time, by order, alter or amend any order made under section 4 power to alter or imei1d deli mitationorcic:n "sa person shall not 'be qualified to be chosen 88 a member of a qualiftc:adona territorial council of a union territory unless he 'is an elector for t':~:-811y territorial council constituency in that territory and, in the case of a seat reserved for the scheduled castes is also a member 5 of those castes 7 a person shall be disqualified for being chosen as a member i?ilqualiftc:aof a territorial couhcil if he is for the time beingdisquaufied for :=b~p 'being chosen as a member of either house of parliament 8 (1) the persons entitled to vote at elections of members of 8 electors idd '10 territorial council shall be the persons entitled, by virtue of the ~~ provisions of the constitution and the representation of the people 43 of 19;0 act, 1950, to be registered as voters at elections to the house of the people (2) so much of the electoral roll for any parliamentary con-15 stituency for the time being in force as relates to the areas comprised within a constituency formed under section 4 shall be deemed to be the electoral roll for that constituency for the purposes of this act  • (1) every person whose name is, for the time being, entered riaht to ~ in the electoral roll of a constituency shall be entitled to vote at the yote election of a member of the territorial council from that constituency - (2) every person shall give one vote and no more to anyone candidate at an election but in plural member constituencies every elector shall have as many votes as there are members to be elected :as 10  theeledion of members of a territorial council shall be held election of in accordance with rules made under section 20, on such date or memben dates as the administrator may, by notification in the oftlclal guette, direct: pro'vided that a casual vacancy shall be filled as soon as maybe 30 after the occurrence of the vacancy: provided further that no election shall be held to fill up a casual vaca·ncy occurring within four months prior to the holding 'of a aeneral election under this section 11 the names of all persons elected or nominated to be members notlftctdod 3ft of a territorial council shall be published by the administrator in 0elf ~uib of 7 ecttodi the official gazette   12 (1) save as otherwise provided in this section, the tenn of tenn of oftice of a member of a territorial council shall be five years and ~~~ shall commen~e from the date of the notification of his election 4- or nomination under section 11 or from the date on which the 'vacancy in which he is elected or nominated has occurred, which:-ever date is later: provided that the central government may, when satisfied that it is necessary in order to avoid administrative difficulty, extend the term ot office of all the elected members of a council by such 5 period, ,not exceeding one year, as it thinks fit (2) the term of office of a member elected to fill a casual vacancy shall commence from the date of election and shall continue so long only a3 the member in whose place he is elected would have been entitled to hold office if the vacancy had not occurred 10 disputes u to elections 13 (1) no election of a member shall be called in question except· by an election petition presented to the court of the district judge having jurisdiction in the area in which the constituency concerned is situated, within thirty days from the date of the notification of tne result of the election 15 (2) an election petition calling in question any such election may be presented on one or more of the grounds specified in section 15 by any candidate at such election or by any elector of the constituency (3) a petitioner shall join as respondents to his petition kllthe 20 candidates at the election (4) an election petition-(a) shall contain a concise statement of the material facts on which the petitioner relies; (~) shall, with sufficient particulars, set forth the ground or 25 grounds on which the election is called in question; and (c) shall be signed by the petitioner and verified in the manner laid down in the code of civil procedure, 1908 for the s of 1908 verification of pleadings relief that maybe giaimed by petitioner 14 a petitioner may, in addition to claiming a declaration that 30 the election of all or any of the returned candidates is void, claim a further declaration that he himself or any other candidate has been duly elected grounds on which an election may be ca11cdin question 15 the election of a returned candidate may be called in question on anyone or more of the following grounds, namely:-35 (a) that on the date of his election the returned candidate was not qualified to be elected, or was disqualified for being elected, as a member under this act; or (b), that the ,nomination paper of any candidafl at the election has been improperly rejected; or 40 (c) that the result of the election has been materially affected by the improper acceptance of a nomination paper or by the improper acceptance or refusal of a vote or by any other cause! $oft,ol 16 the procedure provided in the code of civil procedure, 1908 procedure to in regard to suits shall be followed by the court of the district judge, ~ ~~ as far as it can be made applicable, in the trial and disposal of an trtet judte· election petition under this act s 1'7 (1) at the conclusion of the trial of an election petition, the decltion!>f court of the district judge shall make an order-~~ittr1ct (a) dismissing the election petition; or (b) declaring the election of all or any of the returned candidates to be void; or 10 (c) declaring the election of all or any of the returned candidates to be void and the petitioner or any other candidate to have been duly elected (2) if any person who has filed an election petition has, in addition to calling in question the election of the returned candidate, claimed is a declaration that he himself or any other candidate has been duly elected and the court of the district judge is of opinion-(a) that in fact the petitioner or such other candidate received a majority of the valid votes, or (b) that but for the votes obtained by the returned candidate 20 the petitioner or such other candidate would have obtained a majority of the valid votes, the court of the district judge shall after declaring the election of the returned candidate to be void declare the petitioner or such other candidate, as the case may be, to have been duly elected 2s 18 if during the trial' of an election petition it appears that there procedure is equality of votes between any candidates at the election and that ~~ 0!r the addition of a vote would entitle any of those candidates to be vote •• declared elected, then the court of the district judge shall decide between them by lot and proceed as if the one on whom the lot falls 30 had received an additional vote 19 (1) an order of the court of the district judge on an election penalty of pttition shall be final and conclusive decision • (2) an election of a member not called in question in ac~ordance with the foregoing provisions shall be deemed to be a good and 3s valid election 20 the central government may make rules to regulate all or power to any of the following matters for the purpose of the holding of elec- =~ tions of members under this act, namely:-the election of memben (a) the manner of the splitting up of electoral rolls for 40 parliamentary constituencies into parts for the purpose of constituting' one or more of such parts into the electoral roll for a constituency; and the officer or authority by whom such splitting up is to be carried out;  (b) the drawing up of the programme of' election; (c) the appointment of returning officers, presiding and polling officers for election; (d) the nomination of candidate3 and the scrutiny of such nominations; (e) the deposits to be made by candidates and the time and manner of making such deposits; 10 (i) the withdrawal of candidatures; (g) the appointment of 'agents of candidates; (h) the time and manner of, holding elections; (i) the general procedure at the elections inc1udin:;! the time, place and hours of poll and the method by which votes shall be cast; is (11 the fee to be paid on an election petition; (k) any other matter relating to elections or election disputes in respect of which the central government deems it necessary to make rules under this section or in respect of which this act makes no provision or makes insufficient provision and 20 provision is, in the opinion of the central government necessary incorporation of territorial councils 21 a tertitorial council shall, by the name of the union territory for which it is constituted, be a body corporate and shall have perpetual succession and a common seal, with power to acquire, hold 25 and dispose of property, and to contract, and may by the said name sue and be sued chairman and vice-chairman 22 (1) a territorial council shall, as soon as may be, choose two members of the council to be respectively chairman and vice-chairman thereof and, so often as the office of chairman or vice- 30 ichairman becomes vacant, the council shall choose another member to be chairman or vice-chairman, as the case may be: provided that the central government may nominate the first chairman who shall hold office for a period not exceeding -three ~~ ~ (2) the chairman of the council shall be a whole-time functionary and will be entitled to such salary or allowances as may be fixed by the central government oath or affirmation by members 23 every member of a territorial council shall, before taking his seat, make and subscribe at a meeting of the council, an oath 40 or aftlrmation in the prescribed form 24 (1) no person shall be a member both of parliament and of vacation of the territorial council of a union territory, and if a person is chohn seats a member both of parliament and of such council, then at the expiration of 14 days from the date of publication in the gazette of 5 india or an the o~cial gazette, whichever is later, that he has been so choser!, that person's seat in the territorial council shall become vacant, unless he has previously resigned his seat in the parliament (2) if a member of the territorial council of a union territory-(a) becomes subject to any disqualification mentioned in 10 section 7, or (b) resigns his seat by writing under his hand addressed to the chairman, his seat shall thereupon become vacant (3) if during six successive months, a member of a territorial 15 council is, without permission of the council, absent from all meetings thereof, the council may declare his seat vacant (4) if any question arises as to whether a member has become subject to any of the disqualifications mentioned in section 7, it shall be referred to the district judge having jurisdiction in the area in 20 which the constituency concerned is situated, and his decision shall be final 25 members of a territorial council shall be entitled to receive salaries and such salaries or allowances, if any, as may be determined by the ~o:~bcrs central government 25  26 every person shall be liable for the loss, waste or misappro- liability of priation of any money or other property belonging to a territorial members council, if such loss, waste or misappropriation is a direct consequence of his neglect 0' misconduct while a member of the territorial council and a suit for compensation may be instituted 30 against him by the council with the previous sanction of the central government, or by the administrator with the previous sanction of the central government 27 every member of a territorial council shall be deemed to be members to a public servant within the meaning of section 21 of the indian penal : g:e:~:lic 3s cocle servants 28 subject to such exceptions and conditions as the central t::r=~of government may make and impose, the following matters shall be councils under the control and administration of a territorial council, namely:-(i) the maintenance and management of such property, movable and immovable, and institutions, as may be transferred to that council; 5 (ii) the construction, repair and maintenance of such of the roads, bridges, channels, buildings and tanks as may be transferred to the council; (iii) the planting and preservati6n of trees and avenues; (iv) the regulation and prohibition of the driving, riding or 10 leading of animals or vehicles of any particular kind or the driving of carts and carriages exceeding a prescribed weight along any road under its jurisdiction; (v) the construction and maintenance of rope-ways, tramways, and other means of transport with the previous sanction 15 of the central government; (vi) the establishment, maintenance and management of primary and secondary schools and the construction and repair of all buildings connected with these institutions; training of teachers and establishment of scholarships; 20 (vii) the establishment and maintenance of pounds, including such functions under the cattle trespass act, 1871, as may be transferred to the council; ,(viii) the establishment, mainten~nce and management of hospitals and dispensaries, asylums and poorhouses, other than 25 those managed by the central government; (u) the establishment, maintenance and management of markets and fairs, rest-houses and encamping grounds and the construction, repair and maintenan~e of all buildings connected with these institutions; 30 (x) the regulation and control of inns and innkeepers; (xi) the supply, storage and prevention from pollution of water for drinking, cooking and bathing purposes; (xii) the construction, repair and maintenance of embankments, and the supply, storage and control of water for agricul- 35 itural purposes; (xiii) the preservation and reclamation of soil and the drainage of swamps; (xiv) the preservation, protection and improvem~nt of live-stock and prevention of animal diseases, and veterinary 40 training and practice; (xv) prevention of cruelty to animals; (xvi) public health and sanitation; (xvii) registration of births, marriages, and deaths; (xviii) fairs and agricultural and industrial exhibitions, s and the establishment and maintenance of model farms; (xix) the management of such ferries as may be entrusted to the charge of the council; (xx) the initiation, inspection and control of relief works; (xxi) the superintendence and control of panchayats and the 10 making of grants to them; (xxii) any other local works or measures likely to promote the health, comfort, convenience and interests of the public or the agricultural or industrial prosperity of the territory; and (xxiii) any other matters which the central government is may declare to be fit and proper matters to be taken under the control and administration of the council  chapter iv procedure and staff of territorial councils29 a territorial council shall meet for the conduct of business ~~'!~ of 20 at least once in every two months and shall, with the previous approval of the administrator, make its rules of business with respect to the summoning, notice, place, conduct and adjournment of such meetings, and generally with respect to the mode of transacting and managing the business of the council as it may think fit, subject 2s to the following conditions-(i) the chairman or, in his absence, the vice-chairman, may convene a meeting whenever he thinks fit and shall, upon a requisition made in writing by not less than one-fifth of the members of the council, convene a meeting within a period of one month from the date of receipt of such requisition; 35 (ii) the day, time and place of the meeting shall be fixed by the chairman; (iii) every meeting shall be open to the public, unless a majority of the members present thereat decide by a resolution that any inquiry or deliberation pending before the council is such as should be held in private; (iv) if at any time during a meeting it is brought to the notice of the chairman that the number of members present inclusive of the chairman falls short of one-fifth of the whole number of members, the chairman shall adjourn the meeting to some other day, ftxidgsuch time and place for the same as he shall think convenient, and: the bub:iness which remains undisposed of at such meeting shall be disposed of at the adjourned meeting, or if the latter meeting should again be adjourned, at any subsequent adjourned meeting whether there is a quorum s present thereat or not; (v) at least seven clear days' notice shall ordinarily be given of every meeting, other than an adjourned meeting, but in cue of uj'iency any such meeting may be called upon a notice of not lea than three clear days; of adjourned meetings such pre- 10 vious notice shall be given as shall be practicable; (vi~ no buiiness shall be transacted at any meeting other than the bll5inesi specified in the notice or supplementary notice; (wi) the minutes of the proceedings of the council shall be drawn up foreaeb meetmg, shall be signed by the chairman and 15 shall at all reaaonable times be open to inspection at the office of the council by any member free of charge and by any other person on payment of a fee of eight annas; (viii) a member shall not vote or take part in the dis(!ussion of any matter before a meeting or ask any question concerning zo any matter in which he has directly or indirectly, by himself or by his partner, any share or interest or in which he is professionally interested on behalf of a client, principal or other person; explanation: for the purpose of this clause a member shall not be deemed to have any share or interest in a contract or z5 employment by reason only of his having any share or interest in-(a) any lease, sale or purchase of land or any agreement for the same; or (b) any agreement for the loan of money or any security 30 for the payment of money only; or (c) any newspaper in which any advertisement relating to the affairs of the territorial council is inserted; or (d) any joint stock company which shall contract with or be employed by the territorial council; or (e) the occalional sale to the council to a value not 3s exceeding in anyone official year two thousand rupees, of ; any article in which he regularly trades (i,r) a declaration by, the chairman that a proposition has been canted and any entry to that effect in the minute-book 40 shall, uniesl a poll· is' demanded at the time of such declaration by not 1  than four members, be conclusive evidence of'the fact, without proof of the number of votes given for or against the proposition; and (x) when a poll is taken, the vote of each member present and voting upon the proposition shall be taken by tellers appointed by the chairman and the names of the members voting respectively for or against the proposition shan be recorded in the minute-book 30 (1) the administrator may attend, and if he so desires, right of address, any meeting of the territorial council ~~n;:::d and address 10 (2) when the administrator attends any such meeting, he shall meetings of preside over the same ~i~ 31 a territorial council may, from time to time, appoint out of committees its own body such and so many committees for the efficient discharge of its duties, as may be necessary 1532 (1) for every territorial council there shall be a chief oflicen and executive officer who shall be appointed by the administrator sta1f (2) if a resolution for the removal ,of the chiefexecutiveoftlcer' is passed at a meeting of the territorial council by a majorifiy of not less than three-fourths of the members present and voting, the 20 administrator shall remove him forthwith (3) ~e appointment of the principal 'officers in charge of engineering, health services and education shall be made by the council with the approval of the administrator   (4) the 'council shall, in addition, appoint such &td as may be 25 dec8sury for the proper and ·eliciant execution· of us duties and make regulatioj'ls lfor their coddwoils of service '(5) 'l'he power of appointing ofticers 'ami staft(whether temporary or permanent) shall be exercised in accordanee with the rilles framed for the purpose: 30   provided that no person shall be appointec:tto· a post -the minimum ~thly salary (exclusive ofallowallces) ·for which is its, 300 per mensem or more except after consultation with the union public service commission in accordance with the rules : '(6) the conditions of service applicah1eto·a penon immediately 35 defore his appointment to a post under'a territorial couim!uilhall ", not be varied to his disadvantage except with the prevfous approval  - of the central government , ,  (7) every officer or member of sd of a territorial council shall be deemed to be a public servant within the me~ of section 40 21-dfthe indian penal code  chapter v finance of territorial councils and vesting of propertypowers of taxation 33  notwithstanding anything to the contrary contained in any other law for the time being in force, a territorial council may levy either or both of the following taxes, namely-s (i) taxes on professions, trades, callings and employments; and (ii) tolls on bridges constructed or maintained at the cost of the territorial council: provided that if, immediately before the commencement of this 10 act, a tax on professions, trades, callings or employments was being lawfully levied by any local authority, that tax may continue to be levied by that authority at the same or a lower rate: provided further that no toll shall be levied on any bridge the cost or estimated cost of which is not more than five lakhs of rupees is income from property 34 income from property owned by or assigned to the territorial council shall accrue wholly to that council levy of fees 35 a territorial council may fix and levy-(a) school fees; and (b) fees for the use of, or benefits derived from any of the 20 works done or services rendered under clauses (viii), (lz), (ri), (rid, (xv), (xvi), (xviii), (xix) and (xxii) of section 28 payment by 36 the central government may pay to a territorial councll central government sums equivalent to the proceeds of the following taxes attrlbutahle to the area 01' areas within the jurisdiction of -that coundl-2s (a) the net proceeds of the entertainment tax, inclutunr any theatre or show tax; (b) such percentage of the net proceeds of land revenue not exceeding ten as may be prescribed by the central government; (c) the net proceeds of the taxes levied on motor vehlele11 30 (d) the net proceeds of the taxes levied under any law which may be in force for the taxation of passengers and irooda or fares and freights and the net proceeds of any terminal to on goods dr p8flfj8ll&'er8 carried by road, railways, inland water-~~m~ ~ explanation-tbe expression 'net proceeds' shall mean the proceeds of the taxes after deduding such charges as may be certified by the central govemment as incurred on account of colleetion, and in the case of the taxes mentioned in clause (c) shall also be undentood as excludine the proceecla of such fees as may be collected for services rendered bj the central govenment 37 the central government may, subject to such conditious, if granu s any, as it may impose, make such erant or crania to the territorial council as it thinks fit 38 (1) a territorial council may; resolve, at a meeting specially =un:: convened for the purpose to propose the imposition of any of the lues poiids taxes mentioned in 3ection 33 jo (2) when a resolution has been passed, the council shall publish a notice in the official gazette defining the class of persons or description of property proposed to be taxed, the amount or rate of the tax to be imposed and the system of assessment to be adopted , (3) any person directly or indirectly affected by the proposed 15 tax and objecting to it may, within thirty days from the publication of the notice, send his objections in writing to the council and the council shall, at a specially convened meeting, take all such objections into consideration (4) 1£ no objection is sent within the said period of thirty days, 20 or if the objections received are deemed insufficient, the council may submit through the administrator its proposals to the central government, with the objections, if any, and its decision thereon (5) the central government may then sanction the proposals, or refuse to sanction them, or return them for further consideration 2,'; (6) when the proposals in respect of a tax have been sanctioned, the central government shall notify its imposition in the ofticial gazette and specify a date not later than three months from the date of notification on which the tax shall come into force 39 the central government rna)'\, by notification in the official reduction or 30 gazette, and a territorial council may, with the previous approval abolition qf of the ,central government, by a resolution passed at a meeting tax specially convened for the purpose, abolish or reduce any tax imposed under section 33 40 all taxes, and fees and all, arrears of such taxes, rates or fees, recovery of 3s may be recovered as if they were arrears of land revenue ~i and ces 41 a territorial council may, by notification in the official asleliment gazette determine the person by whom any tax, or fee shall be ~d cofllec-, tlod 0 taxe assessed and collected, and make rules for the assessment and and feel collection of such tax, or fee, and direct in what manner persons 40 employed in the assessment or collection shall be remunerated appeals • (1) in matters connected with the assessment and collection of any tax, rate or fee an appeal shall lie from the order of any person authorised to make assessment or collections to such person as the administrator may appoint or designate for the purpose (2)· an appeal under sub-section (1) shall be presented within s thirty days from the date of the order (3) the order passed on the appeal shall be final 1biulmettts' 43 a territorial council may, by notification in the official ~f tuel'aj1d gazette, prescribe by what instalments and at what times any tax ~ea or fee shall be payable 10 power to  44 a territorial council may, with the previous approval of the =~~m central government, by notification in the official gazette, remit or reduce any tax or fee or exempt any persons or class of persons or any description of property, wholly or in any part, from liability to any tax or fee and cancel any such remission, reduction or is exemption jlecovery of 45 (1) save as provided by section 40 all moneys claimable by ~le :i a territorial council may be recovered on application to a magistrate the coun - having jurisdiction in the area where the person from whom the money is claimable may, for th~ time being, be resident, by the 20 distress and sale of any movable property within the limits of his jurisdiction belonging to such person and the cost of such proceedings shall be recoverable in the same manner as the said moneys (2) (\n application for recovery of money shall be in writing and shall be signed by an officer authorised in this behalf by order of 2s the chairman borrowin, powers couacil fund 46 a territorial council may with the previous approval of the central government borrow on the security: of any property' belonging to the council such sums as may be necessary for any of the purposes of this adt 30 n all moneys r'eceivecf by or on behalf of the territarial council under the provisions of this act or any other law for the time being in force shall be credited to a fund, which s1:a11 be called the "council fund" and which shall be held by the territorial council in trust for the purposes of this act 3j cllitociy apd 48 (1) the council fund shall be kept in the government inveatment of council treasury or in the bank to which the government treasury business fuild~ has been made over (2) in places where there is no such treasury or bank, the council fund may be kept with a banker, or person acting as a banker, who 40 hal given such security for the safe c~ody and repayment em ei_ado·at the ftlltd so ke-pt as the administrator may in each case think suftlcient (3) subject to such rules as the central government may make in this behalf, the territorial council may from time to time, , with the previous sanction of the administrator, invest any portion of the council fund in securities of the central government or invest it in such other securities or place it in such other manner as the administrator may approve in this behalf, and, with the previous sanction of the administrator, may vary such investment for any 10 other investment or investments of like nature (4) the income accruing from the securities or other investments and the proceeds of the sale of the same shall be credited to the council fund 49 subject to any order of the central government, all property pro&:fo/ is of the nature specified below and situated in the union territory ¥:rrito~ shan vest in and belong to the territorial council, and shall with au collllcil other property which may become vested in the council, be under its direction, management, and control and shall be held and applied for the purposes of this act-2(? (a) au publie buildings constructed or maintained out of the council fund; (b) all public roads which have been constructed or are maintained out of the council fund, and the stones and other materials thereof, and also all trees, erections, materials, imple-35  ments and things provided fol'''such roads; (c) all land or other property transferred to the territorial council by the central government, or by gift, sale or otherwise for public purposes 50 (1) a territorial council shall appoint a finance committee the budpt" 30 consisting of such number of members as may be prescribed by rules made under section 54 (2) a territorial council shall, on or before a prescribed day in each year, hold a meeting at which the finance committee shall submit an estimate of: the income and expenditure of the council for the 35 next financial year, in such form as the central government may  prescribe (j) 'fhe· tel'l'itorial council shall consider the estimate, and may provisionally approve of it with or without modification (4) the council shau, od or before a prescribed day, cause copies 40 of the estimate, 81 provisionally approved by it, to be sent to the  admilustratol' (5) the administrator may,on or before a prescj'ibed day, return the estimate to the council for amendment on the ground that it fails to make adequate provision for-(i) the maintenance of such minimum balance as may be prescribed, or 5 (ii) the appropriation of any sum allotted to the council by the central government for the purpose for which it was allotted, or (iii) the repayment of loans or any other expenditure for which the council is legally liable, or 10 (iv) any expenditure proposed in the budget, or (v) the continuance in future years of any recurring expenditure proposed in the budget (6) when a budget is returned under sub-section (5), the council shall consider the proposed amendments, take a decision thereon, and is report the same to the administrator (7) the budget estimate finally adopted by the council shall be the budget of the territorial council (8) any subsequent alteration in the budget, or reappropriation or transfer of provision within the estimate, shall be made with the 30 approval of the council and shall be reported to the administrator ac:couuts 51 accounts of receipt and expenditure of a territorial council shall be prepared, inspected and audited in such manner as the central government may, in consultation with the comptroller and auditor general of india, direct 25  chapter vi controlcodtrol 52 (1) it shall be the duty of the chairman of a territorial council to furnish to the administrator a copy of the proceedings of the meetings of the council and such other information as he may 30 require (2) the administrator shall have the power to give to the territorial council all such directions as he may consider necessary in respect of subjects, curricula, text-books and standards of teaching in schools vested wholly or partly in the council and in schools 3$ wholly or partly maintained by grants payable from ihe council fund, and the council shall comply 'with such directions (3) the administrator may, by order and for reasons to be recorded suspend the execution of any resolution or' order of the territorial council, or prohibit the doing of any act which is about 40 to be done, or is being done, in pursuance of or under cover of any provision of the law relating to the constitution or functions of the territorial council, if in his opinion, the resolution, order or act is in excess of the powers conferred by law, or the execution of the resolu-5 tion or order, or the doing of the act, is likely to lead to a breach of the peace, or to cause annoyance or injury to the public or to any class or body of persons: provided that the council may, within fifteen days of the date of the order of the administrator, offer such explanation as it deems fit 10 in relation to the execution of the resolution or order which has been suspended or the doing of the act which has been prohibited (4) when the administrator makes any order as aforesaid, he shall furnish forthwith a copy of it to the central government with a statement of the reasons for making it and forward in due course 15 to that government the explanation, if any, offered by the council and that government may, thereupon confirm, modify or rescind the order of the administrator 53 (1) the central government may, on recei!>t of a report from power to the administrator or otherwise, by order, supersede a territorial t=~~ 20 council on being satisfted that the council is not competent to per- council form or persistently makes default in the performance of its duties, or exceeds or abuses its powers (2) when an order is made under sub-section (1) above, the central government may make such incidental and consequential 2s provisions as may appear to be necessary or expedient for carrying out the functions of the territorial council (3) as soon as may be after supersession of a territorial council 'under sub-section (1), and in any case within a period of one year from the date of such supersession, the administrator with the pre-30 vious approval of the central government shall, by one or more notifications published in the oftlcial gazette, call upon the constituencies to elect members in accordance with the provisions of this act and the rules arid orders thereunder before such date or dates as may be specifted in the notification or notiftcations rules and bye-laws 54 (1) the central government may after previous publication power oflhe 'make by notification in the oftlcial gazette rules for the purpose of 8:':!n  ent carrying out the provisions of this act trul0 make ea (2):- ,particluar -and without :pjttjudiee 10 the generality of the _qoidg powers, &ilch :rules 'mq-(i) regulate the conduct of business of a'territorial 'council, including the appointment of committees; (ii) prescribe the fannin which the budget estimate is to be s prepared and the dates for the various st~ges of its completion; (iii) determine the language in which business will be , transacted; (iv) regulate the powers of a territorial council to transfer property; 10 (v) regulate the power of a territorial council to contract 'and do 'otbertbiftwl necessary for the purpose of its constitution and the mode 'ofeftcutingcontracts; (vi) regulate the employment, payment, suspension and removal of ofticers and servants of a territorial council; is (vii) protect the terms and conditions of service of the government servants transferred to a territorial council; '(""ii) t»retici'm»e the wnw,foorrtmemeots, registers, estijqates iand ,acco\1ids ,and l"egulate the keepiftg, cheoldngand publication of neb 8ceotlnts, andt8emanner·of periodical audit; 200 (ix) regulate the submission for approval of plans, desigds, speciftcations and estimates of work; ,(z) prescrjbe tbeexiedt and the nature of superintendence and eontrol of pabebayats;and (d) -pfoyidefor ,the ,guidance'of a territorial council when 2<5 suits and other proueedidgs ape imencled to be or :have been instituted by ,or againat it in civil courts power to mw byelaws ~3) ,au rulea made udder this -act shall, as 'loon as maybe after tdaey are made, 'de laid ,jar ddt lesathan thirty -days before ,both houiesof ,parliamentaad8ball ,be subs1ect to such modifications as 30 parliament may make duridg 'the ,,ion m which they are so laid ' fltthe session immediately fallawing  • (1) subject to theprm'isiodsciif tbia laet-aad, of the yules made thereunder, a 'territorial cotmen maymalae byej}aw8 :to provide for all or any of the following matters in the union territory or in any 3s part thereof, namely:-«(i) the maintenance and management of schools and grant of stipends and scholarsbtps; , (b) control and admlmstrat10n of dispensaries, hospitals and asylums, their construction ana repairs, ~e supply of medicines 40 and the measures to be taken during ole prevalence of disease; (c) the proteetior from~ peutrtion· of such tanks; springs, wells or parts of rivers, iiltreams; channels -or water-eourses 81: a! , set apart for drinking- or< culinary purposes;' (d) the prohibition of the obstruction of any' streams, -channels and drains- under the oontro1! at a temtorial c01ulcil or the remoql oft ady' obstruction; (e) the maintenance of' private baars and'melas in, a sanitary condition; (f> the establishment and maintenance of hotels and inns, 10 the destruction of unclaimed and diseased dogs and noxious animals, the holding of fairs and exhibitions, the relief of distress, and the carrying out of any other work likely to promote the health, comftn1:and' convenience of'the public; (g) the regulation of traffic on roads over which the publ1c is have a right of way; (h) the registration of births,deaths and marriages; (i) any other matter which is necessary for carrying out all or any of the provibiou· of this· act and the rules made thereunder 20 (2) a bye-law made under sub-seclion (1) shall not have effeet until it has been confirmed by the central government and published in sum manner as that government may direct (3) the central government in confirming a bye-law may make any change therein w'hich &ppe8i1il to it to be necessary as 56 (1) in makirg any rule, the central government and in r~ty for making any bye-law, a territorial council may direct that a breach ~f~~~dt of the same shall be punished with fine which may extend to one bye-law hundred rupees, and, in the case of a continuing breach, with a further fine which may extend to ten rupees for every day during 30 which the breach is continued after the offender has been convicted of such breach (2) in defawt of payment of any fine, the defaulter shall be punishable with imprisonment for a term which may extend to fifteen da)'s  chapter vlli surplementary provisions ,57 prosecution for any offence under this act may be irmtitv1eci pmaccution • by any person authorised by name or oftiee by the chairman in this behah ' penalty for obstruction 58 a person wilfully obstructing a territorial council, or any officer or servant of the council, or any person authorised by the council, in the exercise of its powers, shall be punishable with fine which may extend to fifty rupees payment of compenaation 59 a territorial council may pay comper~ation out of its fund s to any person sustaining damage by reason of· the exercise of any of the powers vested in the council, or its officers and staff and shall pay such compensation when the damage was caused by the negligence of the council~ its officers or staff and the person sustaining the damage wa~ not himself in default in the matter in 10 respect of which the power was exercised power to compound offencea 60 (1) a territorial council or with its authorisation its chairman, vice-chairman, or chief executive officer may, subject to the rules made by the council for the purpose, accept from any person against whom a reasonable suspicion exists that he has committed is an offence under the act or any rule or bye-law made thereunder, a sum of money by way of compensation for such offences (2) on payment of such sum of money the suspected person if in custody shall be discharged and no further proceedings shall be taken against him in regard to the offence or alleged offence so compounded 20 (3) sums paid by way of compensation under the foregoing provisions shall be credited to the funds of the council (4) the authorisation wider sub-section (1) to accept composition for alleged offences may be given 'by the council either generally in regard to all offences against this act or the rules or bye-laws 25 made thereunder or particularly orly in regard to a specified offence or offences and may be withdrawn at any time acquisition of cand 91 where any land is required for the use of a territorial council, the central government may, at the request of the council, proceed to acquire it under the provisions of the law relating to acquisition 30 of land for the time being in force and, on the payment by the council of the compensation awarded under the law, and of the charges incurred by the government in connection with the proceedings, the land shall vest in the council 62 if any member t officer or' other employee of a territorial ~ council enters into any contract mage with the council, he shall be deemed to have committed an offence under section 168  of the indian penal code penalty on member, officer or servant, being interested i id contracts made with the council 63 the cer,tral government may, by order, do anything which r~mova~ of appears to be necessary or expedient for the purpose of removing difficulues any difficulties which may arise in giving effect to these provisions 64 (1) as from the date of establishment of the territorial abolition of s council for the union terri tory of himachal pradesh, all zilla ~ha":~iaan~d panchayats constituted under the himachal pradesh panchayat raj conaedmquentiaj amen ents act 1952 shall stand abolished: in the himachal pradesh panchayat provided that-raj act 1952 (a) all funds and properties vested in any such zilla 10 panchayat shall on its abolition be deemed to be vested in the territorial council; (b) all debts, obligations and liabilities incurred, all contracts entered into, and all matters and things engaged to be done, by, with or for any such zilla panchayat shall on its aboli-is tion be deemed to have been incurred, entered into or engaged to be done by, with or for the territorial council; (c) all taxes, fees and sums of money due to any such zilla panchayat shall on its abolition be deemed to be due to the territorial council; ~ (d) all suits, prosecutions and other legal proceedings instituted or which might, but for the abolition of any such zilla panchayat, have been instituted by or aiainst such panchayat under the himachal pradesh panchayat raj act, 1952, may on its abolition be continued or instituted by or against the terri-25 torial council (2) the amendments directed in the schedule shall be made in the himachal pradesh panchayat raj act, 1952 65 in the representation of the people act 1950-amendment of act 43 of 1950 (a) in section 27-a, for sub-sections (3), (4) and (5) the following sub-sections shall be substituted, namely:-"(3) the electoral college for the union territory of ,delhi shall consist of the persons who immediately before the first day of november 1956 were members of the legislative assembly of the state of delhi (4) the electoral college for each of the union territories of himachal pradesh, manipur and tripura shall consist of the members of the territorial council constituted for that territory under the territorial councils act, 1956"; (b) in the fifth schedule, in the second column, for the s figures "41", the figures "40" shall be substituted amet1dmcdt 66 section 13 of the representation of the people act, 1951 of act 43 of shall be omitted 1951  amendments in the himachal pradesh panchayat raj act, 1952, consequential on the abolition of zilla panchayatss section 2-ln sub-section (1)-(i) in clauses (e) and (w), for "tehsil panchayat or zilla panchayat", substitute "or tehsil panchayat"; (ii) omit clause (cc) section 4-for "tehsil panchayat and zilla panchayat", substitute 10 "and tehsil panchayat" section 17-ln clause (g), omit "and zilla panchayat" and for "them" substitute "it" section 21-ln sub-section (2), omit "and zilla panchayat" section 22-0mit "and the zilla panchayat" is section 30-ln sub-section (1), omit "zilla panchayat" occurring in the first place and for "tehsil panchayat or zilla panchayat", substitute "or tehsil panchayat" section 34-omit "a zilla panchayat" section 36-ln clause (h) of sub-section (2), omit "zilla 20 panchayat" section 38-omit "a zilla panchayat" and for "tehsil panchayat or zilla panchayat" occurring in two places, substitute "or tehail panchayat" section 39-ln sub-section (2), omit the proviso 2$ section 99-omit "and a zilla panchayat" and "and zilla" section 100-omit "or a zilla panchayat" section 102-omit section 103-(i) in sub-section (1), omit "and the deputy commissioner as the president of the zilla panchayatt,; 30 (ii) in sub-section (2), omit "or the deputy commissioner" and "or the zilla panchayat, as the case may be" section 104-0mit "or the zilla panchayat" and "or zilla panchaypt, as the case may be" section 105-omit "or the zilla panchayat" section 106-(i) omit sub-section (2); 3$ 10 (ii) in sub-section (3), omit "or zilla panchayat" and "or the deputy commissioner, as the case may be" section 110-omit section 111-0mit section 112-omit section 113-omit "or the zilla panchayat" and "or the zilla fund, as the case may be" section 114-omit "or the zilla panchayat" and "or the zilla panchayat, as the case may be" section 116-0mit section 117-omit section 118-(i) in clause (a), omit "zilla panchayat" occurring in two places; (ii) in clause (b), omit "zilla panchayat"; (iii) in clause (c), omit "a zilla panchayat" and "zilla panchayat"; is (iv) in clause (d), omit "zilla panchayat" occurring in two places; (v) in clause (e), for "tehsil panchayat or zilla panchayat", substitute "or tehsil panchayat"; (vi) in clause (f), omit "zilla panchayat" occurring in two places 20 section 119-in sub-sections (1), (2) and (3), omit "zilla panchayat" section 122-omit "or a zilla panchayat" section 123-in sub-section (2), for "tehsil panchayat or zilla panchayat", substitute "or tehsil panchayat" 25 section 125-in clause (a), for "tehsil panchayat or zilla panchayat", substitute "or tehsil panchayat" section 127-in sub-section (1), for "tehsil panchayat or a zilla panchayat", substitute "or tehsil panchayat" section 129-in sub-section (1), for "tehsil panchayat or zilla 30 panchayat" occurring in two places, substitute "or tehsil panchayat" section 130-in sub-section (1), omit "or zilla panchayat" occurring in the first place and for "tehsil panchayat or zilla panchayat", substitute "or tehsil panchayat" section 13l-in sub-section (1), for "a tehsil panchayat or a 35 zilla panchayat", bubstitute "or a tehsn panchayat" and omit "or zilla panchayat" section 135-in sub-section (2), in clauses (ii) , (iii) and (vii), omit "zilla pan~hayat" sectibn 138-0mit clause (b) ,,0 statement of objects and reasons on september 4, 1956, the minister of home affairs stated in lok sabha that it was ,intended to set up a municipal corporation for delhi and territorial councils or bodies, with necessary modifications, for himachal pradesh, manipur and tripura the territorial bodies, it was stated, would be elected on the basis of adult franchise and would be in charge of local affairs in the same manner as the corporation would be in charge of such affairs in delhi the minister of home affairs' further stated that these bodies would serve as electoral colleges for elections to the rajya sabha this statement was made after considering the opinion expressed in the joint select committee on the constitution (ninth) amendment bill in favour of the establishment in delhi, himachal pradesh, manipur and tripura of elected bodies to deal with matters of local concern 2 the bill seeks to provide for the establishment of territorial councils in the union territories of himachal pradesh, manipur and tripura on the lines of the statement made by the minister of home affairs in the lok sabha govind ballabh pant new delhi; the 13th december, 1956 financial memorandum clause 86 of the bill provides that sums equi~alent to the net proceeds of the taxes levied· under the passengers and goods taxation act, the taxes levied on motor vehicles, the entertainment tax and· also an amount not exceeding ten per cent of the net proceeds of land revenue may be paid to the territorial councils frotn out of the consolidated fund of india at the existing level of revenue, these paymehts are expected to amount to approximately  rs 11 lakhs in the case of himachal pradesh, rs 5 lakhs in the case of manipur and rs 2· 5 lakhs in the case of tripura in addition, clause 37 provides that the central govemment may make such grants to the councils as it ~ay think fit 2 it is not possible at this stage to estimate the amount, if any, of the grants which may have to be made from central revenues under clause 37   memorandum regarding delegated legislationclaules 20 al\d 54 of the biu empower the central government to make'rules the matter's in r~~~ of which such rules may be made have been specified in those clauses clause 20 provides for the making of rules relating to the drawing up of the election programme, appointment of election oftlcers, scrutiny of nominations and o~er similar matters of detau relating to the election of members clause 54 deals with the normal rule-making powers of the government for carrying out the purposes of the act the ~atters specified in this clause are matters of detail and procedure which it is difficult and ,cumbersome to provide for in the act itself in clause 55, the terr:torial council has been empowered to make bye-laws consistent with the provisions of the act and the rules made thereunder in regard to the matters specified in that clause moreover, the bye-laws are subject to confirmation by the central government it is usual to give such powers to authorities and bodies like the territorial councll the provisions of the bill regarding delegated legislatioll are of the normal type  extracts from the representation of the people ac~ 1950 (43 of 19505 ' - • - • part iva manner of filling seats in the council of states to be filled by representatives of union territoriesconstitution of ejeotoral colleps for the filhnll: of 27a (1) - - - - ~ th:f (3) the electoral college first constituted under this act for states allot- manipur or tripura shall be reconstituted by a fresh election every ~re~t~~ time when there is a general election held in that union territory for the purpose of election of members to the house of the people and on every such reconstitution the electoral college for that territory functioning immediately before such reconstitutionsball be deemed to be dissolved and the electoral college so reconstituted shall be the electoral college for that territory for the purposes of this act (4) any casual vacancy in the seat of a member of an electoral college for manipur or tripura shall be filled by election held in the constituency concerned in the manner in which the election of' that member to such seat was held (5) the electoral college for each of the union territories c?f delhi and himachal pradesh shall consist of the persons who immediately before the 1st day of november, 1956, were members of the ll!gislative assembly of the state of delhi or himachal pradesh as the case may be - - - -  the fifth schedule [see sections 27a(2), 27d & 27c] number of members of electoral colleges| name of union    | territory    ||------------------|--------------|| members          |              || -                |              || -                |              || -                |              || -                |              || 2               |              || himachal         | pradesh      || 41               |              || -                |              || -                |              || -                |              || -                |              |extract nom till repusdta'l'ion or till piopli act, 1901 (0 or 19s1) - - - - la for the purpose of reconstituting th(! electoral colleg(! for th~ notiftc!ad~ union territory of manipur or tripura, the president shall, by ~i:cc::sb­notification published in the gazette of india, call upon all electoral ~ofr1 col-_  8 or ccrcollege constituencies in that territory to elect members in accordance lain union with the provisions of this act and of the rules and orders made territories thereunder: provided that every such notification shall be issued at the same time as a notification calling upon the parliamentary constituencies in the state to elect members for the ·purpose of constituting a new house of the people is issued , - - - - a bill to provide for the establishment of territorial councils in certain union territories the president has, in pursuance of clauses (i) and (3) of article 117 of the constitution of india, recommended to lok sabha the mtroduction and consideration of the bill m n kaul, secretary (shri govind bajlabh pant, minister for home affairs) 