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1989 (7) TMI 340

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..... 2. The. petitioners contend that the recovery of the dues of the Gram Panchayat is stayed by the provision's of section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985, hereinafter referred to as the Act . If the company does not pay the bill, the Gram Panchayat is entitled to resort to the provisions of sub-section (7) and subsection (8) of section 129 of the Bombay Village Panchayats Act, 1958. If resort be had to these. provisions, it will amount to coercive procedure for. recovering the amounts, due. It will be. in other words, distress against the property of the company for recovering the amounts due, According to the company, this is what is prohibited by the provisions of section 22 of the Act. 3. In order to appreciate this contention of the company, it is necessary to state certain facts which are not disputed. The company, as mentioned above, is a public limited company and it owns an industrial undertaking in the village of which the 2nd respondent is the Gram Panchayat, The industrial Undertaking manufactures glass. The manufacture of glass is an industry as mentioned in the First Schedule to the Industries (Development and Regulation) Act, .....

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..... lative competence of the Parliament. The Bombay Village Panchayats Act, 1958 specifically empowers the Gram Panchayat to levy taxes, among other things, on buildings. The validity of the Bombay Village Panchayats Act is not in question. It is an Act enacted by a competent Legislature and has resolved the assent of the President of India. Any Act of the Parliament which impinges upon the powers of the Gram Panchayat under a law which is valid will have to be read down so as to see that the powers oi the Gram Pancnayat to impose [axes on properties are not curtailed or restricted. 6. The Act has been passed by the Parliament apparently in exercise of its legislative power with reference to Item 52 in List I of the Seventh Schedule of the Constitution. This item reads as follows :-- Industries, the control of which by the Union is declared by Parliament by law to be expedient in the public interest. It is in exercise of this power that the Industries (Development and Regulation) Act has been passed and the industry being carried on by the company is an industry mentioned in the First Schedule to that Act. One must proceed on the basis that the present Act has also been pa .....

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..... power to make laws with respect to any of the matters enumerated in List III in the Seventh Schedule (in this Constitution referred to as 'the Concurrent List'). (3) Subject to clauses (1) and (2), the Legislature of any State has exclusive power to make laws for such State or any part; thereof with respect to any of the matters enumerated in List II in the Seventh Schedule (in this Constitution referred to as the 'State List'). (4) Parliament has power to make laws with respect to any matter for any part of the territory of India not included in a State notwithstanding that such matter is a matter enumerated in the State List. From the language of Article 246, it is clear that clause (1) is not controlled by anything that is provided in clauses (2) and.(3) of Article 246. On the other hand, what is provided in clause (2) of Article 246 is subject to clause (1) of the said Article. The overriding nature of the provision in clause (1) of Article 246 is thus evident. 9. In Chaturbhai M. Patel v. Union of India . 1978(2)ELT297(SC) , the scheme of Article 246 was examined. In that case, the provisions of the Central Excises and Salt Act were challeng .....

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..... ent ought to be noticed:-- The State Legislature has exclusive power to legislate with respect to matters in List II. But this is subject to the provisions of clause (i) (leaving out for the moment the reference to clause (2). The power of Parliament to legislate' with respect to matters included in List I is supreme notwithstanding anything contained in clause (3) (again leaving put of consideration the provisions of clause (2)). Now what is the meaning of the words 'notwithstanding' in clause (i) and subject , to in clause (3)? .They mean that where an entry is in general terms in List II and part of that entry, is in specific terms in List I, the entry in List I takes effect notwithstanding the entry in List II, This is also on the principle that the special excludes the general and the general entry in List II is subject to the special entry in List I, 12. It is not disputed, and indeed it cannot be disputed, that the present Act has been passed by the Parliament in exercise of its legislative power contained in List I of the Seventh Schedule. If this is so, naturally the provisions in the Act cannot be controlled by any other Act that might have been pa .....

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