Case Note & Summary
The petitioners, who were Councillors of the Daman Municipal Council, challenged the order dated 31 October 2014 passed by the Administrator, Daman & Diu and Dadra & Nagar Haveli, dissolving the Council under Section 298 of the Daman and Diu Municipalities (Amended) Regulation, 1994. The Administrator had issued a show cause notice on 7 October 2014 to all Councillors, referring to reports of the Director (Municipal Administration) and the Finance Secretary indicating a breakdown in administration and financial mismanagement. The notice recorded a prima facie opinion that the Council was no longer competent to perform its duties and had persistently defaulted. However, the notice did not specify the grounds or allegations against the Council. The Councillors submitted replies, but the Administrator passed the impugned order without granting any personal hearing. The High Court examined the provisions of Section 298 and the principles of natural justice. It held that the show cause notice must contain the grounds for dissolution to enable the Councillors to effectively respond, and that an opportunity of hearing is mandatory before passing such an order. The court found that the Administrator had violated both the statutory requirements and natural justice. Consequently, the court quashed the impugned order and directed the Administrator to issue a fresh show cause notice with specific grounds and grant a hearing to the Councillors before taking any further action.
Headnote
A) Municipal Law - Dissolution of Council - Section 298 Daman and Diu Municipalities (Amended) Regulation, 1994 - Natural Justice - The Administrator issued a show cause notice without specifying the grounds for dissolution and passed the impugned order without granting an opportunity of hearing to the Councillors. Held that the order is in violation of principles of natural justice and the mandatory requirements of Section 298. (Paras 3-10) B) Municipal Law - Show Cause Notice - Section 298 Daman and Diu Municipalities (Amended) Regulation, 1994 - The show cause notice dated 7 October 2014 merely referred to reports but did not set out the specific allegations or grounds on which the Council was proposed to be dissolved. Held that a show cause notice must contain the grounds to enable the Councillors to effectively respond. (Paras 5-8) C) Municipal Law - Opportunity of Hearing - Section 298 Daman and Diu Municipalities (Amended) Regulation, 1994 - The Administrator did not afford any personal hearing to the Councillors before passing the dissolution order. Held that the requirement of hearing is implicit in Section 298 and its violation renders the order invalid. (Paras 9-10)
Issue of Consideration
Whether the order of dissolution of the Daman Municipal Council passed under Section 298 of the Daman and Diu Municipalities (Amended) Regulation, 1994 is valid when the show cause notice did not specify the grounds and no opportunity of hearing was granted.
Final Decision
The impugned order dated 31 October 2014 is quashed and set aside. The Administrator is directed to issue a fresh show cause notice specifying the grounds and grant an opportunity of hearing to the Councillors before passing any order under Section 298.
Law Points
- Natural justice
- audi alteram partem
- dissolution of municipal council
- Section 298 Daman and Diu Municipalities Regulation
- show cause notice must specify grounds
- opportunity of hearing mandatory
