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REPORTABLE

IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO. 7821 OF 2013  (Arising out of SLP(C) No.20997 of 2008)

Nagar Panchayat, Kurwai & Anr.            … Appellants

Versus

Mahesh Kumar Singhal and others … Respondents

With

CIVIL APPEAL NO. 7822 OF 2013  (Arising out of SLP(C) No.18332 of 2010)

J U D G M E N T

K.S. RADHAKRISHNAN, J.

1. Leave granted.

2. We are in these cases concerned with the question whether  

the appellant, Nagar Panchayat, Kurwai (in Civil Appeal No.7821  

of 2013 @ SLP(C) No.20997 of 2008) is justified in demanding any  

fee,  for  the parking of the motor,  trucks and buses in the bus  

stand, owned and maintained by the Nagar Panchayat.  

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3. The High Court held that Nagar Panchayat has no power to  

collect that amount and allowed the writ appeal against which the  

Nagar Panchayat has come up with this appeal.

4. The  appellant  in  exercise  of  the  powers  conferred  under  

Section 357(3) read with Section 349(2), 357 (5) and 358(4) (b)  

and  (d)  of  Madhya  Pradesh  Municipality  Act,  1961,  imposed  

parking  fee  on  the  owners  of  vehicles,  motors,  trucks,  buses,  

matadors etc.  Following that a notice was issued by the appellant  

demanding Rs.20/- per day or Rs.600/- per month, imposing entry  

fees on motors,  trucks,  buses and matadors parked in the bus  

stand.  Challenging the same, writ petition was preferred by the  

vehicle  owners  before  the  High  Court  of  Madhya  Pradesh  at  

Jabalpur,  seeking  a  writ  of  certiorari  to  quash  the  above-

mentioned  bye-law  and  also  for  a  direction  to  the  Nagar  

Panchayat  not  to  collect  any  fees  from  the  petitioners.   The  

learned Single Judge found no merit in the writ petition and same  

was  dismissed  on  10.07.2007.   Aggrieved  by  the  same,  writ  

petitioners  took up the matter  in  Writ  Appeal  No.458 of  2007,  

which was allowed by the Division Bench,  holding that Section

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349 of  Act  of  1961 does  not  confer  any power  to  impose the  

licence fees for the use of bus stand and the same is not covered  

under Sections 358(4)(b) and (d) or (7) (m) of the Act of 1961.  

Respondents  are  merrily  using  the  bus  stand  owned  and  

maintained by the Nagar Panchayat, free of cost, not bothering  

about its maintenance and upkeep.  The question is, can a court,  

on the basis of such an interpretation sideline the larger public  

interest  and  deny  the  right  of  the  Nagar  Panchayat  to  claim  

parking fees which can be utilized for the benefit of people?

5. We, before examining the question, shall not forget the basic  

fundamental principle that nobody has a fundamental right to use  

the land belonging to another without the latter’s permission or  

paying for it, if demanded.

6. The respondents are operating their vehicles with the stage  

carriage permits granted by the competent authority under the  

Motor Vehicles Act.  As per the provisions of the Motor Vehicles  

Act the State Government or any other authorized authority has  

jurisdiction  to  determine  a  place  at  which  a  motor  vehicle  be  

parked, either indefinitely or for a specified time for taking up and

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alighting  passengers.   Rule  203  and  Rule  204  of  the  Motor  

Vehicles Rules, 1994 provide for maintenance and management  

of the parking places and make the concerned local authorities  

responsible for  the said purpose.  As per the conditions of the  

permit  they  are  required  to  commence  the  journey  of  their  

vehicles  from  the  bus  stand  or  place  fixed  for  getting  and  

alighting passengers.  Such a condition has been imposed on the  

licence  by  the  authorities  under  the  Motor  Vehicles  Act  since  

operators  would  commence  the  journey  of  their  respective  

vehicles on the routes from the bus stand only and would not stop  

the vehicles on the streets, causing inconvenience to the public.  

Since  vehicle  operators  started  using  the  bus  stand,  Nagar  

Panchayat passed the Resolution, as already indicated, charging  

the parking fees for the purpose of maintaining of bus stand and  

providing other facilities.   Bus stand,  as already indicated, was  

constructed on the land owned by the Nagar Panchayat.    

7. The Constitution (74th Amendment) Act, 1992 Part IXA which  

deals with Municipality, came into force on 20.04.1993.  Article

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243P(e), 243Q and Article 243W(a)(1)(4) are relevant and hence  

extracted below:   

“243P(e):   “Municipal”  means  an  institution  of  self- government constituted under Article 243Q.

243Q.   Constitution of Municipalities.-(1) There shall be  constituted in every State,-

(a)  a  Nagar Panchayat (by whatever name called) for  a   transitional area,  that  is to say, an area in transition from a rural  area to  an urban area;

(b)  a Municipal Council for a smaller urban area; and

(c)  a  Municipal Corporation for a larger urban area,

in accordance with the provisions of this Part:

243W –  Powers, authority and responsibilities of  Municipalities, etc. – Subject to the provisions of this  Constitution,  the  Legislature  of  a  State  may,  by  law,  endow –

(a) The Municipalities with such powers and authority  as  may  be  necessary  to  enable  them to  function  as  institutions  of  self-government  and  such  law  may  contain  provisions  for  the  devolution  of  powers  and  responsibilities  upon  Municipalities,  subject  to  such  conditions as may be specified therein, with respect to –  

(i) the  preparation  of  plans  for  economic  development and social justice;

(ii) the  performance  of  functions  and  the  implementation of schemes as may be entrusted  to them including those in relation to the matters  listed in the Twelfth Schedule.

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(b) The Committees with such powers and authority  as may be necessary to enable them to carry out the  responsibility  conferred upon them including those in  relation to the matters listed in the Twelfth Schedule.”

Twelfth Schedule was inserted w.e.f. 01.06.1993.  Entry 17 therein  

reads as follows:  

“Entry 17 – Public amenities including street lighting,  parking lots, bus stops and public conveniences.”

8. Nagar  Panchayat  is,  therefore,  a  unit  of  self-government,  

which  is  a  sovereign  body  having  both  constitutional  and  

statutory status.  Article 243Q and 243W(a)(i) and (ii) read with  

Entry 17,  confer considerable powers on the Nagar Panchayat to  

carry out various schemes for economic development and social  

justice.  Municipalities  need  funds  for  carrying  out  the  various  

welfare activities and for the said purpose, it can always utilize its  

assets in  a profitable manner to  its  advantage so that  various  

welfare  activities  entrusted  to  it  under  law  could  be  properly  

addressed and implemented.  Bus stand has been provided by the  

Nagar  Panchayat  for  the benefit  of  all  vehicle  owners  and the  

passengers, spending public money.  Nagar Panchayat has to get  

a reasonable return for its upkeep and maintenance.

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9. We may, in this connection, refer to the decision of this Court  

in  Municipal Board, Hapur and others v.  Jassa Singh and  

others (1996) 10 SCC 377, wherein this Court while interpreting  

the provisions of U.P. Municipalities Act, 1916 in the light of the  

Constitutional  (73rd Amendment)  Act,  1992  (actually  74th  

Amendment Act) upheld the right of the Municipality in levying  

the bus stand fee in  respect  of  stage carriage.   The operative  

portion of the same reads as follows:

“Even  under  the  recent  amendment  brought  by  the  Constitution (73rd Amendment) Act, 1992 which came  into  force  w.e.f.  20-4-1993,  it  imposes  the  statutory  responsibilities  on  the  municipalities.  Article  243-P(d)  defines “municipal area” to mean the territorial area of  a  municipality  as  is  notified  by  the  Governor.  Article  243-W(a)(i) envisages that subject to the provisions of  the Constitution, the legislature of a State may, by law,  endow  the  municipalities  with  such  powers  and  authority  as  may  be  necessary  to  enable  them  to  function as institutions of self-government and such law  may contain provisions for the devolution of powers and  responsibilities  upon  municipalities,  subject  to  such  conditions, as may be specified therein, with respect to  the preparation of plans for economic development and  social justice. Entry 17 of the Twelfth Schedule provides  for  public  amenities  including  street  lighting,  parking  lots,  bus-stops  and  public  conveniences.  Thus,  the  Constitution  enjoins  the  appropriate  legislature  to  provide  for  preparation  of  the  plans  for  economic  development  and  social  justice  including  power  to  provide  public  amenities  including  street  lighting,  parking  lots,  bus-stops  and  public  conveniences.  On

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such public amenities including bus-stops having been  provided by the municipalities, as is a statutory duty, it  is the duty of the user thereof to pay fee for service  rendered by the municipality.”

10. Vehicle  owners  placing  reliance  on  the  Judgments  of  this  

court reported in Municipal Council, Bhopal v.   Sindhi Sahiti  

Multipurpose Transport Co-op. Society  Ltd. and another  

(1973)  2  SCC  478  and  Municipal  Council,  Manasa v.  M.P.  

State  Road Transport  Corpn.  And another (1997)  11  SCC  

640, questioned the powers of the Nagar Panchayat in demanding  

the  parking  fee,  while  using  the  bus  stand  and  enjoying  the  

facilities.

11. Noticeably  both  the  above-mentioned  Judgments  were  

dealing  with  demands  made  prior  to  the  Constitutional  (74th  

Amendment) Act, 1992 by which Part IXA was incorporated.   

12. This Court in Municipal Council, Bhopal (supra), held that  

M.P.  Municipal  Council  Act does not empower a municipality to  

pass a bye law declaring certain place as a Municipal bus stand  

and cannot compel the persons plying motor buses or for hire to  

park the buses anywhere within the municipal limits except at the

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municipal bus stand for the purpose of taking up or setting down  

of passengers.  Court further held that if a Municipality provides  

for a Bus stand without compelling anybody to use it, a fee can be  

charged  on  bus  operators  using  it  voluntarily.   In  Municipal  

Council, Manasa, the question which came up for consideration  

was whether a municipal council is competent to levy toll tax on  

motor vehicles in view of the provisions contained in Section 6 of  

the  M.P.  Motor  Vehicles  Taxation  Act,  1947,  which  has  been  

extended to the whole of M.P. by the Madhya Pradesh Taxation  

Laws (Extension) Act, 1957.  The Court took the view that Madhya  

Pradesh Motor Vehicles Taxation Act is a special enactment while  

the  Madhya Pradesh Municipalities  Act  is  a  general  enactment  

and that the provisions of Section 127(1)(iii) and Section 6 are to  

be read in a way that both can stand together.  Consequently, the  

words

“tax  on  vehicles”  used  in  Section  127(1)(iii)  of  the  Madhya  

Pradesh Municipalities Act was held to mean vehicles other than  

motor vehicles.  

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13. Above-mentioned Judgments, on facts as well as on law, do  

not apply to the facts of the present case, especially in view of to  

the 74th Constitutional Amendment and in view of Section 358(7)

(m) of the M.P. Municipality Act, which was not properly addressed  

in those cases.

14. We  have  already  dealt  with  the  scope  of  the  74th  

Constitutional Amendment Act.  Section 358(7)(m), has to be read  

in the light of the Constitutional Amendment Act.  Clause 7(m) of  

Section  358  of  the  Madhya  Pradesh  Municipalities  Act,  1961,  

empowers the municipality to regulate or prohibit the use of any  

ground under its control and it does not compel anybody to use it  

as halting place of vehicles.   Section 358(7)(m) of the Madhya  

Pradesh Municipalities Act, 1961 is extracted hereinbelow:

“358(7)(m) : regulating and prohibiting the stationing of  carts or picketing of animals on any ground under the  control of the Council  or the using of such ground as  halting place of vehicles or animals or as a place for  enactment or the causing or permitting of any animal to  stay and imposition of fee for such use.”

Article  243W(a)(i)  and  (ii)  read  with  Entry  17  of  the  Twelfth  

Schedule  and  clause  (7)(m)  of  Section  358  and  the  general  

principle  that  nobody has a fundamental  right  to  use the land

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belonging to another without the latter’s permission or paying for  

it,  if  demanded,  in  our  view,  give  ample  powers  to  the Nagar  

Panchayat to impose parking fee for parking the vehicles in the  

Bus stand owned and maintained by it.   Needless to say, if the  

Nagar  Panchayat  is  demanding  exorbitant  or  unreasonable  

parking fee without any  quid pro quo,  the same can always be  

challenged in accordance with law.   

 15. The High Court of Madhya Pradesh at Jabalpur disposed of  

the Writ Appeal No.147 of 2010 placing reliance on the Judgment  

of this Court in Municipal Council, Bhopal (supra).  The facts of  

Civil Appeal No.7822  of 2013 @ SLP(C) No.18332 of 2010 are also  

identical.   Since we have found no illegality  in  demanding the  

parking fee in using the Bus stand in Civil  Appeal  No. 7821 of  

2013 @ SL(C) No.20997 of 2008, Civil Appeal No.7822 of 2013 @  

SLP(C) No.18332 of 2010 is liable to be allowed.  Consequently,  

both the appeals are allowed.  The judgments of the High Court  

are  accordingly  set  aside  and  the  Resolution  passed  by  the  

appellants imposing the bus stand fee is upheld. However, there  

will be no order as to costs.  

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…………………………….J. (K.S. Radhakrishnan)

………………………………J. (A.K. Sikri)

New Delhi, September 6, 2013.