KHAMBALIA MUNICILPALITY & ANR. vs STATE OF GUJARAT

The Supreme Court upheld the validity of Section 9(1) of the Gujarat Panchayats Act, 1961, affirming that the power to make inquiries is inherent in the power to declare a local area as a nagar. The Court ruled that a municipal borough qualifies as a local area under Section 9, and the Development Commissioner was authorized to issue the notification after due inquiry. The Court found no mala fide in the issuance of the notification and concluded that Section 9 does not suffer from excessive delegation of legislative power.