S.Sathyapriya vs The District Collector-Cum-Inspector ...
2024 Latest Caselaw 18843 Mad

Citation : 2024 Latest Caselaw 18843 Mad
Judgement Date : 25 September, 2024

Madras High Court

S.Sathyapriya vs The District Collector-Cum-Inspector ... on 25 September, 2024

Author: G.K.Ilanthiraiyan

Bench: G.K.Ilanthiraiyan

                                                                               W.P.No.8167 of 2024

                                  IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                               DATED : 25.09.2024

                                                      CORAM

                             THE HONOURABLE MR.JUSTICE G.K.ILANTHIRAIYAN

                                               W.P.No. 8167 of 2024
                                                       and
                                              W.M.P.No. 9114 of 2024

                     S.Sathyapriya                                                ... Petitioner

                                                         Vs.

                     1.The District Collector-cum-Inspector of Panchayat,
                       Erode District, Erode.

                     2.The Assistant Director (Panchayat),
                       Collectorate, Erode.

                     3.The Block Development Officer (Town Panchayat),
                       Chennimalai - 638051,
                       Erode District, Erode.

                     4.The Zonal Deputy Block Development Officer,
                       Chennimalai Union (Zone 2),
                       Erode District, Erode.                                   ... Respondents



                     PRAYER: Writ Petition is filed under Article 226 of the Constitution of
                     India, to issue a Writ of Certiorarified Mandamus, to call for the records
                     pertaining to Na.Ka.en.25/2022/A3 dated 01.03.2024 passed by the first
                     respondent and quash the same in so far as withdrawing the signing powers

                     1/8
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                                                                                        W.P.No.8167 of 2024

                     of the petitioner in cheques and PFMS (Public Financial Management
                     Service) forms of the Punjai Palatholuvu Panchayat, Chennimalai, Erode
                     District as illegal Arbitrary and non-est in the eyes of law and consequently
                     direct the first respondent to restore the signing power to the petitioner in
                     cheques, PFMS forms and panchayat bank accounts.

                                        For Petitioner     : Mr.R.Jaikumar

                                        For Respondents : Mr.C.Kathiravan
                                                          Special Government Pleader for R1 & R2
                                                          Mr.P.Ganesan
                                                          Government Advocate for R3 & R4

                                                             *******


                                                            ORDER

This Writ Petition has been filed, challenging the order passed by the

1st respondent dated 01.03.2024 thereby, withdrawing the cheque signing

powers of the petitioner and Public Finance Management Service forms of

of the Punjai Palatholuvu Panchayat, Chennimalai, Erode District

2. On perusal of the order passed by the 1st respondent revealed that

the cheque signing power of the petitioner has been withdrawn for a period

of three months from the date of the order i.e., 01.03.2024. Now the three

months time has been expired. Even then, the petitioner is not permitted to

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sign the cheques on behalf of Punjai Palatholuvu Panchayat, Chennimalai,

Erode District.

3. The learned counsel appearing for the petitioner would submit that

apart from that the impugned order has been passed under Section 203 of the

Panchayat Act, in order to invoke the provisions under Section 203, the

petitioner should have been given an opportunity of hearing. In this regard,

he relied upon the judgment of the Hon'ble Division Bench of this Court in

W.P.No.27855 of 2022 etc., batch dated 12.09.2024. The learned counsel

for the respondents would submit that apart from the proceedings under

Section 203 of the Panchayats Act, the enquiry is pending against the

petitioner under Section 205 of the Panchayats Act.

4. It is relevant to extract Section 203 of the Tamil Nadu Panchayats

Act, 1994:-

203. Emergency powers of Collector and Inspector.

- [Subject to such control as may be prescribed, the Inspector or the Collector may, in cases of emergency, direct or provide for the execution of any work, or the doing of any act which a Panchayat or Executive Authority or Commissioner or

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[Secretary] [See Rules issued in G.O. Ms. No. 148, Rural Development (C4), dated 31st May, 2001 and published in Part III, section 1(a), of the Tamil Nadu Government Gazette Extraordinary, dated 1st June, 2001.] is empowered to execute or do and the immediate execution or doing of which is in his opinion necessary for the safety of the public and may direct that the expense of executing such work or doing such act shall be paid by the person having the custody of the Village Panchayat Fund or the Panchayat Union (General) Fund or the District Panchayat (General) Fund in priority to any other charges against such Fund except charges for the service of authorised loans.]

5. The petitioner is a Vice President of Punjai Palatholuvu Panchayat.

Due to complaints, the cheque signing power has been withdrawn by

invoking the jurisdiction under Section 203 of the Tamil Nadu Panchayats

Act by the 1st respondent. The power to invoke the cheque signing authority

of the elected Vice-President under Section 203 of the Act, though has been

upheld with a reservation, that order cannot be passed without following

the principles of natural justice.

6. Admittedly, the petitioner was not served with any show cause

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notice before invoking Section 203 of the Panchayats Act. It is relevant to

rely upon the judgment of this Court in W.P.No.27855 of 2022 etc., batch

dated 12.09.2024 in which, the Division Bench held as follows:-

"(25) From the examination of the provisions of the Act as well as the precedents, we have above referred to, the conclusion inescapable is that the Inspector of Panchayat enjoins a power to revoke the cheque signing authority temporarily in case the circumstances contemplated under Section 203 of the Act exist. In a case where the President or Vice President refuses to sign cheque and thereby trying to delay execution of any work or doing of any act which a Panchayat or Executive Authority or Commissioner is empowered to execute. However, in a case where there are mere allegations of misappropriation, mismanagement or other allegations which warrant the Inspector of Panchayat to take action under Section 205 of the Act, the emergency power cannot be exercised under Section 203 of the Act to withdraw or suspend the cheque signing authority of elected President or Vice President of the Panchayat."

7. In the case on hand, the petitioner is the elected Vice President and

the petitioner was not served with any prior notice and not given opportunity

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before passing the order under Section 203 of the Panchayats Act.

Therefore, it is clear that the order was passed without following the

principles of natural justice and it cannot be sustained. That part, the period,

for which, the cheque signing power was withdrawn by the 1st respondent

also expired.

8. In view of the above, the order passed by the 1st respondent is

quashed. The respondents are directed to permit the petitioner to sign the

cheques of Punjai Palatholuvu Panchayat forthwith.

9. This Writ Petition is allowed with the above directions. No costs.