Back
1995 Supreme(AP) 944
Andhra Pradesh High Court
Judges : B.SUBHASHAN REDDY
Pay and Accounts Office Employees Joint Action Committee, Hyderabad, Chairman, V.Raja Mallaiah - Appellant
Versus
Government Of A.P.rep.by its Secretary, Finance and Planning (P.W.Admn.I) Dept., Hyderabad - Respondent
Decided On : 12-11-95
Article 150 of the Constitution of India requires the President's approval for changes in the form of accounts. The principles of natural justice require that a party be given an opportunity to be heard before a decision is made that affects their rights.
Headnote:
CONSTITUTIONAL LAW - ARTICLE 150 - FORM OF ACCOUNTS - CHANGE OF OFFICE OR OFFICER - PRIOR APPROVAL OF PRESIDENT - NECESSITY - NATURAL JUSTICE - AUDI ALTERAM PARTEM - APPLICABILITY.
Fact of the Case:
The Pay and Accounts Office (PAO) in Hyderabad, which was responsible for maintaining the accounts of the State Government, was transferred to the Treasuries and Accounts Department under the impugned G.O. The petitioner, representing the PAO employees, challenged the G.O., arguing that it violated Article 150 of the Constitution, which requires the President's approval for changes in the form of accounts, and that the principles of natural justice were violated as the PAO was not given an opportunity to be heard.
Finding of the Court:
The court held that Article 150 of the Constitution was applicable in this case, as the change in office or officer could potentially lead to a change in the form of accounts. However, the court found that it could not determine whether there was a change in the form of accounts based on the material on record. The court also held that the principles of natural justice required that the PAO be given an opportunity to be heard before the impugned G.O. was issued.
Issues: 1. Whether the impugned G.O. required the compliance of Article 150 of the Constitution of India? 2. Whether the Rule of audi alterant partem is applicable?
Ratio Decidendi: 1. Article 150 of the Constitution of India requires the President's approval for changes in the form of accounts. The change in office or officer from the PAO to the Treasuries and Accounts Department could potentially lead to a change in the form of accounts, as the two offices have different procedures and systems for maintaining accounts. 2. The principles of natural justice require that a party be given an opportunity to be heard before a decision is made that affects their rights. In this case, the PAO was not given an opportunity to be heard before the impugned G.O. was issued.
Final Decision: The court quashed the impugned G.O. and directed the respondent-Government to issue a fresh notice to both the petitioner and respondent No. 6, enquire into the matter, and follow the guidelines provided by the court for fact-finding. The court made it clear that if the change in office or officer involves a change in the form of accounts, no action shall be taken unless the constitutional mandate under Article 150 is complied with.
( 1 ) THIS Writ Petition was filed by the Pay and Accounts Office Employees Joint action Committee, Hyderabad, represented by its Chairman V. Raja Mallaiah. Mr. V. Raja Mallaiah representing himself and also the Employees of the Pay and Accounts Office of Twin cities assails the validity of G. O. Ms. No. 4, Finance and Planning (P. W. Admn. 1) Department, dated 1-1-1994, by which the functions, which are being discharged by the Pay and Accounts Office staff, are sought to be entrusted to the Treasuries and Accounts Department of Andhra pradesh with effect from 1-2-1994.
( 2 ) THE said Governmental Order is impugned as being violative of Article 150 of the Constitution of India, which hitherto read "the accounts of the Union and of the States shall be kept in such form as the Comptroller and Auditor- general of India may, with the approval of the President, prescribe"; now reads after forty-second and forty-fourth Constitutional amendment as the accounts of the Union and of the States shall be kept in such form as the President may, on the advice of the Comptroller and Auditor-General of India, prescribe .
( 3 ) PAY and Accounts Office functions relating to State Government transactions and Treasuries function relating to Central Government transactions arising in the twin cities of Hyderabad and Secunderabad, were hitherto being carried out by the Accountant General of Andhra Pradesh, hyderabad. This was continued till 30th September, 1971, but from 1st October, 1971 these functions have been entrusted to Pay and Accounts Office, Twin cities. By G. O. Ms. No. 328, Finance (Admn. l) Department, dated 22-9-1971, from 1-10-1971 onwards new Pay and Accounts Office came into being. Personnel from various Departments trained in accounts were drafted to Pay and Accounts Office and they were also trained by the Personnel Accountant- general s Office, Cadre was formed by framing rules titled andhra Pradesh pay and Accounts (Subordinate) Service Rules". Officers and staff, who were drafted on other duty were allowed to opt for absorption from or repatriation to their parent Departments. Officers cadre comprises the Pay and Accounts officer, Deputy Pay and Accounts Officers, Assistant Pay and Accounts officers, Pay and Accounts Superintendents, Auditors and Assistant Auditors, apart from other staff like Typists, Telephone operators, Record Assistants, drafters, Attenders etc. The cadre strength of the said Service of all the categories mentioned above, is 613. G. O. Ms. No. 328, dated 22-9-1971 is traced to Article 150 of the Constitution of India. It is clearly stated that before the issuance of the said G. O. , prior concurrence of the Comptroller and Auditor- general of India was taken.
( 4 ) MR. V. Venkataramana, the learned Counsel for the petitioner submits that the Pay and Accounts Office having been curved-out attached with the functions, which were hitherto discharged by the Accountant General, Andhra pradesh and as the same relates to form of accounts of all the offices in the twin cities, now divesting the Pay and Accounts Office of such functions and entrusting the same by creating a new post of District Treasury Officer, hyderabad (Urban) under the impugned G. O. requires the due compliance of article 150 of the Constitution of India and as the President s concurrence has not been obtained. before issuance of the impugned G. O. , the same is unconstitutional and is liable to be struck down. His second argument is that even if the impugned G. O. is intra-vires the Constitution, the same suffers from the vice of arbitrariness as the impugned G. O. is the result of representation and persuasion by the Treasuries and Accounts Department and the Rule of audi alterant partem was bound to be followed and as the same has been infracted resulting in violation of principles of natural justice, the impugned G. O. is unsustainable and is liable to be struck down.
( 5 ) MR. Ghulam Mohammed, the learned Government
