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2021 Supreme(Kar) 1006

IN THE HIGH COURT OF KARNATAKA AT BENGALURU
M. NAGAPRASANNA, J.
Mune Gowda S/o P.Jayaramaiah – Appellant
Versus
The State Of Karnataka – Respondent
Writ Petition No.19761 of 2021 (LB-RES)
Decided on : 13-12-2021

Advocates:
Advocate Appeared:
For the Appellant :SRI JAYAKUMAR S.PATIL, SR.ADVOCATE A/W SRI B.RAMESH, ADVOCATE (PHYSICAL HEARING))
For the Respondent: SMT.PRATHIMA HONNAPURA, Adv

Headnote:

Removal of President of Bagaluru Gram Panchayat - Allegations of misappropriation of funds - Inquiry proceedings - Principles of natural justice - Opportunity of hearing - Furnishing of documents and statements - Cross-examination of witnesses - Compliance with legal provisions - Impugned order quashed - Matter remitted back for fresh consideration in accordance with law.

Fact of the Case:

The petitioner, the elected President of Bagaluru Gram Panchayat, was removed from office following allegations of misappropriation of funds. The removal was based on an inquiry report submitted by the Regional Commissioner, which was initiated after a complaint was filed by the Panchayat Development Officer (PDO). The petitioner challenged the removal order, arguing that he was not given a fair opportunity to defend himself during the inquiry proceedings.

Finding of the Court:

The court found that the petitioner was not provided with a fair opportunity to defend himself during the inquiry proceedings. The court noted that the petitioner was not furnished with copies of the audit report and the statements of witnesses, and that he was not given the opportunity to cross-examine the witnesses. The court also found that the impugned order was passed without considering the petitioner's reply to the show cause notice.

Issues: 1. Whether the petitioner was given a fair opportunity to defend himself during the inquiry proceedings. 2. Whether the impugned order was passed in accordance with the principles of natural justice.

Ratio Decidendi: The court held that the petitioner was not given a fair opportunity to defend himself during the inquiry proceedings, and that the impugned order was passed without considering the petitioner's reply to the show cause notice. The court further held that the impugned order was passed in violation of the principles of natural justice.

Final Decision: The court quashed the impugned order and remitted the matter back to the Regional Commissioner for fresh consideration in accordance with law.

ORDER :

The petitioner calls in question the order dated 30-10-2021 passed by the 2nd respondent and the foundational order dated 05-04-2021 passed by the 3rd respondent/Regional Commissioner, Department of Rural Development and Panchayat Raj, whereby the petitioner is removed from the post of Adyaksha of Bagaluru Gram Panchayat.

2. Brief facts leading to the filing of the present petition, as borne out from the pleadings are, as follows:

The petitioner is an elected representative/Member of Bagaluru Gram Panchayat, Jala Hobli, Bangalore North Taluk. It is the claim of the petitioner that he was working in the said Panchayat since 2000 and pursuant to an election held during 2016-17 the petitioner was again elected to the said Panchayat as its Member and thereafter elected as President of the Bagaluru Gram Panchayat. The petitioner began to discharge his duties as President of Bagaluru Gram Panchayat with effect from 19-12-2016. It is the claim of the petitioner that after he assumed charge as President of the Panchayat, several Panchayat Development Officers were appointed during his tenure and were transferred also. During the tenure of Sri Ramesh as Panchayat Development Officer (‘PDO’ for short) one contractor by name Venkatesh sought permission from the hands of the petitioner for laying Optic Fiber Cables (‘OFC’) of Jio Company (‘Company’ for short). The permission was accorded by the Gram Panchayat and in terms of the said permission, the said contractor i.e., Venkatesh executed the said contract by laying OFC in Bagaluru Gram Panchayat. During the tenure of Mr. Ramesh who was the PDO a demand notice was issued to the Company demanding tax of Rs.47,40,000/- but the said tax was not paid by the contractor of the Company. The said PDO later was transferred and the incumbent by name Smt. Annapurneshwari was deputed as PDO to the said place.

3. At that juncture, the petitioner along with the incumbent PDO inspected the works carried out under the jurisdiction of the Panchayat as also laying down of OFC in the precincts of the Panchayat. During the inspection and on enquiry it is the claim of the petitioner that he comes to know that the Company was carrying out laying of OFC without paying requisite tax despite the demand notice issued to the Reliance Jio Infocom Limited. Again a notice demanding a sum of Rs.12,60,000/- was issued for carrying further works within the limits of the Panchayat. This resulted in a complaint being registered before the Deputy Commissioner of Police on 8.02.2020 by the PDO Smt. Annapurneshwari wherein the PDO had alleged that she had issued a demand notice to Jio Digital Fiber Private Limited directing it to pay Rs.12,60,000/- and the said notice was personally received by two contractors and also alleged that the said contractors had handed over the demand draft for a sum of Rs.12,60,000/- to the petitioner and also alleged that the petitioner had also confirmed that the demand draft was with him and required some corrections and that he would hand over the same to the complainant in due course.

4. It is alleged that the complainant later came to know that the demand draft was deposited in HDFC Bank at Sanjaynagar Branch, Bangalore where the Gram Panchayat did not have any account and on that score the ultimate allegation was that the petitioner has misutilized or misappropriated the funds belonging to the Panchayat. A FIR came to be registered against unknown persons in Crime No.32 of 2020 for the offence punishable under Section 420 of the Indian Penal Code. On registration of the crime, the Chief Executive Officer of the Zilla Panchayat communicates to the PDO seeking furnishing of entire account details to an Audit Committee that was constituted to go into the allegations. It is, thereafter, the Chief Executive Officer communicates to the Competent Authority on 09-09-2020 to take appropriate action against the petitioner in terms of Section 48 of the Karnataka Gram Swaraj and Panchayat Raj Act,

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