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2022 Supreme(Pat) 60

IN THE HIGH COURT OF JUDICATURE AT PATNA
CHAKRADHARI SHARAN SINGH, MADHURESH PRASAD, JJ.
Ajay Kumar Jalan son of Mr. Ramaballabh Jalan – Appellant
Versus
The State of Bihar through the Secretary Urban Development and Housing Department Govt. of Bihar, Patna - Respondent
Civil Writ Jurisdiction Case No.20827, 20837 of 2021
Decided on : 15-02-2022

Advocates:
Advocate Appeared:
For the Appellant :Mr. Y.V. Giri, Senior Advocate Mr. Ashok Kumar, Advocate Mr. Vibhuti Narayan, Advocate
For the Respondent:Mr. Prabhat Kumar Verma, AAG-3 Mr. Suma Kumar Jha, Advocate For Darbhanga Municipal Corporation:Mr. Bindhyachal Rai, Advocate Mr. Girish Pandey, Advocate Mr. Ashok Kumar, Advocate For the Respondent/s:Mr. Y.V. Giri, Advocate

Headnote:

Bihar Municipal Act, 2007 – Sections 17(4) and 25(5) – Removal from post of Mayor and Deputy Mayor and post of Ward Councillors – Allegation of misconduct – Petitioners were put to show-cause notice before action was taken against them and they had submitted their explanation in response to show-cause notice – As petitioners were given opportunity to show-cause which they availed after consideration of which impugned order has been passed, there is no violation of principles of natural justice – Concession was granted to contractors violating norms to extend substantial financial benefit – Finding recorded in impugned order that concession was granted illegally in teeth of communications sent by State Government cannot be said to be unreasoned. (Paras 17 to 21)

Constitution of India – Article 226 – Bihar Municipal Act, 2007 – Sections 17(4) and 25(5) – Removal from post of Mayor and Deputy Mayor and post of Ward Councillors – Allegation of misconduct – There was a competitive bidding process in which settlee had participated and his bid was found to be the highest – Petitioners granted concession when period of settlement was nearing its completion – Grant of concession apparently frustrated very competitive nature of bidding process for settlement since settlee was granted settlement on the basis of his bid being the highest – Decision to grant concession of substantially huge amount was deliberately and consciously taken jointly by all petitioners which had consequence of extending undue huge financial benefit to settlee causing corresponding loss to Corporation – Applications dismissed. (Paras 23, 24, 29 and 30)

(2001) 6 SCC 260; (2010) 2 SCC 319 – Distinguished.

(2012) 4 SCC 407; (2015) 3 PLJR 203 – Referred.

(2016) 2 SCC 779 – Relied.

JUDGMENT :

CHAKRADHARI SHARAN SINGH, J.

1. The petitioners in CWJC No. 20837 of 2021 were elected as Mayor and Deputy Mayor of Darbhanga Municipal Corporation (for short 'the Corporation') and had assumed charge on 09.06.2017. Petitioners of CWJC No. 20827 of 2021 were elected as councilors of the Corporation in 2017. An empowered standing committee of the Corporation was constituted on 21.06.2017 with petitioner No. 1 of CWJC No. 20827 of 2021 as its Chairman and the rest of the petitioners as its members.

2. Considering the acts of these petitioners in relation to a decision taken by the said Empowered Standing Committee in its meeting dated 28.05.2019, to be gross misconduct, the State Government of Bihar in the exercise of power under Section 17(4) and 25(5) of the Bihar Municipal Act (hereinafter referred to as ‘the Act’) has removed them from their respective positions by two separate orders, both dated 06.12.2021, which have been put to challenge in these two applications filed under Article 226 of the Constitution of India.

3. Considering that the factual basis for issuance of the impugned order is the same and the issues involved in both the cases are identical, these applications have been heard together with the consent of the parties and are being disposed of by the present common judgment and order.

4. The order contained in memo No. 3538 dated 06.12.2021, issued by the Urban Development and Housing Department, Government of Bihar, ('the Department' for short) is under challenge in CWJC No. 20837 of 2021, whereby the petitioners of the said case have been removed from the post of Mayor and Deputy Mayor in exercise of power under Section 25(5) of the Act. In CWJC No. 20827 of 2021, the order issued vide memo No. 3539 dated 06.12.2021, issued by the Department whereby the petitioners have been removed from the post of ward councilors of the said Corporation in the exercise of power under Section 17(4) of the Act, is under challenge.

5. Consequential letter No. 5368 dated 09.12.2021, issued by the Municipal Commissioner of the Corporation is under challenge in both the writ applications.

6. We have heard Mr. Y.V. Giri, learned Senior Counsel assisted by Mr. Ashok Kumar and Mr. Vibhuti Narayan, learned advocates for the petitioner, and Mr. Prabhat Kumar Verma, learned Additional Advocate General-3 assisted by Mr. Suman Kumar Jha, learned assistant counsel. Mr. Vindhaychal Rai has represented the Darbhanga Municipal Corporation and Mr. Girish Pandey has represented the Bihar State Election Commission.

7. It is considered apt to notice undisputed facts emerging from the pleadings on record which culminated into the impugned action taken by the Government of Bihar against the petitioners. The Corporation had issued a notice inviting tender on 10.08.2016 for utilization of Nine Public Toilet Complexes situated within Darbhanga Municipal Area.

8. On the basis of a comparative chart of the offers made by six competing bidders, a letter of acceptance (‘LoA’ for short) was issued on 23.08.2016 by the Corporation in favour of one Rama Shankar Singh, he having been found to be the highest bidder. He was asked to deposit 50 per cent of the bid amount as stipulated in the said LoA dated 23.08.2016. The settlement was for 3 financial years commencing from 25.08.2016, and the yearly contracted amount was Rs. 22,00,195/-(Rupees Twenty Two Lakh One Hundred Ninety Five Only). A few months before the erstwhile Empowered Standing Committee was going to complete its terms, it authorized the then Mayor to take a decision for grant of concession to the said Rama Shankar Singh in the Settlement amount. Close to the completion of his terms, the erstwhile Mayor allowed the settlee /contractor concession to the extent of Rs. 27,19,008/-(Rupees Twenty Seven Lakh Nineteen Thousand Eight Only) in April 2017. The Municipal Commissioner, however, did not implement the said decision to grant concession which was taken by the then Mayor, soon before demitting

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