The main legal point established in the judgment is the importance of following the principles of natural justice in administrative actions affecting civil consequences.

( 1 ) HEARD the learned advocate Mr. B. I. Mehta appearing on behalf of the petitioners, learned A. G. P. Mr. Dabhi appearing on behalf of the respondent No. 1 " State and learned advocate Mr. Munshaw appearing on behalf of respondent No. 2 " Panchayat.

( 2 ) RULE. Learned advocates appearing on behalf of the respondents waive service of notice of rule on behalf of the respondents. With consent of all the learned advocates appearing on behalf of the respective parties, matters are to be taken up for final hearing today.

( 3 ) ACCORDING to the petitioners, they were made permanent in the post of light man/peon by passing resolution even before that petitioner No. 1 worked as daily wager and thereafter, the petitioner was made permanent. The benefit of pay-scale was given to the petitioners and petitioners were worked for more than 16 years against sanctioned posts. However, all of sudden without giving any opportunity to the petitioners, respondent " Panchayat has passed an order on 9th October 2006 reverting the petitioners from permanent posts of daily wager. Before passing the aforesaid order, no show cause notice and no opportunity was being given to the petitioners. Therefore, present petitioners have filed to challenge the order dated 9th October 2006.

( 4 ) LEARNED advocate Mr. Munshaw submitted that affidavit-in-reply on behalf of the respondent is filed. The copy thereof has been served to the petitioner and affidavit-in-reply has been taken on record.

( 5 ) LEARNED advocate Mr. Munshaw submitted that irregular appointments have been made by body of Gram Panchayat which has been brought to the notice then immediate steps have been taken to suspend such resolution, even though, benefit has been given in favour of the petitioner by the Panchayat. However, subsequently, the Audit Department has objected to give subsequent benefit to irregular appointee. Therefore, accordingly, on 9th October 2006, Sarpanch has passed an order for implementing audit note for the audit year 1988, 1989 and 1990 " Para 8 and 9. Therefore, learned advocate Mr. Munshaw submitted that reversion order from permanent post to daily wager is legal and valid.

( 6 ) LEARNED advocate Mr. Mehta submitted that this order has been passed by Sarpanch of respondent No. 1 " Panchayat without giving any opportunity of hearing to the petitioners. As a result of order dated 9th October 2006, which, adversely affect the status, prestige and pay of the petitioners. Therefore, before passing such order, respondent " Panchayat should have to follow the principles of natural justice which has not been followed by respondent " Panchayat.

( 7 ) LEARNED advocate Mr. Munshaw submitted that there is no need to give any opportunity to the petitioners as Resolution is already suspended by the higher authority.

( 8 ) I have considered the submissions made by both the learned advocates appearing on behalf of the respective parties and I have also considered the question as to whether compliance of principles of natural justice is necessary or not " Without considering the merits of the matter, this order dated 9th October 2006, when petitioners are working permanent Light Man / Peon have been reverted to daily wagers, having adverse effect in the pay, pension and status of the concerned petitioners. Therefore, whenever administrative order has been passed by the State Authority, having adverse effect or consequences to the existing service condition, principles of natural justice must have to be observed by the respondent " Panchayat, which has not been observed by respondent " Panchayat. For that, there is no averments made by the respondent " Panchayat in the reply. Therefore, such order, having adverse effect without giving any reasonable opportunity of hearing to the petitioners, is contrary to the principles of natural justice.

( 9 ) THIS Court has examined the same question in Special Civil Application No. 21345 of 2006 dated 12th December 2006 in Para-7 to Para-12 whi

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