The central legal point established in the judgment is the importance of compliance with statutory provisions, particularly in conducting audits and making findings, and the significance of authorized audit officers in examining financial irregularities.

1. This is an application, filed under Sections 482 of the Cr.PC, seeking quashment of the FIR, dated 06.12.2016, filed by the respondent No. 2, who is the Vice Chairperson of the Amguri Municipal Board against the accused-petitioners, who are working as LDA (General and Accounts) and Assistant Tax Daroga of the aforesaid Municipal Board respectively for commission of misappropriation of tax collected during the financial year 2015-2016 to the tune of Rs. 3,14,934/-.

2. On receipt of the FIR, the Amguri Police Station registered a case, being No. 173/2016, under Sections 420/409 of the IPC.

3. Heard Mr. D Das, learned senior counsel for the accused-petitioners. Also heard Mr. NK Kalita, learned Additional Public Prosecutor, appearing for the State respondent No. 1 as well as Mr. C Baruah, learned counsel for the respondent Nos. 2 and 3.

4. I have perused the petition as well as the annexures furnished therewith.

5. Mr. D. Das, learned Senior counsel for the accused-petitioners has referred to the provisions of Sections 67-E (6) and 67-G of the Assam Municipal Act, 1956 (hereinafter referred to as the 1956 Act). He has further referred to the provisions of Section 54 of the 1956 Act. For the purpose of this case, this Court would like to quote the relevant portions of Sections 67-E (6), 67-E (8), 67-E (9) and 67-G of the 1956 Act which read as follows:-

"67-E (6) -The Auditor may-

(i) require by a notice, in writing, the production before him, or before any officer subordinate to him, of any document which he considers necessary for the proper conduct of the audit;

(ii) require by a notice, in writing, any person accountable for, or having the custody or control of any document, cash or article, to appear in person before him or before any officer subordinate to him;

(iii) require any person so appearing before him, or before any officer subordinate to him, to make or sign a declaration with respect to such document, cash or article or to answer any question or prepare and submit any statement and cause physical verification of any stock of articles in course of examination of accounts.

67-E (8) - The Board of the Municipality at a meeting shall consider the report of the Auditor alongwith test audit report of the C & AG as early as possible and shall, if necessary, take prompt action thereon, and shall also, if necessary, surcharge the amount of any illegal payment on the person making or authorising it, and charge against any person responsible therefore, the amount of any deficiency or loss incurred due to the negligence or misconduct of such person or any amount which ought to have been, but is not, brought in to account by such person, and shall in every such case, certify the amount due from such person:

Provided that any person aggrieved by an order of payment of certified sums may appeal to the State Government whose decision on such appeal shall be final.

67-E (9) - Any person who willfully neglects, or refuses to comply with requisition made by the Auditor or the officer subordinate to him or refuses to comply with any order or direction given by the Board under sub-section (8), shall be liable for any legal action against him as may be considered necessary and appropriate by the Board of the Municipality.

67-G- Placing of Audit Report- (1) The Chief Municipal Officer shall place the audited financial statement, the balance sheet and the report of the Auditor and his comments together with test audit report of the C&AG thereon, before the Board of the Municipality. (2) The Chief Municipal Officer shall remedy any defect that has been pointed out by the Auditor in his report."

The provisions of Section 54 of the 1956 Act reads as follows:-

"54-Liability for loss, waste or misapplication of funds and property-

(1) Every Chairman, Vice-Chairman, Commissioner, officer or servant of a Municipal Board, including a Government servant whose services are lent to the Board, shall be liable for the loss, waste, or miss-applic