IMPORTANT POINTS
Kerala Panchayat Act, 1994 came into effect on 23.11.1995, whereas Local Fund Audit Act, 1994 has come into effect on 15.01.1996. The former does not have a provision, on the overriding effect on any existing law.

JUDGMENT :

S. MANIKUMAR, J.

Instant writ appeal has been filed by the appellants/writ petitioners seeking for a direction to set aside the judgment dated 19.01.2009 in W.P.(C) No.1870 of 2009, by which, a learned single Judge of this Court dismissed the writ petition stating that there is no provision in the Kerala Local Fund Audit Act, 1994 limiting the time and, therefore, the omission to provide any time limit in the Local Fund Audit Act means that the provision contained in the proviso to Section 215 of the Kerala Panchayat Raj Act, 1994 is not inconsistent with the provisions of the Kerala Local Fund Audit Act.

2. Writ petition has been filed assailing Exhibit-P7 judgment of the District Judge, Thodupuzha in O.P. (Local Fund) No.16/07. By Exhibit-P7 judgment, the court below allowed the application filed by Sri. P. D.Raveedran, Pathiyil House, Melampara P.O., Bharananganam, Kottayam district, respondent No.1, under Section 20(13) of the Kerala Local Fund Audit Act, 1994 (for short, 'Act, 1994') to set aside Surcharge Certificate Nos. LF 11295/Spl.cell (Sc.2) 2005 dated 7.11.2006 and LF 11295/Spl.cell (Sc.2) 2005 dated 7.11.2006, for the reason that the claims made therein were hopelessly barred by limitation in view of the proviso to sub-section (9) to Section 215 of the Act, 1994, which mandates that no surcharge shall be made after a period of four years from the date on which the expenditure in question was incurred.

3. Brief facts are as follows:

First respondent/Mr. P.D. Raveendran was working as a Secretary, Karunapuram Grama Panchayat in Idukki district for the period from 30.05.2000 to 16.08.2001. Auditing of the accounts of Karunapuram Grama Panchayat, for the financial year 2000-2001, was conducted from 18.02.2003 to 27.02.2003 by the local fund in-charge and found a loss of Rs.10,870/-and Rs.48,701/-, on account of the revenue loss and excess payments. The allegations made against the 1st respondent regarding revenue loss are incorporated in paragraphs 21 and 25 of the audit report and loss sustained on account of excess/illegal payment are incorporated paras 38, 39 and 45. As per para 21 of the audit report, professional tax worth Rs.2,820/-from 3 institutions situated in Karunapuram Grama Panchayath has not been properly assessed and tax collected, again in para 25, it is mentioned that rent from 2 rooms in Thookupalam Market building owned by Karunapuram Panchayat is in arrears for the last 7 months from 2/2000 onwards and the defaulted rent arrears of Rs. 8,050/-should be recovered from the concerned authority. As per the allegation in para 38 of the audit report, it was mentioned that the log book of the Tractor bearing No. KL-6/A 6684 owned by Karunapuram Panchayat was not properly maintained. Scrutiny of vouchers and counterfoils of the cheques revealed that Panchayat has spent Rs.8,890/- towards diesel expenses and wages of driver. These amounts were spent without any return and hence, those amounts were not admissible, and it has to be refunded in the Panchayat account. In para 39 of the audit report, it was mentioned that 1st respondent has remitted Rs.27,876/-in K.S.E.B. for clearing the arrears of current charges used for pumping drinking water under Kuzhikandom drinking water project and Kuzhitholu Irrigation Project, 2 Projects implemented by the panchayat under Peoples Planning Programme. In the audit, it was observed that for the projects implemented under Peoples Planning Programme, further expenditure for its functioning should be met by the beneficiaries and hence, the amount spent for pumping and remitted by the Panchayat was unauthorized and it has to be remitted in the Panchayat account. Again, in para 45 of the audit report, it was stated that 1st respondent has spent Rs.6,394/-in excess over the project fund of Rs.71,700/-.

4. Based on the audit report, charge notice and surcharge notice dated 16.8.2005 were issued to the 1st respondent. Thereafter, charge certificate and surcharge certificate