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IN THE HIGH COURT OF MARAS
Odgers
Mahammad Raza Saheb Belgami
Versus
Sadasiva Rao And Ors.
Decided On : 27 April, 1925
Illegal Expenditure - Madras District Municipalities Act - Rule 55(1), Schedule 4 - Rule 37, Schedule 4 - G.O. No. 1583 - G.O. No. 1584 - G.O. No. 2208 - Chairman's Liability - Government Orders Validity
Fact of the Case:
The Chairman of the Guntur Municipal Council issued cheques against the Municipal funds for the maintenance of schools, which were not authorized objects under Act 5 of 1920. The Government issued orders prohibiting expenditure on unrecognized schools, making the expenditure illegal.
Finding of the Court:
The court found that the expenditure on the schools was illegal as per the Government orders, and the Chairman was liable for making illegal payments. The Government orders were held to be valid despite not conforming to the statutory provision of the District Municipalities Act.
Issues: The issues involved the legality of the expenditure on schools, the liability of the Chairman for making illegal payments, and the validity of the Government orders.
Ratio Decidendi: The court held that the expenditure on unrecognized schools was illegal as per the Government orders, making the Chairman liable for making illegal payments. The Government orders were deemed valid despite not conforming to the statutory provision of the District Municipalities Act.
Final Decision: The Civil Revision Petition and the Civil Miscellaneous Petition were dismissed with costs.
Odgers, J.
1. Civil Revision Petition No. 165 of 1923.-This is a petition to revise the order of the District Judge of Guntur confirming a surcharge order made by the Examiner of Local Fund Accounts (Ex. A) on the petitioner as Chairman of the Guntur Municipal Council. The ground for the surcharge is that the petitioner illegally issued cheques against the Municipal funds under the powers given him by Rule 55(1), part 2 of Schedule 4 of the Madras District Municipalities Act (5 of 1920), for the maintenance of 25 elementary schools managed by the Guntur Municipal Council, such objects not being authorized objects under Act 5 of 1920. On 13th July 1921, the Guntur Municipal Council passed a resolution (Ex. I), (a) to introduce the national system of education in all the institutions under the management of the Council; (b) to dispense with the annual grant by Government; (c) to conduct Municipal primary schools independently of Government control.
2. On 19th August 1921 (Ex. II), a committee of the Guntur Municipal Council was appointed to formulate the methods of working the national system of education. The 25 elementary schools had been up to this date recognized by Government under the Educational Rules and Government had made a grant towards their maintenance. On 15th August 1921, the Government issued two Government orders, No. 1583 (Ex. IV) was issued under Rule 37, Schedule 4 of the Madras District Municipalities Act (5 of 1920) as a special order. This Government order ran as follows:
No portion of a Municipal fund shall be applicable to the purpose of. maintaining or aiding any educational institution which is not recognized or approved by the Government, the District Educational Council or any other authority duly authorized by the Government in this behalf to grant such recognition or approval.
(By order of the Government, Ministry of Local Self-Government.)
3. It may be here stated that Rule 37, Schedule 4 of the Madras District Municipalities Act, 1920, reads as follows:
The purposes to which the Municipal fund may be applied include all objects expressly declared obligatory or discretionary by laws or rules, and in general everything necessary for or conducive to, the safety, health, convenience or education of the inahabitants or to the amenities of the Municipality and everything incidental to the administration; and the fund shall be applicable thereto within the Municipality subject to these rules and such further rules or special orders as the Governor in Council may prescribe or issue; and shall be applicable thereto without the Municipality if the expenditure is authorized by this Act, or specially sanctioned by the Governer-in-Council.
4. So the Municipal fund is applicable to these objects within the Municipality "subject to these rules and such further rules, etc." The other G.O. No. 1584 (Exhibit P) was an order on the resolution of the Guntur Municipal Council set out above and reads as follows:
Recorded. 2. The Government presume that the Municipal Council does not require any financial help from the Government for any purpose.
(By order of the Government Ministry of Local. Self-Government).
5. The Guntur Municipal Council considered on 14th October 1921, these Government orders and on No. 1584, passed the following resolution:
This Council decided to dispense with Government grants only in regard to the national schools, but it is inexpedient that the Government should put a wrong interpretation upon it and presume that the Council does not require financial help from them for any purpose. The Council is of opinion that under these circumstances it is worthy only not to ask for financial help from the Government.
6. G.O. No. 1583, they considered and merely recorded. They also considered a letter from the Inspector of Schools (Ex. IX), requiring whether the Council intended to apply for recognition for the newly nationalized elementary schools and resolved that such recognition was unnecessary. On 22nd
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