The central legal point established in the judgment is the authority of the District Collector to take disciplinary proceedings and impose penalties, including suspension, on Panchayat employees for misconduct, as provided under Section 106 of the Tamil Nadu Panchayats Act, 1994.

1. By Order, dated 16.07.2009, the District Collector, Coimbatore, First Respondent herein, suspended the Petitioner for certain irregularities, during the inspection conducted on 08.05.2009.

2. The said order is assailed mainly on the ground that the District Collector has no authority to take Disciplinary proceedings against the Village Panchayat Assistant, as per G.O.Ms. No.175, dated 05.12.2006. According to the Petitioner, only the Village Panchayat President is the Competent Authority to pass an order of suspension. He further submitted that the District Collector, being the Inspector of Panchayat, is the second Appellate Authority, under the abovesaid Government Order and therefore, the impugned order lacks jurisdiction.

3. Record of proceedings shows that while entertaining the Writ Petition, this Court, by an order, dated 28.07.2009 has granted an interim stay of the operation of the abovesaid impugned order.

4. Based on the Counter Affidavit, learned Additional Government Pleader submitted that NREGA Scheme is implemented in Coimbatore District for the past one year and necessary instructions were given to field level functionaries for implementation of the scheme and maintenance of records. During inspection of the Joint Director/Project Officer, Coimbatore at Village Panchayat of Pollachi (North) Panchayat Union, it was found that the guidelines framed for the implementation of the scheme have not been followed properly and further, the Petitioner has failed to maintain the records, as per the instructions given by higher officials. Therefore, the Joint Director/ Project Officer, Coimbatore District, Second Respondent, sent an inspection report to the District Collector, Coimbatore, 1st Respondent herein and also recommended to suspend the Petitioner for the lapses found during inspection. Based on the recommendations, the First Respondent has suspended the Petitioner.

5. Learned Additional Government Pleader further submitted that though, as per G.O. (Ms). No.175, RD & PR (E5), dated 05.12.2006, the Panchayat President and the Block Development Officer are the Disciplinary and Appellate Authorities respectively, the District Collector, is also the competent authority to take Disciplinary proceedings on the Petitioner, as per Section 106 of the Tamil Nadu Panchayats Act, 1994. He further submitted that the power of the District Collector, has been confirmed by this Court, in an unreported judgment in Selvi. R. Shyni v. The District Collector, Nilgiirs, W.P.No.22826 of 2007, dated 29.01.2008. He, therefore, submitted that there is no illegality or impropriety in the impugned order of suspension and prayed to sustain the same.

6. Heard the learned Counsel for the parties and perused the materials available on record.

7. Section 106 of the Tamil Nadu Panchayats Act deals with the power to punish officers and servants and it reads as follows:

“Section 106. Power to punish officers and servants.— Subject to such control as may be prescribed, the Executive Authority, the Commissioner or the Secretary may censure, fine, withhold increments or promotions from, or reduce to a lower rank in the seniority list, or to a lower post or time-scale or to a lower stage in a time-scale, suspend, remove or dismiss any officer or servant in the service of Village Panchayat or Panchayat Union Council or the District Panchayat, as the case may be, for any breach of Departmental Rules or discipline, or for carelessness, unfitness, neglect of duty or other misconduct.”

8. Perusal of G.O. (Ms). No. 175, RD & PR (E5), dated 05.12.2006, shows that the Panchayat employees shall serve under the control of the President of Village Panchayat. In respect of misconduct, indiscipline or neglect of duty, etc., the Village Panchayat President has powers to impose penalties, such as, censure, fine, withhold increments or promotions from, or reduce to a lower rank in the seniority list, or to a lower post or time-scale or to a lower stage in