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2023 Supreme(Mad) 3090

IN THE HIGH COURT OF JUDICATURE AT MADRAS
S. SOUNTHAR, J.
N. Pachaiyammal - Appellant
Versus
The District Collector / Inspector of Panchayat, Villupuram & Ors. - Respondents
W.P. No. 20046 of 2023 & W.M.P. Nos. 19394 & 19395 of 2023
Decided On : 14-07-2023

Advocates:
For the Petitioner:G. Mohammed Aseef, Advocate. For the Respondents:R1 to R4, N. Naveenkumar, Government Advocate, R5, M. Rajendran, Additional Government Pleader.

The withdrawal of statutory powers must be in accordance with the statutory provisions and principles of natural justice.

Headnote:

Panchayat - Withdrawal of Cheques Signing Power - Tamil Nadu Panchayats Act, 1994, Section 188, 203, 204 - The court discussed the statutory power of the President and Vice President to sign cheques under Section 188 of the Tamil Nadu Panchayats Act, 1994. It highlighted the limitations on the Inspector of Panchayats' power to withdraw the cheques signing power and emphasized the importance of following due process and principles of natural justice.

Fact of the Case:

The writ petition challenges the order withdrawing the cheques signing power available to the President of Panchayat and authorizing another member to exercise the said power. The petitioner alleged non-cooperation by the Vice President and sought action against them. The impugned order was passed without considering the petitioner's representations and without issuing a Show Cause Notice regarding the withdrawal of cheques signing power.

Finding of the Court:

The court found that the withdrawal of cheques signing power by the 1st respondent was not supported by the Tamil Nadu Panchayats Act, 1994. It emphasized the importance of following due process and principles of natural justice, and directed the 1st respondent to issue a Show Cause Notice and conduct an enquiry regarding the allegations of non-cooperation.

Issues: Non-cooperation by the Vice President, withdrawal of cheques signing power without due process, and the authority of the 1st respondent to take such action.

Ratio Decidendi: The withdrawal of cheques signing power must be in accordance with the statutory provisions and principles of natural justice. The 1st respondent's emergency power under Section 203 of the Act does not entitle them to withdraw the cheques signing power available to the President and Vice President.

Final Decision: The writ petition is allowed, the impugned order is set aside, and the 1st respondent is directed to issue a Show Cause Notice and conduct an enquiry. No costs are awarded.

JUDGMENT

(Prayer: Writ Petition is filed Under Article 226 of the Constitution of India to issue a Writ of Certiorarified Mandamus, to call for the records of Impugned Order dated 17.05.2023 issued by the 1st respondent through his proceedings Na.Ka.No.AA3/271/2023 and quash the same as illegal, arbitrary and non-est in laws and further direct the 1st respondent to appoint the petitioner and any other member of Sethamangalam Panchayat Union to sign cheques and operate bank Panchayat accounts.)

1.The writ petition is filed by the President of Panchayat challenging the order passed by the 1st respondent withdrawing the cheques signing power available to the President and authorising the 5th respondent to exercise the said cheques signing power.

2. Heard the arguments of Mr.G.Mohammed Aseef, learned counsel for the petitioner, Mr.N.Naveenkumar, learned Government Advocate for the respondents 1 to 4 and Mr.M.Rajendran, learned Additional Government Pleader for the 5th respondent.

3. The petitioner was elected as President of Sethamangalam Panchayat, Olakkur Taluk, Tindivanam District. It is stated by the petitioner that from the date of her appointment, the Vice President of the said Panchayat refused to cooperate with her. The petitioner made a representation to the respondents complaining about the non-cooperation by the Vice President. The Panchayat also passed a resolution on 02.12.2022 unanimously requesting the 1st respondent to appoint 3rd Ward Member as an authority to co-sign the cheque instead of Vice President. Though the resolution was passed by the Panchayat was sent to the 1st respondent, the 1st respondent has not taken any further action in pursuance of the same. In these circumstances, the petitioner made a representation dated 30.01.2023 to the 1st respondent requesting to take action against the Vice President. The petitioner also submitted a representation dated 14.03.2023 to the 2nd respondent for removal of the Vice President and the same has not been considered.

4. Lateron, the 1st respondent by his proceedings dated 06.05.2023 appointed the 4th respondent herein as an authority to sign the cheques along with the President. In these circumstances, the impugned order has been passed by the 1st respondent dated 17.05.2023 appointing the 4th respondent as an authority to sign cheques by withdrawing the power available to the President.

5. The learned counsel for the petitioner submitted that under the Scheme of Tamil Nadu Panchayats Act, 1994, there is no power available to the 1st respondent to withdraw the cheques signing power of the President, which has been conferred on the President and Vice President under Section 188 of the Act. It is also submitted by the petitioner that in case of noncooperation by the Vice President and others Members, under Section 204 of the Tamil Nadu Panchayats Act, 1994, the 1st respondent is empowered to authorise the President of the Panchayat to exercise the cheques signing power.

6. It is also stated by the learned counsel for the petitioner that the impugned order has been passed without considering the representations submitted by the petitioner and hence, the same is violative of principles of natural justice.

7. Mr.M.Rajendran, learned Additional Government Pleader appearing for the 5th respondent submits that under Section 203 of the Tamil Nadu Panchayats Act, 1994, the 1st respondent has got emergency power and by invoking emergency power, the impugned order has been passed. The learned Government Advocate appearing for respondents 1 to 4 also tried to sustain the impugned order by relying on Section 203 of the Tamil Nadu Panchayat Act, 1994.

8. This Court had an occasion to consider the cheques signing power available to the President of Panchayat under Section 188 of the Tamil Nadu Panchayats Act, 1994 and the power available to the Inspector of Panchayat to withdraw the funds in Logeshwari vs. The District Collector, Tiruchirappalli reported in 2013 (2) CTC 846. The relevant

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