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2024 Supreme(Mad) 2229

IN THE HIGH COURT OF JUDICATURE AT MADRAS
S.S. SUNDAR, K. RAJASEKAR, JJ.
P. Rangaraj - Petitioner
Versus
The Director/Commissioner of Rural Development, Chennai and Ors. – Respondents
WP.Nos.27855, 27967 & 27968 Of 2022 & WMP.Nos.27149, 27266 & 27267 Of 2022
Decided On : 12-09-2024

Advocates Appeared:
For the Petitioners: Mr. V. Singaravelan, Senior counsel for M/s. V. Ambika, Mr. N. Srinivasan for Mr. M.N. Balakrishnan, Mr. V. Singaravelan, Senior counsel for Mr. R. Jayaprakash.
For the Respondents: Mr. T. Ravindran, AAG assisted by Mr. M.R. Gokul Krishnan, AGP.

Emergency powers under Section 203 of the Tamil Nadu Panchayats Act cannot be exercised without issuing a show cause notice, as it violates principles of natural justice.

Headnote:(A) Tamil Nadu Panchayats Act, 1994 - Sections 203 and 205 - Writ petitions challenging the withdrawal of cheque signing power of elected Panchayat Presidents - Orders passed without issuing show cause notices - Violation of principles of natural justice - Emergency powers cannot be invoked without justifiable grounds - Impugned orders quashed. (Paras 1, 4, 26, 28)

(B) Principles of Natural Justice - Requirement of issuing show cause notice before taking action against elected representatives - Mandatory compliance necessary for legality of orders. (Paras 10, 26)

(C) Emergency Powers - Scope and limitations of Section 203 - Cannot be used as a routine measure or for disciplinary actions without proper justification. (Paras 18, 25)

Facts of the case:
The petitioners, elected Presidents of various Panchayats, challenged orders from the District Collector withdrawing their cheque signing powers without prior notice, alleging violations of natural justice and improper invocation of emergency powers.

Findings of Court:
The court found that the impugned orders were issued without giving the petitioners an opportunity to respond, thus violating principles of natural justice.

Issues: Whether the District Collector can revoke the cheque signing power of elected Presidents without issuing a show cause notice and whether such emergency powers can be exercised in the absence of justifiable grounds.

Ratio Decidendi: The court ruled that the emergency powers under Section 203 cannot be invoked without a valid reason and that the principles of natural justice must be adhered to, including the issuance of a show cause notice.

Result: Writ petitions allowed; impugned orders quashed.

ORDER :

(S.S. Sundar, J.)

(Prayer in WP.No.27855/2022 : Writ Petition filed under Article 226 of the Constitution of India for issuance of Writ of certiorari calling for the records of the 2nd respondent in connection with the proceedings passed by him in Na.Ka.No.2574/2021/A3 dated 26.09.2022 and quash the same as illegal.)

(Prayer in WP.No.27967/2022 : Writ Petition filed under Article 226 of the Constitution of India for issuance of Writ of certiorari calling for the records pertaining to the impugned order dated 26.09.2022 passed by the 1st respondent in Na.Ka.No.2927/2021/A3 and quash the same.)

(Prayer in WP.No.27968/2022 : Writ Petition filed under Article 226 of the Constitution of India for issuance of Writ of certiorari calling for the records pertaining to the proceedings of the 2nd respondent in Na.Ka.No.1389/2021/A3 dated 26.09.2022 and quash the same as illegal and ultra vires.)

(1) All the above writ petitions are filed challenging the proceedings of the District Collector who is the Inspector of Panchayats under the Tamil Nadu Panchayats Act, 1994 [hereinafter referred to as ''the Act''], withdrawing the cheque signing power of the petitioners by exercising the emergency power under Section 103 of the Act.

(2) Since common issue arises for consideration in all the three writ petitions, they are disposed of by this common order.

(3) Brief facts that are relevant for the disposal of all the three writ petitions with reference to each writ petition are given hereunder:-

    (a)WP.No.27855/2022:-

    i. The petitioner in this writ petition is the elected President of Somayampalayam Panchayat in the election conducted in the year 2020 and is continuing as such till date. It is the specific case of the petitioner that he contested the election as an independent candidate and later, joined AIADMK Party in April 2020. It is also his specific case that he was invited from various sources to join the ruling party and the petitioner refused to switch over. The petitioner received a show cause notice in March 2022 under Section 205 of the Act making some allegation and he submitted a detailed explanation on 07.10.2022 denying all the charges leveled against him. Even though there was no further proceedings pursuant to the issuance of the said notice under Section 205 of the Act, the 2nd respondent passed an order cancelling the cheque signing power of the petitioner on temporary basis and conferring the said authority in favour of the 3rd respondent in exercise of his emergency power in terms of Section 203 of the Act.

    ii. It is the case of the petitioner that the order impugned is not only in violation of principles of natural justice but also contrary to the Government Order vide G.O.Ms.No.148 dated 31.05.2001 which mandates that a report with reasons has to be forwarded to the Director / Commissioner of Rural Development and the concerned Panchayat for withdrawing the cheque signing power. Even though an appeal is filed by the petitioner before the 1st respondent, pointing out that the order is biased and suffers from lack of mala fides, the grievance of the petitioner is that the 1st respondent has not passed any order in the appeal.

    (b) WP.No.27967/2022:-

    i. The petitioner was elected as President of Malumichampatty Panchayat on 06.01.2020 and the said Panchayat is one of the biggest Panchayat in Coimbatore District. It is the specific case of the petitioner that at the instance of the defeated candidate of the ruling party, the 1st respondent/District Collector, due to pressure, issued a show cause notice dated 01.04.2022 under Section 205 of the Act after making allegations of misappropriation of funds and lack of transparency etc. The petitioner submitted a detailed explanation on 21.04.2020 denying the charges. Though the petitioner was called for an enquiry by the 1st respondent, there was no further proceedings against the petitioner under Section 205 of the Act. However, the 1st respondent vide impugned order dated 26.09.2022, te

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