Permod Kohli, J.

1. The appointment of Arbitrator for spending the grants allocated to the Gram Panchayats, is being resorted to indiscriminately sometime without even issuing a Show Cause Notice and for reasons which are not in germane to the provisions of law. Such orders smell extraneous consideration. Keeping in view a large number of such cases coming to this Court for consideration, vide order dated 17.08.2009, the Director, Rural Development and Panchayats, Punjab, was directed to appear in person before this Court. Shri Gurdev Singh Sidhu, Director, Rural Development and Panchayats Punjab, Chandigarh, is present in person. He has been apprised of the situation and asked to take corrective measures in this regard and also to ensure that the provisions of Section 200 are resorted to strictly in accordance with the spirit of law and not for reasons other than the merit and in consonance with principle of natural justice. Mr. Sidhu has assured this Court that necessary corrective/administrative measures will be adopted in this regard. Coming to the facts of the present case, the impugned order dated 04.08.2009 (Annexure P-7), has been passed by the District Development and Panchayat Officer, Amritsar, on the letter of Block Development and Panchayat Officer, Rayya, dated 03.08.2009, to the effect that the coram of the Gram Panchayat, Niranjanpura, is not complete and Sarpanch Tota Singh has written a letter that the Administrator may be appointed to perform the function of the Panchayat and to spend various grants allocated to it. On that basis, the Block Development and Panchayat Officer, Amritsar, allegedly in exercise of powers under Section 200 of the Punjab Panchayati Raj Act, 1994 (hereinafter referred to as the Act), appointed Administrator under Section 200 of the Act. Section 200 of the Act reads as under :-

"200. Default of duties by the Panchayats. (1) Where a Panchayat makes a default in the performance of any duty other than a judicial function imposed upon it by or under this Act or under any other law for the time being in force, (i) in the case of a Gram Panchayat, District Development and Panchayat Officer; and

(ii) in the case of a Panchayat Samiti or a Zila Parishad, the Director; may by an order in writing fix the period, for the performance of the duty and if it is not performed within the period so fixed, he may appoint any other person to perform the duty and direct that the expenses arising from, and incidental to, its performance shall be paid by the Gram Panchayat.

(2) If, in the opinion of the Director a Panchayat has failed or is otherwise incompetent to administer its property, movable or immovable, in the best interests of the Panchayat the Director, after giving an opportunity to the concerned Panchayat of being heard may appoint a person to administer such property for or on behalf of the concerned Panchayat. Provided that the Director may at any time terminate such arrangement and thereupon the administration of the property shall be resumed by the concerned Panchayat.

(3) A person appointed under sub-section (2) shall exercise all such powers of the concerned Panchayat under this Act, other than the judicial powers conferred upon it, or under any other law for the tune being in force, as may be necessary for the management of the property and shall be entitled to receive such remuneration as may be fixed by the Director.

(4) The income from the management of the property referred to in sub- section (2) shall be credited to the fund of the concerned Panchayat and all expenses arising from and incidental to the administration of such property, including the remuneration payable to the person appointed under sub- section (2), shall be met out of the concerned Panchayat Fund.

(5) If the expenses referred to in subsection (1) are not paid- (i) In the case of a Gram Panchayat the District Development and Panchayat Officer, and

(ii) In the case of a Panchayat Samiti or a Zila Parishad, th