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2008 Supreme(P&H) 1480
2009 (2) RCR(Civ) 599
IN THE HIGH COURT FOR THE STATES OF PUNJAB AND HARYANA, CHANDIGARH
SATISH KUMAR MITTAL and JASWANT SINGH, JJ.
Gram Panchayat, Shahpur - Petitioner(s)
Versus
Financial Commissioner and Principal Secretary to Govt. Haryana Development and Panchayat Department and Others - Respondent(s)
C.W.P.No.4883 of 2006
Decided on: 28.8.2008
Advocate Appeared:
For the Petitioner:Mr. Ajay Jain, Advocate.
For Respondents No.1 to 3: Mz. Kirti Singh, AAG, Haryana.
For Respondent No.4:Mr. Jaivir Yadav, Advocate.
Recovery proceedings for misappropriation of panchayat funds must be initiated within the prescribed period of limitation as per Section 53(5) of the Haryana Panchayati Raj Act, 1994.
Headnote:
Misappropriation - Recovery of Funds - Haryana Panchayati Raj Act, 1994, Section 53(2) and 53(5)
Fact of the Case:
The Gram Panchayat filed a writ petition seeking to quash an order confirming the recovery of funds from the ex-Sarpanch for misappropriation of panchayat funds. The inquiry found that the ex-Sarpanch had misappropriated funds, and recovery proceedings were initiated beyond the prescribed period.
Finding of the Court:
The court held that the recovery proceedings initiated against the ex-Sarpanch were unsustainable as they were beyond the prescribed period of limitation under Section 53(5) of the Haryana Panchayati Raj Act, 1994.
Issues: The main issue was whether the action against the ex-Sarpanch for initiating recovery proceedings to recover the misappropriated funds was within the prescribed period under Section 53(5) of the 1994 Act.
Ratio Decidendi: The court interpreted Sections 53(2) and 53(5) of the 1994 Act and concluded that the recovery proceedings initiated beyond the prescribed period of limitation were unsustainable.
Final Decision: The petition was dismissed, upholding the order of the Revisional Authority.
JASWANT SINGH, J
1. Petitioner-Gram Panchayat, Shahpur Block Bawal, District Rewari (hereinafter to be referred as “Gram Panchayat”) has filed the present writ petition seeking quashing of order dated 16.1.2006 (Annexure P.4) passed by the Revisional Authority-respondent No.1 whereby the order dated 27.11.2002 (Annexure P.3) passed by the Deputy Commissioner, Rewari-respondent No.2 confirming the orders dated 20.6.2000 and 13.9.2000 (Annexures P.1 & P.2) passed by the B.D.P.O, Bawal, imposing a recovery of Rs.62633.25/-upon Rattan Lal, Ex-Sarpanch of the Gram Panchayat (respondent No.4) under Section 53(5) of the Haryana Panchayati Raj Act, 1994 (hereinafter to be referred as “1994 Act”), has been set aside.
2. Briefly, facts of the case are that Rattan Lal-respondent No.4 remained as a Sarpanch of the Gram Panchayat during the term ending August, 1995. A complaint was made in June, 1996 by some villager against respondent No.4 for misappropriation of panchayat funds during his tenure as Sarpanch. The inquiry was conducted by Additional Deputy Commissioner, Rewari, who found that respondent No.4 had misappropriated panchayat funds to the tune of Rs.62633.25/-on account of fictitious work having been carried out in the village for the cleanliness and repair of the lanes/roads as also construction of a nala from “Nehar” to the village Johar. Block Development and Panchayat Officer, Bawal issued a notice dated 20.6.2002 (Annexure P.1) under Section 53 (2) of 1994 Act to respondent No.4 for recovery of the loss of the aforesaid amount. Thereafter, in continuation of the earlier notice dated 20.6.2002, another notice dated 13.9.2000 (Annexure P.2) was issued. Respondent No.4 filed an appeal under Section 53(5) of 1994 Act against the two notices dated 20.6.2000 and 13.9.2000 before the Appellate Authority-Deputy Commissioner, Rewari (respondent No.2) on the ground that the B.D.P.O had issued notices for the recoveries beyond the period of two years from his ceasing to be Sarpanch, therefore, the initiation of recovery proceedings are time barred. The learned Appellate Authority dismissed the appeal vide order dated 27.11.2002 (Annexure P.3) by holding that the proceedings had been initiated within two years of his ceasing to be a Sarpanch, as prescribed under Section 53(5) of 1994 Act.
3. Aggrieved against the said order, respondent No.4 filed a revision petition under Section 53(4) of 1994 Act before respondent No.1. The Revisional Authority vide impugned order dated 16.1.2006 (Annexure P.4) set aside the order dated 27.11.2002 of the Appellate Authority and held that the proceedings under Section 53(5) of 1994 Act had been initiated against Rattan Lal Sarpanch-respondent No.5 beyond the prescribed period of two years. Hence the present petition by the Gram Panchayat.
4. We have heard learned counsel for the parties and perused the record. The sole question to be determined by us is whether the action against respondent No.4-Sarpanch for initiating recovery proceedings to recover Rs.62633.25/-as loss having been caused to the Gram Panchayat is within the prescribed period under Section 53(5) of 1994 Act. Before proceeding on the merits of the case, it is necessary to reproduce the relevant Sections 53(2) and 53(5) of 1994 Act for ready reference, which reads as under:
“53(2). The Block Development and Panchayat Officer concerned may, on the application of Gram Panchayat or otherwise, for loss, waste or mis-application of Gram Fund or property belonging to that Gram Panchayat and after giving adequate opportunity to Sarpanch or Panch, as the case may be, to explain, assess by order in writing the amount due from him on account of such loss, waste or misapplication of such Gram Fund or property and take necessary steps for its recovery.
53(5). Notwithstanding anything contained in this section no person shall be called upon to explain why he should not be required to make good any loss, after the expiry of six years from th
