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2010 Supreme(All) 3795

[2011(3) ADJ 502 (FB)]
ALLAHABAD HIGH COURT
(Full Bench)
BEFORE : YATINDRA SINGH, RAJES KUMAR AND KRISHNA MURARI, JJ.
HAFIZ ATAULLAH ANSARI .....Petitioner
Versus
STATE OF U.P. AND OTHERS ....Respondents
(Civil Misc. Writ Petition No. 62427 of 2008, decided on 26th October, 2010)

Advocates:
Counsel :
S.M.A. Kazmi and Ashwani Mishra for the Petitioner; S.G. Hasnain, Additional Advocate General and A.K. Sinha for the Respondents.

Headnote:(A) Practice and Procedure—Reference—Larger Bench—Allahabad High Court Rules, 1952—Chapter V, Rules 1 and 6—Division Bench of High Court—Finding difference in views of other Division Bench cases—Referring that matter for authoritative view to Full Bench—Such reference is proper and not incompetent—Not to be sent back. [Para 49]

       Cases cited :

       2008 (1) ADJ 128; 2008 (3) ADJ 315; 2007 (1) ADJ 350 (Para 19)-Referred.

       (B) U.P. Municipalities Act, 1916—Sections 48(2), 48(2) Proviso and 48(2-A)—Removal—Chairman/President of Nagar Panchayat—Procedure to be adopted and ground on which, removal can be done—Mentioned—Proceedings for removal can be initiated only when grounds mentioned in Section 48(2) exist—By issuing show-cause notice—On receipt of explanation given by Chairman/President—Order for removal can be passed after considering explanation and recording reasons therefor, but only after giving him opportunity of hearing—Proviso to Section 48(2), which provides for cessation of financial and administrative powers of Chairman/President envisages two kinds of proceedings—First simplicitor, in which financial and administrative powers of Chairman/President does not cease and second in which these powers happen to cease—But for this second proceedings conditions mentioned in it should be satisfied—This proceeding is meant for serious situation which require extra precaution—Proceedings for removal can be initiated even without passing order for cessation of financial and administrative powers—However, when a valid notice under proviso to Section 48(2) is issued, complying with conditions of Proviso—These powers automatically cease—In such situation, recording of reasons is not required for ceasure of these powers—If notice is not found valid, in that situation even, proceedings for removal does not become invalid. [Paras 50 to 57, 59 to 65, 67, 71, 72 and 133]

       (C) U.P. Municipalities Act, 1916—Section 48(2)—Constitution of India, 1950—Article 226—Removal—Proceedings for—Chairman/President of Nagar Panchayat under Section 48(2)—Writ petition challenging it, at stage of issuing notice—High Court can quash proceedings if it is found that charges on face of it, or even if they are presumed to be proved—Do not make out a case under any of the grounds specified under Section 48(2)—In the instant case, there was only one charge—Notice was issued to Chairman/President for submitting his explanation/reply—He has submitted his expalanation/reply—High Court found that such notice is not invalid—As such, no interference at this stage is required. [Paras 66, 128, 132 and 133]

       (D) U.P. Municipalities Act, 1916—Section 48(2)—“Reason to believe”—Meaning of—Clarified—Satisfaction of State Government which forms its reason to believe—Is not its subjective satisfaction—It is objective satisfaction—Based on relevant materials—Although Court cannot go into question of sufficiency of materials, but can always see, whether there is relevant material on record for arriving at such objective satisfaction. [Paras 73 to 75 and 78]

       (E) U.P. Municipalities Act, 1916—Sections 48(2) Proviso and 48(2)—Notice—Cessation of financial and administrative powers—Chairman/President—Should contain charges, materials on which objective satisfaction is formed and also the evidence by which charges are to be proved—Unless these materials are contained in notice—It would be not valid. [Paras 79 to 81, 84 and 97]

       (F) U.P. Municipalities Act, 1916—Section 48(2)—Removal—Chairman/President of Nagar Panchayat—Proceedings for—Cannot be compared with departmental proceedings in service jurisprudence or reassessment proceedings in taxing statutes. [Paras 94 to 98]

       (G) U.P. Municipalities Act, 1916—Section 48(2) Proviso—Notice thereunder—Although provision no where provides for affording of opportunity to Chairman/President of Nagar Panchayat—But such notice is a step to proceedings for cessation of financial and administrative powers—As such, principles of natural justice are attracted even at this interim stage—Post decisional hearing cannot cure harm or damage caused to Chairman/President concerned—Consequently, he is entitled for getting opportunity of hearing—By such notice, he should be asked to give his explanation/reply and his explanation/reply be considered—This much, opportunity will meet ends of justice and would be fair—Detailed discussions on this aspect—Focussed. [Paras 102, 104, 108, 111, 113, 115, 117 to 120, 124 to 128 and 132]

       

JUDGMENT

Hon’ble Yatindra Singh, J.—A president of a municipality can be removed for misconduct under Section 48 of the UP Municipalities Act, 1916 (the Municipalities Act). He ceases to exercise, perform, and discharge the financial and administrative powers and functions (in short ‘ceases to exercise financial and administrative powers’) the moment a show-cause notice is issued against him satisfying the conditions under proviso to sub-section 2 of Section 48 {Section 48(2)} of the Municipalities Act. The main question involved in this reference revolves around the right of the president before such a notice is issued against him:

Is he entitled to an opportunity, before issuing such a show-cause notice?

If it is necessary then, what is its extent?

THE FACTS

2. The nagar panchayats in our State are governed under the Municipalities Act. The petitioner was elected Chairman/ president of Nagar Panchayat Dasna, district- Ghaziabad (the Nagar Panchayat) on 31.10.2006.

3. The bye-laws of the Nagar Panchayat for collection of parking fees were already proposed on 31.12.2001. They were approved and notified on 21.3.2007 after the petitioner was elected its president.

4. The auction notice for collection of parking fee was published on 23.5.2007. It was published by the beat of drums on 23.5.2007 and was also published in the Hindi daily newspaper Rashtriya Sahara on 1.6.2007.

5. The auction in pursuance of notice was held on 8.6.2007 and one Chaudhary Usman was the highest bidder. His bid of Rs. 36,000 was accepted and approved on 8.6.2007 itself.

6. Chaudhary Usman made a complaint that he was not being permitted to collect the parking fee by the unauthorised persons. It was referred to the District Magistrate, Ghaziabad (the DM) by the executive officer (the EO) of the Nagar Panchayat.

7. The DM wrote to the police authorities for providing help in collection of parking fee.

8. In the meantime, one Mohd. Arif filed an application before the DM on 7.7.2007 that he was prepared to take auction for Rs. 50,000/- as against the highest bid of Rs. 36,000/-.

9. On the aforesaid complaint, the District Magistrate asked for the comments from Sub-Divisional Magistrate Sadar, Ghaziabad (the SDM). He submitted his report to the DM on 12.7.2007 and Mohd Arif deposited Rs. 50,000. The DM; Cancelled the auction in favour of Chaudhary Usman on 17.7.2007; and Ordered for holding fresh auction for the parking fee.

10. The fresh auction was held on 4.8.2007. In this auction Chaudhary Usman was again the highest bidder but this time his bid was of Rs. 7,00,000 against his previous highest bid of Rs. 36,000 only.

11. One Asgar Teli sent a complaint before the Principal Secretary, Nagar Vikas Vibhag, Uttar Pradesh against the petitioner that;

The petitioner was committing financial irregularities;

On the earlier occasion auction for parking fee was for Rs. 36,000; whereas, subsequently auction for the same was for Rs. 7,00,000.

12. In pursuance of the aforesaid complaint, the SDM by his letter dated 20.11.2007 asked an explanation from the EO directing him to send the original file relating to the auction dated 8.6.2007 alongwith his report within three days. The EO sent his reply alongwith the original records on 6.12.2007.

13. A copy of the aforesaid letter of the SDM dated 20.11.2007 was also sent to the President, asking him to show-cause as to how he had approved the auction without there being any report from the Executive Officer. In pursuance of this query, the petitioner sent his reply on 28.11.2007.

14. The SDM submitted his report to the DM on 22.2.2008. This report was sent to the State Government by the DM on 29.2.2008.

15. Thereafter the impugned notice dated 24.10.2008 was issued against the petitioner. In the notice, there is only one charge. It related to the auction dated 8.6.2007 to the effect that:

The auction on 8.6.2007 was done secretly for Rs. 36,000 and was illegally approved on the same day;

Subsequently, the same auction was taken by the same per









































































































































































































































































































































































































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