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2023 Supreme(MP) 944

IN THE HIGH COURT OF MADHYA PRADESH AT JABALPUR
Maninder S. Bhatti, J.
Manish Yadav – Petitioner
Versus
State Of M. P. and others – Respondents
W. P. Nos. 2148 and 1990 of 2020
Decided On : 03-02-2023

Advocates:
Advocate Appeared:
For the Petitioner: Anshul Tiwari
For the Respondent: Amit Seth, Sahil Sonkusale, Arnav Tiwari

Headnote:(A) M.P. Panchayatraj Evam Gram Swaraj Adhiniyam, 1993 - Sections 40, 89, and 92 - Petitioner, Sarpanch, alleged financial irregularities and removal without hearing - Court found that proceedings under Section 92 could not be initiated without prior inquiry under Section 89 - Court quashed removal order for lack of fair hearing. (Paras 36, 39)

(B) Natural Justice - Right to fair hearing is fundamental in proceedings affecting rights, especially where civil consequences arise - Court reaffirmed necessity for inquiry prior to removal and personal hearings in such matters. (Paras 36, 39)

Facts of the case:
The petitioner, as Sarpanch, challenged removal and recovery orders issued based on financial misconduct allegations without proper inquiry or opportunity to be heard.

Findings of Court:
The court ruled that actions affecting a person's rights must adhere to principles of natural justice, specifically that a proper hearing is mandated before any removal can occur.

Issues: The key legal questions involved whether the orders under Sections 40 and 92 were lawful in absence of an inquiry under Section 89, and whether the petitioner was afforded due process.

Ratio Decidendi: The court established that Sections 89 and 92 operate in distinct domains; Section 89 necessitates prior adjudication before action under Section 92 can occur. The lack of fair hearing rendered the removal order invalid.

Result: The removal order was quashed, allowing for potential fresh proceedings in accordance with the law.

Table of Content
1. allegations against petitioner and procedural compliance. (Para 2 , 3 , 4)
2. petitioner asserts lack of inquiry and rights violation. (Para 5 , 6 , 8 , 9 , 10 , 11)
3. court's reference to statutory provisions and interpretation. (Para 14 , 15 , 19)
4. statutory differences between section 89 and 92 of the act. (Para 17 , 22 , 24 , 26)
5. need for fair inquiry and due process before removal. (Para 30 , 39 , 40)

ORDER :

Maninder S. Bhatti, J.

This order shall also govern the disposal of W.P. No.1990/2020.

2. For the sake of convenience the facts of W. P. No.2148/2020 are being taken note of.

3. It is stated in the petition that the petitioner was Sarpanch of the Gram Panchayat, Bhajipani, District Chhindwara. The respondent no.8, committed certain irregularities causing hindrance to the work of gram panchayat. Thereafter, the complaint was also made against the respondent no.8 regarding theft of stone. Therefore, while keeping grudge respondent no.8 made false complaint against the present petitioner. The same ensued in issuance of a show cause notice dated 30-10-2019 (Annexure-P/5) to the petitioner. The said notice was duly replied by the petitioner vide his reply dated 11-11-2019. On 21-11-2019, the petitioner received another show cause notice which was also replied by the petitioner vide his reply dated 06-12-2019. Vide impugned order dated 11-1-2020 without extending any opportunity of hearing, an order under Section 92 was passed against the petitioner by which, on allegation of defalcation of an amount of Rs..5,54,258/-, recovery against the petitioner was ordered and another order dated 13-1-2020 (Annexure-P/8) was passed by which, the petitioner in purported exercise of powers conferred under Section 40 of the M.P. Panchayatraj Evam Gram Swaraj Adhiniyam, 1993 was removed.

4. Thus, assailing these orders dated 11-1-2020 (Anneuxre-P/7) as well as 13-1-2020 (Annexure-P/8), this petition is filed.

5. Learned counsel for the petitioner contends that in the present case, without conducting an inquiry in terms of Section 89 of the Adhiniyam of 1993 directly an order under Section 92 has been passed. It is also contended by the counsel that no inquiry was conducted prior to the passing of order under Section 92 or an under Section 40 of the Adhiniyam of 1993. It is contended by the counsel that the show cause notice dated 21-11-2019 reflects that so far as the removal is concerned, the petitioner was not called upon to revert back and the petitioner was flabbergasted to receive the impugned order dated 13-1-2020 by which, the petitioner has been removed from the post of Sarpanch under Section 40 of the Ahiniyam of 1993. The counsel contends that the order under Section 40 of the Ahiniyam of 1993 having civil consequences could not have been passed without affording opportunity of hearing and without a fulfledged inquiry allowing participation of the petitioner therein. The petitioner being an elected candidate could not have been subjected to the arbitrary action on the strength of the order dated 13-1-2020.

6. It is also contended by the learned counsel for the petitioner that the order of recovery under Section 92 is also grossly misconceived inasmuch as, the same could not have been passed without ensuring procedure laid down under Section 89 of the Ahiniyam of 1993.

7. Learned counsel for the petitioner has placed reliance on the ordered and another order dated 13-1-2020 (Annexure-P/8) was passed by which, the petitioner in purported exercise of powers conferred under Section 40 of the M.P. Panchayatraj Evam Gram Swaraj Adhiniyam, 1993 was removed. decision of this Court in the case of Radheshyam Kochak s/o Jagannath Kochak vs. State of M.P ., WP No.7672/2015 which has been relied upon by this Court in the case of Kadam Singh vs. CEO & ors, 2019(1) M.P.L.J. 420 and which has been relied upon by this Court in the cases of Smt. Raina Bai vs. State of M.P. , WP No.10060/2019, Narendra and anr. vs. State of M.

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