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2024 Supreme(MP) 395

IN THE HIGH COURT OF MADHYA PRADESH
Anand Pathak, J.
Lakhan Singh v. The State of Madhya Pradesh & Another
Writ Petitions No. 5424 of 2024 and 4521 of 2024 (Gwalior); Decided on 3.7.2024

D. S. Raghuwanshi for petitioner; Ravindra Dixit and M. S. Jadoun, Government Advocates for respondents/State.

The principles of natural justice require fair hearing but non-compliance does not invalidate proceedings if no prejudice is shown; admission of misconduct legitimizes recovery actions.

Headnote:(A) Madhya Pradesh Panchayat Raj Evam Gram Swaraj Adhiniyam, 1993 - Sections 40, 89, and 92 - Writ petition challenging order of recovery of misappropriated funds by Panchayat Secretary and Sarpanch - Petitioners admitted misconduct by depositing funds and claimed lack of proper hearing which was dismissed by the court. (Paras 3, 9, 10, 12)

(B) Natural Justice - The principles of audi alteram partem are important but not absolute; the applicability depends on the circumstances and potential prejudice caused - Violation of such principles may not nullify an order if no prejudice is established. (Paras 11, 12, 13)

Facts of the case:
The petitioners were found guilty of misappropriating funds during an inquiry, admitted their guilt and requested a recovery of funds. Subsequent orders refining procedure were upheld by the court.

Findings of Court:
Court concluded adequate opportunities for hearing were provided and by their actions, the petitioners essentially admitted their guilt.

Issues: The court examined the nature of hearings under sections 89 and 92 of the Adhiniyam and whether adequate opportunities were afforded to the petitioners.

Ratio Decidendi: The court emphasized that while natural justice must be upheld, a determination must take into account whether prejudice was suffered as a result of procedural issues.

Result: Petition dismissed.

Table of Content
1. facts and nature of the case presented (Para 1 , 2 , 3)
2. arguments regarding opportunity of hearing and innocence of petitioners (Para 4 , 5)
3. court's examination of inquiries and proceedings (Para 6 , 7 , 8 , 9 , 10)
4. natural justice principles and exceptions (Para 11 , 12 , 13 , 14)
5. final determination of dismissal based on admitted misconduct (Para 15)

ORDER

Heard on admission.

1. Regard being had to the similitude of the controversy, both the matters are being heard analogously and decided by this common order. For convenience sake, facts of writ petition No.5424/2024 are taken into consideration

2. The present petition under Article 226 of the Constitution has been preferred by the petitioners seeking following reliefs :--

“(i) That, the impugned order dated 15.2.2024 (Annexure P/1) passed by the respondent No.2 may kindly be quashed and set aside.

(ii) That, other relief which is just and proper in the facts and circumstances of the case may also be granted.”

3. Precisely stated facts of the case are that petitioner (In W.P. No.5424/2024) is holding the post of Panchayat Secretary and petitioner (In W.P. No.4521/2024) is holding the post of Sarpanch and both were posted at Gram Panchayat Dhobat, Janpad Panchayat Bhitarwar, District Gwalior w.e.f. 2024 at the relevant point of time. In the year 2021, an inquiry was conducted against the petitioners based upon certain complaints filed. In the said inquiry, misappropriation of funds and corruption was found. It was found that recovery of certain amount is required to be made against the petitioners. On the basis of aforesaid, notice dated 15.3.2021 was issued to the petitioner (In W.P. No.5424/2024) by Chief Executive Officer, Zila Panchayat Gwalior purportedly under the Madhya Pradesh Panchayat Sewa (Discipline and Control) Rules 2011 and revised Rules, 2017. Chief Executive Officer, Zila Panchayat vide order dated 15.3.2021 (Annexure P/3 in W.P. No.4521/2024) gave show cause notice to the petitioner (In W.P. No.4521/2024) purportedly under the provisions of Adhiniyam 1993 and directed him to give reply. Petitioners replied the aforesaid notices by way of filing of reply dated 26.3.2021 (Annexure P/4) and dated 26.8.2022 (Annexure P/6 attached with W.P. No.4521/2024). In reply, petitioners admitted their guilt /misconduct and informed the authority that they have already deposited Rs.40,000/- each in the Nodal A/c No.3092514 of Zila Panchayat and prayed for depositing the remaining part in installments. Thereafter, it appears that another notice dated 15.6.2022 was issued to the petitioners purportedly under section 92 of the Madhya Pradesh Panchayat Raj Evam Gram Swaraj Adhiniyam, 1993 (hereinafter referred as ‘Adhiniyam, 1993’). In the said show cause notice, reference of an inquiry report was referred, which was a four member committee, which inquired and thereafter came to a conclusion about alleged misconduct of petitioners. Thereafter, petitioners appeared in the proceedings and submitted their reply. After submission of reply, hearing was conducted and thereafter impugned order dated 15.2.2024 (Annexure P/1) has been passed, therefore, petition has been preferred.

4. It is the submission of learned counsel for the petitioners that no proper opportunity of hearing was provided to the petitioners because sections 89 and 92 of the Adhiniyam, 1993 contemplates reasonable opportunity of hearing. Before Proceedings under section 89, no opportunity of hearing was given. On merits, petitioners submitted that job cards were not prepared by the petitioners whereas same were prepared by the private company, therefore, petitioners are innocent and falsely implicated. Cattle shades were found to be in order in inquiry, however; the recovery of cattle shades have been ordered in the matter. Therefore, petitioner preferred this petition.

5. Learned Government Advocates for the respondents/State opposed the prayer and submitted that impugned order dated 15.

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