HIGH COURT OF KERALA
A. Muhamed Mustaque, Shoba Annamma Eapen, JJ
PERUMBADAPPU GRAMA PANCHAYATH
– Appellant
Versus
BASHEER .V – Respondent
WA 1590 2022
Payment - Contractual Liability - Panchayat Raj (Accounts) Rules, 2011 - Section 29 - The court acknowledged the binding resolution of the Panchayat that approved the payment to the contractor, asserting adherence to prior commitments despite the subsequent request for additional documentation.
Fact of the Case:
The case involves a contractor who supplied water during a drought under an agreement with a Panchayat. A total cost of Rs. 8,00,000 was approved, but only partial payments were made. The contractor sought the outstanding amount, leading to appeals by the Panchayat against a judgment ordering payment.
Finding of the Court:
The court found the Panchayat's subsequent resolution demanding proof of supply irregular, as they had already acknowledged the liability to pay the full amount in a prior resolution. The court emphasized that the Panchayat must honor its commitments.
Issues: Whether the Panchayat could modify its earlier resolution acknowledging payment for the water supply after a significant time lapse and the contractor's claim for the outstanding amount.
Ratio Decidendi: The prior resolution by the Panchayat acknowledging the contractor's claim is binding and cannot be altered later under the guise of seeking additional proof. The Secretary cannot evade the obligation based on retrospective requirements.
Final Decision: The appeals were dismissed, and the Panchayat was directed to pay the contractor within one month.
J U D G M E N T
Dated this 2nd day of March, 2023 A.Muhamed Mustaque, J.
These appeals have been preferred by the Perumbadappu Grama Panchayath and its Secretary. The writ petitioner-Sri.Basheer.V, supplied water during drought in the Panchayath in the year 2017. This was pursuant to an agreement entered with the Panchayat on 04.04.2017. As per the agreement, 2000 litres of water on each trip will have to be distributed in various places within the Perumbadappu Grama Panchayat. The Panchayat committee by a resolution,dated 24.08.2017 (Ext.P1) agreed to pay a total cost of Rs.8,00,000/- (Rupees six lakh only) for the expenses incurred towards the bill claimed by Sri.Basheer. It is acknowledged in the resolution that, Rs.2,00,000/- was paid on 19.06.2017. Since, the balance amount was not paid, Sri.Basheer, approached this Court by a writ petition.
2. It is submitted that on 31.08.2017, another amount of Rs.1,25,000/- was paid, totalling Rs.3,25,000/-. The balance according to Sri.Basheer is Rs.4,75,000/-. But, it is seen that, he has only claimed Rs.4,60,000/- in the writ petition. The learned Single Judge, who heard the matter, allowed the writ petition directing the Panchayat to pay the amount claimed by Sri.Basheer. Thereupon, the Pachayat filed a review petition. In the review petition it is stated that the Panchayat was proposing to modify the earlier resolution, on the ground that no materials were produced by Sri.Basheer to claim the bill for Rs.8,00,000/- as mentioned in the earlier resolution dated 24.08.2017. The review petition has been dismissed.
3. The appeals have been preferred, as against the original judgment of the learned Single Judge, as well as the dismissal of review petition. While the appeals were pending, a resolution was taken by the Panchayat modifying the earlier resolution. This resolution was passed on 10.08.2022. In that resolution, the Panchayat is of the view that the bill can be honored on Sri.Basheer, producing all the relevant records to show that supply was made by him. Sri.Basheer, infact produced Ext.R1(f) in the review a petition, to support his claim for the amount, that he claimed from the Panchayat.
4. The approach of the Panchayat, according to us, is most irregular on the facts and circumstances of the case. The Panchayat had already taken decision calculating the amount payable to Sri.Basheer at Rs.8,00,000/- on 24.08.2017. That cannot be reviewed by a subsequent decision asking him to produce materials in the year 2022.
5. As of now, the Panchayat is bound to honour the earlier decision of the Panchayat admitting the liability to pay the amount to Sri.Basheer. The learned counsel for the Panchayat submits that, as per the Rule 29 of Panchayat Raj (Accounts) Rules, 2011 (hereinafter referred as 'the Act'), the Panchayat Secretary can only release the amount on production of the written claim with supporting documents. It is to be noted as per Rule 29 of the Act, the Secretary can only release the amount on being satisfied with the genuineness of the claim.
6. We would not have inclined to take a decision in a matter like this, when it is pointed out that a dispute exerts in regard to the amount payable under a contract. Admittedly, a resolution has been passed by the Panchayath acknowledging payment of Rs.8,00,000/-(Rupees eight lakh only) to the contractor-Sri.Basheer. The Panchayat is bound to honour such resolution. If there exists irregularity in acknowledging such payment, it is a matter to be proceeded under Kerala Local Fund Audit Act, 1994, as against the persons who were responsible for passing such a resolution. The Panchayat Secretary cannot now wriggle out from obligation to pay the amount citing that he has no authority to pay the bill amount, claimed by Sri.Basheer.
Accordingly we dismiss these appeals. We have already impleaded, the Director, Kerala State Audit Department, as respondent in the party array. We direct the learned Government Pleader to forward a copy of this j
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