The court affirmed the necessity of governmental approval for remission above a specified threshold under the Panchayat Raj Rules.

JUDGMENT

Petitioner has approached this Court seeking the following reliefs:

“[A] Declare that the petitioner is entitled to remission of fee payable for the meat stall bid in auction for the year 2020-21 from the Erattayar Panchayat in accordance with Rule 4 of the Kerala Panchayat Raj (Granting of Remission to Contractors and Lessees) Rules, 1998.

[B] Issue a writ of mandamus commanding the respondent/Municipality to consider and pass orders on Ext. P4 representation in accordance with Rule 4 and 5 of the Kerala Panchayat Raj (Granting of Remission to Contractors and Lessees) Rules, 1998.

[C] Grant such other reliefs as this Hon'ble Court may deem fit and proper in the facts and circumstances of the case.”

2. It is averred that the petitioner bid in auction the meat stalls in the 2^nd respondent panchayat for the period 2020-2021 for a total amount of Rs.22,01,000/- + 18% GST + 1% cess. Petitioner has remitted Rs.11,00,500/- on the date of auction on 17.03.2020. When the petitioner conducted the meat stall from 01.04.2020, covid-19 pandemic broke out and there was lock down and scarcity of cattle and therefore the petitioner could not conduct the business as expected and he had to close down the meat stall within a period of two days from 01.04.2020. Over and above the covid-19 pandemic, the 2^nd respondent panchayat has decided to put a restriction on the price of the meat in the stalls auctioned by them by fixing it as Rs.300/- per kg. Petitioner objected to the same and thereupon he has approached this Court filing W.P.(C) No.10475 of 2020, wherein this Court as per Ext.P2 directed the Government to take a decision on the same and pursuant to the same Ext.P3 order was issued by the Government holding that the local authority has no authority to fix any restriction on the price of the beef. Now the petitioner would submit that seeking remission as provided under Rule 4 of the Kerala Panchayat Raj (Granting of Remission to Contractors and Lessees) Rules, 1998 he has submitted a request before the respondent panchayat, but till date no action has been taken on the same.

3. Learned counsel appearing for the 2^nd respondent panchayat submits that the panchayat committee has taken a decision on 12.03.2021 to grant remission to the tune of Rs.5,42,712/- to the petitioner, but as provided in Rules 5(4) of the Panchayat Raj (Granting of Remission to Contractors and Lessees) Rules, 1998, the panchayat has to obtain approval of the Government before granting remission exceeding Rs.10,000/- and therefore the request has been forwarded to the 1^st respondent through the Deputy Director of Panchayats, Idukki.

Taking into consideration the above facts and circumstances and the fact that the proposal for granting remission has been sent to the 1^st respondent in the year 2021, the writ petition is disposed of with a direction to the 1^st respondent to take a decision on the same, after affording an opportunity of hearing to the petitioner as well as the 2^nd respondent and communicate the decision to the 2^nd respondent panchayat within an outer limit of three months from the date of receipt of a copy of the judgment. Till a decision is taken as directed above, all steps for recovery of the amount shall be kept in abeyance.