( 1 ) THIS appeal gives rise to a short and important question of law relating to the exercise of power by the State Government while disposing of an appeal under S. 50 (4) of the Gram Panchayats Act (hereinafter referred to as the Act), against an order of the District Collector, dismissing a Sarpanch on charges of misappropriation. In order to appreciate the scope of the question, it is necessary to state briefly the facts.

( 2 ) THE appellant was removed from the office of the Sarpanch with effect from 1-12-76 by the District Collector, Guntur by his proceedings dated 18-11-76 for certain irregularities committed by him in the administration of the Gram Panchayat. Some charged relate to miss-appropriation of the Panchajats funds while the appellant was in the office as Sarpanch. The appellant preferred an appeal to the State Government under S. 50 (4) of the Act on 26-12-76. The Government called for para-wise remarks on the appeal memo from the same District Collector against whose order the appeal was preferred. The District Collector submitted his para-wise remarks along with a report on 17-2-77. The State Government by its order in G. O. Ms. No. 403 dated 11-5-7