R. Arumugam vs The Inspector of Panchayats/District Collector, The Assistant Director (Panchayats) and The Block Development Officer

K.K. Sasidharan, J.—This Writ Petition is directed against the order dated 06 August 2012 on the file of Inspector of Panchayats, Pudukottai, whereby and whereunder, the petitioner was divested of his cheque signing power. The petitioner was elected as the President of Kalamavur Village Panchayat during the year 2011. While he was functioning as the President of Panchayat, the Assistant Director (Panchayats) conducted verification of the accounts of the village Panchayat on 10 May 2012, and thereafter, a show cause notice was issued to the petitioner on 06 August 2012 by the second respondent. The first respondent passed an order on 06 August 2012, transferring the cheque signing power to the Block Development Officer. The said order is challenged in this Writ Petition.

According to the petitioner, no notice was issued by the District Collector before transferring the cheque signing powers to the third respondent. Therefore, the impugned order is liable to be quashed on the ground of violation of principles of natural justice.

The Block Development Officer filed a detailed counter-affidavit explaining the reasons for taking stringent action against the petitioner. According to the Block Development Officer, the petitioner indulged in several acts of misappropriation and on the basis of the inspection conducted by the Assistant Director of Panchayat, the District Collector took immediate action, divesting President of his cheque signing power.

I have heard the learned counsel for the petitioner, the learned Special Government Pleader appearing on behalf of the first and second respondents and the learned counsel appearing on behalf of the third respondent.

The issue raised by the petitioner is covered by the decision of this Court dated 04 April, 2013 in W.P. (MD) No. 139 of 2013 [Logeswari Vs. The District Collector, Tiruchirappalli District and two others]. In the said decision, I have held that the District Collector has no power u/s 203 of the Panchayats Act to take away the cheque signing power of the Village Panchayat.

Sub-Section (3) of Section 188 of the Panchayats Act gives cheque signing power to the President and Vice President. The said power could be taken away only by a statutory provision. The misuse of cheque signing facility can be a reason for initiating proceedings u/s 205 of the Act. However, the emergency powers conferred on the District Collector u/s 203 would not give him jurisdiction to take away the cheque signing power.

The President is an elected representative of the people of the village. The Constitution and the Panchayats Act wanted to give financial powers to the local body and it was only for the said purpose, the legislature has vested the executive authority on the Panchayat. The Legislature has given the cheque signing power to the President and Vice President. The cheques have to be signed jointly by the President and Vice President and in the absence of the President or Vice President, as the case may be, by another member authorized by the village panchayat. Such a power cannot be taken away by the District Collector lightly by invoking the emergency powers.

The law is, therefore, clear that the District Collector has no power u/s 203 of the Panchayats Act to take away the cheque signing power of the President and the Vice President.

In the result, the impugned order dated 06 August 2012 and the show cause notice dated 06 August, 2012 are quashed. However, this order will not prevent the District Collector from initiating proceedings for removal, in case he is of the opinion that there are justifiable grounds to proceed u/s 205 of the Panchayats Act. The Writ Petition is allowed as indicated above. Consequently, connected miscellaneous petitions are closed. No costs.