Supreme Court Allows Appeals of Shiksha Karmis in Bias and Natural Justice Conflict. Breach of Audi Alteram Partem Cured by Revisional Hearing Where No Actual Bias Proved Under Section 40(c) of Madhya Pradesh Panchayat Raj Act Avam Gram Swaraj Adhiniyam, 1993.

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Case Note & Summary

The case involves four civil appeals arising from a split verdict of the Supreme Court regarding the validity of appointments of Shiksha Karmi (Grade III) teachers in Janpad Panchayat, Gaurihar, Madhya Pradesh, made in 1998. The appellants were among 249 selected candidates. An unsuccessful candidate, Archana Mishra, challenged the selection before the Collector under Section 3 of the Madhya Pradesh Panchayat (Appeal and Revision) Rules, 1995, alleging nepotism and bias because some selectees were relatives of selection committee members (Chairperson Smt. Pushpa Dwivedi and member Swami Singh). The Collector, relying on the High Court's decision in Hira Lal Patel v. Chief Executive Officer, set aside the appointments without issuing notice to the selectees, citing Section 40(c) of the Madhya Pradesh Panchayat Raj Act Avam Gram Swaraj Adhiniyam, 1993, which prohibits office bearers from causing financial gain to relatives. The Commissioner dismissed the revision petition, and the High Court upheld the cancellation, finding reasonable likelihood of bias. However, Justice K.V. Vishwanathan in the split verdict held that the selection was erroneously set aside due to breach of audi alteram partem, as the selectees were not heard at the original stage. Justice J.K. Maheshwari upheld the cancellation, finding bias irrefutably proved. The larger bench resolved the conflict by holding that while the rule against bias is fundamental, the breach of audi alteram partem must be assessed with reference to prejudice. Since the selectees were given full opportunity at the revisional stage and no actual bias was demonstrated (the related members had recused themselves and did not award marks), the initial procedural violation was cured. The court allowed the appeals, setting aside the orders of the Collector, Commissioner, and High Court, and restoring the appointments.

Headnote

A) Administrative Law - Natural Justice - Rule Against Bias - Nemo Judex in Causa Sua - Section 40(c) Madhya Pradesh Panchayat Raj Act Avam Gram Swaraj Adhiniyam, 1993 - The court examined whether the presence of relatives of selection committee members vitiated the selection process. Held that reasonable likelihood of bias must be established; mere relationship without participation or influence does not automatically invalidate selection. (Paras 13-30)

B) Administrative Law - Natural Justice - Audi Alteram Partem - Prejudice - The court considered whether breach of the right to a fair hearing requires demonstration of prejudice. Held that where there is a complete denial of hearing, prejudice is presumed and need not be separately proved. (Paras 13-30)

C) Administrative Law - Natural Justice - Cure of Procedural Violation - Rule 9 Madhya Pradesh Panchayat (Appeal and Revision) Rules, 1995 - The court addressed whether violation of audi alteram partem at the original stage can be cured at the revisional stage. Held that a full hearing at the revisional stage can cure the initial defect if no prejudice is shown. (Paras 13-30)

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Issue of Consideration

Whether the selection of Shiksha Karmis is vitiated for violation of the rule against bias; whether breach of audi alteram partem requires demonstration of prejudice; whether such breach at original stage can be cured at revisional stage.

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Final Decision

The Supreme Court allowed the appeals, set aside the orders of the Collector, Commissioner, and High Court, and restored the appointments of the appellants as Shiksha Karmis. The court held that the breach of audi alteram partem at the original stage was cured by the full hearing at the revisional stage, and no actual bias was established as the related members had recused themselves and did not award marks.

Law Points

  • Natural justice
  • rule against bias
  • nemo judex in causa sua
  • audi alteram partem
  • prejudice
  • cure of procedural violation
  • Section 40(c) Madhya Pradesh Panchayat Raj Act Avam Gram Swaraj Adhiniyam 1993
  • Rule 9 Madhya Pradesh Panchayat (Appeal and Revision) Rules 1995
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Case Details

2025 LawText (SC) (1) 294

Civil Appeal No(s). 4806 of 2011 with 4807-4809 of 2011

2025-01-27

Hrishikesh Roy J

2025 INSC 126

Vivek Tankha (Senior Counsel for appellant), Mrinal Gopal Elker, Avdhesh Kumar Singh (for respondents)

Krishnadatt Awasthy

State of M.P. & Ors.

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Nature of Litigation

Civil appeals challenging cancellation of appointments of Shiksha Karmi (Grade III) teachers on grounds of bias and violation of natural justice.

Remedy Sought

Appellants sought restoration of their appointments as Shiksha Karmis, which were set aside by the Collector and upheld by the Commissioner and High Court.

Filing Reason

Appellants' appointments were cancelled without affording them a hearing, allegedly due to bias of selection committee members who were relatives of some selectees.

Previous Decisions

Collector set aside appointments on 02.06.1999; Commissioner dismissed revision on 14.3.2000; Single Judge dismissed writ petition on 31.7.2008; Division Bench dismissed appeal on 15.12.2008; Split verdict in Supreme Court on 4.4.2024.

Issues

Whether the selection is vitiated for violation of the rule against bias? Whether breach of audi alteram partem requires demonstration of prejudice? Whether breach of audi alteram partem at original stage can be cured at revisional stage?

Submissions/Arguments

Appellants argued that their appointments were cancelled without hearing and without impleading them, violating natural justice; no relative participated in their selection; marks were fair. Respondents argued that presence of relatives in selection committee vitiated process under Section 40(c) of Adhiniyam, 1993; breach of hearing was cured at revisional stage.

Ratio Decidendi

The principle of audi alteram partem is fundamental, but a breach at the initial stage can be cured by a full and fair hearing at the appellate or revisional stage if no prejudice is shown. The rule against bias requires reasonable likelihood of bias; mere relationship without participation or influence does not automatically vitiate selection.

Judgment Excerpts

The case pertains to the validity of appointments made for the post of school teachers (Shiksha Karmi Grade III) in Janpad Panchayat, Gaurihar in the year 1998. We are confronted with a conflict between the two foundational principles of natural justice i.e. rule against bias (nemo judex in causa sua) and the right to a fair hearing (audi alteram partem). The Collector without issuing notice to the selectees observed that if the appointment is not made as per the scheme, it can be terminated without giving any opportunity of hearing. The Division Bench noted inter alia that: 'though it was imperative on the part of appellants to implead the affected parties, yet as the affected parties had been given full opportunity from all aspects by the revisional forum as well as by the Learned Single Judge, we do not think it apt and apposite to quash the order and remand the matter to the Collector'.

Procedural History

Initial challenge by Kunwar Vijay Bahadur Singh Bundela led to quashing of select list on 31.8.1998; fresh select list published on 16.9.1998; appointments issued on 17.9.1998. Archana Mishra challenged before Collector who set aside appointments on 02.06.1999. Revision before Commissioner dismissed on 14.3.2000. Writ petition under Article 226 dismissed by Single Judge on 31.7.2008. Writ appeal dismissed by Division Bench on 15.12.2008. Appeals to Supreme Court resulted in split verdict on 4.4.2024; matter referred to larger bench which delivered this judgment.

Acts & Sections

  • Madhya Pradesh Panchayat Raj Act Avam Gram Swaraj Adhiniyam, 1993: Section 40(c), Section 100
  • Madhya Pradesh Panchayat (Appeal and Revision) Rules, 1995: Section 3, Section 5, Rule 9
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