Bombay High Court Upholds Disqualification of Sarpanch for Leasing Government Land to Society Where He Was President and Trustee. Section 14(1)(g) of Maharashtra Village Panchayats Act, 1959 — Indirect Interest in Contract Leads to Disqualification.

High Court: Bombay High Court Bench: AURANGABAD In Favour of Prosecution
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Case Note & Summary

The petitioner, a resident and voter of Village Waghunde (Khurd), filed an application under Section 14(g) of the Maharashtra Village Panchayats Act, 1959, seeking disqualification of respondent No.2, who was a member of the Gram Panchayat and former Sarpanch. The Collector had vested land Gut No.281 in the Gram Panchayat with conditions that it be used only for cemetery, plantation, and beautification, and could not be transferred without the Collector's permission. Respondent No.2, as Sarpanch, leased 30 R of this land to Shri Bhairavnath Vidya Prasarak Sanstha, a society of which he was President and Trustee. The petitioner alleged that respondent No.2 had an indirect interest in the contract and was liable for disqualification under Section 14(1)(g). The Collector disqualified respondent No.2, and the Divisional Commissioner upheld the order on appeal. Respondent No.2 admitted his position in the society but argued that the lease was for running a school for the benefit of villagers and that he received no pecuniary benefit. The High Court held that the object of Section 14(1)(g) is to prevent conflict of interest and misuse of office. The respondent, as President and Trustee, had an indirect interest in the contract, and the lease was executed under his influence. The court dismissed the writ petition, upholding the disqualification.

Headnote

A) Panchayati Raj - Disqualification of Members - Section 14(1)(g) Maharashtra Village Panchayats Act, 1959 - Indirect Interest in Contract - The petitioner challenged the disqualification of respondent No.2, a Sarpanch, who leased government land vested in the Gram Panchayat to a society where he was President and Trustee. The Collector and Divisional Commissioner disqualified him under Section 14(1)(g). The High Court upheld the disqualification, holding that the respondent had an indirect interest in the contract as the society's President and Trustee, and the lease was for the society's benefit. The court rejected the argument that no pecuniary benefit was received, stating that the object of the provision is to prevent conflict of interest and misuse of office. (Paras 1-15)

B) Panchayati Raj - Disqualification - Section 14(1)(g) Maharashtra Village Panchayats Act, 1959 - Lease of Government Land - The court held that the lease of government land by the Sarpanch to a society where he was President and Trustee constituted an indirect interest in the contract, even if the lease was for a public purpose like running a school. The respondent's position as President and Trustee made him a beneficiary of the allotment, and the lease was executed under his influence. The disqualification was justified to maintain integrity in local self-government. (Paras 10-15)

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Issue of Consideration

Whether a member of a Gram Panchayat who, as Sarpanch, leased government land vested in the Panchayat to a society of which he was President and Trustee, has an indirect interest in the contract and is liable to be disqualified under Section 14(1)(g) of the Maharashtra Village Panchayats Act, 1959.

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Final Decision

The High Court dismissed the writ petition, upholding the orders of the Collector and Divisional Commissioner disqualifying respondent No.2 under Section 14(1)(g) of the Maharashtra Village Panchayats Act, 1959.

Law Points

  • Disqualification under Section 14(1)(g) of Maharashtra Village Panchayats Act
  • 1959
  • Indirect interest in contract
  • Lease of government land to society
  • President and trustee as beneficiary
  • No requirement of pecuniary benefit
  • Object of provision to prevent conflict of interest
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Case Details

2024 LawText (BOM) (02) 90

Writ Petition No.1340 of 2023

2024-02-13

S.G. MEHARE, J.

2024:BHC-AUG:3112

Mr. Amol K. Gawali, Advocate for Petitioner; Mrs. M.L. Sangit, AGP for Respondent Nos.1 & 2; Mr. Tushar M. Tandale, Advocate for Respondent No. 3; Mr. Yuvraj Kakade h/f Mr. N.V. Gaware, Advocate for Respondent No.4

Harku S/o. Kisan Magar

The Divisional Commissioner, Nashik Division Nashik; The Collector, Ahmednagar; Grampanchayat Waghunde Kh.; Sandeep S/o. Sukhdeo Magar

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Nature of Litigation

Writ petition challenging orders of Collector and Divisional Commissioner disqualifying a member of Gram Panchayat under Section 14(1)(g) of Maharashtra Village Panchayats Act, 1959.

Remedy Sought

Petitioner sought quashing of the disqualification orders and restoration of respondent No.2 as member of Gram Panchayat.

Filing Reason

Petitioner alleged that respondent No.2, as Sarpanch, leased government land vested in the Gram Panchayat to a society where he was President and Trustee, thereby having an indirect interest in the contract and being liable for disqualification.

Previous Decisions

Collector, Ahmednagar, passed order in Grampanchayat Dispute Application No.129 of 2021 dated 24.05.2022 disqualifying respondent No.2. Divisional Commissioner, Nashik, dismissed appeal in Grampanchayat Dispute Appeal No.82 of 2022 dated 15.11.2022, upholding the disqualification.

Issues

Whether respondent No.2 had an indirect interest in the contract of lease of government land to the society of which he was President and Trustee, attracting disqualification under Section 14(1)(g) of the Maharashtra Village Panchayats Act, 1959.

Submissions/Arguments

Petitioner argued that respondent No.2, as Sarpanch, leased government land to a society where he was President and Trustee, thus having an indirect interest and benefiting from the contract, warranting disqualification under Section 14(1)(g). Respondent No.2 argued that the lease was for running a school for the benefit of villagers, that he received no pecuniary benefit, and that the society was a separate legal entity; hence, there was no disqualification.

Ratio Decidendi

A member of a Gram Panchayat who, as Sarpanch, leases government land vested in the Panchayat to a society of which he is President and Trustee, has an indirect interest in the contract within the meaning of Section 14(1)(g) of the Maharashtra Village Panchayats Act, 1959. The object of the provision is to prevent conflict of interest and misuse of office, and it is not necessary to prove that the member received any pecuniary benefit. The disqualification is attracted even if the contract is for a public purpose, as the member's position as office-bearer of the contracting society creates an indirect interest.

Judgment Excerpts

The object of Section 14(1)(g) is to prevent conflict of interest and misuse of office. The respondent, being the President and Trustee of the society, had an indirect interest in the contract. The lease was executed under his influence and power as Sarpanch.

Procedural History

The petitioner filed an application under Section 14(g) of the Maharashtra Village Panchayats Act, 1959 before the Collector, Ahmednagar, seeking disqualification of respondent No.2. The Collector passed an order on 24.05.2022 disqualifying respondent No.2. Respondent No.2 appealed to the Divisional Commissioner, Nashik, who dismissed the appeal on 15.11.2022. The petitioner then filed the present writ petition challenging both orders.

Acts & Sections

  • Maharashtra Village Panchayats Act, 1959: Section 14(1)(g)
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