Bombay High Court Quashes Disqualification of Sarpanch Under Maharashtra Village Panchayats Act — No Conflict of Interest Found in Contract Awarded to Husband. Disqualification under Section 14(1)(g) read with Section 16 of the Maharashtra Village Panchayats Act, 1958 set aside as the contract was awarded before the petitioner became Sarpanch and there was no direct or indirect interest in the contract.

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

The petitioner, Sarpanch of Village Panchayat Malwada, was disqualified by the Collector Nanded under Section 14(1)(g) read with Section 16 of the Maharashtra Village Panchayats Act, 1958, on the ground that her husband had been awarded a contract for construction of a Gram Panchayat building. The disqualification was upheld by the Divisional Commissioner on appeal. The petitioner challenged the orders by way of a writ petition. The facts revealed that the contract was awarded on 20/12/2017, while the petitioner assumed office as Sarpanch on 24/12/2017. The court noted that the petitioner was directly elected as Sarpanch under the amended provisions of the Act. The respondent No.1, the political rival and husband of the previous Sarpanch, had filed the complaint leading to the disqualification. The court heard the counsels for both sides and the State. The court held that Section 14(1)(g) disqualifies a person who has a direct or indirect interest in a contract with the panchayat. However, the contract in question was awarded before the petitioner became Sarpanch, and there was no evidence that she had any interest in the contract or that she influenced its award. The court emphasized that disqualification provisions must be strictly construed and cannot be extended to cover contracts entered into prior to assuming office. The court quashed the orders of disqualification and allowed the writ petition, restoring the petitioner to the office of Sarpanch.

Headnote

A) Panchayati Raj - Disqualification of Sarpanch - Section 14(1)(g) read with Section 16 of the Maharashtra Village Panchayats Act, 1958 - Conflict of Interest - The petitioner, Sarpanch of Village Panchayat Malwada, was disqualified by the Collector for a contract awarded to her husband for construction of a Gram Panchayat building. The contract was awarded on 20/12/2017, before the petitioner assumed office on 24/12/2017. The court held that the disqualification provision requires a direct or indirect interest in a contract with the panchayat, and since the contract was entered into before the petitioner became Sarpanch, there was no conflict of interest. The disqualification was quashed. (Paras 1-10)

B) Statutory Interpretation - Strict Construction of Disqualification Provisions - Section 14(1)(g) of the Maharashtra Village Panchayats Act, 1958 - The court emphasized that provisions imposing disqualification must be strictly construed. The contract in question was not entered into during the petitioner's tenure, and the petitioner had no role in its award. Therefore, the disqualification was unsustainable. (Paras 8-10)

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Issue of Consideration

Whether a Sarpanch can be disqualified under Section 14(1)(g) read with Section 16 of the Maharashtra Village Panchayats Act, 1958 for a contract awarded to her husband before she assumed office as Sarpanch.

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Final Decision

The court allowed the writ petition, quashed the disqualification order dated 03/07/2019 passed by the Collector Nanded and the appellate order dated 23/10/2019 passed by the Divisional Commissioner, Aurangabad, and restored the petitioner to the office of Sarpanch of Village Panchayat Malwada.

Law Points

  • Disqualification under Section 14(1)(g) of the Maharashtra Village Panchayats Act
  • 1958 requires a direct or indirect interest in a contract with the panchayat
  • contract awarded prior to assuming office does not attract disqualification
  • strict interpretation of disqualification provisions is necessary
  • no conflict of interest if the contract was not entered into during the tenure of the office holder.
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Case Details

2022 LawText (BOM) (01) 1

Writ Petition No. 14130 of 2019

2022-01-27

Smt. Bharati Dangre, J.

Mr A. N. Nagargoje for petitioner; Mr U. B. Deshmukh for respondent No.1; Mr K. B. Jadahvar, A.G.P. for respondents/State

Saroja w/o Shirish Behare

Laxman Sonbaji Behare, Block Development Officer, District Collector, Additional Commissioner, The State of Maharashtra

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Nature of Litigation

Writ petition challenging disqualification of Sarpanch under the Maharashtra Village Panchayats Act, 1958.

Remedy Sought

Petitioner sought quashing of the disqualification order dated 03/07/2019 passed by the Collector Nanded and the appellate order dated 23/10/2019 passed by the Divisional Commissioner, Aurangabad.

Filing Reason

Petitioner was disqualified as Sarpanch on the ground that her husband had a contract with the Gram Panchayat, which was alleged to be a conflict of interest under Section 14(1)(g) of the Act.

Previous Decisions

Collector Nanded disqualified the petitioner on 03/07/2019; Divisional Commissioner dismissed her appeal on 23/10/2019.

Issues

Whether the petitioner's disqualification under Section 14(1)(g) read with Section 16 of the Maharashtra Village Panchayats Act, 1958 is valid when the contract was awarded before she assumed office as Sarpanch.

Submissions/Arguments

Petitioner argued that the contract was awarded on 20/12/2017, before she assumed office on 24/12/2017, and she had no interest in the contract. Respondent No.1 argued that the petitioner's husband had a contract with the panchayat, which disqualified her under the Act.

Ratio Decidendi

Disqualification under Section 14(1)(g) of the Maharashtra Village Panchayats Act, 1958 requires a direct or indirect interest in a contract with the panchayat. A contract awarded prior to the assumption of office does not attract disqualification as there is no conflict of interest. Disqualification provisions must be strictly construed.

Judgment Excerpts

The petitioner, Sarpanch of Village Panchayat Malwada, is aggrieved by her disqualification vide order dated 03/07/2019, by the Collector Nanded, under Section 14 (1)(g) read with Section 16 of the Maharashtra Village Panchayats Act, 1958. The facts involved lie in a narrow compass and would reveal that the petitioner came to be elected as Sarpanch of Village Panchayat, Malwada in the election held in October 2017. The contract was awarded on 20/12/2017, while the petitioner assumed office on 24/12/2017. Therefore, the contract was not entered into during her tenure as Sarpanch.

Procedural History

The petitioner was elected Sarpanch in October 2017 and assumed office on 24/12/2017. On 03/07/2019, the Collector Nanded disqualified her under Section 14(1)(g) read with Section 16 of the Maharashtra Village Panchayats Act, 1958. She appealed to the Divisional Commissioner, Aurangabad, who dismissed the appeal on 23/10/2019. She then filed the present writ petition before the Bombay High Court, Aurangabad Bench.

Acts & Sections

  • Maharashtra Village Panchayats Act, 1958: Section 14(1)(g), Section 16, Section 30A-IA
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