Bombay High Court Allows Writ Petition Declaring Panchayat Member Disqualified for Voting on Matter Involving Pecuniary Interest Under Section 12(1)(d) of Goa Panchayat Raj Act, 1994. Respondent No.1, as owner of land licensed to Idea Cellular Ltd., voted on a resolution regarding the same land, thereby contravening Section 55(4) of the Act.

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

The petitioner, Shri Lenocio Raicar, filed a writ petition before the Bombay High Court at Goa seeking a declaration that respondent No.1, Shri Martinho Rocha, a member and Sarpanch of the Village Panchayat of Davorlim-Dicarpale, was disqualified under Section 12(1)(d) of the Goa Panchayat Raj Act, 1994. The petitioner also sought a writ of mandamus directing respondent No.1 to cease functioning as a member or Sarpanch. The facts were undisputed: respondent No.1 owned a plot of land acquired by a Deed of Sale dated 16.12.1996. On 18.8.2007, he entered into a Leave and Licence Agreement with Idea Cellular Ltd., granting a licence to erect a mobile tower and install equipment for cellular network services for a period of 15 years. The agreement provided for a licence fee of Rs. 10,000 per month, escalating by 15% every three years. Subsequently, a resolution was passed at a meeting of the Village Panchayat on 27.9.2007 regarding the same land and the mobile tower. Respondent No.1 participated in the meeting and voted on the resolution. The petitioner contended that respondent No.1 had a pecuniary interest in the resolution, as he was the licensor and received licence fees, and thus his voting contravened Section 55(4) of the Act, which prohibits a member from voting on any question in which he has a pecuniary interest. The Court examined the provisions of Sections 12(1)(d) and 55(4) of the Act. It noted that the resolution directly concerned the land owned by respondent No.1 and the mobile tower erected pursuant to the licence agreement. The Court held that respondent No.1 had a clear pecuniary interest in the resolution, as the licence agreement generated income for him. Therefore, his voting on the resolution was in contravention of Section 55(4), and consequently, his seat was deemed vacant under Section 12(1)(d). The Court allowed the writ petition, declaring that respondent No.1's seat had become vacant and directing him to refrain from functioning as a member or Sarpanch.

Headnote

A) Panchayat Raj - Disqualification of Member - Pecuniary Interest - Section 12(1)(d) and Section 55(4) of the Goa Panchayat Raj Act, 1994 - The petitioner sought a declaration that respondent No.1, a panchayat member, was disqualified for voting on a resolution concerning a mobile tower on his own land, in which he had a pecuniary interest as licensor under a Leave and Licence Agreement with Idea Cellular Ltd. - The Court held that respondent No.1 had a direct pecuniary interest in the resolution and his voting contravened Section 55(4), rendering his seat vacant under Section 12(1)(d) - The Court allowed the petition and declared the seat vacant (Paras 4-8).

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Issue of Consideration

Whether respondent No.1, being a member of the Village Panchayat, is disqualified under Section 12(1)(d) of the Goa Panchayat Raj Act, 1994 for voting on a resolution in which he had a pecuniary interest, thereby contravening Section 55(4) of the said Act.

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Final Decision

The Court allowed the writ petition, declaring that respondent No.1's seat as a member of the Village Panchayat of Davorlim-Dicarpale had become vacant under Section 12(1)(d) of the Goa Panchayat Raj Act, 1994, and directed respondent No.1 to refrain from functioning as a member or Sarpanch.

Law Points

  • Pecuniary interest
  • disqualification of panchayat member
  • voting on matter with personal interest
  • deemed vacancy
  • Section 12(1)(d) Goa Panchayat Raj Act
  • 1994
  • Section 55(4) Goa Panchayat Raj Act
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Case Details

2010 LawText (BOM) (04) 122

Writ Petition No. 464/2008

2010-04-13

S.J. Vazifdar, U.D. Salvi

2010:BHC-GOA:799-DB

Mr. D. Pangam, Mr. B. Bandekar (for petitioner), Mr. G. Teles (for respondent No.1), Mr. M. Salkar (for respondent Nos. 2 and 4)

Shri Lenocio Raicar

Shri Martinho Rocha, State of Goa, Village Panchayat of Davorlim-Dicarpale, Director of Panchayats

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Nature of Litigation

Writ petition seeking declaration of disqualification of a panchayat member and mandamus to restrain from functioning.

Remedy Sought

Declaration that respondent No.1 is disqualified under Section 12(1)(d) of the Goa Panchayat Raj Act, 1994 and that his seat has become vacant; writ of mandamus directing respondent No.1 to forbear from functioning as a Member/Panch and Sarpanch.

Filing Reason

Respondent No.1, as a member of the Village Panchayat, voted on a resolution concerning his own land, in which he had a pecuniary interest under a Leave and Licence Agreement with Idea Cellular Ltd., thereby contravening Section 55(4) of the Act.

Issues

Whether respondent No.1 had a pecuniary interest in the resolution voted upon. Whether respondent No.1's voting contravened Section 55(4) of the Goa Panchayat Raj Act, 1994. Whether respondent No.1's seat is deemed vacant under Section 12(1)(d) of the Act.

Submissions/Arguments

Petitioner argued that respondent No.1, being the owner of the land and having entered into a Leave and Licence Agreement with Idea Cellular Ltd., had a pecuniary interest in the resolution regarding the mobile tower, and his voting violated Section 55(4). Respondent No.1's arguments are not recorded in the judgment.

Ratio Decidendi

A member of a panchayat who votes on a question in which he has a pecuniary interest, apart from its general application to the public, contravenes Section 55(4) of the Goa Panchayat Raj Act, 1994, and his seat is deemed vacant under Section 12(1)(d) of the Act.

Judgment Excerpts

If a member of a Panchayat votes or takes part in discussion in contravention of the provisions of sub-section (4) of section 55, his seat shall be deemed to be or to have become, as the case may be, vacant. No member of a Panchayat shall vote on, or take part in the discussion of, any question coming up for consideration at a meeting of a Panchayat, if the question is one in which, apart from its general application to the public, he has any pecuniary interest.

Procedural History

The petitioner filed Writ Petition No. 464/2008 before the High Court of Bombay at Goa seeking a declaration of disqualification and a writ of mandamus. The judgment was reserved on 6th April 2010 and pronounced on 13th April 2010.

Acts & Sections

  • Goa Panchayat Raj Act, 1994: Section 12(1)(d), Section 55(4)
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