Bombay High Court Dismisses Sarpanch's Petition Against Removal Under Section 39 of Maharashtra Village Panchayat Act — Upholds Minister's Order Confirming Removal for Misappropriation of Funds. Court holds that the Sarpanch's failure to deposit collected taxes and misuse of funds constitutes 'misappropriation' under Section 39(1)(b) and that the Minister's order was based on sufficient material and not perverse.

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

The Petitioner, Sau. Shubhangi Sharad Gondhali, was elected as a member of the Revdanda Grampanchayat in June 2013 and subsequently elected as Sarpanch on 27 July 2013. The Respondent No.1, Sonali Santosh More, also a member, filed a complaint on 21 August 2015 alleging that the Petitioner had misappropriated Grampanchayat funds by collecting taxes from villagers but not depositing them into the Grampanchayat account, instead using the money for personal purposes. The complaint sought action under Section 39 of the Bombay Village Panchayat Act (now Maharashtra Village Panchayat Act), 1958. The Tahasildar conducted an inquiry and submitted a report on 28 September 2015 confirming the allegations. Based on this, the Collector issued a show-cause notice to the Petitioner on 30 September 2015. The Petitioner submitted a reply on 12 October 2015 denying the allegations. The Collector, by order dated 1 February 2016, removed the Petitioner from the post of Sarpanch under Section 39(1)(b) of the Act. The Petitioner appealed to the Divisional Commissioner, who dismissed the appeal on 1 February 2016. The Petitioner then filed a further appeal to the Minister, Rural Development, who also dismissed the appeal on 9 March 2016, confirming the removal. The Petitioner challenged the Minister's order by way of a writ petition before the Bombay High Court. The Court examined the material on record, including the Tahasildar's report and the Petitioner's reply, and found that the Petitioner had admitted to collecting taxes but not depositing them, and had used the money for personal expenses. The Court held that the findings of misappropriation were based on evidence and were not perverse. The Court also noted that the Petitioner had been given adequate opportunity to present her case. Consequently, the Court dismissed the writ petition, upholding the removal.

Headnote

A) Maharashtra Village Panchayat Act - Removal of Sarpanch - Section 39 - Misappropriation of Funds - The Petitioner, a Sarpanch, was removed for misappropriating Grampanchayat funds by collecting taxes but not depositing them and using the money for personal purposes. The Court held that the findings of the Minister were based on material on record and not perverse, and the removal was justified. (Paras 1-13)

B) Writ Jurisdiction - Scope of Interference - Perversity - The Court reiterated that in writ jurisdiction, it does not sit as an appellate authority and can only interfere if the findings are perverse or based on no evidence. The Court found no perversity in the Minister's order. (Paras 12-13)

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Issue of Consideration

Whether the order of the Minister removing the Petitioner from the post of Sarpanch under Section 39 of the Maharashtra Village Panchayat Act, 1958, is sustainable in law and whether the findings of misappropriation are perverse.

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Final Decision

The High Court dismissed the writ petition, upholding the order of the Minister removing the Petitioner from the post of Sarpanch.

Law Points

  • Section 39 of Maharashtra Village Panchayat Act
  • 1958
  • Misappropriation of funds
  • Removal of Sarpanch
  • Natural justice
  • Perversity of findings
  • Scope of writ jurisdiction
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Case Details

2016 LawText (BOM) (03) 54

Writ Petition No.3174 of 2016

2016-03-16

R. M. Savant, J.

Mr. S S Kulkarni i/by Mr. Sachin Chavan for the Petitioner, Mr. C G Gavnekar i/by Mr. P P Raul for the Respondent No.1, Mrs. S S Bhende, AGP for the Respondent Nos. 3 to 7

Sau. Shubhangi Sharad Gondhali

Smt. Sonali Santosh More, The Revdanda Grampanchayat, The Collector, The Divisional Commissioner, The Minister, The Tahasildar, The State of Maharashtra

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Nature of Litigation

Writ petition challenging the order of the Minister removing the Petitioner from the post of Sarpanch under Section 39 of the Maharashtra Village Panchayat Act, 1958.

Remedy Sought

The Petitioner sought to quash the order dated 09/03/2016 passed by the Minister and to be reinstated as Sarpanch.

Filing Reason

The Petitioner was removed from the post of Sarpanch on allegations of misappropriation of Grampanchayat funds.

Previous Decisions

The Collector removed the Petitioner on 01/02/2016, the Divisional Commissioner dismissed the appeal on 01/02/2016, and the Minister dismissed the further appeal on 09/03/2016.

Issues

Whether the findings of misappropriation against the Petitioner are perverse or based on no evidence. Whether the removal of the Petitioner under Section 39 of the Maharashtra Village Panchayat Act, 1958, was justified.

Submissions/Arguments

The Petitioner argued that the findings of misappropriation were perverse and that she had not misappropriated any funds, but only delayed depositing the taxes due to personal difficulties. The Respondent No.1 argued that the Petitioner had collected taxes but failed to deposit them, and used the money for personal purposes, amounting to misappropriation.

Ratio Decidendi

The Court held that the findings of the Minister were based on material on record, including the Tahasildar's report and the Petitioner's own admission of collecting taxes and not depositing them. The Court found no perversity in the findings and held that the removal under Section 39 was justified.

Judgment Excerpts

The writ jurisdiction of this Court is invoked against the order dated 09/03/2016 passed by the Hon'ble Minister, Rural Development... The facts giving rise to the above Petition in brief can be stated thus... The Court does not sit as an appellate authority over the findings of the Minister... The findings of the Minister are based on material on record and cannot be said to be perverse.

Procedural History

The Petitioner was elected Sarpanch on 27/07/2013. On 21/08/2015, Respondent No.1 filed a complaint under Section 39. The Tahasildar conducted an inquiry and submitted a report on 28/09/2015. The Collector issued a show-cause notice on 30/09/2015, and after considering the Petitioner's reply, removed her on 01/02/2016. The Petitioner appealed to the Divisional Commissioner, who dismissed the appeal on 01/02/2016. The Petitioner then appealed to the Minister, who dismissed the appeal on 09/03/2016. The Petitioner filed the present writ petition on 16/03/2016.

Acts & Sections

  • Maharashtra Village Panchayat Act, 1958: Section 39, Section 39(1)(b)
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