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Bansmani Prasad Veerbhadra Shukla v. State Of Madhya Pradesh And Others

Madhya Pradesh High Court
Nov 9, 1976
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Factual and Procedural Background

The petitioner, Bansmani Prasad, was elected Panch of the Gram Panchayat Kailashpur (1970), later a member and then President of the Janapada Panchayat Hanumana. By a State Government order dated 12 May 1976 the petitioner was removed from the office of President and from membership of the Janapada Panchayat. An ex parte inquiry by the Additional Collector, Rewa, led to seven charges being framed. A show cause notice dated 24 January 1976 with some particulars accompanied it; the petitioner replied on 26 February 1976. The impugned order recited that the petitioner was essentially found guilty of: (1) indiscriminate transfer of teachers and misbehaviour with lady teachers; (2) drawing false travelling allowance (T.A.) and dearness allowance (D.A.); and (3) permanently residing in the Janapada office building. The petitioner challenged the removal order by petition under Article 226 of the Constitution.

Legal Issues Presented

  1. Whether the petitioner was afforded the opportunity to show cause in the manner required by the proviso to sub-section (1) of section 116 of the Madhya Pradesh Panchayats Act.
  2. Whether the power of removal under section 116 is quasi-judicial in nature and thus requires disclosure of the material relied upon and reasons for the order.
  3. Whether, even if one charge (transfer of teachers) is admitted, that alone would justify removal when other more serious charges were not properly proved or explained.

Arguments of the Parties

Petitioner's Arguments

  • The petitioner contended he was not afforded a proper opportunity to show cause as required by the proviso to section 116(1) of the Madhya Pradesh Panchayats Act; specifically, the inquiry was ex parte, the inquiry report and the material collected were not disclosed, and the removal order did not state reasons rejecting his explanations.

State's Arguments (as noted in the opinion)

  • The learned Government Advocate pointed out that the petitioner admitted in his reply that certain teachers were transferred contrary to Government instructions, and therefore at least this charge was established against him.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Bhagat Ram v. State of Punjab, AIR 1972 Removal provision was held to be quasi-judicial; authority should give reasons and disclose material relied upon so the affected person can answer effectively. The court held that the principles in Bhagat Ram apply equally to section 116 of the Panchayats Act — the Government must disclose charges and the entire material and give reasons for removal.
Siemens Engg. & Mfg. Co. v. Union of India, AIR 1976 SC 1785 (p.1789) Observed that the rule requiring reasons is akin to audi alteram partem, a basic principle of natural justice. Used to reinforce that reasons should be given in administrative orders affecting rights and that natural justice principles require disclosure and explanation.
Hochtief Gammon v. State of Orissa, AIR 1975 SC 2226 Administrative orders affecting rights must follow rules of natural justice; it is desirable that the order contain reasons. Relied on to support the requirement that the State Government should give reasons when removing a person from office.
Mahabir Jute Mills v. Shibban Lal, AIR 1975 SC 2057 Administrative decisions affecting parties' rights should adhere to principles of natural justice and give reasons where appropriate. Applied to bolster the conclusion that the removal order should have contained reasons and disclosed material.
State of Gujarat v. Ambalal, AIR 1976 SC 2002 (p.2005) Affirmation that administrative orders affecting rights should observe natural justice and giving reasons is desirable. Invoked to support the court's view that reasons and disclosure are required in removal proceedings under section 116.

Court's Reasoning and Analysis

The court examined the procedure followed by the State Government and found the inquiry to be ex parte: the Additional Collector conducted an inquiry without the petitioner's participation, produced a report and collected material which were not disclosed to the petitioner, and no further inquiry occurred after the petitioner's written denial and explanation. The show cause notice contained particulars of charges but did not state the material relied upon; the inquiry report was not supplied; the final removal order did not explain why the petitioner's explanations were rejected or why the charges were held to be proved.

Citing authorities (notably Bhagat Ram v. State of Punjab) the court treated the power of removal under section 116 as quasi-judicial. It reasoned that because removal affects a valuable right and casts a stigma, the person must be given a real opportunity to show cause — which requires disclosure of the materials relied upon and reasons in the final order. The court applied the cited precedents to hold that non-disclosure of inquiry material and absence of reasons violated the principles of natural justice. Although the State relied on an admission by the petitioner regarding transfers, the court concluded that even if that charge were proved it was not sufficiently serious to justify removal on its own where the order was based on the cumulative effect of several charges, some of which were not properly established.

Holding and Implications

Holding: The court's core ruling was to quash the removal order. The petition was allowed and the order removing the petitioner from the office of President and from membership of the Janapada Panchayat was set aside.

DISPOSITION: The petition is allowed; the impugned order of removal is quashed. There shall be no order as to costs; the security amount shall be refunded to the petitioner.

Implications: The immediate consequence is restoration of the petitioner's position vis-à-vis the removal order (i.e., the removal is quashed and security refunded). The opinion reiterates and applies established principles requiring disclosure of material and reasons when removal power is exercised under section 116; it did not purport to lay down a novel precedent but applied existing Supreme Court authorities to the facts before it.

Show all summary ...

G. P. Singh J.-

The petitioner, Bansmani Prasad, was elected Panch of the Gram Panchayat, Kailashpur, in 1970. He was thereafter elected a member of the Janapada Panchayat Hanumana. He was subsequently elected President of the Janapada Panchayat. By an order passed by the State Government on 12th May 1976 the petitioner was removed from the office of President as also from the membership of the Janapada Panchayat. The petitioner then filed this petition under Article 226 of the Constitution challenging this order.

2. It appears that an ex pane inquiry was held against the petitioner by the Additional Collector, Rewa, as a result of which the State Government framed seven charges. A notice was issued to the petitioner on 24th January 1976 calling upon him to show cause why he should not be removed from the office of President as also from the membership of Janapada Panchayat. Along with this notice, some particulars of the charges were also enclosed. The petitioner denied the charges and submitted his reply on 26th February 1976. The State Government then passed the impugned order on 12th May 1976. This order recites that as a result of the inquiry made by the Addi­tional Collector, the petitioner was essentially found guilty of the following charges:

1) The petitioner indiscriminately transferred teachers and mis­behaved with lady teachers.

2) The petitioner drew false travelling allowance and Dearness Allowance.

3) The petitioner resided permanently in the Janapada office building. The order further states that the explanation of the petitioner was found to be unsatisfactory and he was guilty of the aforesaid charges of misconduct.

3. The petitioner's grievance is that in passing the order of removal he was not afforded proper opportunity to show cause as is contemplated by the proviso to sub-section (1) of section 116 of the Madhya Pradesh Panchayats Act. The proviso referred to here requires that

"no member, President or Vice President shall be removed unless he has been given an opportunity to show cause why he should not be removed from his office."

4. It is an admitted position that the inquiry held by the Additional Collector was an ex parte inquiry in which the petitioner was not asked to participate. The show cause notice issued to the petitioner is, no doubt, accompanied by particulars of the charges, but it does not state as to what material or evidence was collected by the Additional Collector against the petitioner in the inquiry. The report of the inquiry was also not supplied to the petitioner. After the petitioner denied the charges and gave his explana­tion, there was no further inquiry. The order removing the petitioner does not give the reasons why the petitioner's explanation was rejected and the charges were held to be proved. In our opinion, the procedure followed in removing the petitioner cannot be said to have afforded him opportunity to show cause as required by the proviso.

5. It cannot be disputed that opportunity to show cause must be real opportunity. The person proceeded against must not only be told the allegations of misconduct, but he must also be informed of the material which is sought to be used against him in support of the charges so that he may offer his explanation in respect of that material. A person who holds office as a member or as President has a right to continue in the office until the expiry of the term The order of removal which is passed under section 116 affects this valuable right and the finding of misconduct on which such an order is based casts a stigma on the public life of the person. Having regard to these consequences, we are of opinion that the power of removal is quasi-judicial in nature In Bhagat Ram v. State of Punjab, A I R 1972 a provision in the Punjab Municipal Act relating to the removal of members was considered by the Supreme Court. It was held in that case that the order contemplated by the provision removing a member was quasi-judicial in nature and that it was not only desirable but also essential that the authority passing the order should give reasons. It was further pointed out that all the material should be disclosed to the person concerned so that he may give an effective answer not only to the averments contained in the show cause notice but also to the materials on the basis of which the show cause notice was issued. The principles laid down in Bhagat Ram v. State of Punjab (supra) equally apply to the exercise of power under section 116 of the Panchayats Act. The State Government while taking action under this provision should not only dis­close the charges but also the entire material on which the charges are based to the person concerned so as to afford him real opportunity to show cause against the charges. Further, the State Government should give reasons in support of the order removing the person from the office so as to indicate why the explanation submitted is not acceptable. It has recently been observ­ed that the rule requiring reasons to be given is like the principle of audi alterum partem, a basic principle of natural justice: Siemens Engg. & Mfg. Co. v. Union of India, A I R 1976 SC 1785, p. 1789. Even in case of administrative orders where rights of parties are affected rules of natural justice have to be followed and it is desirable that the order should contain reasons : Hochtief Gammon v. State of Orissa, A I R 1975 SC 2226, Mahabir Jute Mills v. Shibban Lal, A I R 1975 S C 2057 and State of Gujarat v. Ambalal AIR 1976 S C 2002, p. 2005.

6. We have earlier stated that the petitioner denied all the charges level­led against him. In respect of the charge of misbehaviour with the lady teachers, which is one of the charges, no particulars were given along with the show cause notice and no material was disclosed as to on what basis the said charge was levelled against the petitioner. As regards the charge of drawing false T. A. and D. A., the only thing communicated to the peti­tioner was that he did not submit the bus tickets. The petitioner, however, submitted in reply that the fact that he undertook the journey on the relevant dates in connection with the work of the Janapada Panchayat can be verified by referring to the registers maintained by the Panchayat. It was also pointed out that T. A. and D. A. bills were passed by the proper officer and the charge was false. The material, if any, in support of the charge was not disclosed to the petitioner at all and it is difficult to understand as to how the charge was held to be proved. Similar is the position relating to the charge that the petitioner permanently resided in the office building of the Panchayat. The material in support of this charge was also not disclosed to the petitioner, it appears that in support of all these charges the Govern­ment relied upon the material collected by the Additional Collector in the ex parte inquiry conducted by him as also on his inquiry report. Neither the report nor the material collected in the inquiry was disclosed to the petitioner. The State Government also failed to give reasons in the final order as to why the explanation submitted by the petitioner was not acceptable. In our opinion, therefore, it cannot be held that the petitioner was given proper opportunity of showing cause as contemplated by section 116 of the Act. The impugned order of removal, therefore, cannot be sustained.

7. The learned Government Advocate pointed out that the petitioner admitted in his reply that certain teachers were transferred by him contrary to the Government instructions and, therefore, at least one charge was esta­blished against the petitioner. It does appear that the petitioner passed order of transfer regarding certain teachers when there was a general order of the Government forbidding transfers except with the permission of the Head of the Education Department or the Government. The petitioner's explanation was that transfers were made in those cases only where the teachers affected con­sented or where there was surplus staff at a place. There is no exception in the Government order that in such cases transfers can be made. The petitioner, therefore, did transfer teachers contrary to the instructions of the Government, presumably under a misapprehension. Be that as it may, even if this charge is taken to be proved, we do not think that this charge was so serious that the Government on this charge alone would have passed the impugned order. The order of removal is based on the cumulative effect of all the charges and when the finding regarding the more serious charges cannot be sustained, it is difficult to uphold the order on a comparatively insignificant charge alone.

8. The petition is allowed. The order removing the petitioner from the office of President as also from the membership of the Janapada Panchayat is quashed. There shall be no order as to costs of this petition. The security amount shall be refunded to the petitioner.

Petition allowed.

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