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  • clause (e) of sub-section (1) of section 16 of the Municipal Act
  • section 240 of the Municipal Act,
  • rule 3-A of the rules
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Citation Codes
Equivalent Citations
citation codes
Case Number
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  • clause (e) of sub-section (1) of section 16 of the Municipal Act
  • section 240 of the Municipal Act,
  • rule 3-A of the rules
Smart Summary

Summary of Opinion: Letters Patent Appeals Nos. 47 & 48 of 1964 (State Government v. Naurata Ram & Sugna Ram)

Factual and Procedural Background

This order disposes of two Letters Patent Appeals (Nos. 47 and 48 of 1964) filed by the State Government challenging a judgment of a learned Single Judge. The Single Judge had accepted two writ petitions (Nos. 711 and 712 of 1963) filed by Naurata Ram and Sugna Ram and had set aside notifications removing them from the membership of the Municipal Committee, Budhlada.

Facts as set out in the opinion: Naurata Ram and Sugna Ram were members of the Municipal Committee, Budhlada. Two shops belonging to the Municipal Committee were leased to persons closely connected to the members: one shop to Madan Lal (brother of Naurata Ram) and the other to Sugna Ram himself. A sub-committee was constituted to recommend reasonable rent increases for about 200 municipal shops, including the two shops in question. The sub-committee recommended increases for these two shops. At the general meeting where these recommendations were considered, both Naurata Ram and Sugna Ram were present, and the committee accepted the sub-committee's recommendations unanimously.

By rule 3-A (framed under section 240 of the Municipal Act), members were prohibited from attending and voting at meetings concerning matters in which they or their near relations had a direct or indirect interest. The State Government served notices to show cause why the two members should not be removed for flagrantly abusing their position by attending that meeting. After receiving explanations from each, the State removed them from membership under clause (e) of sub-section (1) of section 16 of the Municipal Act and disqualified them from seeking re-election for one year. The members filed writ petitions challenging the notifications, which the Single Judge allowed, leading to these appeals by the State.

Legal Issues Presented

  1. Whether mere contravention of rule 3-A (attending a meeting in which the member or a near relation has an interest) necessarily constitutes an act that amounts to "flagrant abuse" of a member's position so as to justify removal under clause (e) of sub-section (1) of section 16 of the Municipal Act.
  2. Whether the opinion formed by the State Government under clause (e) (i.e., that a member has flagrantly abused his position) is immune from judicial scrutiny, or whether the High Court may examine the surrounding circumstances to determine if the act complained of is such as to "shock a reasonable mind."
  3. Whether, on the facts of this case (no allegation of influence on the sub-committee, unanimous acceptance of the report, no suggestion that the rents were unfair), a reasonable person could conclude that the members had flagrantly abused their position.

Arguments of the Parties

Appellant's (State Government) Arguments

  • Once rule 3-A (a rule directly dealing with the conduct of a member) is contravened, the State Government is justified in concluding, without detailed inquiry into surrounding circumstances, that there has been flagrant abuse warranting removal under section 16(1)(e).
  • The mere presence of a member who is interested in the matter before the Committee may have influenced other members; such influence cannot be discounted, especially in a small committee where party balances are delicate.
  • Relied on precedent (Joginder Singh v. State of Punjab) to support the contention that if the State Government forms the requisite opinion, the High Court should not revisit the correctness of that opinion.

Respondents' (Naurata Ram & Sugna Ram) Arguments / Explanations

  • The sub-committee (not the two members) had recommended the rent increases; there was no suggestion the sub-committee's work had been interfered with by either member.
  • There was no evidence that either member influenced the sub-committee or the committee's subsequent unanimous acceptance of the report.
  • Given the unanimous acceptance and absence of any suggestion that the rent increases were unfair, the attendance was, at most, an indiscretion and did not amount to abusing their position.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Joginder Singh v. The State of Punjab (1963 65 P.L.R. 297 F.B.) Interpreted clause (e) of section 16(1) to mean State Government may remove a member if he does acts in disregard of duty that would "shock a reasonable mind"; illustrated that, if allegations were true, removal could be justified. The court held this decision did not support the State's broader contention that any contravention of rule 3-A or the mere expression of the State's opinion is immune from judicial review; the precedent was discussed but not accepted as establishing absolute immunity for the State's opinion.
Satya Dev v. State of Punjab (1964 66 P.L.R. 381) Discussed whether the State Government's subjective opinion is sacrosanct and immune from judicial scrutiny under Article 226; examined the scope of judicial review of removals under clause (e). The court relied on this consideration to support the view that the High Court may inquire into whether, in the circumstances, the member's acts amounted to an abuse that could "shock a reasonable mind" and that the State's decision is not absolutely immune from review.
State of Punjab v. Waryam Chand (Letters Patent Appeal No. 47 of 1962) Referred to in connection with the scope of judicial review of executive removals under the Municipal Act. Referenced as an authority considered by the bench; used in the court's assessment of prior rulings on the subject and to show consistent treatment that executive removals under clause (e) are amenable to judicial scrutiny on specified grounds.

Court's Reasoning and Analysis

The court proceeded in a step-by-step analysis strictly tied to the materials and prior authorities cited in the opinion:

  1. Acknowledgement of the undisputed fact that rule 3-A was contravened: both respondents attended the meeting concerning rents in which they or near relations had an interest.
  2. Review of the Single Judge's factual findings and reasoning: the Single Judge found the contravention amounted, at best, to an indiscretion. Key points underlying that finding were:
    • There was no suggestion or allegation that the respondents participated in or influenced the deliberations of the sub-committee that recommended the rent increases.
    • The sub-committee's report was acceptable to the opposition group, and the recommendations were adopted unanimously by the full committee, indicating the report was unexceptionable.
    • There was no allegation that the rents for the two shops were unfair compared with similar shops.
  3. Consideration of the State's legal position: the State argued that any contravention of rule 3-A suffices to justify removal under s.16(1)(e), and that the State's opinion once formed should be immune from court review.
  4. Examination of precedent and principles governing judicial review: the court analysed earlier decisions (including Joginder Singh and Satya Dev) and concluded that the State's power under clause (e) is subject to judicial scrutiny to check two matters:
    • Whether the grounds of removal are extraneous to the conduct of the member as such; and
    • Whether, if the grounds are not extraneous, the acts done by the member in disregard of duty are of a nature that can "shock a reasonable mind."
    The court rejected the proposition that any mere rule breach automatically equals flagrant abuse. The statutory language required not merely a breach but a degree of misconduct that would justify removal because it amounted to flagrant abuse.
  5. Application of the legal standard to the facts: applying the two-pronged scrutiny to the present facts, the court concluded:
    • The contravention was not extraneous to the conduct of a member (i.e., it concerned member conduct), but
    • Given absence of any allegation or proof that the respondents influenced the sub-committee or the committee's decision, the unanimous acceptance of the report, and the lack of any challenge to the fairness of the rents, no reasonable person could conclude that the respondents' conduct amounted to abuse—much less to a "flagrant" abuse that could shock a reasonable mind.
  6. Final evaluative point: although the rule prohibiting attendance is based on sound commonsense and should be observed, inadvertent or deliberate attendance, standing alone and without further aggravating facts (influence, unfairness, extraneous conduct), cannot be treated as automatically justifying removal under the provision invoked.

Holding and Implications

Holding: The appeals by the State Government are dismissed. The court affirmed the order of the learned Single Judge who had allowed the writ petitions and set aside the notifications of removal. Appeal dismissed.

Direct implications for the parties: The Single Judge's order quashing the State's notifications of removal stands; the State's attempt to remove and disqualify the two members under clause (e) of section 16(1) of the Municipal Act was held to be unsupported by sufficient facts showing a flagrant abuse of position.

Broader legal implications: The court reiterated that orders of removal under clause (e) of section 16(1) are subject to judicial scrutiny by the High Court to ensure (a) that the grounds are not extraneous to member conduct as such and (b) that the acts complained of, if not extraneous, are of a character that can "shock a reasonable mind." The opinion rejects the proposition that any contravention of rules relating to member conduct automatically or ipso facto amounts to flagrant abuse justifying removal; rather, the surrounding circumstances and any evidence of actual abuse or influence must be considered.

The opinion did not announce any procedural change beyond these applications, and no separate new statutory construction beyond the described points was asserted.

Appeal dismissed with costs.

    State Of Punjab v. Sugna Ram .

    Dulat and Harbans Singh, JJ.:— This order will dispose of two Letters Patent Appeals Nos. 47 and 48 of 1964 filed by the State Government challenging a judgment of a learned Single Judge of this Court accepting two Writ Petitions Nos. 711 and 712 of 1963 filed by Naurata Ram and Sugna Ram and setting aside their removal from the membership of Municipal Committee Budhlada.

    2. Naurata Ram and Sugna Ram were the members of Municipal Committee, Budhlada. Naurata Ram's brother Madan Lal and Sugna Ram himself were the lessees to two of the shops belonging to the Municipal Committee since before their election as members of the Municipal Committee. A sub-committee consisting of some three other members of the committee was constituted to go into the question of suggesting reasonable increase in the rent of some 200 shops belonging to the Municipal Committee, including the two shops mentioned above. Recommendations were made by this sub-committee suggesting increase of rent in case of some shops and not recommending any increase in case of others. The rent of Sugna Ram's shop was recommended to be increased from Rs. 11/- to Rs. 12.37 nP. and to Madan Lal's from Rs. 21/- to Rs. 23.12 nP. In the general meeting of the committee in which these recommendations were considered, both Naurata Ram and Sugna Ram were present. The recommendations made by the sub-committee were accepted unanimously. It is not disputed that Naurata Ram and Sugna Ram, by rule 3-A of the rules framed under section 240 of the Municipal Act, were prohibited from attending and voting at this meeting as it related to a matter in which they or their near relations had a direct or indirect interest. For attending the meeting in breach of this rule, the State Government served a notice on these two members to show cause why they should not be removed from the membership for having flagrantly abused their position as members. They put in separate explanations stating, inter alia, that the sub-committee had recommended enhancement of the rents and there was no suggestion that the work of the sub Committee was in any way interferred with and that by a unanimous vote these recommendations were accepted and consequently the question of abusing their position as members did not arise. After considering these explanations, the State Government removed them from membership under clause (e) of sub-section (1) of section 16 of the Municipal Act by two separate notifications for having flagrantly abused their position. They were further disqualified from seeking re-election for a period of one year each. The two writ petitions mentioned above were filed challenging the aforesaid notifications. These writs were accepted and the State Government has filed two aforesaid appeals.

    3. It is not denied that rule 3-A was contravened by the two respondents in attending the meeting in which the question of enhancement of rent of the shops, as stated above, was considered. The learned Single Judge, however, came to the conclusion that this contravention was not of a nature as would amount to abuse, much less flagrant abuse, of their position as members. He went on to observe as follows:—

    “At best, it is a case of indiscretion on the part of the petitioners, there was no suggestion at the meeting that the rents which had been raised had not been properly raised or the raise was inadequate. The petitioners had no hand in the deliberations of the sub-committee. No suggestion has been made in the return that they in any manner influenced the deliberations of the sub-committee. The report was acceptable to the opposition group as well and this fact clearly shows that everything was above board and the report was unexceptionable. In this situation, it must be held that the provisions of S. 16(1)(e) of the Act were not satisfied * *.”

    The learned counsel for the State took up the position that once rule 3-A which is a rule directly dealing with the conduct of a member of the Municipal Committee as such, is contravened, the State Government is justified in coming to the conclusion, without going into the circumstances surrounding the contravention or the decisions taken or the matters considered at the meeting that there has been flagrant abuse. In other words, his argument was that the mere presence of a member, who is interested in the matter which is for consideration before the Committee, may influence the remaining members in taking a particular view. In the Municipal Committee, with which we are concerned, admittedly, there are only eight members and it was averred in the petition that five of them were returned on Jan Sang ticket and three on Congress ticket and that one of the five Jan Sang members changed over to Congress side and thus there were two groups in the Committee each of four members. As observed by the learned Single Judge, the fact that the decision was unanimous shows that the report was even acceptable to the opposition group, Mr. Sharma, learned counsel for the State, however, argued that it is not possible to say what view would have been taken by the remaining six members including four of the opposition group, if the two members, with whom we are now concerned and who were personally interested in the matter, had not been present there. The rule prohibiting the presence of the members interested in a matter to be discussed at a meeting is based on sound commonsense, and it is very desirable that the same should be strictly followed. However, the question for determination is that if that rule is contravened by inadvertence or even deliberately, what is the consequence? Sub-clause (e) of sub-section (1) of section 16 of the Municipal Act authorises the State Government to remove a member only if it comes to the conclusion that a member has not only abused his position as a member but has flagrantly abused the same. It does not provide that any contravention of the rules relating to the conduct of a member, by itself, would amount to flagrant abuse. According to the learned counsel however, a mere breach is enough and the State Government would be authorised to direct the removal of the member irrespective of the fact whether taking all the circumstances of the case into consideration, no reasonable person could possibly come to the conclusion that the contravention of the rule amounted to abuse of his position as a member. For this, there is no warrant. The Full Bench decision of this Court in Joginder Singh v. The State of Punjab . 1963 65 P.L.R 297 F.B., to which my learned brother Dulat, J. as well as the learned Single Judge, who decided this case, was a party, and on which main reliance is placed by the learned counsel for the State does not support the contention raised by the learned counsel. The observations at page 279 of the report are as follows:—

    “What the clause (16(1)(e)) means is that if a member of a Committee, in disregard of his duty, does any act or acts, which shock a reasonable mind, then he can be removed by the State Government, and again it is the State Government that has to form that opinion. I am quite clear that if the allegations of fact made against the petitioner were true, then the State Government could well have held that the petitioner had flagrantly abused his position as a member of the committee.”

    From this, it was urged that once the State Government forms the opinion in question, then this Court cannot go into the matter and it was urged that it is not for this Court to go into the question whether the conclusion arrived at is correct or not. I had an occasion to consider these observations in Satya Dev v. State of Punjab . 1964 66 P.L.R 381., while sitting with Dua, J. and I felt that the observations, reproduced above, went clearly to show that the Court could go into the question whether, in the circumstances of the case, a member has been guilty of an act which is in disregard of his duty and which amounts to abuse of his position as a member and, amounts to flagrant abuse of his position. Dua, J. specially discussed this point in a separate but concurrent judgment as to whether the decision of the State Government is sacrosanct and completely immune from judicial scrutiny by this Court. After discussing certain cases he observed in paragraph 18 of the report as follows:—

    “* * * I find it somewhat difficult to persuade myself to hold that the legislature has intended to confer on the State Government an absolute and uncontrolled power, by merely forming or expressing its subjective opinion, not only to remove whomsoever it likes from the membership of the Municipal Committee, * * but also to deprive him of his valuable right of franchise, and then to claim complete immunity from judicial scrutiny under Article 226 of the Constitution.”

    4. Reference may also be made in this connection to Letters Patent Appeal No. 47 of 1962 decided on 5th December, 1963 State of Punjab v. Wary am Chand . L.P.A No. 47 of 1962., to which I was a party.

    5. In view of the above decisions, it can be said that it is now the firm opinion of this Court that the orders passed by the state Government under clause (e) of sub-section (1) of section 16 of the Municipal Act are subject to scrutiny by this Court with a view to check two matters: First, whether the grounds of removal are not extraneous to the conduct of the member as much and, secondly, if the grounds are not extraneous, to see that the act or acts done by the member in disregard to his duty are such as can shock a reasonable mind. In the present case, it is not denied that the contravention of the rule alleged is not extraneous to the conduct of a member as such. The question, however, remains whether the breach, in view of the circumstances of the case, can be said to be an abuse of a type which can shock the conscience of a reasonable person. If it can shock the conscience of a reasonable person, the decision of the State Government will not be liable to be quashed simply because the Court may take a different view of the things. As already indicated, here there is no allegation, much less proof, that the two appellants in any way influenced the decision of the sub-committee in recommending the increase in the rent proposed for the two shops in which they were interested. As mentioned by the learned Single Judge, the proposals, when put before the committee, were accepted as reasonable by all the members and again, there is no suggestion that these two persons in any way influenced the decision of the remaining six members which included four persons belonging to the opposite party. Furthermore, there is no suggestion in the charge or in the return that the increase in the rent of these two shops was not fair or was not in accordance with the rent of other similar shops leased by the Municipal Committee or even of other similar shops owned by the private persons. In the circumstances of the case, therefore, no reasonable person can possibly come to the conclusion that these persons have abused their position as members, much less to say that they have abused their position to an extent as to shock the conscience of any reasonable person. It would have certainly been more discreet and in accordance with the rules, if they had refrained from attending the meeting but the there fact that they happened to attend the meeting either due to inadvertance or otherwise, by itself, cannot lead to the above conclusion without there being any further allegation that by so doing they have abused their position.

    6. In view of the above, the order of the learned Single Judge is proper and there is no force in this appeal and the same is dismissed with costs.

    Appeal dismissed.

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    Comments

    State Of Punjab v. Sugna Ram .
    (Apr 29, 1964)