AMICUS AI
Citation Codes
Neutral Citations
2007 INSC 63
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Article 239-A of the Constitution
  • Section 3 of the Act of 1963
  • The Act passed in 1982
  • Section 57 of the Goa, Daman and Diu Reorganisation Act, 1987
  • Goa, Daman and Diu Khadi and Village Industries Board Rules, 1967
  • Goa, Daman and Diu Salary, Allowances and Pension of the Members of the Legislative Assembly Act, 1964 (2 of 1965)
  • Goa, Daman and Diu Members of Legislative Assembly (Removal of Disqualifications) Act, 1982
  • sub-section (1) of Section 14 of the Act of 1963
  • the 1982 Act
  • Government Territories Act, 1963
  • Section 66 of the Goa, Daman and Diu Reorganisation Act, 1987
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Cites
Cited by
Citation Codes
Neutral Citations
2007 INSC 63
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Article 239-A of the Constitution
  • Section 3 of the Act of 1963
  • The Act passed in 1982
  • Section 57 of the Goa, Daman and Diu Reorganisation Act, 1987
  • Goa, Daman and Diu Khadi and Village Industries Board Rules, 1967
  • Goa, Daman and Diu Salary, Allowances and Pension of the Members of the Legislative Assembly Act, 1964 (2 of 1965)
  • Goa, Daman and Diu Members of Legislative Assembly (Removal of Disqualifications) Act, 1982
  • sub-section (1) of Section 14 of the Act of 1963
  • the 1982 Act
  • Government Territories Act, 1963
  • Section 66 of the Goa, Daman and Diu Reorganisation Act, 1987
Smart Summary

Factual and Procedural Background

Two election petitions (Nos. 1 and 2 of 2002) were filed by unsuccessful candidates challenging the election of the present appellants to the Goa Legislative Assembly. The first appellant (in C.A. No. 3578 of 2005) had been returned from the Siolim Constituency and, at the time of nomination, was Chairman of the Goa Khadi and Village Industries Board. The second appellant (in C.A. No. 3579 of 2005) had been returned from the Vasco-da-Gama Constituency and was Chairman of the Goa State Scheduled Castes and Other Backward Classes Finance & Development Corporation Ltd. The petitions alleged that, by holding these posts, both appellants occupied an “office of profit” and were therefore disqualified from contesting the election. A learned Single Judge of the High Court accepted the challenge, set aside the elections and declared the appellants disqualified. The present consolidated civil appeals were filed against that judgment.

Legal Issues Presented

  1. Whether the posts held by the appellants constituted an “office of profit” under the law governing disqualification of members of the Goa Legislative Assembly.
  2. Whether the appellants could claim exemption from disqualification under Clause 9 of the Schedule to the Goa, Daman and Diu Members of Legislative Assembly (Removal of Disqualifications) Act, 1982 (“1982 Act”).
  3. Whether the 1982 Act continued to apply to the State of Goa after its reorganisation and attainment of statehood in 1987.

Arguments of the Parties

Appellants' Arguments

  • They did not receive any salary or honorarium; only certain facilities such as a chauffeur-driven car, telephone services, staff support and newspapers, which they characterised as perquisites rather than remuneration.
  • Clause 9 of the Schedule to the 1982 Act expressly removes the disqualification for the office of Chairman/Director or member of statutory or non-statutory bodies, provided only “compensatory allowance” is received, which they contended was their case.
  • Under Section 66 of the Goa, Daman and Diu Reorganisation Act, 1987, the 1982 Act continued to be in force; separate adoption by the new State legislature was unnecessary.

Respondents' Arguments

  • The 1982 Act was never adopted by the Goa State Legislature under Section 57 of the Reorganisation Act and therefore did not apply after statehood.
  • The facilities enjoyed by the appellants—unrestricted use of a car with fuel, a residential and mobile telephone, newspaper supply, and personal staff—went beyond “compensatory allowance” and amounted to remuneration, bringing the posts within the prohibition against “office of profit.”
  • Rule 7 of the Goa, Daman and Diu Khadi and Village Industries Board Rules, 1967 expressly entitled the Chairman (and other members) to salary or honorarium; the mere fact that the appellants did not draw such payments did not negate the existence of that entitlement.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The Court focused on the text of Clause 9 of the Schedule to the 1982 Act, particularly the proviso limiting the exemption to holders who receive “no remuneration other than compensatory allowance.” The accompanying explanation defined “compensatory allowance” narrowly as payments meant to recoup expenses incurred in performing official functions and capped such allowance by reference to amounts payable to Members of the Legislative Assembly under the 1964 Act.

The Court found that the appellants received multiple benefits—unrestricted personal use of official vehicles and telephones and provision of personal staff—which could not be classified as compensatory allowances within the meaning of the proviso. Additionally, Rule 7 of the 1967 Rules created an entitlement to salary or honorarium for the office of Chairman; the legal availability of such remuneration, even if not claimed, was sufficient to categorise the post as an “office of profit.”

Having concluded that the appellants were not protected by Clause 9, the Court considered it unnecessary to decide definitively whether the 1982 Act remained in force after Goa attained statehood. That constitutional question was expressly left open for determination in an appropriate future case.

Holding and Implications

The appeals were dismissed.

The High Court’s decision setting aside the appellants’ elections stands affirmed, leaving the appellants disqualified from membership of the Goa Legislative Assembly for the 2002 election period. The Court’s interpretation clarifies that unrestricted perquisites and an existing entitlement to salary place an office outside the protective ambit of Clause 9 of the 1982 Act. No broader constitutional ruling on the post-reorganisation applicability of the 1982 Act was made, and that issue remains open.

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    Dayanand Rayu Mandrekar v. Chandrakant Uttam Chodankar And Others

    Order

    1. The appellants in these two appeals, challenge the judgment in Election Petitions Nos. 1 and 2 of 2002. In both these cases a common question of law had arisen and, therefore, we heard the matter together and are disposing of these appeals by way of a common order. The appellant in CA No. 3578 of 2005 was elected to the Legislative Assembly of the State of Goa from Siolim Constituency in the election held on 30-5-2002, whereas the appellant in CA No. 3579 of 2005 was elected from Vasco da gama Assembly Constituency of the State Legislature. The election petitions were preferred by two unsuccessful candidates in the elections alleging that these two appellants were holding “office of profit” at the time when they contested the elections and, therefore, they were ineligible to be elected to the legislature. At the time of filing their nominations, the appellant in CA No. 3578 of 2005 was the Chairman of the Goa Khadi and Village Industries Board of the State of Goa, whereas the appellant in CA No. 3579 of 2005 was the Chairman of the Goa State Scheduled Castes and Other Backward Classes Finance & Development Corpn. Ltd. of the State of Goa. The appellants in these two cases contended before the High Court that they were not holding an “office of profit” and were not receiving any salary or allowances for the said post they held and by virtue of the provision contained in the Goa, Daman and Diu Members of Legislative Assembly (Removal of Disqualifications) Act, 1982 (for short “the 1982 Act”), the disqualification, if any, was removed especially by Clause 9 of the Schedule. The pleas set up by the appellants were rejected and the High Court held that these appellants were holding the “office of profit” and that they were not entitled to contest the election as they were disqualified and the election petitions were allowed and elections of the appellants were set aside.

    2. We have heard the counsel for the appellants and counsel for the respondents.

    3. It is not disputed that the appellants were holding the office as alleged in the election petition, but contended that they were not receiving any salary or allowances and were only receiving some perquisites. It is not disputed that these two appellants, by virtue of their office, enjoyed the privilege of a chauffeur driven car with unrestricted use of petrol. The appellants were also given the services of a PA, a clerk and a peon and they were provided with a residential telephone with unrestricted number of calls. They were also provided with a mobile telephone and newspapers were supplied at their residences and the expenses were paid from the funds of the office.

    4. Under Rule 7 of the Goa, Daman and Diu Khadi and Village Industries Board Rules, 1967 (for short “the 1967 Rules”), “The Chairman, the Vice-Chairman and other members of the Board shall be paid such salary or honorarium and allowances from the funds of the Boards as the Government may from time to time fix.” The appellant in CA No. 3578 of 2005 was not receiving any salary or honorarium as, according to him, the Government had not fixed any such salary or honorarium. The question that arises for consideration is whether the appellants could seek the benefit of the 1982 Act. By virtue of Clause 9 of the Schedule, the appellant contended, that the office of Chairman/Director or member of the statutory or non-statutory Board are exempted from any disqualification but the proviso to Clause 9 of the Schedule makes it further clear that this disqualification is circumscribed by a further limitation.

    5. Clause 9 of the Schedule reads as follows:

    “9. The office of Chairman, Director or member of a statutory or non-statutory body or committee or corporation constituted by the Government of Goa, Daman and Diu:
    Provided that the Chairman, Director or member of any of the aforesaid committees or bodies or corporations is not entitled to any remuneration other than compensatory allowance.”

    6. An explanation was also added to Clause 9. The same reads thus:

    “Explanation.—For the purpose of the aforesaid entries—
    (i) ‘compensatory allowance’ means any sum of money payable to the holder of an office by way of daily allowance [such allowance not exceeding the amount of daily allowance to which a member of the Legislative Assembly is entitled under the Goa, Daman and Diu Salary, Allowances and Pension of the Members of the Legislative Assembly Act, 1964 (2 of 1965)], any conveyance allowance, house rent allowance or travelling allowance for the purpose of enabling him to recoup any expenditure incurred by him in performing the functions of that office;”

    7. The proviso makes it abundantly clear that the compensatory allowance would only mean “any expense which is incurred by the holder of the office in discharge of his official function to be compensated by claim” and if any other sum of money or other perquisites are made to the holder of office as compensatory allowance, he would not get the benefit of Clause 9 of the Schedule which was added. In the instant cases, the appellants were certainly in receipt of variety of perquisites which cannot be said to be given to them by way of compensatory allowance. The mobile phone, telephone and the chauffeur driven car were all permitted to be used for unlimited purposes and they were not restricted to official purposes. Moreover, Rule 7 of the 1967 Rules specifically states that the Chairman, Vice-Chairman and other members of the Board shall be paid such salary or other honorarium and allowances from the funds of the Boards as the Government may from time to time fix. The appellants were entitled to get salary or honorarium by virtue of this Rule. The mere fact that they had not received or they had not opted to get this salary or honorarium is immaterial. By virtue of the said Rule, they are entitled to get salary or honorarium and that, by itself, would show that they were not entitled to get the benefit of the Schedule of the 1982 Act.

    8. The respondents in these two cases had raised a contention that the 1982 Act itself was not applicable to the State of Goa, Daman and Diu as the same was not adopted by the State Legislature. The respondents had contended that in the absence of adoption under Section 57 of the Goa, Daman and Diu Reorganisation Act, 1987, the 1982 Act had no application to the State of Goa, Daman and Diu. This plea was accepted by the learned Single Judge of the High Court. The respondents in these cases contended that the finding of the learned Single Judge in this regard is not correct.

    9. In this case, the appellants herein contended that Article 239-A of the Constitution provided for creation of local legislatures or council of ministers or both for certain Union Territories and Parliament enacted the Government Territories Act, 1963. As per Section 3 of the Act of 1963, the Legislative Assembly of the Union Territory of Goa, Daman and Diu came into existence and sub-section (1) of Section 14 of the Act of 1963 provided that a person shall be disqualified for being chosen as, and for being a Member of the Legislative Assembly of the Union Territory, inter alia, if he holds any office of profit under the Government of India, or the Government of any State, or the Government of the Union Territory, other than the office declared by law made by Parliament, or the Legislative Assembly of the Union Territory, not to disqualify its holder i.e the Legislative Assembly of the Union Territory of Goa, Daman and Diu. The Act passed in 1982 provided for removal of certain disqualifications for being chosen and for being a member of the Legislative Assembly of Goa, Daman and Diu. That Act was passed under Section 14(1) of the Act of 1963.

    10. The respondent had contended that when the Union Territory of Goa, Daman and Diu became a State, the Assembly of the State of Goa had not passed any law nor had adopted the 1982 Act which was in force. The appellants contended that as per Section 66 of the Goa, Daman and Diu Reorganisation Act, 1987, the Act of 1982 continues to be in force but this plea was rejected by the learned Single Judge.

    11. We have examined the claim of the appellants in the light of the 1982 Act and hold that the appellants are not entitled to get the protection of the Act. Therefore, whether this Act was adopted by the State Assembly of Goa or not, need not be considered at this stage and we leave open the question to be considered in other appropriate cases.

    12. We find no merit in these appeals and the appeals are dismissed accordingly.

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    Comments

    Dayanand Rayu Mandrekar v. Chandrakant Uttam Chodankar And Others
    (Jan 18, 2007)