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Supreme Court of India

VILLAGE PANCHAYAT, CALANGUTEversusTHE ADDITIONAL DIRECTOR OF PANCHAYAT-II AND ORS.

Citation
2012 INSC 258
Decided
2 July 2012
Disposal
Appeal(s) allowed

Holding

A Village Panchayat, as a corporate body, has locus standi to challenge the Director’s order, and the Director exceeded his statutory power by annulling the Panchayat’s resolutions instead of merely suspending them under Section 178.

Summary

The Village Panchayat of Calangute revoked an occupancy certificate and permission for a construction by Kay Jay Constructions after complaints that the building blocked a water well and chapel. The Sarpanch issued a notice under Section 64 of the Goa Panchayat Raj Act to stop further construction. The Additional Director of Panchayat, exercising what he claimed as appellate power, set aside the Panchayat’s resolutions and the Sarpanch’s notice, effectively annulling them without following the procedure prescribed in Sections 201, 201‑A or suspending them under Section 178. The Panchayat filed writ petitions under Articles 226/227 challenging the Director’s orders; the High Court dismissed them as non‑maintainable. The Supreme Court held that the Panchayat, being a corporate body under Section 5/8 of the Act, has locus standi to sue, and that the Director exceeded his authority by annulling rather than suspending the orders. Consequently, the writ petitions were maintainable and the High Court’s dismissal was erroneous.

Issues considered

  • Whether a Village Panchayat has locus standi to file a writ petition under Articles 226/227 against an order of the Additional Director of Panchayat
  • Whether the Additional Director was empowered to set aside the Panchayat’s resolutions and Sarpanch’s notice under the Goa Panchayat Raj Act
  • Interpretation of Section 178 – whether it permits suspension only or outright annulment of Panchayat orders
  • Whether the High Court erred in holding the writ petitions non‑maintainable

Legislation cited

Subjects

Panchayatlocus standiArticle 226Section 178Goa Panchayat Raj Actcorporate bodyillegal constructionwater wellwrit petitionappellate authority

Judgment

                     [2012] 6 S.C.R. 277


           VILLAGE PANCHAYAT, CALANGUTE                             A
                               v.
  THE ADDITIONAL DIRECTOR OF PANCHAYAT-11 AND
                         ORS.
           (Civil Appeal No. 4832 of 2012)
                                                                    B
                        JULY 02, 2012

         [G.S. SINGHVI AND SUDHANSU JYOTI
                 MUKHOPADHAYA, JJ.]

     Goa Panchayat Raj Act, 1994 - ss. 3, 64 and 8 -                C
Establishment of village Panchayat u/s. 3 - Order passed by
the designated officer-Additional Director of Panchayat
exercising the power of an appellate authority qua the action/
decision/resolution of the Village Panchayat - Locus of
Village Panchayat to file a petition under Article 226 and/or       D
227 for setting aside the. order passed by Additional Director
of Panchayat - On appfial, held: Village Panchayat has the
locus to challenge the orders passed by Additional Director
of Panchayat - On facts, local residents had complained
against the illegal construction of blocking access to water well   E
and the chapel by a Cpompany and the Village Panchayat
passed separate resolutions for revocation of occupancy
certificate and permission for construction - Thereafter,
Sarpanch issued notices to the Company and directed it to
stop the further construction - However, the Additional Director    F
of Panchayat instead of suspending the execution of the
resolutions passed by the Village Panchayat or the notice
issued by the Sarpanch and sending the matter to the State
Government for confirmation, suo-moto annulled the
resolutions and the notice by assuming that he had the power        G
to do so - Thus, while the village Panchayat and the
Sarpanch had exercised their respective powers in public
interest, Additional Director of Panchayat nullified that
exercise because he felt that the resolution/action was contrary·
                              277                                   H
    278      SUPREME COURT REPORTS                [2012] 6 S.C.R.


A to law and was unjustified - While exercising the power under
  the Act, the Panchayat was not acting as a subordinate to
  Additional Director of Panchayat but as a body representing
  the will of the people and also a body corporate in terms of
  s. 8 - High Court erred in holding that the writ petition filed by
B the Village Panchayat challenging the order passed by
  Additional Director of Panchayat was not maintainable -
  Order passed by the High Court set aside - Writ petitions filed
  by the Village Panchayat being maintainable, restored to their
  original numbers.
c       Panchayat - Functions and responsibilities of village
    panchayat - Explained.

        The question which arose for consideration in the
   instant appeals was whether a Village Panchayat
D established under Section 3 of the Goa Panchayat ~aj
   Act, 1994 or any other statutory dispensation existing
 · prior to the enactment of the Act has the locus to file a
   petition under Article 226 and/or 227 of the Constitution
   for setting aside an order passed by the designated
E officer exercising the power of an appellate authority qua
   the action/decision/resolution of the Village Panchayat.

      Appellant-Village Panchayat granted permission to a
  Company for raising construction on property. It is
F alleged that the company made illegal construction
  whereby it blocked the access to the water well and the
  chapel. The local residents made a complaint. The
  appellant passed resolution for revocation of the
  occupancy certificate. By another resolution the
  permission granted ~o the company for raising
G construction was revoked. Aggrieved, the appellant filed
  Panchayat Petition and the resolution canceling the
  permission was recalled since the rules of natural justice ·
  was not followed. Thereafter, the Sarpanch issued notice
  under Section 64 of the Goa Panchayat Raj Act, 1994 and
H
VILLAGE PANCHAYAT, CALANGUTE v. ADDITIONAL 279.
         DIRECTOR OF PANCHAYAT-11
directed the company to stop further construction. The        A
Company challenged the notice in Panchayat Appeal and
respondent No.1-the Additional Director of Panchayat
passed an ex-parte interim order. Meanwhile, the
Company filed an application for grant of permission to
use the property for running a guest house and the            8
appellant rejected the same. The Company challenged
the decision of the Gram Panchayat in Panchayat Appeal.
Some residents also filed a complaint before Block
Development Officer against the illegal construction
raised by the company. The Block Development Officer          c
dismissed the complaint holding that the construction
made by the company was not illegal and any restriction
on the use of property would seriously prejudice its
cause. The appellant filed writ petition challenging the
orders passed by respondent No.1 and order passed by
                                                              0
the Block Development Officer on the ground that
respondent No.1 did not have the jurisdiction to entertain
an appeal against the notice issued under Section 64 of
the Act and, in any case, such notice could not be stayed
under Section 178; that even if the appeal filed by the
company was treated as maintainable, there was no             E
justification to pass an interim order which had the effect
of allowing the appeal; and that the Block Development
Officer could not have exercised power under Section 66
of the Act and disposed of the complaint filed by the local
residents and thereby allowed the company to continue         F
the illegal construction which had effectively blocked
access to the water well and the chapel. During the
pendency of the writ petition, respondent No.1 passed
final order in Panchayat Appeal and directed the appellant
to reconsider the application made by the company for         G
grant of permission to use the property for running a
guest house. The appellant filed a writ petition
challenging the order passed by respondent No. 1. The
Single Judge of the High Court dismissed both the writ
                                                              H
    280       SUPREME COURT REPORTS          [2012] 6 S.C.R.


A   petitions as not maintainable. Therefore, the appellant
    filed the instant appeals.

          Allowing the appeals, the Court

       HELD: 1.1 A conjoint reading of the prov1s1ons
B contained in Chapter Ill of the Goa Panchayat Raj Act,
  1994 shows that a Panchayat is generally required to
  perform the functions specified in Schedule I and also
  make provision for carrying out any other work or
  measures likely to promote the health, safety, education,
C comfort or convenience or social or economic well-being
  of the inhabitants of the Panchayat area. It also has the
  power to do all acts necessary for or incidental to
  carrying out the functipns entrusted, assigned or
  delegated to it. The Sarpanch is not only entrusted with
D the duty to implement the programme of welfare schemes
  and other development works, but also stop any
  unauthorised construction erected in the Panchayat area.
  Section 66 which regulates erection of buildings within
  Panchayat area empowers it and/or the Sarpanch to take
E action against erection of building without obtaining
  permission from the competent authority or any violation
  of the conditions imposed at the time of grant of such
  permission. The Panchayat is also empowered to issue
  direction for up-keep and maintenance of sources of
F water supply which are in private hands. [Para 18) [299-
  F-H; 300-A-B]

      1.2. Section 178 empowers the Director to suspend
  the execution of any order or resolution passed by a
  Panchayat or prohibit the doing of anything by or on
G behalf of a Panchayat if he is satisfied that the execution
  of any such order or resolution or doing of anything by
  or on behalf of the Panchayat is unjust, unlawful or is
  improper or is causing or is likely to cause injury or
  annoyance to the public or lead to a breach of peace.
H Section 178(2) casts a duty on the Director to forward to
VILLAGE PANCHAYAT, CALANGUTE v. ADDITIONAL 281
         DIRECTOR OF PANCHAYAT-11
the Government and the Panchayat affected by his order           A
a copy of the statement of reasons for making the order.
The Government has the power to confirm or rescind the
order or direct that it shall continue to remain in force with
or without modification permanently or for a specified
period. Proviso to this Section imposes an obligation on         B
the Government to give reasonable opportunity of
showing cause to the concerned Panchayat against the
proposed confirmation, revision or modification of the
order of the Director. Section 201 provides for appeal
against an order of the Panchayat made under Sections            c
76, 77, 84, 104 and 105. Where no appeal has been
 provided under the Act on any miscellaneous matter dealt
 with by the Panchayat or the Village Panchayat Secretary
 or the Sarpanch, an appeal lies to the Block Development
 Officer under Section 201-A(1 ). In terms of Section 201-       D
 A(2), Deputy Direct~r is empowered to exercise revisional
 power qua the order which may be passed by the Block
 Development Officer under sub-section (1 ). [Para 19]
 [300-C-H]

     1.3. In both the cases, respondent No.1 set aside the       E
resolutions passed by the appellant as also the notice
issued by the Sarpanch. The orders passed by
respondent No.1 do not refer to the particular provision
under which the concerned officer was exercising the
appellate power. Surely, he could not have exercised the         F
power vested in the appellate authority under Section 201
because the source of power of the resolutions passed
by the appellant and the notice issued by the Sarpanch
cannot be traced in Sections 76, 77, 84, 104 and 105 of
the Act which relate to removal of any building or part          G
thereof or any tree or branch of a tree if it is in a ruinous
state or is likely to-fall or is otherwise dangerous to any
person occupying such building or part thereof or
matters relating to sanitation, conservancy and drainage
or exercise of power by the Secretary in relation to any         H
   282      SUPREME COURT REPORTS             [2012] 6 S.C.R.


A well, stream, channel, tank or other source of water
  supply or which postulates right to carry drain through
  land or into drain belonging to other persons. Similarly,
  respondent No.1 cannot be said to have exercised power
  under Section 201-A because under that provision, only
B the Block Development Officer is competent to entertain
  an appeal in a miscellaneous matter which is dealt with
  by the Panchayat or the Village Panchayat Secretary or
  the Sarpanch and against which no appeal has been
  specifically provided under the Act. Therefore, it is
c reasonable to infer that respondent No.1 had exercised
  power under Section 178(1). However, instead of
  suspending the execution of the resolutions passed by
  the appellant or the notice issued by the Sarpanch and
  sending the matter to the State Government for
0 confirmation, the concerned officer suo-moto annulled
  the resolutions and the notice by assuming that he had
  the power to do· so. It is thus, evident that while the
  appellant and the Sarpanch had exercised their
  respective powers in public interest, respondent No.1
  nullified that exercise because he felt that the resolution/
E action was contrary to law and was unjustified. While
  exercising the power under the Act, the Panchayat was
  not acting as a subordinate to respondent No.1 but as a
  body representing the will of the people and also a body
  corporate in terms of Section 8 of the Act. Therefore, it
F had the locus to challenge the orders passed by
  respondent No.1 and the High Court was clearly in error
  in holding that the writ petition was not maintainable. The
  writ petitions filed by the appellant were maintainable and
  the Single Judge of the High Court committed grave error
G by summarily dismissing the same. The contrary view
  expressed by the High Court in other judgments does
  not represent the correct legal position. The impugned
  order is set aside and the writ petitions filed by appellant
  are restored to their original numbers. The High Court
H shall now issue notice to the respondents and decide the
VILLAGE PANCHAYAT, CALANGUTE v. ADDITIONAL 283
         DIRECTOR OF PANCHAYAT-11
writ petitions on merits. [Para 20, 21, 26 and 27] [301-C-   A
H; 302-A-D; 306-D-F]

     Karunagappally Grama Panchayat v. State of Kera/a
1996 (1) KLT 419; High Court of M.P. v. Mahesh Prakash
and others (1995) 1 SCC 203; State of Orissa v. Union of     B
India 1995 Supp. (2) SCC 154; Godde Venkateswara Rao
v. Government of Andhra Pradesh AIR 1966 SC 828 - relied
on.

    Village Panchayat of Calangute v. The Deputy Director
of Panchayats 2004(2) Goa LR 497; Karunagappal/y Grama       C
Panchayat v. State of Kera/a 1996 (1) KLT 419; Village
Panchayat of Velim v. Shri Valentine S.K.F. Rebello and
another 1990(1) Goa LT 70 - referred to.

    Rex v. London Quarter Sessions Ex parte Westminster      D
Corporation (1950) 1 KB 148 - referred to.
                    Case Law Reference:
      2004(2) Goa LR 497       Referred to.     Para 9
      1996 (1) KLT 419         Referred to.     Para 9       E

      1990(1) Goa LT 70        Referred to.     Para 10
      (1950) 1 KB 148          Referred to.     Para 10
      1996 (1) KLT 419         Relied on.       Para 22      F
      (1995) 1 sec 203         Relied on.       Para 23
      1995 supp. (2) sec 154   Relied on.       Para 24
      AIR 1966 SC 828          Relied on.       Para 25
                                                             G
      CIVIL APPELLATE JURISDICTION : Civil Appeal No.
4832 of 2012.

    From the Judgment & Order dated 18.8.2010 of the High
Court of Bombay at Goa in Writ Petition No. 312 of 2010.     H
    284       SUPREME COURT REPORTS               [2012] 6 S.C.R.


A                                WITH

    C.A. No. 4833 of 2012

          Shyam Divan, Pratap Venugopal, Varun Singh, Gaurav
    -Nair for the Appellant.
B
        V.C. Daga, Neil Hildreth, Shruti Sabharwal, Ritu Rastogi,
    Praveen Kumar, .Siddharth Bhatnagar, Pawan Kr. Bansal, T.
    Mahipal for the Respondents.

          The Judgment of the Court was delivered by
c
          G.S. SINGHVI, J. 1. Leave granted.

       2. Whether a Village Panchayat established under Section
  3 of the Goa Panchayat Raj Act, 1994 (for short, 'the Act') or
o any other statutory dispensation existing prior to the enactment
  of the Act has the locus to file a petition under Article 226 and/
  or 227 of the Constitution for setting aside an order passed by
  the designated officer exercising the power of an appellate
  authority qua the action/decision/resolution of the Village
E Panchayat is the question which arises for consideration in
  these appeals filed against order dated 18.08.2010 passed by
  the learned Single Judge of the Bombay High Court, Goa Bench
  in Writ Petition Nos. 16 and 312 of 2010.

       3. M/s. Kay Jay Constructions Company Pvt. Ltd.
F (hereinafter described as, 'the company') (respondent No.4 in
  the appeal arising out of SLP (C) No.1758 of 2011) was
  granted permission by the appellant in 2006 for raising
  construction on property bearing Survey No. 362/12 and part
  of Survey No. 362/10 at Porbawado, Calangute, Bardez. The
G company is said to have illegally constructed a wall and thereby
  blocked access to the water well situated in Survey No.362/10
  and the chapel situated beyond Survey No.362112 as also the
  existing water drains. When the local residents complained
  against the illegal construction, the appellant passed resolution
H
  VILLAGE PANCHAYAT, CALANGUTE v_ ADDITIONAL 285
    DIRECTOR OF PANCHAYAT-11 [G.S. SINGHVI, J.]
   dated 24.03.2008 for revocation of the occupancy certificate,           A
' which was issued by the Secretary on the basis of what were
   termed as manipulated resolutions passed on 22.12.2007 and
   28.02.2008. The appellant passed another resolution dated
    25.3.2009 and revoked the permission granted to the company.
   The latter challenged the same by filing Panchayat Petition             B
    No.6/2009 on the ground that the decision taken by the
    appellant was contrary to the rules of natural justice. On realizing
    that the action taken by it was not proper, the appellant revoked
    resolution dated 25.03.2009. Thereafter, the Sarpanch issued
    notice dated 29.7.2009 under Section 64 of the Act and                 c
  . directed the company to stop further construction.
    Simultaneously, he fixed 4.8.2009 as the date for inspection
    of the site. The company challenged the notice in Panchayat
    Appeal No.12/2009. Respondent No.1 - the Additional Director
    of Panchayat entertained the appeal and passed an ex-parte             D
    interim order dated 3.8.2009.

       4. In the meanwhile, application dated 24.7.2009 was
  made on behalf of the company for grant of permission to use
  the property for running a guest house. The same was rejected
  by the appellant vide resolution dated 4.8.2009. The Managing            E
  Director of the company challenged the decision of the Gram
  Panchayat in Panchayat Appeal No.174/2009. On being_
  noticed, the appellant made a request that hearing of
  Panchayat Appeal No. 174/2009 may be deferred till the
  disposal of Panchayat Appeal No. 12/2009 and it may be                   F
  permitted to inspect the construction made by the company.
  Respondent No.1 rejected the appellant's request and fixed
  Panchayat Appeal No.174/2009 for final hearing.

        5. It is borne out from the record that some residents had
  also filed complaint before Block Development Officer, Bardez, G
  Goa against the illegal construction raised by the company and
  the consequential blockage of access to the well and change
  of the natural flow of rain water resulting in water logging.
  Initially, the Block Development Officer pass~d an injunction
  order against the company but after considering the latter's H
    286      SUPREME. COURT REPORTS                 [2012] 6 S.C.R.


A reply, he dismissed the complaint by observing that the
  construction made by the company was not illegal and any
  restriction on the use of property would seriously prejudice its
  cause.

B       6. The appellant challenged orders dated 3.8.2009 and
  30.11.2009 passed by respondent No.1 and order dated
  19.10.2009 passed by the Block Development Officer in Writ
  Petition No.16/2010 on the ground that respondent No.1 did
  not have th,e jurisdiction to entertain an appeal against the notice
  issued under Section 64 of the Act and, in any case, such
C notice could not be stayed under Section 178. It was also
  pleaded that even if the appeal filed by the company was
  treated as maintainable, there was no justification to pass an
  interim order which had the effect of allowing the appeal. As
  regards the order of the Block Development Officer, it was
D pleaded that he could not have exercised power under Section
  66 of the Act and disposed of the complaint filed by the local
  residents and thereby allowed the company to continue the
  illegal construction which had effectively blocked access to the
  water well and the chapel.
E
        7. During the pendency of Writ Petition No.16/2010,
  respondent No.1 passed final order dated 12.02.2010 in
  Panchayat Appeal No. 12/2009 and directed the appellant to
  reconsider the application made by the company for grant of
F permission to use the property for running a guest house. The
  appellant challenged that order in Writ Petition No. 312/2010.

         8. The learned Single Judge of the High Court relied upon
    the order passed in Writ Petition No.620/2009 and dismissed
    both the writ petitions as not maintainable.
G
       9. Shri Shyam Divan, learned senior counsel relied upon
  the judgment of the learned Single Judge in Village Panchayat
  of Calangute v. The Deputy Director of Panchayats 2004(2)
  Goa LR 497 and of the Division Bench of the Kerala High Court
H in Karunagappally Grama Panchayat v. State of Kerala 1996
VILLAGE PANCHAYAT, CALANGUTE v. ADDITIONAL 287
  DIRECTOR OF PANCHAYAT-11 [G.S. SINGHVI, J.]
(1) KLT 419 and argued that summary dismissal of the writ A
petitions was not at all warranted because the issues raised
by the appellant were of considerable public importance. Shri
Divan submitted that the illegal construction raised by the
company has the effect of preventing the public from having
access to the water well in Survey No. 362/10 and the chapel B
situated beyond Survey No.362/12 and argued that the
appellant being a representative body of the people of the
village has the right to question the orders passed by
respondent No.1 and the Block Development Officer and the
High Court could not have non-suited it by accepting the narrow C
interpretation of the term 'person aggrieved'.

      10. Shri V.C. Daga, learned senior counsel for the
company relied upon the judgment of the Division Bench of the
High Court in Village Panchayat of Velim v. Shri Valentine
S.K.F. Rebello and another 1990(1) Goa LT 70 and order D
dated 13.08.2010 passed by learned Single Judge in Writ
Petition No. 629/2009 and batch and argued that the writ
petitions filed by the appellants were rightly dismissed as not
maintainable. Shri Daga also relied upon the judgment in Rex
v. London Quarter Sessions Ex parte Westminster E
Corporation (1950) 1 KB 148 and argued that the appellant
cannot be treated as a 'person aggrieved' by the orders
passed by respondent No.1 and the Block Development Officer.
Learned senior counsel also pointed out that Writ Petition No.
5/2010 filed by the local residents questioning order dated F
19.10.2009 passed by the Block Development Officer was
dismissed by the learned Single Judge vide order dated
20.10.2010 and argued that in view of that order the appellant
is estopped from questioning order dated 19.10.2009 .

     11. We have considered the respective submissions. G
Before independence, majority population of the States which
merged in the Union was rural. After independence and even
now India continues to be a pre-dominantly rural country. There
are almost six lakh villages in the country and almost 75% of
                                                                H
    288       SUPREME COURT REPORTS                 [2012] 6 S.C.R.


A the population lives in the villages. Article 40 of the Constitution,
  which enshrines one of the Directive Principles of State Policy
  was incorporated in the Draft Constitution in the light of the
  suggestions made by S/Shri M.A. Ayangar, N.G. Ranga,
  Surendra Mohan Ghose and Seth Govind Das, all of whom
B strongly advocated that the dream of the Father of Nation of
  initiating democracy at the grass root (rural India) be translated
  into reality by making Panchayats as units of self-Government.
  This Article mandates the State to take steps to organize
  Village Panchayats and endow tbem with such powers and
c authority as may be necessary to enable them to function as
  units of self-Government. Notwithstanding the mandate of Article
  40, the State failed to take effective steps to make Village
  Panchayats as units of self-Government. In 1977, a Committee
  was constituted under the chairmanship of Shri Ashok Mehta
D to evaluate Panchayati Raj institutions and their functioning. In
  its report, the Committee observed that the existing model of
  Panchayats has failed to transfer the fruits of democracy to the
  weaker sections of society because they are dominated mostly
  by socially and economically privileged people.
E        12. In 1992, the Constitution (Seventy-third Amendment)
    Act was introduced. in Parliament and the existing Part IX was
    substituted. The background in which this amendment was
    introduced is evinced from the first two paragraphs of the
    Statement of Objects and Reasons, which are extracted below:
F
          "Though the Panchayati Raj institutions have been in
          existence for a long time, it has been observed that these
          institutions have not been able to acquire the status and
          dignity of viable and responsive people's bodies due to a
          number of reasons including absence of regular elections,
G
          prolonged supersessions, insufficient representation of
          weaker sections like Scheduled Castes, Scheduled Tribes
          and women, inadequate devolution of powers and lack of
          financial resources.

H
VILLAGE PANCHAYAT, CALANGUTE v. ADDITIONAL 289
  DIRECTOR OF PA~CHAYAT-11 [G.S. SINGHVI, J.]
    Article 40 of the Constitution which enshrines one of the       A
    directive principles of State Policy lays down that the State
    shall take steps to organise Village Panchayats and
    endow them with such powers and authority as may be
    necessary to enable them to function as units of self-
    government. In the light of the experience in the last forty    B
    years and in view of the shortcomings which have been
    observed, it is considered that there is an imperative need
    to enshrine in the Constitution certain basic and essential
    features of Panchayati Raj institutions to impart certainty,
    continuity ahd strength to them."                               c
      13. l"he aforesaid amendment is a turning point in the
history of local self-Government. By this amendment Panchayat
became an 'institution of self-governance' -Article 243(d) and
comprehensive provisions came to be incorporated for
democratic decentralization of governance on Gandhian               D
principle of participatory democracy. The Panchayati Raj
institutions structured under 73rd Amendment are meant to
bring about sweeping changes in the governance at the grass
root level. By this amendment, Parliament introduced three tier
system of Panchayati Raj institutions at Village, Block and         E
District levels. Article 243-C provides for composition of a
Panchayat and filling up of the seats in a Panchayat by direct
election. Article 243-0 provides for reservation of seats and
Article 243-E provides for duration of Panchayat. Article 243-
F enumerates the grounds of disqualification of membership          F
of the Panchayat and Article 243-G prescribes the powers,
authority and responsibilities of a Panchayat. Article 243-H
gives power to the State Legislatures to enact law and
authorise a Panchayat to levy, collect and appropriate taxes,
duties, tolls and fees; assign to a Panchayat such taxes, duties,   G
tolls and fees levied and collected by the State Government and
also provide for making such grants-in-aid to the Panchayats
from the Consolidated Fund of the State. Clause (d) of this
Article envisages a legislative provision for constitution of
appropriate provisions for crediting all monies received by or
                                                                    H
    290        SUPREME COURT REPORTS                [2012] 6 S.C.R.


A  on behalf of the Panchayats and also for withdrawal of such
   monies. Article 243-1 envisages constitution of Finance
   Commission to review financial position of the Panchayats.
  Article 243-K (1) declares that the superintendence, direction
  and control of the preparation of electoral rolls for, and the
B conduct of, all elections to the Panchayats shall be vested in a
  State Election Commission. Clause 4 of this Article empowers
  the State Legislature to make law with respect to all matters
   relating to, or in connection with, elections to the Panchayats.
  By virtue of Article 243-L, the provisions of Part IX have been
c made applicable to the Union Territories. Article 243-M declares
  that provisions of Part IX shall not apply to the Scheduled Areas
  referred to in clause (1) and the tribal areas referred to in clause
  (2) of Article 244, the States_of Nagaland, Meghalaya and
  Mizoram, hill areas in the State of Manipur for which District
  Councils exist as also the hill areas of Darjeeling. Clause 3(a)
0
  of this Article excludes the application of the provisions relating
  to reservation of seats for the Scheduled Castes insofar as the
  State of Arunachal Pradesh is concerned. Article 243-N
  contains a transitory provision for continuance of the existing
  laws for a maximum period of one year. Article 243-0 contains
E a non-obstante clause and declares that the validity of any law
  relating to the delimitation of constituencies or the allotment of
  seats to such constituencies, made or purporting to be made
  under Article 243-K, shall not be called in question in any Court
  and that no election to any Panchayat shall be called in question
F except by an election petition presented to such authority and
  in such manner as is provided for by or under any law made
  by the State Legislature. Article 243(d) and Article 243-G which
  have bearing on the issue raised in theses appeals read as
  under:
G
        "243(d). In this Part, unless the context otherwise requires,-

          (d) "Panchayat" means an institution (by whatever name
          called) of self-government constituted under article 2438,
          for the rural areas;
H
VILLAGE PANCHAYAT, CALANGUTE v. ADDITIONAL 291
  DIRECTOR OF PANCHAYAT-11 [G.S. SINGHVI, J.]
     243G. Powers, authority and responsibilities of Panchayat        A
     -_Subject to the provisions of this Constitution, the
     Legislature of a State may, by law, endow the Panchayats
     with such powers and authority and may be necessary to
     enable them to function as institutions of self-government
     and such law may contain provisions for the devolution of        B
     powers and responsibilities upon Panchayats, at the
     appropriate level, subject to such conditions as may be
    ·specified therein, with respect to

    .@}.the preparation of plans for economic development and
    social justice;                                                   C

    till the implementation of schemes for economic
    development and social justice as may be entrusted to
    them including those in relation to the matters listed in the
    Eleventh Schedule."                                               D

    14. In the light of the Constitution (Seventy-third
Amendment) Act, the State legislature enacted the Act, as is
evident from its preamble, which reads thus:

    "Whereas it is expedient to replace the present enactment         E
    by a comprehensive enactment to establish a two-tier
    Panchayat Raj System in the State with elected bodies at
    village and district levels, in keeping with the Constitution
    Amendment relating to Panchayats for greater
    participation of the people and more effective                    F
    implementation of rural development programmes."

     15. Chapter I of the Act contains definitions of various terms
including "Panchayat" which means a Village Panchayat
established under Section 3. Chapter II contains provisions           G
relating to Gram Sabha and constitution of Panchayats
including election to the Panchayats in which every person
enrolled in the electoral roll of the Legislative Assembly of the
State is entitled to participate. Chapter Ill contains provisions
relating to funciions, duties and powers of Panchayats,
                                                                      H
    292       SUPREME COURT REPORTS                 [2012] 6 S.C.R.


A   Sarpanch and Deputy Sarpanch. Since, we are not concerned
    with the provisions relating to staff of Panchayats, constitution
    of Taluka Panchayats and related provisions, constitution of
    Zilla Panchayats and related provisions, we do not consider it
    necessary to make a detailed reference to the provisions
B   contained in Chapters IV to IX. Chapter X contains provisions
    relating to inspection and supervision etc. of Panchayats.
    Chapter XI relates to financial control and audit. Chapter XII
    incorporates miscellaneous provisions. For the sake of
    reference, Sections 2(14), 3(1), (2), 47-A, 60, 62, 64, 66, 70,
c   84, 178, 201, 201-A and relevant portions of Schedule-I are
    reproduced below:

                              "CHAPTER I

                               Preliminary
D
          2. Definitions.- In this Act, unless the context otherwise
          requires,-

                 (14) "Panchayat" means a Village Panchayat
                 established under section 3;
E                                   I

                              CHAPTER II

              Gram Sab.ha -     Constitution of Panchayats

          3. Declaration of Panchayat areas and establishment of
F         Panchayats.- (1) After making such inquiry as may be
          necessary, the Government may, by notification, declare
          a local area, comprising of a village or a group of villages
          or any part or parts thereof, or a combination of any two
          or more of them to be a Panchayat area for the purposes
G         of this Act and also specify its headquarters.

          (2) For every Panchayat area, there shall be a Panchayat
          as from such date as the Government may, by notification,
          appoint.
H
VILLAGE PANCHAYAT, CALANGUTE v. ADDITIONAL 293
  DIRECTOR OF PANCHAYAT-11 [G.S. SINGHVI, J.]
   47-A. Executive powers of the Sarpanch.-                       A
   Notwithstanding anything contained in this Act and the
   rules framed thereunder, the Sarpanch shall exercise the
   powers on the following matters, namely:-

   (i) to implement the programme of welfare schemes and
                                                                  B
   other developmental works;

   (ii) to execute and implement the resolution passed by the
   Panchayat on the matters not specified in section 47.

   (Inserted by the Amendment Act 1 of 1997)                      c
                        CHAPTER Ill

Functions, Duties and Powers of Panchayats, Sarpanch and
                     Deputy Sarpanch
                                                                  D
    60. Functions of the Panchayat.- (1) Subject to such
   conditions as may be specified by the Government from
   time to time, the Panchayat shall perform the functions
   specified in Schedule-I.
   (2) The Pa_nchayat may also make provision for carrying        E
   out within the Panchayat area any other work or measure
   which is likely to promote the health, safety, education,
   comfort, convenience or social or economic well-being of
   the inhabitants of the Panchayat area.
                                                                  F
    62. General powers of the Panchayat.- Panchayat shall
   have powers to do all acts necessary for or incidental to
   the carrying out of the functions entrusted, assigned or
   delegated to it and in particular and without prejudice to
   the foregoing powers to exercise all powers specified
   under this Act.                                                G

    64. Powers and duties of the Sarpanch and Deputy
    Sarpanch.- (1) The Sarpanch of the Panchayat shall, in
    addition to the power exercisable under any other provision
    of this Act or rules made thereunder,-                        H
    294        SUPREME COURT REPORTS                 [2012] 6 S.C.R.


A         (j) stop any unauthorized construction erected in the
          Panchayat area notwithstanding anything contained in sub-
          section (3) of section 66 of this Act and place the matter
          immediately before the ensuing meeting of the Panchayat
          for taking suitable decision;
B
          (k) remove encroachment and obstruction upon public
          property, street, drains and open sites not being private
          property;

          (I) ensure due compliance of the provisions of the Act; and
c
          66. Regulation of the erection of buildings.- (1) Subject
          to such rules as may be prescribed, no person shall erect
          any building or alter or add to any existing building or
          reconstruct any building without the written permission of
D         the Panchayat. The permission may be granted on
          payment of such fees as may be prescribed.

          (2) If a Panchayat does not, within thirty days from the date
          of receipt of application, determine whether such
          permission should be given or not and communicate its
E         decision to the applicant, the applicant may file an appeal
          within thirty days from the date of expiry of aforesaid
          period, to the Deputy Director who shall dispose of the
          same within thirty days from the date of filings of such
          appeal. If the Deputy Director fails to dispose of the appeal
F         within thirty days, such permission shall be deemed to have
          been given and the applicant may proceed to execute the
          work, but not so as to contravene any of the provisions of
          this Act or any rules or bye-laws made under this Act.

G         (3) Whenever any building is erected, added to or
          reconstructed without such permission or in any manner
          contrary to the rules prescribed under sub-section (1) or
          any conditions imposed by the permission granted, the
          Panchayat may,-
H
VILLAGE PANCHAYAT, CALANGUTE v. ADDITIONAL 295
  DIRECTOR OF PANCHAYAT-11 [G.S. SINGHVI, J.]
            (a) direct that the building, alteration or addition be   A
            stopped; or

            (b) by written notice require within a reasonable
            period to be specified therein, such building
            alteration or addition to be altered or demolished.       B

   70. Control of hotels etc.- No place within the jurisdiction
   of a Panchayat shall be used as a hotel, restaurant, eating
   house, coffee house, sweetmeat shop, bakery, boarding
   house or lodging house (other than a hostel recognized by
   the Government), or a dharmashala or for manufacturing             C
   ice or aerated water except under a licence granted or
   renewed by the Panchayat and except in accordance with
   condition specified therein.

   84. Powers and duties in regard to sources of water D
   supply.- The Secretary or any officer authorized by the
   Panchayat in this behalfmay at any time by written notice
   require that the owner or any person who has control over
   any well, stream, channel, tank, or other source of water
   supply shall, whether it is private property or not,-              E

   (a) if the water is used for drinking,-

    (i)     keep and maintain any such source of water supply
            other than a stream, in good repair; or
                                                                      F
    (ii)    within a reasonable time to be specified in the
            notice, cleanse any such source of water supply
            from silt, refuse and decaying vegetation; or

    (iii)   in such manner as the Panchayat may direct,
            protect any such source of water supply from              G
            pollution by surface drainage; or

    (iv)    desist from using and from permitting others to use
            for drinking purposes any such sources of water
            supply, which not being a stream in its natural flow,     H
    296           SUPREME COURT REPORTS               [2012] 6 S.C.R.


A                  is in the opinion of the Panchayat unfit for drinking;
                   or

           (v)     if notwithstanding any such notice under sub-clause
                   (iv), such use continues and cannot, in the opinion
B
                   of the Panchayat, be otherwise prevented, close
                   either temporarily or permanently, or fill up or
                   enclose or fence in such manner as the Panchayat
                   considers sufficient to prevent such use, such
                   source of water supply; or
c          (vi)    drain off or otherwise remove from any such source
                   of water supply, or from any land or premises or
                   receptacle or reservoir attached or adjacent thereto,
                   any stagnant water which the Panchayat considers
                   as -injurious to health or offensive to the
D                  neighbourhood;

          178. Power of suspending execution of unlawful orders
          or resolution.- (1) If in the opinion of the Director, the
          execution of any order or resolution of a Panchayat or Zilla
          Panchayat or any order of any authority or officer of the
E
          Panchayat or the Zilla Panchayat or the doing of anything
          which is about to be done, or is being done, by or on behalf
          of a Panchayat or a Zilla Panchayat is unjust, unlawful or
          improper or is causing or is likely to cause injury or
          annoyance to the public or to lead to a breach of peace,
F         he may by order suspend the execution or prohibit the
          doing thereof.

          (2) When the Director makes an order under sub-section
          (1), he shall forthwith forward to the Government and the
G         Panchayat or Zilla Panchayat affected thereby a copy of
          the order with a statement of the reasons for making it, and
          the Government may confirm or rescind the order or direct
          that it shall continue to be in force with or without
          modification permanently or for such period as it thinks fit:
H
'VILLAGE PANCHAYAT, CALANGUTE v. ADDITIONAL 2fH
   DIRECTOR OF PANCHAYAT-11 [G.S. SINGHVI, J.]
   Provided that no order of the Director passed under sub-          A
   section (1) shall be confirmed, revised or modified by the
   Government without giving the Panchayat or the Zilla
   Panchayat concerned a reasonable opportunity of showing
   cause against the proposed order.
                                                                     B
   201. Appeals.- (1) Any person aggrieved by original
   order of the Panchayat under section 76, 77, 84, 104 and
   105 of the Act, may, within such period as may be
   prescribed, appeal to the Director.

   (2) The Appellate Authority may, after giving an opportunity      C
   to the appellant to be heard and after such enquiry as it
   deems fit, decide the appeal and its decision shall be final.

   201-A. Appeal on miscellaneous matter dealt by the
   Panchayats. - (1) Where no appeal has been specifically           D
   provided in this Act on any miscellaneous matter which is
   dealt with by the Panchayat or the Village Panchayat
   Secretary or the Sarpanch, an appeal shall lie to the Block
   Development Officer within a period of thirty days from the
   date of refusal of any request by the said authority and his      E
   decision on such appeal, subject to the provision of sub-
   section (2), shall be final.

   Explanation:- For the purpose of this section, "refusal"
   means rejecting of any request in writing or non conveying
   of any reply to the application within a period of fifteen days   F
   from the receipt of application in his office.

   (2) A revision shall lie to the Deputy Director against any
   order passed by the Block Development Officer under
   sub-section (1) within a period of thirty days from the date      G
   of the order.




                                                                     H
    298        SUPREME COURT REPORTS                 [2012] 6 S.C.R.


A                             SCHEDULE - I

          FUNCTIONS AND RESPONSIBILITIES OF VILLAGE
                        PANCHAYAT

          I. General functions:
B
          (1) Preparation of annual plans for the development of the
          Panchayat area.

          (7) Demolition of unauthorised construction.
c         VIII. Drinking water:

          (1) Construction, repairs and maintenance of drinking
          water well, tanks and ponds.

          (2) Prevention and control of water pollution.
D
          (3) Maintenance of rural water supply schemes."

         16. The Preamble, Part IV and Part IX of the Constitution
    must guide our understanding of the Panchayati Raj institutions
E   and the role they play in the lives of the people in rural parts of
    the country. The conceptualization of the Village Panchayat as
    a unit of self government having the responsibility to promote
    social justice and economic development and as a
    representative of the people within its jurisdiction must be borne
F   in mind while interpreting the laws enacted by the State which
    seek to define the ambit and scope of the powers and the
    functions of Panchayats at various levels.

        17. An analysis of Article 40 and Articles 243 to 243-0
  shows that the framers of the Constitution had envisaged
G Village Panchayat to be the foundation of the country's political
  democracy - a decentralized form of Government where each
  village was to be responsible for its own affairs. By enacting
  the Constitution (Seventy-third Amendment) Act, Parliament has
  attempted to remedy the defects and remove the deficiencies
H of the Panchayati Raj system evolved after independence,
VILLAGE PANCHAYAT, CALANGUTE v. ADDITIONAL 299
  DIRECTOR OF PANCHAYAT-11 [G.S. SINGHVI, J.]

which failed to live up to the expectation of the people in rural A
India. The provisions contained in Part IX provide firm basis
for self-governance by the people at the grass root through the
institlltion of Panchayats at different levels. For achieving the
objectives enshrined in Part IX of the Constitution, the State
Legislatures have enacted laws and made provision for B
devolution of powers upon and assigned various functions listed
in the Eleventh Schedule to the Panchayats. The primary focus
of the subjects enumerated in the Eleventh Schedule is on
social and economic development of the rural parts of the
country by conferring upon the Panchayat the status of a            c
constitutional body. Parliament has ensured that the Panchayats
would no longer perform the role of simply executing the
programs and policies evolved by the political executive of the
State. By virtue of the provisions contained in Part IX, the
 Panchayats have been empowered to formulate and implement D
their own programs of economic development and social justice
 in tune with their status as the third tier of government which is
 mandated to represent the interests of the people living within
 its jurisdiction. The system of Panchayats envisaged in this Part
 aims at establishing strong and accountable systems of E
governance that will in turn ensure more equitable distribution
 of resources in a manner beneficial to all.

      18. In the light of the above, it is to be seen whether the
appellant has the locus to challenge the orders passed by
respondent No.1 in the appeals filed by the company. A conjoint     F
reading of the provisions contained in Chapter Ill of the Act
shows that a Panchayat is generally required to perform the
functions specified in Schedule I and also make provision for
carrying out any other work or measures likely to promote the
health, safety, education, comfort or convenience or social or      G
economic well-being of the inhabitants of the Panchayat area.
It also has the power to do all acts necessary for or incidental
to carrying out the functions entrusted, assigned or delegated
to it. The Sarpanch is not only entrusted with the duty to
implement the programme of welfare schemes and other                H
    300      SUPREME COURT REPORTS                (2012] 6 S.C.R.


A   development works, but also stop any unauthorised
    construction erected in the Panchayat area. Section 66 which
    regulates erection of buildings within Panchayat area empowers
    it and/or the Sarpanch to take action against erection of
    building without obtaining permission from the competent
B   authority or any violation of the conditions imposed at the time
    of grant of such permission. The Panchayat is also empowered
    to issue direction for up-keep and maintenance of sources of
    water supply which are in private hands.

       19. Section 178 empowers the Director to suspend the
C execution of any order or resolution passed by a Panchayat or
  prohibit the doing of anything by or on behalf of a Panchayat if
  he is satisfied that the execution of any such order or resolution
  or doing of anything by or on behalf of the Panchayat is unjust,
  unlawful or is improper or is causing or is likely to cause injury
D or annoyance to the public or lead to a breach of peace.
  Section 178(2) casts a duty on the Director to forward to the
  Government and the Panchayat affected by his order a copy
  of the statement of reasons for making the order. The
  Government has the power to confirm or rescind the order or
E direct that it shall continue to remain in force with or without
  modification permanently or for a specified period. Proviso to
  this Section imposes an obligation on the Government to give
  reasonable opportunity of showing cause to the concerned
  Panchayat against the proposed confirmation, revision or
F modification of the order of the Director. Section 201 provides
  for appeal against an order of the Panchayat made under
  Sections 76, 77, 84, 104 and 105. Where no appeal has been
  provided under the Act on any miscellaneous matter dealt with
  by the Panchayat or the Village Panchayat Secretary or the
G Sarpanch, an appeal lies to the Block Development Officer
  under Section 201-A(1). In terms of Section 201-A(2), Deputy
  Director is empowered to exercise revisional power qua the
  order which may be passed by the Block Development Officer
  under sub-section (1 ).
H
VILLAGE PANCHAYAT, CALANGUTE v. ADDITIONAL 301
  DIRECTOR OF PANCHAYAT-11 [G.S. SINGHVI, J.]
       20. In this case, the appellant had entertained the A
complaint made by local residents, revoked occupancy
certificate and also cancelled the permission granted to the
company for raising construction. The resolution cancelling the
permission was recalled apparently because the rules of natural
justice had not been followed. Thereafter, the Sarpanch issued B
notice under Section 64 and directed the company to stop
further construction. The company challenged the notice and
succeeded in persuading respondent No.1 to pass an ex-parte
 interim order. The application made by the company for
 permission to use the property for running a Guest House was C
 rejected by the appellant because legality of the construction
 made by the company was under scrutiny. In both the cases,
 respondent No.1 set aside the resolutions passed by the
 appellant as also the notice issued by the Sarpanch. The
 orders passed by respondent No.1 do not refer to the particular D
 provision under which the concerned officer was exercising the
 appellate power. Surely, he could not have exercised the power
 vested in the appellate authority under Section 201 because
 the source of power of the resolutions passed by the appellant
 and the notice issued by the Sarpanch cannot be traced in
 Sections 76, 77, 84, 104 and 105 of the Act which relate to E
 removal of any building or part thereof or any tree or branch of
 a tree if it is in a ruinous state or is likely to fall or is otherwise .
 dangerous to any person occupying such building or part
 thereof or matters relating to sanitation, conservancy an·d
 drainage or exercise of power by the Secretary in relation to F
 any well, stream, channel, tank or other source of water supply
 or which postulates right to carry drain through land or into drain
 belonging to other persons. Similarly, respondent No:1 cannot
 be said to have exercised power under Section 201-A
 because under that provision, only the Block Development G
 Officer is competent to entertain an appeal in a miscellaneous
 matter which is dealt with by the Panchayat or the Village
 Panchayat Secretary or the Sarpanch and against which no
 appeal has been specifically provided under the Act. Therefore,
 it is reasonable to infer that respondent No.1 had exercised H
    302        SUPREME COURT REPORTS                [2012] 6 S.C.R.


A   power under Section 178(1 ). However, instead of suspending
    the execution of the resolutions passed by the appellant or the
    notice issued by the Sarpanch and sending the matter to the
    State Government for confirmation, the concerned officer suo-
    moto annulled the resolutions and the notice by assuming that
B   he had the power to do so.

         21. It is thus evident that while the appellant and the
    Sarpanch had exercised their respective powers in public
    interest, respondent No.1 nullified that exercise because he felt
    that the resolution/action was contrary to law and was
C   unjustified. While exercising the power under the Act, the
    Panchayat was not acting as a subordinate to respondent No.1
    but as a body representing the will of the people and also a
    body corporate in terms of Section 8 of the Act. Therefore, it
    had the locus to challenge the orders passed by respondent
D   No.1 and the High Court was clearly in error in holding that the
    writ petition was not maintainable.

         22. In Karunagappal/y Grama Panchayat v. State of
    Kera/a, 1996 (1) KLT 419, the Division Bench of the Kerala
E   High Court considered an identical question. In that case, the
    Writ Petition filed by the appellant - Gram Panchayat
    questioning the order of the State Government whereby a
    direction was issued to permit construction of a multi-storied
    building was dismissed by the learned Single Judge by
F   observing that the Panchayat cannot be treated as an aggrieved
    person. While reversing the order of the learned Single Judge,
    the Division Bench made the following observations:

          "If a Panchayat has a legal right to sue, then its corollary
          is that it can mention an action under Art. 226 of the
G         Constitution. The legal character of a Panchayat is very
          much analogous to that of a Municipality or such other local
          body. In the case of a municipality, the position seems to
          be settled that it can sue or be sued. The right of a
          company registered under the Companies Act for suing
H         another and also for moving under Art 226 has been
  VILLAGE PANCHAYAT, CALANGUTE v. ADDITIONAL 303
    DIRECTOR OF PANCHAYAT-11 [G.S. SINGHVI, J.]
      recognised by the Apex Court in 0. C. & G. M. Co. Ltd. v.      A
      Union of India (AIR 1983 sec 937). It may be that an
      officer of a Company or local body is incompetent to
      challenge an order passed by any authority superior to the
      local body through a suit or writ petition. He has to abide
      by the order. But that principle cannot be imported to the     B
      situation where the Juristic person itself becomes the
      aggrieved party.

      In this context, we refer to S. 5 of the Act which says "every
      Panchayat shall be a body corporate by the name of the
      Panchayat. .. ". It shall have perpetual succession and a C
      common seal. It shall, subject to any restriction or
      qualification imposed by or under the Act or any other law
      "be vested with the capacity of suing or being sued on its
      corporate name". The Section further says that Panchayat
      shall be vested with the capacity of acquiring, holding and D
      transferring property, movable or immovable or entering
      into contracts, and of doing all things necessary, proper
      or expedient for the purpose for which it is constituted.

      Legal concept envisaged in S. 5 of the Act makes the           E
      position clear that PanchayaUs a body corporate. If so it
      can sue or be sued. In that position Panchayat cannot be
      denuded of the right to move under Art. 226 of the
      Constitution when any of its legal right is infringed by the
      authorities including the Government."                         F

       23. In High Court of MP. v. Mahesh Prakash and others
  (1995) 1 sec 203, this Court considered several questions
  including the one whether the High Court has the locus to
  challenge the order passed on judicial side by filing a petition
  under Article 136 of the Constitution. While rejecting the         G
· decision of the HigJi Co_ur:t,. tl:lis -C-oort observed:

      "The order that the first respondent challenged in the writ
      petition filed by him before the High Court was an order
      passed by the High Court on its administrative side. By        H
     304        SUPREME COURT REPORTS                  [2012] 6 S.C.R.


A          reason of Article 226 of the Constitution it was permissible
           for the appellant to move the High Court on its judicial side
           to consider the validity of the order passed by the High
           Court on the administrative side and issue a writ in that
           behalf. In the writ petition the first respondent was obliged
B          to implead the High Court for it was the order of the High
           Court that was under challenge. It was, therefore,
           permissible for the High Court to prefer a petition for
           special leave to appeal to this Court against the order on
           the writ petition passed on its judicial side. The High Court
c          is not here to support the judicial order its Division Bench
           passed but to support its administrative order which its
           Division Bench set aside. We find, therefore, no merit in
           what may be termed the preliminary objection to the
           maintainability of the appeal."

D        24. In State of Orissa v. Union of India 1995 Supp. (2)
    sec 154, the Court considered the question whether the State
    Government has locus standi to challenge the order passed
    by the Central Government in exercise of its revisional power
    under the Mineral Concession Rules, 1960. While answering
E   the question in affirmative, this Court observed:

           "In this connection, it is necessary to note that in the first
           place, the State Government is not merely an authority
           subordinate to the Central Government which would,
F          undoubtedly, be bound by the revisional orders of the
           superior authority. It is also the owner of the mines and
           minerals in question. If it is directed to issue a mining lease
           in favour of any party, it has locus standi to challenge that
           order under Article 226 of the Constitution of India."
G         25. In Godde Venkateswara Rao v. Government of
    · Andhra Pradesh AIR 1966 SC 828, this Court examined the
    issue of locus standi of a President of Panchayat Samithi to
    challenge the decision of the Government in the matter of
    location of Primary Health Centre and hetd:
H
VILLAGE PANCHAYAT, CALANGUTE v. ADDITIONAL 305
  DIRECTOR OF PANCHAYAT-11 [G.S. SINGHVI, J.]
  "Article 226 confers a very wide power on the High Court A
  to issue directions and writs of the nature mentioned
  therein for the enforcement of any of the rights conferred
  by Part Ill or for any other purpose. It is, therefore, clear
  that persons other than those claiming fundamental right
  can also approach the court seeking a relief thereunder. B
  The Article in terms does not describe the classes of
  persons entitled to apply thereunder; but it is implicit in the
  exercise of the extraordinary jurisdiction that the relief
  asked for must be one to enforce a legal right. The right
  that can be enforced under Art. 226 also shall ordinarily c
   be the personal or individual right of the petitioner himself,
  though in the case of some of the writs like habeas corpus
   or quo warranto this rule may have to be relaxed or
   modified .
         •
   Has the appellant a right to file the petition out of which D
   the present appeal has arisen? The appellant is the
   President of the Panchayat Samithi of Dharmajigudem.
   The villagers of Dharmajigudem formed a committee with
  the appellant as President for the purpose of collecting
   contributions from the villagers for setting up the Primary E
   Health Center. The said committee collected Rs.10,000/-
   and deposited the same with the Block Development
   Officer. The appellant represented the village in afl its
   dealings with the Block Development Committee and the
   Panchayat Samithi in the matter of the location of the F
   Primary Health Center at Dharmajigudem. His conduct, the
   acquiescence on the part of the other members of the
   committee, and the treatment meted out to him by the
   authorities concerned support the inference that he was
  authorized to act on behalf of the committee. The appellant G
  was, therefore, a representative of the committee which
  was in law the trustees of the amounts collected by it from
  the villagers for a public purpose. We have, therefore, no
  hesitation to hold that the appellant had the right to maintain
   the application under Art. 226 of the Constitution. This H
    306         SUPREME COURT REPORTS                  (2012] 6 S.C.R.


A          Court held in the decision cited supra that "ordinarily" the
           petitioner who seeks to file an application under Art. 226
           of the Constitution should be one who has a personal or
           individual right in the subject-matter of the petition. A
           personal right need not be in respect of a proprietary
B          interest : it can also relate to an interest of a trustee. That
           apart, in exceptional cases, as the expression "ordinarily"
           indicates, a person who has been prejudicially affected by
           an act or omission of an authority can file a writ even though
           he has no proprietary or even fiduciary interest in the
c          subject matter thereof. The appellant has certainly been
           prejudiced by the said order. The petition under Art. 226
           of the Constitution at his instance is, therefore,
           maintainable."

       26. By applying the ratio of the aforesaid judgments to the
D facts of these cases, we hold that the writ petitions filed by the
  appellant were maintainable and the learned Single Judge of
  the High Court committed grave error by summarily dismissing
  the same. We also declare that the contrary view expressed
  by the High Court in other judgments does not represent the
E correct legal position.

         27. In the result, the appeals are allowed, the impugned
    order is set aside and the writ petitions filed by appellant are
    restored to their original numbers. The High Court shall now
F   issue notice to the respondents and decide the writ petitions
    on merits.

         28. It will be open to the appellant to apply for interim relief.
    If any such application is filed, then the High Court shall decide
    the same on its own merits.
G
    N.J.                                              Appeals allowed.


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