CHAMELI DEWANGAN Vs. STATE OF CHHATTISGARH

JUDGEMENT

(1.) These writ petitions are filed by the persons who are Presidents of Municipal Councils or Nagar Panchayats under the Chhattisgarh Municipalities Act, 1961; for short, 'the Act'. They challenged the amendment made to Chhattisgarh Municipal Accounts Rules, 1971; for short, 'the Rules' and published as per the notification dated 31.03.2015; for short, 'the impugned amendment'.

(2.) The Petitioners have contended that the impugned amendment is a result of arbitrary, illegal and unconstitutional exercise of power and it results in abrogation of the statutory authority and entitlement of the Presidents to watch over and supervise the financial administration of the Municipal Council / Nagar Panchayat in accordance with the provisions of the Act, particularly, Section 51(b) of the Act. It is further contended that the impugned amendment is intended to divest the Presidents of the Municipal Council / Nagar Panchayat of financial authority, power of supervision and control, in violation of the binding provisions of the Act, particularly Sections 51, 104, 105 and 106 thereof.

(3.) The Respondents (State) have filed return pleading that the impugned amendments have been made with reference to lawful authority in terms of Section 355 read with Section 338 of the Act and that those provisions of the Act provide ample power to make the amendment impugned in these writ petitions. The impugned amendment is supported by the Respondents to be for the benefit of public at large, having in view the grave financial and administrative irregularities which are seen to have occurred in different districts of the State of Chhattisgarh. Annexure-R/1 (collectively) is placed on record along with the return to demonstrate various instances of discrepancies in disbursement of the payments, irregularities and excess payments and also unnecessary withholding of due payments. The State has further contended that the impugned amendment is rational, and in substance, aimed to be beneficial for the effective administration and functioning of the Municipal Institutions. It is further contended that the impugned amendment aids clarifying and defining the role and duties as between the President of Municipal Council/ Nagar Panchayat and the Chief Municipal Officer and to create transparent and accountable mechanism for better administration. It is also contended that the impugned amendment does not in any manner impair the constitutional provisions including the policy concepts ingrained among the Directive Principles. It is specifically contended that the impugned amendment does not denude the elected representatives of their rights to participate in financial matters and the amendment brought in is only to appropriately regulate the making of payments and to ensure better financial accountability without abusing the power of disbursement or drawl.