VALANCHERY GRAMA PANCHAYAT Vs. STATE OF KERALA

JUDGEMENT

(1.) Valanchery Grama Panchayat represented by its President filed this writ petition praying for quashing Ext.P4,P6 and P7 and for consequential reliefs.

(2.) Facts of the case are that by Ext.P1 dated 15.9.2007, the petitioner Panchayat resolved to covey its willingness to allot 1.5 acres of land acquired by it for industrial purposes to SIDCO for setting up an industrial estate, retaining ownership over the said property. It was further resolved to authorize the Secretary to negotiate with the authorities of SIDCO and to seek Government sanction in the matter. It is stated that on the basis of Ext.P1, Government accorded sanction for leasing out the property to SIDCO for a period of 30 years and that on the strength of Ext.P1, Secretary of the Panchayat entered into an agreement with SIDCO also.

(3.) Subsequently, by Ext.P3 dated 13.12.2007, the Panchayat made certain amendment to Ext.P1 which in effect is a retraction from the decisions contained in Ext.P1 resolution. When Ext.P3 resolution was passed, Government referred the validity of Ext.P3, to the Tribunal for Local Self Government Institutions, in terms of the provisions contained under Section 191(2) of the Kerala Panchayat Raj Act (here-in-after referred to as the Act). The Tribunal heard the parties and Ext.P4 is the report submitted to the Government. In Ext.P4, the Tribunal took the view that Ext.P3 resolution was passed in violation of the provisions contained in Section 161(7) of the Act, in as much as, only 10 out of 18 members of the Panchayat supported Ext.P3 and that the Resolution did not have 2/3rd majority support required under Section 161(7) of the Act. On that basis, the Tribunal held that the decision is not legally sustainable and is liable to be cancelled by the Government exercising its powers under Section 190(1) of the Act. In pursuance to Ext.P4 report, Ext.P6 order dated 29.9.2008 was passed by the Government, canceling Ext.P3 resolution exercising its powers under Section 191(3) of the Act.