(1.) The writ petitioners are proposing to contest the local body elections to the Kodamthuruth Grama Panchayat. They approached this Court as the Grama Panchayat refused to issue a Non-Liability Certificate (NLC) in terms of Section 34(1)(j) of the Kerala Panchayat Raj Act, 1994.
(2.) It seems Panchayat initiated action against the petitioners based on the local fund audit report. It is to be noted that no surcharge is seen issued under the Kerala Local Fund Audit Act, 1994, against the petitioners. In such circumstances, without fixing the liability, and without issuing surcharge certificate in terms of Rule 20 the Kerala Local Fund Audit Rules, 1996 the Panchayat cannot refuse to issue NLC to the petitioners.
(3.) Accordingly, respondent No.5 is directed to issue NLC to the petitioners forthwith. However, this will be subject to any initiation of proceedings against the petitioners under the Kerala Local Fund Audit Act in accordance with law.