JAYABEN DEVKARBHAI CHAVDA AND ORS Vs. REGIONAL DIRECTOR

JUDGEMENT

(1.) THIS petition arises under Section 70 of the Gujarat Municipalities Act, 1963 (for short the Act). The Amreli Municipality passed two resolutions for purchase of a generator set without tendering as also diverted the scarcity funds to other purposes.

(2.) A show -cause notice came to be issued to the councillors respectively for subscribing to the above resolutions on 19/03/1997 calling upon them to make good the loss suffered on account of such resolution by Municipality. By the show -cause notice, they were called upon to account for Section 67 of the Act. The show -cause notice further proceeded on the presumption that had the tenders been called for as required under Section 67 of the Act, there would have been a lesser financial burden upon the Municipality. The reply to show -cause notice did not convince the Director of Municipality to take the view different than what was stated in the show -cause notice. Consequently, the liability was fixed and aggrieved councillors unsuccessfully appealed against the same under Section 70(4) of the Act before the learned Principal District Judge, Amreli. Thus, the petitioners are before this Court.

(3.) LEARNED Counsel for the petitioners strenuously urged that a detailed resolution mentioning the reasons for emergent purchase of generator set was passed which was never questioned by Collector under Section 258 of the Act and thus legality of the resolution was approved. It was argued that a committee was appointed; appropriate inquiry was made; and quotations were obtained and thereafter the generator set was purchased from the person offering the competitive price. It was submitted that emergent situation was pointed out in the resolution itself; particularly the fact that the electricity connection of the Municipality was being frequently disconnected, as the Municipality was unable to pay its bills on account of paucity of funds. It was also argued that floating of the tender would have consumed more than three months and as against the cost of Rs.12 Lacs for the generator set of the branded company like Kiloskar, one second -hand generator set at the price of Rs.4,40,037/ - was purchased. It was contended that situation was emergent also because companies like Kirloskar would have taken 120 days for delivery and generator was an urgent requirement. It was further contended that by another resolution, after pointing out the emergent necessity, the funds of the Municipality are merely said to have been diverted from the purpose of scarcity to other purposes mentioned therein and in none of the cases there appears to be any loss to which the councillors can be made liable to account for.