K NAMALU Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) The 16 petitioners are Sarpanchs of various Gram Panchayats in Viskhapatnam district. They are challenging the legality of G.O. Ms. No. 752 Panchayati Raj and Rural Development (PTS.I) Dept. dated 22-12-1988 by which the Government appointed a Committee to call for tenders and enter into rate contracts for electrical goods required by Gram Panchayats for street lights etc. The case of the petitioners is that prior to the issue of the said G.O. the Gram Panchayats were entitled to make purchases in accordance with the rules relating to the contracts to be made by the Gram Panchayats issued in G.O. Ms. No. 964 Panchayat Raj, dated 9-9-65. By taking away that power from the Gram Panchayats, the State Government has destroyed the credibility and the effectiveness of the Gram Panchayats as units of local- self Government. The lighting of streets is one of the essential functions to be performed by a Gram Panchayat and if that body is deprived of the power to make purchases, it would amount to destroying the effectiveness of the. institution. By Article 40 the State is directed to take steps to organise Village Panchayats and endow them with such powers and authority as is necessary to enable them to furction as units of Self-Government. But in the instant case power was exercised by the State Government with a view to destroying the functioning of the panchayats as self-government units and therefore the very exercise of power itself is bad. Refuting these contentions Sri Nagaseshiah, the learned Government Pleader says that the legal personality of the Gram Panchayat is kept intact ; no attempts whatever are made to destroy the effectiveness of the village panchayats. Several instances came to the notice of the State Government that in breach of all well accepted canons of financial propriety the Gram Panchayats are making purchases, in some cases, of poor quality goods and in other cases by making over-payments. Therefore, the State Government in the public interest thought it fit to regulate the procedure without interfering with the right of the Gram Panchayats to make purchases of the required electrical goods.

(2.) After the writ petition was filed, realising that the impugned G.O. evolved a procedure not incorporated in the statutory rules, the State Government issued G.O.Ns. No. 258 P.R. & R.D. (Pts.I) Department, dated 22-4-1989 inserting the following clause (viii) in Rule 20 of the Rules relating to the Contracts to be made by the Gram Panchayats : (viii) Electrical goods required by Gram Panchayats for street lighting, protected water supply scheme etc., (Added with effect from 22-12-1988).

(3.) At the time of the arguments the learned Counsel for the petitioner raised a legal question that the amendment itself is illegal ; when a writ petition is pending on the file of this Court, the State Government has no power to amend the rules.