(1.) Civil Revision Petition No. 165 of 1923.-This is a petition to revise the order of the District Judge of Guntur confirming a surcharge order made by the Examiner of Local Fund Accounts (Ex. A) on the petitioner as Chairman of the Guntur Municipal Council. The ground for the surcharge is that the petitioner illegally issued cheques against the Municipal funds under the powers given him by Rule 55 (1), part 2 of Schedule 4 of the Madras District Municipalities Act (5 of 1920), for the maintenance of 25 elementary schools managed by the Guntur Municipal Council, such objects not being authorized objects under Act 5 of 1920. On 13th July 1921, the Guntur Municipal Council passed a resolution (Ex. I), (a) to introduce the national system of education in all the institutions under the management of the Council; (b) to dispense with the annual grant by Government; (c) to conduct Municipal primary schools independently of Government control.
(2.) On 19 August 1921 (Ex. II), a committee of the Guntur Municipal Council was appointed to formulate the methods of working the national system of education. The 25 elementary schools had been up to this date recognized by Government under the Educational Rules and Government had made a grant towards their maintenance. On 15 August 1921, the Government issued two Government orders, No. 1583 (Ex. IV) was issued under Rule 37, Schedule 4 of the Madras District Municipalities Act (5 of 1920) as a special order. This Government order ran as follows: No portion of a Municipal fund shall be applicable to the purpose of. maintaining or aiding any educational institution which is not recognized or approved by the Government, the District Educational Council or any other authority duly authorized by the Government in this behalf to grant such recognition or approval. (By order of the Government, Ministry of Local Self-Government.)
(3.) It may be here stated that Rule 37, Schedule 4 of the Madras District Municipalities Act, 1920, reads as follows: The purposes to which the Municipal fund may be applied include all objects expressly declared obligatory or discretionary by laws or rules, and in general everything necessary for or conducive to, the safety, health, convenience or education of the inahabitants or to the amenities of the Municipality and everything incidental to the administration; and the fund shall be applicable thereto within the Municipality subject to these rules and such further rules or special orders as the Governor in Council may prescribe or issue; and shall be applicable thereto without the Municipality if the expenditure is authorized by this Act, or specially sanctioned by the Governer-in-Council.