Simplified Explanation of the Judgment
This case arose from an order passed by the Deputy Development Commissioner, Munger, directing a former Panchayat Mukhia to deposit ₹2,48,226 as recovery for alleged financial loss caused in plantation work under the MGNREGA scheme.
The petitioner, who had served as Mukhia of Khara Panchayat, challenged the recovery order dated 20.02.2020 as unlawful. She argued that she was never given a fair opportunity to defend herself.
Background:
- The petitioner had earlier written a letter in 2015 raising concerns about lack of transparency in payments under MGNREGA works in her Panchayat.
- Later, on the direction of the Rural Development Department, a three-member committee (comprising the Director, Accounts Administration & Self Employment, Executive Engineer, and Programme Officer) investigated alleged misappropriation.
- In its report dated 31.12.2019, the committee found 11 persons responsible for irregularities, recommending total recovery of about ₹36.13 lakh, of which ₹2.48 lakh was fastened on the petitioner.
- Acting on this report, the Deputy Development Commissioner issued the impugned order, directing her to deposit the amount within 10 days.
Petitioner’s Argument:
- She was never given the inquiry report or any notice about the proposed recovery.
- No opportunity was provided to submit a comprehensive defence.
- This amounted to a clear violation of principles of natural justice.
State’s Stand:
- The State argued that the petitioner failed to discharge her duties as per Clause 2.2.1 of NREGA Guidelines.
- A memo dated 06.08.2019 had given her an opportunity to explain, but she did not submit a reply.
- However, the State admitted that no specific show-cause notice was issued regarding the recovery penalty, nor was the committee’s report supplied to her.
Court’s Findings:
Justice Mohit Kumar Shah held that:
- The petitioner was denied adequate opportunity to present her defence.
- The inquiry report was not given to her.
- The show-cause memo did not inform her about the proposed recovery punishment.
- Thus, the recovery order dated 20.02.2020 suffered from violation of natural justice and was void in law.
Accordingly, the Court quashed the recovery order and allowed the writ petition.
Significance or Implication of the Judgment
- Natural Justice Reinforced: Even in cases of alleged financial misappropriation under government schemes, authorities cannot impose recovery without giving the accused party a fair chance to defend themselves.
- Administrative Accountability: Departmental committees must share inquiry reports with affected individuals before fixing liability.
- Safeguards in Welfare Schemes: The judgment ensures that local elected representatives, like Panchayat Mukhias, are not penalized without due process, even if irregularities are suspected in MGNREGA or plantation works.
- Judicial Oversight: The ruling highlights the High Court’s role in correcting administrative overreach and ensuring compliance with constitutional fairness.
Legal Issue(s) Decided and the Court’s Decision with reasoning
- Issue: Whether the recovery of ₹2,48,226 from the petitioner was valid without supplying the inquiry report or issuing proper show-cause notice.
Decision: No, the recovery order was invalid.
Reasoning: Non-supply of inquiry report and absence of a proper notice deprived the petitioner of the chance to present a comprehensive defence, violating principles of natural justice. - Issue: Whether the impugned order could stand despite some opportunity being given through a memo.
Decision: No.
Reasoning: The memo did not inform about the proposed penalty; hence, it did not amount to adequate opportunity.
Case Title
Ranjana Thakur vs. State of Bihar & Ors.
Case Number
Civil Writ Jurisdiction Case No. 7795 of 2020
Citation(s)
2021(2) PLJR 140
Coram and Names of Judges
Hon’ble Mr. Justice Mohit Kumar Shah
Names of Advocates and who they appeared for
- For the petitioner: Ms. Ritika Rani, Advocate
- For the respondents (State): Mr. Lalit Kishore, Advocate General
Link to Judgment
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