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Issues: (i) Whether the Gram Panchayat's levy of fine under the Panchayat Rules was sustainable in the absence of a proper notice and opportunity of being heard. (ii) Whether the order of the Sub-Divisional Officer reducing the fine could be interfered with in exercise of writ jurisdiction.
Issue (i): Whether the Gram Panchayat's levy of fine under the Panchayat Rules was sustainable in the absence of a proper notice and opportunity of being heard.
Analysis: The power to levy a fine under the relevant rule was punitive in character. Although no elaborate procedure was prescribed for this class of breach, the person proceeded against had to be informed of the specific charge and given notice to show cause before penal action was taken. The earlier notice was not acted upon, and the later notice was not a notice to the Society as such nor did it specify the proposed penal action. The proceedings therefore failed to satisfy the requirements of fairness and natural justice.
Conclusion: The levy of fine by the Gram Panchayat was not valid as it was made without due opportunity to the Society.
Issue (ii): Whether the order of the Sub-Divisional Officer reducing the fine could be interfered with in exercise of writ jurisdiction.
Analysis: The extraordinary jurisdiction under Article 226 is meant for grave cases of manifest injustice and is not to be exercised merely because an order is legally erroneous. The order under challenge, though void to the extent it reduced the fine, had in substance corrected a grave injustice caused by the Gram Panchayat. In those circumstances, interference was justified to the extent necessary to set aside the punitive order, while the remaining relief followed from the illegality in the original proceedings.
Conclusion: The impugned orders were liable to be set aside, and the petition succeeded.
Final Conclusion: Penal action by the Panchayat could not stand when imposed without proper notice and opportunity, and the writ court granted relief by quashing the fine orders.
Ratio Decidendi: A punitive municipal or panchayat fine cannot be sustained unless the person proceeded against is given specific notice of the charge and a real opportunity to show cause; writ jurisdiction may be exercised to correct manifest injustice caused by such a violation.