The Court emphasized strict adherence to U.P. Panchayat Raj Rules, 1947, declaring the inquiry conducted by unauthorized officers as jurisdictionally flawed.
In a significant ruling, the Allahabad High Court has annulled the surcharge proceedings against Shivpoojan Tiwari, an ex-Pradhan of a village panchayat in Uttar Pradesh, due to non-compliance with procedural mandates. The Division Bench, comprising Justices Ajit Kumar and Indrajeet Shukla, delivered the judgment on July 24, 2026, highlighting critical lapses in adherence to the statutory procedures prescribed under the U.P. Panchayat Raj Rules, 1947.
The case revolved around financial irregularities alleged against Tiwari during his tenure as the Pradhan from 2010 to 2015. The District Magistrate of Allahabad had directed an inquiry by a committee comprising the District Probation Officer and a Junior Engineer, which eventually led to an order imposing a surcharge of Rs. 14,84,510 on Tiwari. However, the High Court found that the inquiry was conducted by officers not authorized under the Rules, rendering the proceedings jurisdictionally unsound.
The Court underscored that the inquiry should have been conducted by the Chief Audit Officer, Cooperative Societies and Panchayats, as mandated by Rules 256 and 257 of the U.P. Panchayat Raj Rules. It ruled that any deviation from this prescribed procedure strikes at the root of jurisdiction, making the subsequent recovery orders legally unsustainable.
In addressing the issue of whether an ex-Pradhan can be subjected to surcharge proceedings, the Court clarified that the liability extends beyond the tenure, as the statute uses the term "was such Pradhan." However, the proceedings must adhere strictly to the procedural safeguards.
The judgment also tackled the question of whether a private complaint can trigger surcharge proceedings. The Court concluded that while private complaints can be a basis for inquiry, they must be referred to the Chief Audit Officer for proper procedural compliance.
The High Court's decision emphasizes the importance of following statutory procedures to ensure lawful governance and accountability in local bodies. The ruling allows authorities to initiate fresh proceedings against Tiwari, provided they strictly adhere to the legal framework, particularly the limitations prescribed under the Rules.
Bottom line:-
The procedure prescribed under Chapter XIII of U.P. Panchayat Raj Rules, 1947, must strictly be adhered to for levying surcharge against Pradhan or other officials. Inquiry conducted by unauthorized entities is jurisdictionally flawed.
Statutory provision(s):
U.P. Panchayat Raj Act, 1947 Section 27, U.P. Panchayat Raj Rules, 1947 Chapter XIII Rules 256, 257
Shivpoojan Tiwari v. State of U.P., (Allahabad)(DB) : Law Finder Doc id # 2948805
