RAJA BAHADUR K. C. DEO BHANJ Vs. RAGHUNATH MISRA AND OTHERS

PETITIONER:
RAJA BAHADUR K. C. DEO BHANJ

Vs.

RESPONDENT:
RAGHUNATH MISRA AND OTHERS

DATE OF JUDGMENT:
18/12/1958

BENCH:
IMAM, SYED JAFFER
BENCH:
IMAM, SYED JAFFER
DAS, S.K.
KAPUR, J.L.

CITATION:
1959 AIR  589          1959 SCR  Supl. (1) 952
CITATOR INFO :
E        1960 SC 122     (13)

ACT:
Election-Corrupt  Practice-Person in service of     Government,
obtaining  assistance  of-Sarpanch  of    Grama  Panchayat  in
Orissa-Whether    such  a     person- If Sarpanch  is  a  revenue
officer or a village accountant-Representation of the People
Act,   1951  (43  of  1951),  S.  123(7)(f)  -Orissa   Grama
Panchayats Act, 1948 (Orissa XV of 1948).

HEADNOTE:
The appellant was declared elected to the Orissa Legislative
Assembly and the first respondent filed an election petition
challenging the election, inter alia, on the ground that the
appellant  had    committed  the    corrupt     practice  under  S.
123(7)(f)  Representation  of  the  People  Act,  1951,      by
obtaining  the    assistance of Sarpanches  of  certain  Grama
Panchayats  for     the  furtherance of the  prospects  of     his
election.   The     petition  was    dismissed  by  the  Election
Tribunal  but on appeal., was allowed by the High Court     and
the  election  was set aside.  The High Court  held  that  a
Sarpanch was a person in the service of the Government with-
in the meaning of s. I23(7)(f) Of the Act.
Held,  that a Sarpanch of Grama Panchayat in Orissa was     not
one  of     the  persons  contemplated  by     s.  I23(7)(f)     and
consequently  the  appellant was not guilty of    any  corrupt
practice   in  obtaining  assistance  of  Sarpanches.     Two
conditions must co-exist before S123(7)(f) could apply to  a
Sarpanch: (i) that he was in the service of the     Government,
and (ii) that he fell within the class
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specified  in  cl. (f).     There was a distinction  between  ”
serving     under the Government ” and ” in the service of     the
Government “; while one may serve under a Government one may
not  necessarily be in the service of the Government;  under
the  latter  expression     one  not  only     served     under     the
Government but was in the service of the Government and this
imported  the relationship of master and servant.   None  of
the  provisions     of the Orissa Grama Panchayats     Act,  1948,
suggested that as between the State Government and the Grama
Panchayat  and its Sarpanch any such  relationship  existed.
The mere power of control and supervision of Government over
a  Grama  Panchayat exercising administrative  functions  or
performing duties of governmental nature could not make     the
Grama  Panchayat or its Sarpanch a person in the service  of
the Government.     The Sarpanch was the executive head of     the
Grama  Panchayat : he was neither appointed nor paid by     the
Government;  he     could    only be     removed  by  Government  on
grounds of negligence, inefficiency or misbehaviour.  He was
not  under the control of the Government  while     discharging
his functions and could not be said to be in service of     the
Government.   The second condition also did not exist  as  a
Sarpanch  was  neither    a  revenue  officer  nor  a  village
accountant and as such was not one of the class of  officers
mentioned in cl. (f) of s. 123(7).

JUDGMENT:
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 480 of 1958.
Appeal    by special leave from the judgment and    order  dated
April  15, 1958, of the Orissa High Court in  Misc.   Appeal
No. 194 of 1957, arising out of the judgment and order dated
October     26,  1957,  of     the  Election    Tribunal,  Puri,  in
Election Case No. 1/67 of 1957.
Veda  Vyasa  and  A. V. Viswanatha Sastri,  R.    Patnaik     and
Ratnaparkhi, A. G., for the appellant.
H.Mahapatra  and  P.  K. Chatterjee for G.  C.    Mathur,     for
respondent No. 1.
1958.  December 18.  The Judgment of the Court was delivered
by
IMAM,  J.-The  appellant  and the  respondent  No.  1  were,
amongst     others,  candidates  for  election  to     the  Orissa
Legislative   Assembly     from  the   Daspalla    doublemember
constituency  in which a seat was reserved for    a  scheduled
caste candidate.  We are not concerned with the election  of
the scheduled caste candidate.
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954
For  the  general  seat the election was  contested  by     the
appellant,  respondent    No.  1 and  respondent    No.  3.     The
appellant  obtained  17,700 votes, respondent No.  1  15,568
votes  and respondent No. 3 3,589 votes.  The  election     was
held  on February 27, 1957, and the appellant  was  declared
elected on March 5, 1957.
Respondent No. 1 filed an election petition questioning,  on
various     grounds,  the    election  -of  the  aPpellant.     The
Election  Tribunal  dismissed the petition holding  that  no
grounds     had  been established to invalidate  the  election.
Respondent  No.     1  appealed to the  High  Court  of  Orissa
against the order of the Election Tribunal.
One  of     the  grounds, amongst the many     grounds,  taken  by
Respondent No. 1 to invalidate the election of the appellant
was that the nomination of respondent No. 3 -was  improperly
accepted as he was disqualified from contesting the election
being  a Sarbarakar of the 10 villages in the,    district  of
Nayagarh  mentioned  in the schedule to the  petition.     The
High Court held that the office of Sarbarakar was an  office
of profit under the State Government of Orissa.      Respondent
No.  3 was accordingly disqualified from being a  member  of
the Assembly.  It, however, held that the acceptance of     the
nomination  of respondent No. 3 had not materially  affected
the election of the returned candidate under el. (d) of sub-
s.  (1) of s. 100 of the Representation of the    People    Act,
1951, hereinafter referred to as the Act.
Three grounds were urged before the High Court in support of
the contention that the appellant had been guilty of corrupt
practice.  One was that of bribery; the second was that     the
appellant and his agents had published a pamphlet, Exbt.  8,
containing statements which were false and which he knew  or
believed  to be false in relation to the personal  character
and  conduct  of  respondent No. 1 and in  relation  to     his
candidature; and the third was, the obtaining and  procuring
by respondent No. 1 of assistance for the furtherance of the
prospects  of his election from Sarpanches of certain  Grama
Panchayats.   With regard to the first two grounds the    High
Court held that the same
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had  not  been    established.  With reference  to  the  third
ground the High Court was of the opinion that a Sarpanch  of
the  Grama  Panchayat,    though    not  a    Government   servant
appointed  by the Government, was none the less a person  in
the  service of the Government as he performed many  of     the
governmental duties and was also removable by the Government
and such a person came within the provisions of s. 123(7)(f)
of  the     Act.  A Sarpanch exercised under the  Orissa  Grama
Panchayats Act, 1948, hereinafter referred to as the  Orissa
Act, mostly governmental functions like collection of taxes,
maintenance  of     public accounts, etc.    It thought  that  if
such a person was not brought under s. 123(7)(f) there would
be  “  a lot of undue influence exercised on the  voters  by
these  persons    who  in     the  village  exercised  a  lot  of
influence  considering    the nature of their powers  and     the
ideas  of the village people “. The High  Court     accordingly
allowed     the appeal and set aside the  appellant’s  election
but was of the opinion that although its finding resulted in
the   appellant      being     disqualified  for   membership      of
Parliament and the Legislature of every State for six  years
under s. 140 of the Act, this was a fit case for the removal
of the disqualification by the Election Commission under  s.
144 of the Act.
The  appellant applied to the High Court for  a     certificate
that  this  was a fit case for appeal to  this    Court.     The
certificate  was granted, but one of the learned Judges     was
in  some  doubt     whether  this    was  a    case  in  which     the
provisions  of Art. 133(1)(c) of the  Constitution  applied.
On  behalf of respondent No. 1 an objection had     been  taken
that  Art. 133(1)(c) of the Constitution did not  apply     and
the High Court could not have certified that this was a     fit
case  for appeal to this Court.     It seems to us     unnecessary
to  decide whether in a case of this kind the provisions  of
Art. 133(1)(c) applied because, in our opinion, even if they
did  not  apply and the High Court could not have  issued  a
certificate,  this was just the kind of case where we  would
have  granted special leave to appeal under Art. 136 of     the
Constitution  because  the appeal raised a point of  law  of
considerable public importance.
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In  order to remove all doubts in the matter, we  grant     the
appellant  special leave to appeal against the    decision  of
the High Court of Orissa and proceed to deal with the appeal
on that basis.
The  Act  was  amended in 1956.     Before     the  amendment     the
relevant  portion of s. 123 for the purpose of    this  appeal
was contained in sub-s. (8) which %-as as follows :
“  (8) The obtaining or procuring or abetting or  attempting
to obtain or procure by a candidate or his agent or, by     any
other  person  with  the connivance of a  candidate  or     his
agent,    any assistance for the furtherance of the  prospects
of  the candidate’s election from any person  serving  under
the Government of India or the Government of any State other
than the giving of vote by such person.
Explanation-For     the purposes of this clause-
(a) a person serving under the Government of India shall not
include     any  person who has been declared. By    the  Central
Government  to be a person to  whom the provisions  of    this
clause shall not apply ;
(b)  a    person    serving under the Government  of  any  State
shall  include    a  patwari,  chaukidar,     dafedar,   zaildar,
shanbagh,  karnam,  talati, talari, patil,  village  munsif,
village     headman or any other village officer,    by  whatever
name  lie  is called, employed in that    State,    whether     the
office be holds is a whole-time office or not, but shall not
include     any person (other than any such village officer  as
aforesaid) who has been declared by the State Government  to
be a person to whom the provisions of this clause shall     not
apply.”
After  the  amendment the relevant portion of s. 123  is  in
sub-s. (7) which reads as follows:-
“  (7) The obtaining or procuring or abetting or  attempting
to obtain or procure by a candidate or his agent or, by     any
other person, any assistance (other than giving of vote) for
the  furtherance  of  the  prospects  of  that     candidate’s
election  from any person in the service of  the  Government
and belonging to any of the following classes, namely:-
(a)  gazetted officers;
(b)  stipendiary judges and magistrates;
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(c)  members of the armed forces of the Union;
(d)  members of the police forces;
(e)  excise officers;
(f)  revenue  officers including village  accountants,    such
as,  patwaris, lekhpals, talatis, karnams and the  like     but
excluding other village officers; and
(g)  such  other  class     of persons in the  service  of     the
Government as may be prescribed.
Explanation-(I)     In  this section the  expression  “agent  ”
includes  an election agent, a polling agent and any  person
who is held to have acted as an agent in connection with the
election with the consent of the candidate.
(2)For the purposes of clause (7), a person shall be  deemed
to  assist  in    the  furtherance  of  the  prospects  of   a
candidate’s  election  if he acts as an election  agent,  or
polling agent or a counting agent of that candidate.”
There is a material difference between the phraseology of s.
123(8) before it was amended and s. 123(7) as now  contained
in  the     Act.    Under  the  former  provision  there  was  a
prohibition   against  obtaining  any  assistance  for     the
furtherance  of the prospect of a candidate’s election    from
any  person  serving under the Government of  India  or     the
Government  of    a State other than the giving of a  vote  by
such  person.  The Explanation, however, gave  authority  to
the  Central Government to declare any person serving  under
it to be a person to whom these provisions would not  apply.
In  other words, unless there was such a  declaration  these
provisions   covered   every  person  serving    tinder     the
Government of India.  Clause (b) of the Explanation  further
widened     the  meaning  of  any    person    serving     under     the
Government  of    a State by including the  persons  specified
therein     and any other village officer, by whatever name  he
may  be     called,  employed  in that  State,  but  the  State
Government  was authorized to declare that any such  person,
other than any such village officer, to be a person to    whom
these  provisions  did    not  apply.   The  language  of     the
provisions of s. 123(8) covered a wide field and referred to
every person serving under the Government of India or a
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State unless such ‘Person was declared to be one to whom the
provisions  would not apply.  After the amendment,  however,
the  provisions of s. 123(7) are narrower- in scope.   These
provisions  apply  to  any  person in  the  service  of     the
Government belonging to the classes specified in cls. (a) to
(g) and none else.  For the purpose of this appeal it is el.
(f)  which will have to be considered, as the other  clauses
cannot in any case apply.
The  principal    question  for  consideration  is  whether  a
Sarpanch  of a Grama Panchayat constituted under the  Orissa
Act  is     a person in the service of the     Government  of     the
State  of Orissa and belongs to the class specified  in     cl.
(f) of s. 123(7).
Obviously, two things will have to be established before the
provisions  -of     s. 123(7)(f) can apply to a Sarpanch  of  a
Grama  Panchayat constituted under the Orissa Act: (1)    That
such  a person is in the service of the Government  and     (2)
that  he  comes within the class specified in cl.  (f).      It
would  not  be    enough    to  establish  only  one  of   these
conditions.   It is necessary, therefore, to decide, in     the
first  instance,  whether a Sarpanch of     a  Grama  Panchayat
under  the  Orissa  Act is a person in the  service  of     the
Government  of    the State of Orissa.  For this    purpose,  it
will be necessary to consider whether any of the  provisions
of  the Orissa Act relating to the Grama Panchayat  and     the
duties    to be discharged by the Sarpanch indicate  that     the
Sarpanch  is  in  the service  of  the    Government,  because
independent  of those provisions there is no  material    upon
which any such conclusion can be arrived at.
It  was     urged    on behalf of the appellant  that  under     the
Orissa Act a Grama Sasan can be constituted by    notification
by  the State Government.  The Grama Sasan is to be  a    body
corporate having perpetual succession and a common seal with
power to acquire and hold property, to transfer any property
held  by it and to enter into contracts and to do all  other
things necessary for the purpose of carrying out the  provi-
sions  of  the    Orissa Act and to sue and  be  sued  in     its
corporate  name.   For every Grama Sasan there    shall  be  a
Grama Panchayat and the functions of the
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Grama Sasan shall be exercised, performed and discharged  by
the  Grama  Panchayat.     The Executive power  of  the  Grama
Panchayat  shall be exercised by the Sarpanch elected  under
s.  10, who shall act under the authority of the said  Grama
Panchayat.   The Grama Sasan shall elect, in the  prescribed
manner,     from  amongst its members  an    Executive  Committee
which  will  be known as the Grama Panchayat and  the  Grama
Panchayat shall elect, in the prescribed manner, a Sarpanch.
The  appointment  of a Sarpanch, therefore, was not  by     the
Government.  The Sarpanch was elected by the Grama Panchayat
which  in turn was elected by the Grama Sasan and the  Grama
Sasan  consisted  of  a village or  a  group  of  contiguous
villages and its members were the population residing in the
Grama.     As  the  appointment  of the  Sarpanch     is  Dot  by
Government, this would be one of the factors in holding that
the  Sarpanch  was  not in the service    of  the     Government.
Under  s. 8, the Sarpanch has to act under the authority  of
the  Grama  Panchayat.    Prima facie, this would     also  be  a
factor    to discountenance the theory that a Sarpanch was  in
the  service of the Government.     Another factor which  would
militate  against  the    theory that a Sarpanch    was  in     the
service of the Government was that he received no  remunera-
tion from the Government.  The power to remove a Sarpanch by
the State Government is stated in s. 16 but the removal     can
only be for negligence, inefficiency or misbehaviour.    This
restricted  power of removal was not a conclusive factor  on
the  question -whether a Sarpanch was in the service of     the
Government.   It was accordingly urged that three  important
factors to be taken into consideration in deciding whether a
person    was  in     the  service  of  the    Government,  namely,
appointment  of the person, such a person to act  under     the
authority   of     the  Government  and    one   who   received
remuneration  from Government were lacking in the case of  a
Sarpanch.  The restricted power of removal by the Government
was  not a conclusive factor’ Instances were not lacking  in
the  Municipal    Acts  of  various  States  where  the  State
Government had vested in -it the power of removal of
960
a  Chairman  of the Municipality, but it could not  be    said
that the members of the Municipality or their Chairman    were
in the service of the Government.
On  behalf  of    respondent  No. 1  it  was  urged  that     the
expression  in    service of Government” had a  wider  concept
than the expression serving under the Government “. Exercise
of   governmental  functions  would  amount  to      being      in
Government’s  service.    A Sarpanch could be equated  with  a
patwari,  Lekhpal,  talati,  karnam, etc., and    it  was     not
necessary   to    consider  whether  he  was  in    service      of
Government  because  the  word ” and ” before  the  words  ”
belonging  to any of the following classes ” should be    read
as ” or He referred to the various provisions of the  Orissa
Act  in     support of his submission that a Sarpanch  must  be
regarded  as one in service of Government.  Under  s.  10(2)
the  District Magistrate was to decide the manner  in  which
the  local  area of any Grama Sasan shall  be  divided    into
electoral wards and the number of members to be returned for
each  of such wards.  Under sub-s. (4) of this    section     the
number of members of a Grama Panchayat shall be fixed by the
District Magistrate.  Under sub-s. (6) if in an election the
requisite  number  of members of a Grama  Panchayat  is     not
elected, the State Government shall appoint persons to    fill
up  the     vacancies and the Grama Panchayat  so    constituted,
consisting  of elected and appointed members, shall elect  a
Sarpanch  from    amongst its members.  Under sub-s.  (8)     the
State    Government   was  empowered  by      notification     for
sufficient  cause to extend the term of office of any  Grama
Panchayat  for a period of one year.  Under a. 11 the  State
Government may by notification direct that general  election
of  members of a Grama Panchayat be held at any time  before
the expiration of the term of office of such members includ-
ing  its  Sarpanch.   Under s. 14 the  State  Government  is
authorized  to decide any dispute or difficulty arising     out
of the interpretation of any of the provisions of the Orissa
Act  or     any rule made thereunder or  any  difficulty  which
arises    in  the working of the Act.  Under s. 16  the  State
Government is empowered
961
to   remove  a    Sarpanch  on  the  ground   of     negligence,
inefficiency, or misbehaviour.    Under s. 17 a Sarpanch shall
give effect to the decision of the Grama Panchayat; provided
that  if in his opinion any such decision is  subversive  of
peace  and  order  in the locality or  results    in  manifest
injustice  or  unfairness  to  an  individual  or  body      of
individuals  or     a  particular    community  or  is  generally
against     public interest, he shall refer the matter  to     the
Sub-divisional    Magistrate and thereafter act  according  to
such  directions  as be may receive  from  such     Magistrate.
Under  sub-s.  (2)  of    this  section,    the   Sub-divisional
Magistrate  may, on his own motion or on the  representation
by  the     Sarpanch,  set     aside    a  decision  of     the   Grama
Panchayat, if he finds that the decision is of the nature as
stated above.  Under sub-s. (3) of s. 18 the  Sub-divisional
Magistrate may nominate any member of the Grama Panchayat to
carry  on the duties of the Sarpanch till a new Sarpanch  is
elected     on  the resignation of the former.  Under s.  22  a
Grama Panchayat may, if a majority of its members so decide,
with  the  previous approval of the Government    and  if     the
Provincial  Government so direct undertake within  its    area
the control and administration of and be responsible in     the
matters mentioned in cls. (a) to (y).  Clause (x) refers  to
the  doing of anything the expenditure on which is  declared
by the Provincial Government or by a District Board with the
sanction  of the Provincial Government to be an     appropriate
charge    on the Grama Sasan’s funds.  Even in the  matter  of
appointing staff to a Grama Panchayat, under s. 32 the Grama
Panchayat  has to prepare a scheme containing its  proposals
for  the  employment of whole-time or part-time     staff,     for
their  salaries and allowances and shall submit the same  to
the prescribed authority who shall have the power to approve
or  modify or reject the scheme.  Section 35 refers  to     the
liability  of the members of the Grama Panchayat or  of     any
Joint Committee or any other Committee constituted under the
Orissa Act and provides for the institution of suits against
them  for  loss,  waste or misapplication  of  any  property
belonging to the
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962
Grama  Panchayat as the result of direct consequence of     his
neglect or misconduct while a member of the Grama Panchayat,
Joint  Committee or other Committee.  Under sub-s.  (3)     the
Provincial Government has the power to institute such a suit
on  its     own  initiative.  Under s. 36 all  members  of     the
Grama.    Panchayat shall be deemed to be public servants     and
in the definition of ” legal remuneration ” in s. 161 of the
Indian    Penal Code” the word ” Government” for the  -purpose
of this section shall be deemed to include a Grama Sasan  or
a  Grama Panchayat.  Under s. 44(2) a Grama  Panchayat    with
the  previous sanction of the State Government may impose  a
tax, toll, fee or rate on matters referred to in cls. (a) to
(n).  Under sub-s. (4) the District Magistrate is authorized
to  review or revise the tax, toll, fee or rate     imposed  by
Grama  Panchayat.  Under sub-s. (5) the District  Magistrate
may  by an order in writing require the Grama  Panchayat  to
levy  or  increase any tax, toll, fee or rate  specified  in
sub-s.    (2)  subject  to the  conditions  ‘and    restrictions
contained therein, if in his opinion the income of the Grama
Panchayat  is or is likely to be inadequate for     the  proper
discharge  of the duties imposed under s. 21  or  undertaken
under  s.  22.     Under    s. 97  the  District  Magistrate  is
authorized   to     exercise  general  powers  of     inspection,
supervision   and  control  over  the    performance-of     the
administrative    duties of the Grama Panchayat.     Section  98
contains  the general powers of the District Magistrate     and
s.  99 contains the emergency powers of the District  Magis-
trate in relation to a Grama Panchayat whereby he may by  an
order in writing prohibit the execution or further execution
of a resolution or ail order passed or made by it.  Under s.
117-A  the State Government may delegate any of its  powers.
except    the  power  to    make  rules,  to  be  exercised      or
discharged  by any officer subordinate to State     Government,
It  was urged on behalf of respondent No. 1 that  the  above
provisions  of    the  Orissa  Act  clearly  made     the   Grama
Panchayat  come     under the control and    supervision  of     the
State  Government and that the duties and functions  of     the
Grama Panchayat to be performed by its
963
Sarpanch  were    governmental duties.  It was  further  urged
that  in considering whether a Sarpanch was a person in     the
service of Government the essential elements to be borne  in
mind were the control and supervision over him by the  State
Government  and     its power to remove him  from    his  office.
Neither     the absence of appointment by the State  Government
nor  the non-payment of remuneration by it would be  factors
indicating that he was not in the service of the Government.
In  our     opinion, there is a distinction between  I  serving
under    the  Government’  and  I  in  the  service  of     the
Government’, because while one may serve under a Government,
one may not necessarily be in the service of the Government;
under  the latter expression one not only serves  under     the
Government  but is in the service of the Government  and  it
imports the relationship of master and servant.     There    are,
according  to Batt (On the Law of Master and  Servant),     two
essentials  to    this relationship: (1) The servant  must  be
under the duty of rendering personal services to the  master
or to others in his behalf and (2) the master must have     the
right to control the servant’s work either personally or  by
another servant or agent and, according to him, ” It is this
right of control or interference, of being entitled to    tell
the  servant when to work (within the hours of    service)  or
when  not  to  work, and what work to do and how  to  do  it
(within     the terms of such service), which is  the  dominant
characteristic    in this relation and marks off    the  servant
from an independent contractor, or from one employed  merely
to give to his employer the fruits or results of his labour.
In the latter case, the contractor or performer is not under
his  employer’s control in doing the work or  effecting     the
service;  he has to shape and manage his work so as to    give
the  result  he has contracted to effect.   Consequently,  a
jobbing     gardener  is  no more the  servant  of     the  person
employing him than the doctor employed by a local  authority
to  act as visiting physician to its fever hospital”.    None
of the provisions of the Orissa Act suggest that as  between
the State Government and the Grama
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Panchayat and its Sarpanch any such relationship exists.  It
is  true that the State Government, the District  Magistrate
and  the Sub-divisional Magistrate have been  given  certain
powers    of control and supervision over the Grama  Panchayat
but those powers of control and supervision are in  relation
to  the administrative functions of the Grama Panchayat     and
the  Sarpanch.     The Grama Panchayat is an  autonomous    body
exercising  functions conferred under the statute.   It     can
hardly be said that the Grama Panchayat in so functioning is
in  the     service  of  the  Government.     Its  administrative
functions  are akin to the functions generally performed  by
Municipalities     and  District    Boards.      It  would   be   a
conception hitherto unknown to suppose that any Municipality
or  District  Board  was in the service     of  the  Government
merely because it exercised administrative functions and  to
some  extent was under the control of the  Government.     Co-
operative  societies  generally     are  very  much  under     the
control     and supervision by the State Government or  one  of
its  officers  authorized  in  that  behalf.   It  would  be
difficult  to accept the suggestion that because of  that  a
Cooperative  society and its members must be regarded as  in
the  service  of  the  Government.   Even  with     respect  to
companies, progressively, legislation has been giving  power
to  the Government to control and supervise them.  Under  s.
259   of  the  Indian  Companies  Act,    1956,    in   certain
circumstances,    any increase in the number of its  directors
must be approved by the Central Government and shall  become
void  if it is disapproved.  Under s. 269, in the case of  a
public company or a private company which is a subsidiary of
a  public company, the appointment of a managing  or  whole-
time  director for the first time after the commencement  of
this  Act in the case of an existing company, and after     the
expiry of three months from the date of its incorporation in
the  case  of any other company, shall not have     any  effect
unless approved by the Central Government; and shall  become
void if, and in so far as, it is disapproved by the  Central
Government.   Under s. 408 the Government has the  power  to
prevent mismanagement in the affairs of the
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Company     and under the proviso in lieu of passing any  order
under sub-s. (1) the Central Government may, if the  company
has  not availed itself of the option given to it  under  s.
265, direct the company to amend its Articles in the  manner
provided  in  that section and make  fresh  appointments  of
directors in pursuance of the Articles as so amended, within
such time as may be specified in that behalf by the  Central
Government.  Section 409 empowers the Central Government  to
prevent     change in the number of directors likely to  affect
the company prejudicially.  It could not be said, because of
these  provisions, that a company was in the service of     the
Government.  It seems to us, therefore, that the mere  power
of  control and supervision of a Grama Panchayat  exercising
administrative functions would not make the Grama  Panchayat
or  any,  of  its members a person in  the  service  of     the
Government.   Even  if    it  could be  said  that  the  Grama
Panchayat  in the exercise of its  administrative  functions
exercised  duties  in the nature of Governmental  duties  it
could  not  thereby  be said that its Sarpanch    was  in     the
service     of  the  Government.  So far  as  the    Sarpanch  is
concerned,  he    is merely the executive head  of  the  Grama
Panchayat  which carries out its functions through him.      He
is  not appointed by the Government.  He is not paid by     the
Government.   He does not exercise his functions as  one  in
the service of the Government and he can only be removed  on
the ground of negligence, inefficiency or misbehaviour.      We
have  been unable to find a single provision of     the  Orissa
Act  from which we could say that a Sarpanch is a person  in
the  service of the Government.     Reference had been made  on
behalf    of the respondent No. 1 to s. 31 of the     Orissa     Act
which  authorizes  the    Grama  Panchayat  to  enter  into  a
contract  with    the State Government to collect all  or     any
class  of  taxes  or dues payable to  the  Government  at  a
prescribed  percentage as collection charges.  As the  Grama
Sasan  is  a body corporate and the Grama Panchayat  is     its
executive authority, the statute enabled the Grama Panchayat
by  provisions    of s. 31 to enter into a contract  with     the
State Government to collect its taxes and its dues.  It
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cast no obligatory duty upon the Grama Panchayat to  collect
such  taxes or dues of the Government.    No provision of     the
Orissa    Act  has been placed before us by  which  the  State
Government  could  order a Grama Panchayat  to    collect     its
taxes  or its dues.  Furthermore, under el. (b) to s. 31,  a
Grama    Panchayat  is  authorized  to  enter  into   similar
contracts with proprietors or land holders to collect  their
rents.    The provisions of s. 31 militate against the  theory
that   the  Grama  Panchayat  is  in  the  service  of     the
Government.  There would be no occasion for such a provision
if the Grama Panchayat was in the service of the  Government
in  which case it would have to carry out the orders of     the
Government to collect its taxes or its dues.
Even  if on a reasonable construction of the  provisions  of
the Orissa Act it could be held that a Sarpanch of the Grama
Panchayat was a person in the service of the Government,  it
would  have to be further held that he was of the  class  of
officers  mentioned  in s. 123(7)(f).  Clause  (f),  in     the
first  instance,  speaks of a person in the service  of     the
Government who is a revenue officer and then further extends
the  class  to    village accountants.  The words     “  such  as
patwaris,  lekhpals,  talatis, karnams and the    like  “     are
merely descriptive of the words ” Revenue officers including
village accountants”.  Under cl. (f) it is essential that  a
person    in the service of the Government must be  a  revenue
officer     or  a    village accountant, by    whatever  name    such
officer     or  village  accountant  may  be  described.     The
exclusion of every other village officer from the provisions
of  cl. (f) compels the conclusion that before    this  clause
can  apply  to a Sarpanch of the Grama Panchayat  under     the
Orissa    Act  it must be proved that he is either  a  revenue
officer     or a village accountant.  The mere fact that  under
s.  31    of the Orissa Act a Grama Panchayat  is     enabled  to
enter  into a contract with the State Government to  collect
its  taxes  or    its dues cannot convert a  Sarpanch  into  a
revenue     officer.  No doubt a Grama Panchayat would have  to
supervise and maintain village and field boundary marks     and
village records if required to do
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so by the State Government under s. 21(r) of the Orissa Act.
In  the     present  case    there is no  proof  that  the  Grama
Panchayats in question were required to do any such thing by
the Government.     It is significant that under s.  54(1)(xiv)
of the Orissa Act it is a choukidar appointed under that Act
by the District Magistrate on whom a statutory duty is    cast
to  keep watch over boundary marks and report to  the  Grama
Panchayat  any loss or damage caused to the  boundary  marks
defining  villages.  The Grama Panchayat, however,  has     not
been assigned positively any functions under the Orissa     Act
which  are discharged by a revenue officer.  The  provisions
of  s.    21(r) would not by itself convert a  Sarpanch  of  a
Grama Panchayat into a revenue officer.     Similarly, there is
no  provision of the Orissa Act which shows that a  Sarpanch
is a village accountant.  It had been suggested on behalf of
respondent  No.     1 that if it could be    established  that  a
Sarpanch was a revenue officer or a village accountant, then
the very fact that he was such a person made him a person in
the  service of the Government.     It is doubtful whether     any
such  necessary conclusion arises, but there is no  need  to
make  further  reference  to  this  submission    as,  in     our
opinion, a Sarpanch of the Grama Panchayat under the  Orissa
Act is neither a revenue officer nor a village accountant.
It  follows,  therefore, that in the present  case  the     two
essential  elements that a Sarpanch must be a person in     the
service     of the Government and that he belongs to the  class
mentioned  in cl. (f) of sub-s. (7) of s. 123 have not    been
established.   Even if one of them had been established     and
not the other the provisions of s. 123(7) would not apply to
such  a     person.  In our opinion, the High  Court  erred  in
supposing  that     because a. Sarpanch of     a  Grama  Panchayat
under  the Orissa Act exercised governmental duties he    must
be  regarded as a person in the service of  the     Government.
The  High  Court  did  not give any  clear  finding  that  a
Sarpanch, even if a person in the service of the Government,
was  either a revenue officer or a village  accountant.      In
our  opinion,  the provisions of s. 123(7) do not  apply  to
him.  Therefore, it cannot. be said that
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any  corrupt practice under s. 123 had been  established  in
the case and the election of the appellant could not be     set
aside on the only ground on which his election had been     set
aside by the High Court.  The appeal is accordingly  allowed
with costs and the election petition of ‘respondent No. 1 is
dismissed.
Appeal allowed.

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