AHMEDABAD MUNICIPAL CORPORATION &ANR. ETC. versus RAJUBHAI SOMABHAI BHARWAD AND ANR. ETC.

Citation: [2015] 8 S.C.R. 263 · Decided: 01-07-2015 · Supreme Court of India · Bench: DIPAK MISRA · Disposal: Appeal(s) allowed

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Judgment (excerpt)

[2015] 8 S.C.R. 263 
AHMEDABAD MUNICIPAL CORPORATION &ANR. ETC. 
A 
v. 
RAJUBHAI SOMABHAI BHARWADANDANR. ETC. 
(Civil Appeal Nos.10310-10311 of2014) 
JULY01, 2015 
[DIPAK MISRA AND UDAY UMESH LALIT, JJ.] 
B 
Gujarat Panchayats Act, 1993-ss.5, 55, 101, 227-
Whether Sarpanch, while representing Gram Panchayat, is c 
empowered to enter into a settlement with workmen 
(employee of the. Gram Panchayat) on behalf of the Gram 
Panchayat without proper resolution by the Gram Panchayat 
- Held: Power to enter into settlement/compromise is 
conferred on Gram Panchayat and not on the Sarpanch -
D 
The provisions of the rules whereby the conditions of service 
of the employees of the Panchayat are governed also show 
that Sarpanch has to act in accordance with the Act and the 
resolutions passed by the Panchayat -Thus, in absence of 
the authority and in absence of statutory permissibility, E 
entering into settlement by Sarpanch is inconceivable in law 
- Sarpanch cannot be said to be employer of the workmen 
as defined uls.2(g) of Industrial disputes Act- The Sarpanch 
in the present case not only acted contrary to the provisions 
of the Act, but also against the spirit of the responsibility cast F 
on the local self-Government - Constitution of India, 1950-
Part IX - Industrial Disputes Act, 1947 - s.2(g) - Gujarat 
Panchayat Services (Conduct) Rules, 1998. 
Words and Phrases - 'Panchayat' - Meaning of, in G 
the context of Art. 243(d) of the Constitution of India, 1950. 
Allowing the appeals, the Court 
HELD: 1. Section 5 of the Gujarat Panchayats Act, H 
263 
264 
SUPREME COURT REPORTS 
[2015] 8 S.C.R. 
A clearly lays down that a village panchayat is a body 
corporate. The Sarpanch has been conferred certain 
executive functions under sub-Section 55(2) of the Act 
but the said power does not enable him to enter into a 
compromise. The power to enter into a compromise has 
B been specifically postulated in Section 101 of the Act and 
that the said power has been conferred on the village 
panchayat. [Para 13] [277-G-H; 278-A] 
Board of Trustees, Ayurvedic and Unani Tibia College, 
C 
Delhi v. State of Delhi 1962 Suppl (1) SCR 156: AIR 
1962 SC 458 - followed. 
D 
Daman Singh and others v. State of Punjab and others 
AIR 1985 SC 973: 1985 (3) SCR 580 - referred to. 
2. A body corporate can sue or be sued in its 
name. Section 101, confers power on the village 
panchayat to enter into a compromise. The village 
panchayat represented itself through the Sarpanch. 
E Nothing has been brought on record that the Panchayat 
had conferred any authority on the Sarpanch to enter 
into any kind of settlement with the workman. In the 
absence of any authority and in the absence of any 
statutory permissibility, it is absolutely inconceivable in 
F law that a Sarpanch can enter into settlement with a 
workman. A Sarpanch is required to look after the interest 
of the Gram Panchayat. The Legislature has given 
certain executive powers uls. 55 of the Act. It has its 
limitations. [Paras 14, 16] [280-B-D, G-H] 
G 
3. The conditions of service are controlled and 
governed by the Gujarat Panchayat Service (Conduct) 
Rules, 1998 and certain powers are conferred on the 
Sarpanch. As the provisions would show, he has to act 
H in accordance with the provisions of the Act and the 
AHMEDABAD MUNICIPAL CORPORATION v. RAJUBHAI 265 
SOMABHAI BHARWAD 
resolutions passed by the village panchayat [Para 13] A 
(277-D-E] 
4. Section 2{g) of Industrial Disputes Act, 1947 
defines the term "employer". By no stretch of 
imagination, it can be held that the Sarpanch is the B 
em_ployer of the workman. He belongs to the village 
panchayat services, if he had properly been appointed. 
It is the village panchayat which is the employer. [Para 
15] (280-E-F] 
c 
5. The parliament by the Constitutional 
amendment required the State Legislature to bring their 
State laws in conformity with Part IX of the Constitution. 
Power has been conferred on the Panchayats so that 
they are able to function as an institution of self- o 
Government. 
The State Legislature has also been 
empowered to make provisions by which powers are 
given to the Gram Panchayats. Once responsibility is 
given they a.re to be carried out with sanguine 
responsibility. (Para 17] (281-F-H] 
E 
. 
6. The Sarpanch in the present case by entering 
into a settlement has not only acted contrary to the 
provisions of the Act, but also the spirit of the 
responsibility cast on the local self-Government. [

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