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Anokh Singh vs Punjab State Election Commission

Supreme Court29 October 2010Surinder Singh Nijjar · B.Sudershan Reddy

Ratio decidendi

The rule this decision rests on

An office is not an "office of profit" for purposes of disqualifying a candidate from contesting panchayat elections merely because the holder receives an honorarium, where that honorarium is demonstrably compensatory in nature, meant to reimburse the holder for out-of-pocket expenses incurred in the discharge of official duties, and where the person seeking to establish that the office is one of profit bears the burden of producing evidence that the payment received exceeds the expenses necessarily incurred. To determine whether an office is an "office of profit," the court must take a realistic and substantive view of the nature and quantum of remuneration involved in relation to the actual expenses incurred, rather than adopting a pedantic or technical approach based solely on nomenclature or the bare fact that some payment is made; the court must be guided by the practical circumstances of each case, including the nature and extent of the duties, the amount and character of any allowance or payment attached to the office, and the realistic level of expenditure necessarily incurred by the office holder. A person who holds office under the Government but is not a government servant does not hold a civil post under the Constitution, and such a person cannot be said to be in receipt of remuneration in the absence of a salary or pay scale attached to the office, even if nominal honorarium is paid to offset expenses.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

REPORTABLE
IN THE SUPREME COURT OF INDIACIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. OF 2010[Arising out of SLP [C] No.7319 of 2009]
Anokh Singh ...Appellant
VERSUS
Punjab State Election Commission ...Respondent
WITH
CIVIL APPEAL NO. OF 2010[Arising out of SLP [C] No.10948 of 2009]
Harchand Singh ...Appellant
VERSUS
State of Punjab and Ors. ...Respondents
JUDGMENT
SURINDER SINGH NIJJAR, J.
1. Leave granted.
2. These appeals arise out of a common judgment of
the Punjab and Haryana High Court dated 5.12.2008 in
Writ Petition Nos. 7727 of 2008, 8264 of 2008, 8270 of
2008, 8279 of 2008, 8310 of 2008 and 11724 of 2008.
1
3. The primary issues raised in all these writ petitions
were:-
i) Whether the office of a Lambardar would be an

`office of profit' so as to disqualify the

incumbent of such an office to seek election as

Panch of the Gram Panchayat.

ii) Whether the Anganwari workers employed in

the various social-welfare schemes in the State

of Punjab held an `office of profit' and

consequently disqualified for seeking election

to the Gram Panchayats.

iii) Whether the State Election Commissioner,

Punjab was justified in issuing the clarificatory

Memorandum, Memo No. SEC-2008/4365

dated 30.4.2008 on the subject "General

Elections to Panchayat Samitis and Zila

Parishads - 2008 Clarification regarding

contesting of election by Lambardars and

Anganwari workers.

2 4. Civil Writ Petition No. 7727 of 2008 was filed by a

Lambardar, who was seeking election to the Gram Sabha,

Village Ladpur, Tehsil Amloh, Distt. Fatehgarh Saheb.

He had come to know from a news item in the Daily `Ajit'

dated 3.5.2008 that Lambardar and Anganwari workers

have been debarred from contesting election as Member

Panchayat. On enquiry, the appellant came to know that

a Circular Memo No. SEC-2008/4365 has been issued

conveyed to all the Deputy Commissioners-cum-District

Electoral Officers in the State that Lambardars and

Anganwari workers, who are ineligible to contest

elections as Member of Panchayat because they hold

`office of profit'. As a result of which, the appellant was

debarred from contesting the election as Member

Panchayat, which he intended to contest as he was

otherwise duly qualified to contest the same. The prayer

in the writ petition was for issuance of a writ in the

nature of certiorari quashing the impugned

memorandum by which Lambardars and Anganwari

3 workers have been debarred from contesting the

elections.

5. Similarly, the Civil Writ Petitions No. 8264 of 2008,

8270 of 2008, 8279 of 2008 and 8310 of 2008 were filed

by Anganwari workers claiming that they could not be

disqualified as they were not holding any `office of profit'.

Civil Writ Petition No. 11724 of 2008 sought a direction

to the respondents not to permit respondent No. 5, who

was an Anganwari worker to participate in the election of

Sarpanch of Gram Panchayat of Village Ghaloti.

6. The High Court upon detailed consideration of the

entire matter concluded that the office of Lambardars is

an `office of profit' and, therefore, the Lambardar would

be disqualified from contesting the election. To this

extent, the impugned memorandum was held valid.

Consequently, Civil Writ Petition No. 7727 of 2008 was

dismissed.

4

7. With regard to the Anganwari workers, the High

Court held that the Anganwari workers did not hold any

civil post under the Government. It is also held that the

Anganwari workers do not hold an `office of profit' under

the State Government. Consequently, Civil Writ Petition

Nos. 8264 of 2008, 8270 of 2008, 8279 of 2008 and

8310 of 2008 were allowed and the impugned

memorandum was quashed so far as it pertained to the

Anganwari workers.

8. In view of the decision rendered in the aforesaid writ

petitions, Civil Writ Petition No. 11724 of 2008 for

issuing direction not to permit the Anganwari worker,

respondent No. 5, to participate in the election of

Sarpanch of Gram Panchayat was dismissed.

9. In this appeal, we are only concerned with the issue

as to whether an incumbent Lambardar would hold an

`office of profit' under the Government.

5

10. Although by a common order, the High Court has

decided the writ petitions in two parts. The first part

relates to the Lambardars in C.W.P. 7727 of 2008 and

connected matters. In these matters, the High Court

crystallized three issues for consideration. Firstly,

whether the disqualification prescribed under Section

208 of the Panchayati Raj Act or the disqualification

prescribed under Section 11 of the State Election

Commission Act is applicable in case of the petitioner.

Secondly, whether the petitioner, as a Lambardar, holds

an `office of profit'. Thirdly, whether in view of

clause (1) of Article 243F of the Constitution read with

Section 2(a) of the Punjab State Legislature (Prevention of

disqualifications) Act, 1952, the petitioner shall not be

deemed to be disqualified for being chosen as a member

of a Panchayat as the office of Lambardar is one of the

offices of profit, holding which does not attract

disqualification.

6

11. The second part relates to Anganwari Workers in

CWP No.11724 of 2008, CWP No. 8264 of 2008 and

connected matters. The issues highlighted in these

matters are :

Firstly whether the Anganwari workers were holding

`office of profit'. Secondly whether the State Election

Commission was justified in issuing circular dated

30.4.2008 clarifying that Anganwari workers are

disqualified to contest the election of Members of

Panchayats.

12. In the matters concerning Lambardars, the High

Court observes that in view of the judgment of this Court

in Som Lal Vs. Vijay Laxmi & Ors.1 the disqualifications

prescribed under Section 11 of the State Election

Commission Act would prevail. Under the Panchayati Raj

Act, by virtue of Section 208 a person would be

disqualified to contest the elections as a member of

Panchayat, if he is a whole-time salaried employee of the

1 [(2008) 11 SCC 413]

7 State Government. But under Clause 11(g) of

State Election Commission Act, a person is so

disqualified if he holds an `office of profit' under the State

Government. However, the issue has been set at rest by

this Court in Som Lal's case (supra), therefore, we need

not say more on this issue.

13. Now the next issue would be to see whether the

High Court was correct in concluding that the office of

Lambardar would be an `office of profit' under the

Government, as the incumbent would be entitled to

receive an honorarium of Rs.900/- per month.

14. We have heard the learned counsel for the parties.

The learned counsel appearing for the appellant submits:

(i) An office of Lambardar is merely a heritage

office as his paramount duty was to collect

land revenue which has been abolished in the

state of Punjab.

8 (ii) A Lambardar is only being paid an honorarium

of Rs.900/- per month with no other

remuneration, emolument, perquisite or

facilities. The logic behind paying such

payment is that he does not have to spend

money out of his own pocket while discharging

his duties.

(iii) The Punjab State Legislature (Prevention of

Disqualification) Act, 1952, section 2 of the Act

enumerates that a person shall not be

disqualified for being chosen as and for being a

member of the Punjab State Legislature for

holding `office of profit' under Government of

India or Govt. of State of Punjab and hence

memo dated issued by the respondent dated

30.4.2008 is void ab initio.

(iv) The respondent, i.e. Punjab State Election

Commission has no power and authority

under the Punjab State Election Commission

9 Act, 1994 to issue the memorandum in

question.

(v) The disqualification of the appellant from

contesting the election is clearly ultra vires of

the Constitution of India and also provisions of

Punjab State Election Commission Act, 1994.

15. On the other hand, the counsel for the respondent

submits:

(i) Exemption from being called an `office of profit'

granted to the office of the Lambardar under

the Punjab State Legislature (Prevention of

Disqualification ) Act, 1952 applies only in the

case of election to State Legislative Assembly

and not in case of election as Member of

Panchayat.

(ii) The Government exercises power of

appointment and removal over `office of profit'

10 for those who perform functions for the

government and receives remuneration in form

of honorarium, conditions laid down as

indicative of `office of profit' in Maulana Abdul

Shakoor Vs. Rikhab Chand and Anr2 and

Shivamurthy Inamdar Vs. Agadi Sanganna

Andanappa3.

(iii) The word `profit' connotes the idea of a

pecuniary gain and if the pecuniary gain is

received in connection with the office, it is an

`office of profit' irrespective of whether the gain

is actually received or not.

(iv) The Amount of money received is not

important and neither is the label attached to

the pecuniary gain being made, as long as

money is received by virtue of holding the

office

2 [AIR 1958 SC 52] 3 [(1971) 3 SCC 870]

11

16. In our opinion, even this issue is no longer res

integra. In a recent judgment in the case of Mahavir

Singh Vs. Khiali Ram & Ors.4 this Court has held that :

"Although the post of Lambardar is governed by the provisions of the Punjab Land Revenue Act and the Rules framed thereunder, holder of the said post is not a government servant. He does not hold a civil post within the meaning of Article 309 of the Constitution of India."

17. Since the Lambardar is not holding any post under

the Government, no salary is payable to him. There is no

pay scale attached to the office of Lambardar. Therefore,

it cannot be said that he is in receipt of any

remuneration.

18. The duties to be performed by a Lambardar and the

remuneration, for holding the said office are tabulated in

Rules 20 and 21 of the Punjab Land Revenue Rules.

These rules are as under:

"20. In addition to the duties imposed upon headman by law for any purpose, a headman shall -

4 [(2009) 3 SCC 439]

12

(i) collect by due date all land-revenue and all sums recoverable as land revenue from the estate, or Sub-Division of an estate in which he holds office, and pay the same personally or by revenue money order or by remittance of currency notes through the post at the place and time appointed in that behalf to the Revenue Officer or assignee empowered by Government to receive it.

Selected lambaradars, approved by the Collector, may pay land revenue and all sums recoverable as land revenue from the estate or sub division of an estate in which they hold office, by cheques on the Imperial Bank of India, provided that there is a branch of the Imperial Bank at the headquarters of the district in which the said estate is include;

(ii) collect the rents and other income of the common land and account for them to the persons entitled thereto;

(iii) acknowledge every payment received by him in the books of the land owners and tenants;

(iv) defray joint expenses of the estate and render account thereof as may be duly required of him;

(v) report to the tehsildar the death of any assignee of land revenue or Government pensioner residing in the estate, or the marriage or re-marriage of a female drawing a family pension and residing in the estate, or the absence of any such person for more than a year;

(vi) report to the tehsildar all encroachments on roads including village roads or on Government waste lands and injuries to or appropriations of, nazual property

13 situated within the boundaries of the estate;

(vii) report any injury to Government buildings made over to his charge;

(viii) carry out to the best of his ability, any orders that he may receive from the Collector requiring him to furnish information, or to assist in providing or payment supplies or means of transport for troops or for officers of Government on duty;

(ix) assist in such manner as the Collector may from time to time direct at all crop inspections, recording or mutations surveys preparation of record of rights, or other revenue business carried on within the limits of the estate;

(x) attend the summons of all authorities having jurisdiction in the estate, assist all officers of the Government in the execution of their public duties, supply to the best of his ability, any local information which those officers may require, and generally act for the land owners, tenants and residents of the estate or sub division of the estate in which he holds office in their relations with the Government;

(xi) report to the patwari any outbreak of disease among animals;

(xiii) report to the patwari the deaths of any right holders in their estates;

(xiii) report any breach or cut in a Government irrigation canal or channel to the nearest canal officer, (ziledar) or canal patwari;

(xiv) under the general or special directions of the collector, to assist by the use of his personal influence and otherwise all officers of Government and other persons,

14 duly authorised by the Collector in the collection and enrolment of recruits for military service whether combatant or non-combatant;

(xv) render all possible assistance to the village postman while passing the night in the village, in safeguarding the cash and other valuables that he carries."

Remuneration of the headman was as under :

"Rule 21 (i) The remuneration of a headman in an estate or sub division of an estate, owned chiefly or altogether by Government shall be such a portion of the village officer's cess or of the income accruing to Government from the estate as may be sanctioned by the Financial Commissioner.

(ii) In other estates the remuneration of a headman shall be the remunerations appointed when the land revenue of the estate was last assessed.

(iii) In any case not provided for by sub-section

(i) and (ii), a headman shall receive a portion of the village cess equal to five per cent of the land revenue for the time being assessed on the estate or portion of the estate in which he holds office whether the assessment is leviable or not.

(iv) The Collector may at any time alter the existing arrangements in an estate regarding the collection of the land revenue by the different headmen and the division of the remuneration between them."

15 19. Under the aforesaid rules, the Lambardar was

receiving a portion of the village officer's cess or of the

income accruing to the Government from the estate

which was fixed by the Financial Commissioner. Under

Rule 21(iii), the Lambardar was entitled to a portion of

the village officer's cess equal to ten percent of the land

revenue assessed on the estate or the portion of the

estate in which he holds office, whether the assessment

is levied or not. It is an undisputed fact that the Punjab

Government has abolished land revenue. Therefore,

Lambardar has no land revenue to collect. Thus the

Lambardar would not receive any remuneration as 10%

of the land revenue assessed.

20. Thereafter the aforesaid percentage of cess has been

replaced by an honorarium of Rs.500/- pm under a

circular dated 9.10.2006 issued by the Government of

Punjab, Department of Revenue and Rehabilitation to all

Deputy Commissioners in the State. Currently the

Lambardar receives Rs.900/- per month as honorarium.

16 This honorarium is merely compensatory to meet the out

of pocket expenses, incurred in the performance of his

duties.

21. The High Court has rejected the submission that

such an honorarium would not fall within the ambit of

the term `office of profit'. The High Court has concluded

that -

"In the instant case, the Lambardars are being appointed by the official of the Government and they can be removed by the official of the Government. Their appointments are under the statute and are in overall control of the Government. They are also receiving monthly honorarium which cannot be said to be compensatory in nature [Emphasis supplied]. The facts of this case are fully covered by the aforesaid tests laid down for finding out whether the office of profit is an office under a Government."

22. In our opinion, the High Court has erroneously

distinguished the observations of this Court in the case

of Shivamurthy Swami Inamdar Vs. Veerabhadrappa

Veerappa5. In the aforesaid case, this Court laid down

5 [1971 (3) SCC 870]

17 some of the tests that may be relevant to determine as to

whether a particular office can be said to be an `office of

profit'. These tests are :-

"(1) Whether the Government makes the appointment;

(2) Whether the Government has the right to remove or dismiss the holder ;

(3) Whether the Government pays the remuneration;

(4) What are the functions of the holder?

Does he perform them for the Government; and

(5) Does the Government exercise any control over the performance of those functions?"

All the five tests would be relevant to determine that

whether a particular office is an office under the

Government. For determining whether such an office is

also an `office of profit', tests 3, 4, 5 assume importance.

It is, therefore, necessary to evaluate the nature and the

importance of the functions performed. It would be

essential to determine whether it would be necessary for

the person holding an office under the Government to

incur any expenditure in performance of the functions.

These matters would then have to be correlated to any

18 honorarium, allowance or stipend that may be attached

to the office. Without examining any of these issues, the

High Court concluded that the honorarium received by

the Lambardar is not compensatory in nature. We are

unable to endorse the approach adopted by the High

Court.

23. Bearing in mind these tests, we may now examine

whether the office of Lambardar is an `office of profit'.

It would be apparent from the facts that though the

Lambardar may not be holding a civil post, he would be

holding an office under the Government. The Lambardar

is not paid any salary but is entitled to receive an

honorarium of Rs.900/- per month. He receives no

salary, emoluments, perquisites or facilities. Is that

sufficient to conclude that he holds an `office of profit'?

This seems to be the conclusion reached by the State

Election Commissioner, whilst issuing the impugned

19 circular dated 30.4.2008. The High Court affirmed the

aforesaid conclusion.

24. The term `office of profit' has not been defined in the

Constitution, Representations of Peoples Act, Punjab

State Election Commission Act or the Panchayati Raj Act.

It is one of those rare terms which is not even defined in

the General Clauses Act, 1897. It has, however, been

judicially considered in numerous judgments of this

Court. We may notice here some of the judgments.

25. In Gatti Ravanna, son of Gatti Subanna, Gubbi

Taluk, Mysore State Vs. G.S.Kaggeerappa, Merchant,

Gubbi6 considered whether a person holding the position

of the Chairman of Gubbi Taluk Development Committee,

could be said to be holding an `office of profit' under the

Government. In that case, the Chairman was entitled to

a fee of Rs.6/- for each sitting of the aforesaid

Committee. It was clearly held by this Court that a fee of

6 (AIR 1954 SC 653)

20 Rs.6/- which the Chairman was entitled to draw for each

sitting of the Committee was neither meant to be

payment by way of remuneration nor it could amount to

profit; and the fee was paid to the Chairman to enable

him to meet "out of pocket expenses, which he has to

incur for attending the meetings of the Committee." It

was held as under:-

"The plain meaning of the expression seems to be that an office must be held under Government to which any pay, salary, emoluments or allowance is attached. The word "profit" connotes the idea of pecuniary gain. If there is really a gain, its quantum or amount would not be material; but the amount of money receivable by a person in connection with the office he holds may be material in deciding whether the office really carries any profit.

From the facts stated above, we think it can reasonably be inferred that the fee of Rs 6 which the non-official Chairman is entitled to draw for each sitting of the committee, he attends, is not meant to be a payment by way of remuneration or profit, but it is given to him as a consolidated fee for the out-of-pocket expenses which he has to incur for attending the meetings of the committee. We do not think that it was the intention of the Government which created these Taluk Development Committees which were to be manned exclusively by non-officials, that the

21 office of the Chairman or of the members should carry any profit or remuneration."

26. The High Court gives no reason for concluding that

the honorarium received by a Lambardar is not

compensatory in nature. The High Court erred in not

analyzing the real and substantive nature of the

honorarium. The High Court failed to take notice of the

fact that the respondents had placed no material on the

record to establish that the honorarium of Rs.900/-

would result in a net gain to the Lambardar. In other

words, the out of pocket expenses for attending to the

duties of a Lambardar would be less than Rs.900/- per

month. This court in S.Umrao Singh Vs. Darbara Singh

& Ors.7 has clearly held :-

"5. The payment to a Chairman, Panchayat Samiti, under Rule 3 is described in the rule as a monthly consolidated allowance in lieu of all other allowances for performing all official duties and journeys concerning the Panchayat Samiti within the district, including attending of meetings, supervision of plans, projects, schemes and other works, and also for the discharge of all lawful obligations and 7 [1969 (1) SCR 421]

22 implementation of Government directives. This provision in very clear language shows that the allowance paid is not salary, remuneration or honorarium. It is clearly an allowance paid for the purpose of ensuring that the Chairman of a Panchayat Samiti does not have to spend money out of his own pocket for the discharge of his duties. It envisages that, in performing the duties, the Chairman must undertake journeys within the district and must be incurring expenditure when attending meetings, supervising plans, projects, schemes and other works and also in connection with the discharge of other lawful obligations and implementation of Government directives. No evidence has been led on behalf of the appellant to show that a Chairman of a Panchayat Samiti does not have to perform such journeys in the course of his official duties and to incur expenditure in that connection. The State Government, which was the competent authority, fixed the allowance for a Chairman of a Panchayat Samiti at Rs 100 per month, obviously because it was of the opinion that this sum will be required on an average every month to meet the expenses which the Chairman will have to incur in this connection. In these circumstances, the burden lay on the appellant to give evidence on the basis of which a definite finding could have been arrived at that the amount of Rs.100 per month was excessive and was not required to compensate the Chairman for the expenses to be incurred by him in the discharge of his official duties as envisaged in the rule. That burden clearly has not been even attempted to be discharged by the appellant.

23 8. Our attention was drawn by learned counsel to the fact that in Rule 7 the persons entitled to daily allowance are divided into two categories and a Chairman of a Panchayat Samiti belonging to Category I is entitled to Rs 6 per diem when a Member of the Samiti belonging to Category II is only entitled to Rs 4 per diem. The argument was that there was no explanation for payment at a higher rate to the Chairman and, consequently, it must be held that the Chairman must be making gain out of the payment to him of daily allowance. We are unable to accept this submission. The daily allowance is invariably fixed after estimating what extra expenditure in a day the person concerned would have to incur. A Chairman, it appears, was expected to incur more expenditure per day than a Member, and that seems to be the reason why a higher rate of daily allowance was prescribed for him. In any case, such a payment is clearly meant only to cover additional expenditure and out-of-pocket expenses of the Chairman and, while no evidence has been advanced to show that out of the amount received as daily allowance the Chairman will in fact invariably make a saying, it cannot be held that this payment would result in gain so as to make the office an office of profit."

The aforesaid observations are squarely applicable to the

facts and circumstances of this case. Even the payment

of allowances to Chairman Panchayat Samiti was held to

be out of pocket expenses. It was emphasised that the

24 burden lay on the appellant to give evidence to show that

amount paid would be in excess of the expenses. It was

further observed that even with regard to higher

allowance paid to Chairman for performing duties outside

the district, there was no evidence from which an

inference could be drawn that the allowance paid would

be in excess of the expenditure incurred in performance

of the duties by the Chairman.

27. In the case of K.B. Rohamare Vs. Shanker Rao

Genuji Kolhe8, this Court again considered the factors

which are necessary to be taken into consideration :-

i) Whether the office in question is an office

holding under the Government; and

ii) Whether such an office is an `office of profit'.

Considering the question in the light of the test laid down

in the case of Shivamurthy Swami (Supra), it was held

that a member of the Board would be holding an office

8 [(1975) 1 SCC 252]

25 under the Government. It was, however, observed that

mere drawal of the daily allowance and traveling

allowance could not make membership of the Board, an

`office of profit' as the allowances drawn by such member

would be merely compensatory in nature. In coming to

the aforesaid conclusion, this Court considered the

nature of the payment made to the members of the

Board. It was observed that the dictionary meaning of

the word `honorarium' would not be of much help.

Therefore, "the matter must be considered as a matter of

substance ratter than of form, the essence of payment

rather than its nomenclature".

28. In considering the substance of the nature of the

payment made, this Court considered in detail the

various payments made to the member of the Wage

Board as well as the number of meetings attended and

the places at which the meetings were attended. This

was not necessary to determine whether the particular

member made a profit after the payments made to him

26 but to see the effect of payments in general. Upon

examination of the entire material, it was observed as

under:-

"The question has to be looked at in a realistic way. Merely because part of the payment made to the first respondent is called honorarium and part of the payment daily allowance, we cannot come to the conclusion that the daily allowance is sufficient to meet his daily expenses and the honorarium is a source of profit. A member of the Wage Board cannot expect to stay in Taj Hotel and have a few drinks and claim the expenditure incurred, which may come perhaps to Rs 150 to Rs 200 a day, for his personal expenses. In such a case it may well be held to give him a pecuniary gain. On the other hand he is not expected to live like a sanyasi and stay in a dharmshala and depend upon the hospitality of his friends and relatives or force himself upon them. Nobody with a knowledge of the expenditure likely to be incurred by a person staying at a place away from his home could fail to realise how correct the assessment of the learned Judge is. We are satisfied that the payments made to the first respondent cannot be a source of profit unless he stays with some friends or relatives or stays in a dharmshala. The appellant has not satisfied the test or discharged the burden pointed out by this Court in Umrao Singh case. The law regarding the question whether a person holds an office of profit should be interpreted reasonably having regard to the circumstances of the case and the times with which one is concerned, as also the class of person whose case we are

27 dealing with and not divorced from reality. We are thus satisfied that the first respondent did not hold an office of profit."

29. The expression `office or profit' was reconsidered in

detail by this Court in the case of Shibu Soren Vs.

Dayanand Sahay9. This Court, apart from reiterating

the ratio of law in the aforesaid two cases i.e.

K.B. Rohamare Vs. Shanker Rao Genuji Kolhe (Supra)

and Shivamurthy Swami (Supra) observed as follows:-

"27. With a view to determine whether the office concerned is an "office of profit", the court must, however, take a realistic view. Taking a broad or general view, ignoring essential details is not desirable nor is it permissible to take a narrow view by which technicality may overtake reality. It is a rule of interpretation of statutes that the statutory provisions are so construed as to avoid absurdity and to further rather than defeat or frustrate the object of the enactment.

28. While interpreting statutory provisions, courts have to be mindful of the consequences of disqualifying a candidate for being chosen as, and for being, a Member of the legislature on the ground of his holding an office of profit under the State or the Central Government, at the relevant time. The court has to bear in mind that what is at stake is the right to 9 [(2001) 7 SCC 425]

28 contest an election and to be a Member of the legislature, indeed a very important right in any democratic set-up. "A practical view, not pedantic basket of tests" must, therefore, guide the courts to arrive at an appropriate conclusion. A ban on candidature must have a substantial and reasonable nexus with the object sought to be achieved, namely, elimination of or in any event reduction of possibility of misuse of the position which the legislator concerned holds or had held at the relevant time. The principle for debarring a holder of office of profit under the Government from being a Member of Parliament is that such person cannot exercise his functions independently of the executive of which he becomes a part by receiving "pecuniary gain".

Under Article 102(1)(a), of course, Parliament has the jurisdiction to declare an "office" as not to disqualify its holder to be a Member of Parliament and likewise under Article 191(1)(a) the State Legislature has the jurisdiction to declare an "office" as not to disqualify its holder to be a Member of the State Legislatures. Moreover, apart from the office being an "office of profit", it must also be an office under the State or Central Government.

30. It was further observed that for determining of the

core question each case has to be judged in the light of

the relevant provisions of the statute and its own peculiar

facts. This is to ensure that there should not be any

29 conflict between the duties and interest of an elected

member.

31. In view of the above, the conclusion reached by the

High Court that receipt of Rs.900/- is not compensatory

can not be accepted. It would be preposterous to accept,

in this day and age, that a sum of Rs.900/- per month

would be sufficient to cover the out of pocket expenses of

a Lambardar.

32. In this case the High Court erred in recording a

conclusion without insisting on the evidence on the basis

of which such conclusion could have been recorded. The

circular dated 30.4.2008 merely states :-

"To

All the Deputy Commissioners-cum- District Electoral Officers in the State.

Memo No. SEC-2008/4365 Chandigarh, dated the 30.4.2008

30 Subject : General Elections to Panchayat Samitis and Zila Parishads - 2008 Clarification regarding contesting of election by Lambardars and Anganwari Workers.

...

Some of the Deputy Commissioners-cum- District Electoral Officers have raised the question whether the Lambardars and Anganwari workers are eligible to contest Panchayati Raj Institution elections. The answer to this question depends upon whether the aforesaid functionaries are holding "office of profit" under the State Government. The Hon'ble Supreme Court of India has laid down certain tests for determining the question whether a particular office is an office under the State Government or not: particularly in Shivamurthy Swami Inamdar Vs. Agadi Sanganna Andanaappa as follows:-

i) Whether the government makes the appointment;

ii) Whether the government has the right to remove or dismiss the holder;

iii) Whether the government pays remuneration; iv) What the functions of the holder are and

does he perform them for government; and

v) Does the government exercise any control over the performance of these functions.

Therefore, the question whether a person is holding an office of profit under the Government of India or a State has to be decided by applying these tests to the facts

31 and circumstances of each case. Applying these questions to the instant case, it is well established that both the above mentioned functionaries are appointed by the Government and the Government has the right to remove them. They are also paid remuneration. However, it has been said that the remuneration is of the nature of honorarium. Here, on "office of profit" the Hon'ble Supreme Court of India held in Ravanna Subanna Vs. Kaggeerappa that the word `profit' connotes the idea of pecuniary gain. If there is really a gain, its quantum or amount would not be material but the amount of money receivable by a person in connection with the office he holds may be material in deciding whether the office really carried any profit. Further, it is also well established that functions performed by both Lambardar and Anganwari workers are for the government and the government also exercises control over the performance of these functions. A similar point has been decided by the Hon'ble Supreme Court in Ramappa Vs. Sangappa where the Hon'ble Supreme court observed that the appointment of Patels and Shanbhogs was made by the Government under the Mysore Village Offices Acts 1908 and though it may be under the statute it had no option but to appoint the heir to the office, if he fulfills the statutory requirements, but the office was held by them by reason of the appointment by the government and not simply because of hereditary right to it. They worked under the control and supervision of the Government, could be removed by the government and were paid by it.

32 Accordingly, the Commission is of the view that the Lambardar and Anganwari workers held "office of profit" and thus are ineligible to contest.

Sd/-

(A.K. Dubey) State Election Commissioner, Pb."

A perusal of the circular would clearly show that State

Election Commission has failed to take note of the factual

situation. The circular is based on a misinterpretation of

the law laid down by this Court in the cases of

Shivamurthy and Ravanna Subanna (supra). There is

no material on the record to show that the receipt of

Rs.900/- per month by the Lambardar would invariably

lead to a saving. Even though the office of Lambardar is

regarded as a mere relic in this day and age, it still

carries with it certain important duties which are to be

performed by the incumbent. Although purely

`honourary' being a Lambardar gives the incumbent a

certain status in the village. In some cases, the office of

33 Lambardar has been in the same families for generations.

For them, it becomes a matter of honour and prestige

that the office remains in the family. Learned counsel for

the appellant has rightly submitted that the office of

Lambardar is a heritage office. Therefore, some families

would cherish the office of Lambardar, even though the

incumbent does not get any salary, emoluments or

perquisites. In our opinion, the very basis of issuing the

circular was non- existent and misconceived. On this

very basis, the High Court has quashed the circular in

relation to Anganwari workers. In our opinion, for the

same reasons the circular could not be sustained qua the

Lambardars also.

33. In view of the aforesaid conclusion, we need not

consider the effect of Section 2(a) of the Punjab State

Legislative (Prevention of disqualifications) Act, 1952, on

Section 11(g) of the State Election Commission Act. By

virtue of the aforesaid Act a Lambardar would be

qualified to contest the elections for legislative assembly.

34 This could be a stepping stone for becoming the Chief

Minister of the State. Therefore, it would seem a little

incongruous that a Lambardar would not be permitted to

seek election to the Panchayat. The village level

democracy is the bedrock of the Indian National

Democracy. Being a member of Panchayat can be the

beginning of a long career in public life. Therefore, the

disqualification introduced though the impugned circular

could prove disastrous to democracy at the grassroots

level in Punjab. But we need not go into controversy, as

we have already held that the office of a Lambardar

would not be an `office of profit'.

34. In view of the above, the appeal is allowed. The

impugned judgment of the High Court is set aside, in so

far as it relates to Lambardars. The impugned circular

dated 30.4.2008 is quashed and set aside qua the

Lambardars also.

35 Civil Appeal No. of 2010 @ Special Leave

Petition (C) No.10948 of 2009 :

1. Leave granted.

2. In view of the judgment in Civil Appeal

No. ..................of 2010 @ SLP (C) No. 7319 of 2009, this

appeal becomes infructuous and is dismissed as such.

...................................J. [B.Sudershan Reddy]

...................................J. [Surinder Singh Nijjar]

New Delhi;

October 29, 2010.

36

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