# BHAGW AN SINGH v. RAMESHW AR PRASAD SASTRI & OTHERS - **Citation:** [1959] Supp. 2 S.C.R. 535 - **Court:** Supreme Court of India - **Decided:** 1959-01-08 - **Case number:** Civil Appeal No. 139 of 1959 - **Bench:** B. P. Sinha, P. B. Gajendragadkar, K. N. W Anchoo - **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/bhagw-an-singh-v-rameshw-ar-prasad-sastri-others-1699 - **Pages:** 13 ## Headnote Election Dispute-Disqualification for membership-Election to State Legislature-Interest in contracts-Contract entered into as Mukhiya of Panchayat-Representation of the People Act, r95r (43 of I95I), SS. 7(d), 8I, IOO(I)(a). The election of the appellant as a member of the Bihar State Assembly was challenged under s. 7(d) of the Representation of the People Act, 1951, by the first respondent who was also a candidate for election for the same constituency, on the ground that at the date of the nomination the appellant had an interest· in contracts for execution of works undertaken by the Bihar Government, and that his nomination had been improperly accepted. The appellant's plea inter alia was that he had executed the contracts not in his individual capacity but as the Mukhiya of the Village Panchayat and therefore the disqualification imposed bys. 7(d) of the Act could not be invoked against him. The contracts in question related to community projects undertaken in pursuance of the Second Five Year Plan, under which the execution of different works adopted under the plan was to be by popular local agencies like Village Panchayats. The contracts were all in the prescribed form and the appellant, at the comI959 April r4. 536 SUPREME COURT REPORTS [1959] Supp. r959 Bhagwan Singh mencement of the contract, described himself by his name, stating that he belonged to the village. The preamble to the contract showed that the appellant undertook to carry out the construction of the development project under local works prov. Rameshwar Prasad Sastri Gajendragadkar gramme mentioned in the contrast as per estimate attached thereto, that he agreed to execute the work according to and subject to the terms and conditions contained therein and that he undertook to contribute 50% of the cost in cash and labour. At the end of the contract he signed as Mukhiya, giving his address as the Gram Panchayat. The Election Tribunal found in favour of the appellant and dismissed the election petition, but, on appeal, the High Court took the view (1) that the description of the appellant given by him at the time when he signed the contracts was not a term of the contract and could not therefore support his plea that he had executed the contract as Mukhiya of the Panchayat, and (2) that the fact that he undertook liability to execute the contracts as required and to become liable for payment of any fine imposed by the local government officer in case of his default showed obligations of a personal character inconsistent with his plea. Held, that, on a proper construction of the contracts taking into account all the terms and conditions as a whole and considering them in the light of the background of the Second Five Year Plan, when the appellant signed the contracts as the Mukhiya of the Village Panchayat he acted as its agent and not as an individual acting in his personal capacity. ## Text (2) S.C.R. SUPREME COURT REPORTS 535 occasion arises for the Election Commission to make r959 an order about the payment of this amount to the Shri Chandrika successful party the use of the word "refundable" will Prasad Tripathi cause no difficulty whatever. We hold that the secuv. rity has been made by respondent 1 as required by Shri Siv Prasad s. 117 of the Act and would be at the disposal of the Chanpuria d. - Others Election Commission in the present procee mgs. _ We would like to add that even s. 117 has been Gajendragadkar J. subsequently amended by Act 58 of 1958 and the reference to the Secretary has been deleted. The result is the appeal fails and must be dismissed with costs. Appeal dismissed. BHAGW AN SINGH v. RAMESHW AR PRASAD SASTRI & OTHERS (B. P. SINHA, P. B. GAJENDRAGADKAR and K. N. W ANCHOO, JJ.) Election Dispute-Disqualification for membership-Election to State Legislature-Interest in contracts-Contract entered into as Mukhiya of Panchayat-Representation of the People Act, r95r (43 of I95I), SS. 7(d), 8I, IOO(I)(a). The election of the appellant as a member of the Bihar State Assembly was challenged under s. 7(d) of the Representation of the People Act, 1951, by the first respondent who was also a candidate for election for the same constituency, on the ground that at the date of the nomination the appellant had an interest· in contracts for execution of works undertaken by the Bihar Government, and that his nomination had been improperly accepted. The appellant's plea inter alia was that he had executed the contracts not in his individual capacity but as the Mukhiya of the Village Panchayat and therefore the disqualification imposed bys. 7(d) of the Act could not be invoked against him. The contracts in question related to community projects undertaken in pursuance of the Second Five Year Plan, under which the execution of different works adopted under the plan was to be by popular local agencies like Village Panchayats. The contracts were all in the prescribed form and the appellant, at the comI959 April r4. 536 SUPREME COURT REPORTS [1959] Supp. r959 Bhagwan Singh mencement of the contract, described himself by his name, stating that he belonged to the village. The preamble to the contract showed that the appellant undertook to carry out the construction of the development project under local works prov. Rameshwar Prasad Sastri Gajendragadkar gramme mentioned in the contrast as per estimate attached thereto, that he agreed to execute the work according to and subject to the terms and conditions contained therein and that he undertook to contribute 50% of the cost in cash and labour. At the end of the contract he signed as Mukhiya, giving his address as the Gram Panchayat. The Election Tribunal found in favour of the appellant and dismissed the election petition, but, on appeal, the High Court took the view (1) that the description of the appellant given by him at the time when he signed the contracts was not a term of the contract and could not therefore support his plea that he had executed the contract as Mukhiya of the Panchayat, and (2) that the fact that he undertook liability to execute the contracts as required and to become liable for payment of any fine imposed by the local government officer in case of his default showed obligations of a personal character inconsistent with his plea. Held, that, on a proper construction of the contracts taking into account all the terms and conditions as a whole and considering them in the light of the background of the Second Five Year Plan, when the appellant signed the contracts as the Mukhiya of the Village Panchayat he acted as its agent and not as an individual acting in his personal capacity. CIVIL APPELLATE JURISDICTION: Civil Appeal No. 139 of 1959. Appeal by special leave from the judgment and order dated January 8, 1959, of the Patna High Court in Election Appeal No. 1 of 1958, arising out of the judgment and order dated November 30, 1957, of the Election Tribunal, Patna, in Election Petition No. 353 of 1957. B. K. P. Sinha and D. P. Singh, for the appellant. G. 0. Mathur and Dipak D. Ohoudhri, for respondent No. 1. R.H. Dhebar, for respondent No. 3. 1959. April .14. The Judgment of the Court w11.s delivered by J. GAJENDRAGADKAR, J.-This appeal by special leave arises from the election petition filed by respondent, 1 (No. 353 of 1957) in which he claimed a declaration that the election of the appellant as a member of the • (2) S.C.R. SUPREME COURT REPORTS 537 Bihar Legislative Assembly Maner Constituency r959 should be declared to be void. In the last General Election for the said constituency which was held in Bhagwan Singh v. February-March 1957, there were three candidates, Rameshwar the appellant, respondent 1 and respondent 2. The Prasad Sastri last date for filing nomination papers at the said elec- - tion was January 29, 1957; the said papers were Gajendragadkar J. scrutinised on February 1, 1957. Respondent 1 had challenged the validity of the appellant's nomination paper at the said scrutiny but the returning officer had overruled the objection raised by respondent I and had accepted the nomination paper of the appellant along with those of the two other candidates. After the counting of votes was done on March 3, 1957, the appellant was declared duly elected at the election inasmuch as he had got 9,826 votes while respondents 1 and 2 had got 7,526 and 49 votes respectively. Thereupon respondent 1 filed his election petition under s. 81 of the Representation of the People Act, 1951 (hereinafter called the Act). In his petition respondent 1 challenged the election of the appellant on several grounds all of which were controverted by the appellant. On the allegations of the parties the tribunal had framed several issues and parties had led evidence on them. At the stage of arguments, however, only a few issues were pressed by respondent 1 and all of them were found against him and in favour of the appellant. In the result the tribunal dismissed the election petition on November 30, 1957. Against the said decision of the tribunal respondent 1 preferred an appeal in the High Court of Judicature at Patna; and in his appeal he pressed only issue No. 1. This issue was whether the nomination of the appellant was hit by the provision of s. 7(d) of the Act and as such whether the said nomination had been improperly accepted. On this issue the tribunal had found in favour of the appellant but the High Court reversed the said finding and accepted the plea of respondent 1. As a result of this finding the High Court allowed the appeal preferred by respondent I and 68 538 SUPREME COURT REPORTS [1959] Supp. 1959 declared on January 8, 1959, that the election of the appellant. was void nuder s. IOO(l){a) of the Act. Bhagw:~ Singh The validity of the appellant's nomination has been Rameshwa. challenged under s. 7(d) of the Act on the ground that Prasad Sastd at the date of the nomination he had an interest in a - contract for the execution of works undertaken by the Gajendragadkar J. Bihar Government. There is no doubt that if a person is interested in a contract for the execution of any work undertaken by the appropriate Government he is disqualified for membership of the State Legislature in question. The appellant, however, denied that. the disqualification imposed by s. 7(d) could be invoked against him. His case was that the contracts in question had not been undertaken by the Bihar Government but they had been undertaken by the Central Government; and he also urged that he had not taken the said contracts individually in his personal capacity, but as the Mukhiya of the Jeorakhan Tola Gram Panchayat. On both these issues the Election Tribunal and the High Court have differed; and it is the said two issues that arise for our decision in the present appeal. It is clear that if the appellant succeeds in showing t.hat he had entered into the impugned contracts not individually but on behalf of the Panchayat of which he was the Mukhiya it would be unnecessary to consider whether the works covered by the said contracts had been undertaken by the Government of Bihar. Let us therefore first consider that point. The impugned contracts are five in number. They were for the execution of works under local develop. ment works programme envisaged under the Second Five Year Plan formulated by the Government of India. These contracts are evidenced by five documents, Exs. 16-A, B, C, D & E. The first is for the construction of Beyapore-Jeorakhan Tola Road, the second for the construction of the Beyapore M. E. School, the third for the construction of a Dispensary at Jeorakhan Tola, the fourth for the construction of the Gram Panchayat building, and the last for the construction of a well at the said village. It is admitted by the appellant that these contracts had not been completed at the time of his nomination. (2) S.C.R. SUPREME COURT REPORTS 539 In considering the appellant's plea that he had exez959 outed these contracts as a Mukhiya of the Village Bhagwan Singh Panchayat of his village, it would be necessary to v. bear in mind the background of the scheme in pursuRameshwar ance of which these works were undertaken. The Prasad Sastri Second Five Year Plan published by the Planning . - · Commission in 1956 shows that the programme ofGa;endragadkar f. starting these works was treated as a part of the cooperative movement and the Commission had therefore recommended that the States were to sponsor and assist actively in the organisation and development of Village Panchayats which was an important constituent of the programme of fostering corporate life in the rural areas as it would promote among the rural community active interest in the development programmes of the villages. The object of this programme which would operate in areas not yet reached by the National Extension Service was to enable village communities to undertake works of local benefit mainly with their own labour. The Commission realised that the resources of all the States taken together would fall far short of the requirements of this Plan and so it recommended large transfers of resources from the Centre to the States. In this connection the conclusion of the Commission was that out of Rs. 200 crores sanctioned for the year 1957-58, 12 crores would be required for the Centre for schemes undertaken or directly sponsored by the Community Project ·Administration and 180 crores were to form part of the balance for the ctates. Thus it is obvious that the basic idea underlying the Plan was to ~voke popular response to the community projects undertaken in pursuance of the Plan and to leave the execution of different works adopted under the Plan to be fulfilled by popular local agencies like Village Panchayats. This policy was emphasised by the Secretary of the Planning Commission in his communication to all State-Oovernments, No. POf.Pub/52/53 dated August 11, 1953 (H. 1). This communication set out the seven categories of work which were most suitable for assistance and it said that the local contribution in cash or kind or through voluntary labour together 540 SUPl~EME COURT REPORTS [1959] Supp. '959 with any contribution that the State Government or a local body might make should be a minimum of 50% Bhagwan Singh of the total cost of each work. The intention was to v. Rameshw•• spread the benefit over as wide an area and to as Prasad Sastri many people as possible. The State Governments - were accordingly requested to arrange for a detailed Gajend.agadkar J. scrutiny of the schemes before they were accepted and for making adequate provisions providing for their proper execution. They were also required to nominate a liaison officer for each district or other suitable unit for the purpose of checking the execution of the works and for maintenance of such initial accounts as might be necessary. This communication makes detailed provisions about financing and accounting procedures to be followed and required the State Governments to make progress reports from time to time. It appears that the Government of India was aware that the District Boards whose primary responsibility it was to sponsor-these undertakings would find the project beyond their financial resources and so it accepted the recommendation of the Planning Commission to contribute 50%. of the cost of each of the schemes on the condition that the remaining half had to be found by the District Board or by the public to be benefited by it in the form of cash or voluntary labour. · · The five impugned contracts related to community projects of the kind envisaged by this programme. By its letter dated February 27, 1954 '(H. 2) the Bihar Government had advised all the District Local Boards , to assist the execution of such projects and to afford all facilities to and .co-operate with the district officers in the execution of the programmes undertaken by these projects without charging any remuneration for the same. The idea clearly was that if the Village Panchayats sponsored works undertaken under these programmes they should encourage people to contribute labour and even money. The result would be that the works undertaken would benefit the community at large and if any saving was made in executing the contract it would enure for the benefit of the village Panchayats that were usually expected to be the sponsoring units. (2) S.O.R. SUPREME COURT REPORTS 541 It is in the light of this background that we have to z959 consider the question whether the contracts in quesd b h 11 h d. . Bhagwan Singh tion had been execute y t e appe ant in is in iv1v. dual capacity as contended by respondent 1 or in his Rameshwa~ capacity as the Mukhiya of the Village Panchayat as Prasad Sastri urged by the appellant. . - The four contracts evidenced by Exs. 16A, 0, D and Ga;endragadkar J. E are all similarly executed whereas contract 16-B which is in respect of the construction of the Beyapo:r;e M. E. School is somewhat differently worded. With regard to this latter contract both the Election Tribunal and the High Court are agreed that it had been executed by the appellant as the Secretary of the Beyapore MadhyamikVidyalaya and that in this contract the appellant was not personally interested. The Election Tribunal took the view that the other contracts ar.e substantially of the same character whereas the High Court has held that they are entirely different and that the appellant has personally executed them. The question which we have now to decide is whether this view of the High Court is right. We would take Ex. 16-A as typical of the remaining four contracts. The material terms of this contract are 8 in number and they are all in the prescribed form. At the commencement of the contract the appellant has described himself by his name and he has stated that he belongs to the village of Jeorakhan Tola and that his profession is cultivation. The preamble to the contract shows that the appellant undertook to carry out the construction of the development project under local works programme mentioned in the contract as per estimate attached thereto and he agreed to execute the work according to and subject to the terms and conditions contained therein, and he also undertook to contribute 50% of the cost in cash and labour. At the end the appellant has signed as Mukhiya and has given his address as Jeorakhan Tola Gram Panchayat. The High Court took the view that the description of the appellant given by him at the time when he signed the contract was not a term of the contract and could not therefore support his plea that he had executed the contract as Mukhiya of 1959 Bhagw.in .5ingh v. l~amcshwar J'rasad Sastri Gajendragadkar 542 SUPREME COURT REPORTS [1959] Supp. the Panchayat. It is on this ground that the High Court distinguished this and the other three allied contracts from the school contract, Ex. 16-B. In this latter contract the appellant has described himself as the Secretary, Madhyamik Vidyalaya, both at the commencement of the document and at the end where J. the appellant has signed. In our opinion, the distinction made by the High Court between the two sets of contracts is not valid. · We do not see any reason to take the view that the description given by the appellant about his status while he signed the contract is no part of the contract itself. Incidentally we may observe that the contract is accepted by the officer who signs as the S. D. 0., Dinapore. The designation of the officer given by him while signing the acceptance of the contract indicates the character in which the officer has accepted the contract. Similarly. the description given by the appellant about his status and character when he signed the contract should be taken to denote the character in which he executed the contract. The High Court also thought that els. 4 and 7 by which the appellant undertook liability to execute the contract as required and to become liable for payment of any fine imposed by the local government officer in case of his default clearly showed obligations of a personal type which were inconsistent with his plea that he had entered into the contract as the Mukhiya of the Panchayat. We think that this argument has no force. If the nature of the liability undertaken by these two clauses necessarily involves the conclusion that the execution of the contract must be by an individual person, then it is significant that the same two clauses occur in the school contract and yet the High Court has held .that the said contract has been executed by the appellant not in his individual capacity but as the Secretary of the Madhyamik Vidyalaya. Therefore too much reliance cannot be placed upon these two clauses to support the view that the contract has been executed by the appellant personally. Besides, the High Court has not properly considered the term of the contract by which the contracting • (2) ,S.C.R. SUPREME COURT REPORTS 54S party undertakes to contribute 50% of the cost of the x959 work in cash or labour. In other words, the contractBhagwan Singh ing party becomes a sponsoring agent of the contract v. and agrees to undertake 50% of its cost. It is very Rameshwnr difficult to appreciate the suggestion that the appellant Prasad Sa