HON’BLE SRI JUSTICE A. GOPAL REDDY AND HON’BLE SRI JUSTICE P.DURGA PRASAD WRIT APPEAL Nos.232 & 297 of 2003 DATE:15-11-2010 WRIT APPEAL Nos.232 of 2003 BETWEEN The Narasapur Mandal Parishad, Narsapur, West Godavari District, rep. by its President, K.Rama Krishna Rao …Appellant AND The State of Andhra Pradesh, rep. by its Principal Secretary, Panchayat Raj & Rural Development (MDL.I) Dept., Secretariat Buildings, Hyderabad & others …Respondents WRIT APPEAL Nos.297 of 2003 BETWEEN The President, Mandal Parishad, Narsapur Mandal, West Godavari District. …Appellant AND The Mandal Parishad, Sakhinetipalli, rep. by its President Smt.D.Urmila & others …Respondents THIS COURT MADE THE FOLLOWING: HON’BLE SRI JUSTICE A. GOPAL REDDY AND HON’BLE SRI JUSTICE P.DURGA PRASAD WRIT APPEAL Nos.232 & 297 of 2003 COMMON JUDGMENT: (Per Hon’ble Sri Justice A.Gopal Reddy) These two writ appeals are directed against the common orders passed by the learned single judge of this Court in W.P.Nos.2880 and 2887 of 2002, dated 23.1.2003. Hence, they are heard together and being disposed of by this common judgment. Narsapur Mandal Parishad, Narsapur filed W.P.No.2887 of 2002, whereas, the sixth respondent therein-Sakhinetipally Mandal Parishad, Sakhinetipally filed W.P.No.2880 of 2002 with regard to the distribution of the income between both the writ petitioners derived from the Ferry operated on the Vasista Godavari (a river) known as “Madhavayapalem Ferry”. It is not in dispute that ferry is situated within the territorial limits of the Narsapur Mandal Parishad and it is being used by West and East Godavari people to cross the river Godavari. Since the formation of ferry, the operational rights of the ferry were being leased out by the Roads & Buildings Department and the income derived was being utilized by the R & B Department for the development of ferry and all the roads situated in Bhimavaram Division of R & B Department, wherein the Narsapur Mandal is located. While so, the Government of A.P. passed an order in G.O.Ms.No.174, Transport, Roads & Buildings Department, dated 21.10.1998 wherein the right to auction the operational rights of the ferry has been transferred from R & B Department to Panchayat Raj & Rural Development Department, and that separate orders were also issued specifying the circumstances where the Mandal Parishad or the Gram Panchayat should conduct the auction for the ferries. According to Narsapur Mandal Parishad, pursuant to G.O.Ms.No.174 and the orders issued by the Government from time to time, the Mandal Parishad has been leasing out the operational rights of Madhavayapalem Ferry duly issuing notification calling for tenders as per the operative guidelines regarding auction of Ferry Points vested with the Panchayat Raj Institutions and that the income derived is being utilized for the purpose of development of the Naraspur Mandal Parishad. At that stage, the Government of A.P. issued memo, dated 12.10.2001 directing the Commissioner, Panchayat Raj & Rural Development to take necessary action and issue suitable instructions to all the concerned in the State for sharing of the sale proceeds of the ferries at 50:50 basis by following the guidelines issued in G.O.Ms.No.87 PR & RD Department, dated 13.3.2000 and the provisions of the Act. Apprehending that as a consequence of the memo, dated 12.10.2001, the Narsapur Mandal Parishad may have to share the income derived from the lease of the Madhavayapalem Ferry with Sakhinetipally Mandal Parishad, the Narsapur Mandal Parishad filed W.P.No.2887 of 2002. Whereas the 6th respondent herein-Sakhinetipally Mandal Parishad filed W.P.No.2880 of 2002 seeking a direction to the Narsapur Mandal Parishad to transfer 50% of the income derived from the auction of the ferry service between the Sakhinetipalli Lanka Gram panchayat of East Godavari District and Madhavayapalem of Narsapur Mandal, West Godavari District, pursuant to the Government memo, dated 7.2.2002 for the years 1999-2000, 2000- 2001 and 2001-2002 together with appropriate interest. The learned single Judge after considering the respective claims in the light of G.O.Ms.No.87, Panchayat Raj & Rural Development, dated 13.3.2001 issuing the Andhra Pradesh Gram Panchayat, Public or Government Ferries Rules, 2000 (for short ‘Rules’), which have been issued in supercession of the Rules issued in G.O.Ms.No.174, dated 11.7.1973 held that the impugned memo issued by the Government of A.P. does not facially direct the petitioner in W.P.No.2887 of 2002 i.e. Narsapur Mandal Parishad to share the proceeds, and that it merely reiterates the principles contained in Section 57(4) of the Act and Rule 14 of the Rules issued in G.O.Ms.No.87, dated 13.3.2001. Having regard to the factual matrix of the ferry operations between the points of the Narsapur Mandal Parishad and the Sakhinetipally Mandal Parishad, the learned single Judge directed that the net income from the Madhavayapalem Ferry operations should be apportioned in equal shares between the Narsapur Mandal Parishad and the Sakhinetipally Mandal Parishad and shall form part of the funds of these local bodies and accordingly dismissed W.P.No.2887 of 2002. Consequent to the same, W.P.No.2880 of 2002 was allowed with the following directions: “(A) All future auctions of the Madhavayapalem Ferry between the Sakhinetipalli Lanka Point, E.G.District and Madhavayapalem point in Narsapur Mandal, W.G.District, shall be conducted by a joint committee of Sakhinetipalli Mandal Parishad and Narsapur Mandal Parishad as required under Section 57(1)(b) of the Act; (B) Having regard to the fact that since 1999-2000 to 2001-2002 (current year) it is the 1st respondent which has been exclusively appropriating the incomes derived from the ferry operations and to the proportionate detriment to the revenues of the petitioner-Mandal Parishad and having regard to the economic constraints expressed by the 1st respondent, this court considers it appropriate to direct that future Madhavayapalem ferry auctions shall be processed under a joint committee of the petitioner and the 1st respondent but with the participation of a senior Gazetted official of the Panchayat Raj Department deputed by the Commissioner, Panchayat Raj, the 5th respondent herein, who shall be the Chairperson of such joint committee; (C) The entire income derived from such auctions shall be deposited in a separate fund to be created by the 5th respondent called as “Sakhinetipalli-Narsapur Ferry Joint Fund” or any other appropriate name as the 5th respondent’s thinks fit. Out of such fund, the expenditure for conducting the ferry operations shall be met and the net income after meeting the administrative expenses as aforesaid, shall be apportioned between the petitioner and the 1st respondent in the ratio of 3:1 (75%: 25%); (D) The above structure and system, deposit of funds, participation of the Panchayat Raj official and sharing of the net income in the ratio of 3:1 shall continue till the arrears of the amounts due to the petitioner in W.P.No.2880/2002 from the 1st respondent therein, for the years 1999-2000 to 2001-2002 are adjusted and paid to the account of the petitioner. Thereafter the auctions shall be conducted by a joint committee and apportionment of the net income shall take place between the petitioner and the 1st respondent in accordance with the provisions of Sec.57(4) of the Act; (E) The 5th respondent-Commissioner of Panchayat Raj shall within four weeks from the date of receipt of a copy of this judgment direct the Narsapur Mandal Parishad to furnish accounts regarding the gross income derived from the Madhavayapalem Ferry auctions during the years 1999-2000 to 2001-2002, the legitimate expenditure incurred for the management of the ferry during those years and the records, accounts and vouchers in support of the claim to the income and expenditure and shall, within four weeks thereafter and on analysis of the data furnished by the Narsapur Mandal Parishad, determine the amount due by it to the Sakhinetipally Lanka Mandal Parishad, in accordance with the mandate of Sec.57 of the Act as interpreted in the judgment. The 5th respondent shall within a period of three months from the date of the judgment communicate to both the Local Bodies the amount determined as directed above together with a statement of account in support of the determination.” Heard Sri T. Chidambaram, learned counsel appearing for the appellant-Narsapur Mandal Parishad and Sri Ramanna Dora, learned counsel appearing for the Sakhinetipally Mandal Parishad. Section 57(1) of the A.P. Panchayat Raj Act, 1994 has been set out by the learned single Judge in the impugned judgment. It clearly ordains that in case of a ferry connecting any public road under the management of a Mandal Parishad and lying within the jurisdiction more than one Mandal Parishads, the vestiture of the management of the ferry shall be in the joint committee of the Mandal Parishads concerned. Further Rule 14 of the Rules issued in G.O.Ms.No.87, dated 13.3.2001 prescribes that the net income realized, after meeting the permissible expenditure concerned with the management of the ferry or ferries, shall after the closure of financial year be apportioned between the Local Bodies concerned equally which shall form part of the funds of such Local Body. In that view of the matter, the declaration made by the learned single Judge and the directions issued for sharing the ferry income between the two Mandal Parishads is according to the legislative mandate and the Rules made thereunder. No ground has been made out to interfere with the impugned order. We do not see any merits in the appeals. The Writ Appeals are accordingly dismissed. There shall be no order as to costs. _______________ A. GOPAL REDDY, J. _________________ P. DURGA PRASAD, J. NOVEMBER 15, 2010 Tsr.