High Court of KeralaDivision BenchWrit petition disposed of by dismissal; Ext P1 ...

W.P. (C) No. 16299 of 2022: Kanhangad Co-operative Hospital Society vs State of Kerala and Others

Case / Petition Number:WP(C) No. 16299 of 2022

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • S. Manikumar
  • Murali Purushothaman
Judgment Date
2023-04-12
Court Decision / Holding
Writ petition dismissed; Ext P1 order not quashed; the court held the order is a permissive sanction consistent with constitutional and statutory powers to improve district health infrastructure.
Final Disposition
Writ petition disposed of by dismissal; Ext P1 not quashed; government order held permissible within statutory and constitutional framework.

Parties to the Case

Appellants / Petitioners

  • K. Shreekanth

Respondents

  • State of Kerala (Deleted from party array as per order dated 19/05/2022 in WP(C)16299/22(S))
  • Local Self Government Department, Government of Kerala
  • Department of Finance, Government of Kerala
  • Department of Health, Government of Kerala
  • The Kanhangad Co-operative Hospital Society

Legal Representation & Advocates

Counsels for Petitioners

  • • Sajith Kumar V.
  • • J. Vishnu
  • • Vivek A.V.
  • • Godwin Joseph
  • • Remya Varma N.K
  • • Alka Warrier

Counsels for Respondents

  • • M. Sasindran
  • • N. Manoj Kumar (State Attorney)
  • • S. Shyam Kumar
  • • V. Tek Chand (Sr. GP)

Case Synopsis & Summary

This Public Interest writ petition questions Government Exhibit P1, a Government Order dated 16 March 2022, which permitted Local Self Government Institutions in Kasaragod district to release funds from their own funds to Kanhangad Co-operative Hospital Society for establishing a multi-speciality hospital. The petitioner contends that the order arbitrarily transfers public money to a cooperative society, which is not a State entity, and misuses provisions of the Kerala Panchayat Raj Act, 1994 (sections 212(9), 213, 216) and the Kerala Municipality Act, 1994 (section 283(6)). The concern is that public funds would be diverted to a private/partially private venture, undermining the public exchequer and the health infrastructure crisis in Kasaragod, where government facilities are strained and doctors have struck over deficiencies. The Government counters that health is a State subject and local governments have constitutional and statutory power to expend funds on health; the cooperative hospital is an instrumentality of the State and assets would come under public ownership; the order is a permissive sanction, not a compulsion, and aims to address a district with acute needs. The court held that Ext P1 is not arbitrary and dismissed the petition, emphasizing the need to improve health infrastructure while recognizing local governments’ discretion.

Provisions of Law Cited

Kerala Panchayat Raj Act, 1994 – Section 212(9)Kerala Panchayat Raj Act, 1994 – Section 213Kerala Panchayat Raj Act, 1994 – Section 216Kerala Municipalities Act, 1994 – Section 283(6)Constitution of India – Article 43BConstitution of India – Article 47Constitution of India – Article 243GConstitution of India – Article 243WEleventh Schedule (Health and sanitation, including hospitals, PHCs and dispensaries)Twelfth SchedulePart IX-B of the Constitution (Cooperative Societies)Kerala Co-operative Societies Act, 1969

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioner argues Ext P1 is illegal and arbitrary because it authorizes release of public funds to a cooperative society, a non-governmental entity. The Kanhangad Co-operative Hospital Society, registered under the Kerala Co-operative Societies Act, 1969, is not a State instrumentality; transferring funds from local bodies to such a body bypasses statutory controls under the Kerala Panchayat Raj Act and the Kerala Municipality Act. Public funds cannot be diverted to private, profit-motivated ventures, and doing so would erode fiduciary obligations and accountability. While health and welfare may be aided by public funds, the order lacks specificity about safeguards, audit and oversight, and could set a dangerous precedent for political misuse. The 11th Schedule’s health-related items and Part IX-B’s constitutional framework do not authorize unfettered disbursement to private entities. The petition emphasizes the need to prioritize government health infrastructure and proper governance over ad hoc funding to non-State actors.

Contentions of Respondents

The State contends Ext P1 is a permissible, non-mandatory sanction, not a coercive grant, recognizing the acute need to improve Kasaragod’s health infrastructure. Health is a constitutional duty under XI and XII schedules; panchayats and municipalities have the statutory power to expend funds on healthcare, including through cooperative channels where assets and operations are under public oversight. Exhibit P1 aligns with Article 243G and Article 243W; the local governments may decide to allocate funds within statutory limits, and the Government can fix or enhance annual limits under Sections 212(9) and 283(6). The Kanhangad Co-operative Hospital Society is a registered cooperative society operating under public law, with its assets considered public ownership upon dissolution; the order serves larger public interest by addressing a district with inadequate facilities. The decision adheres to constitutional duties and statutory powers, and the petition is politically motivated and misconceived.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
Thalappalam Service Co-op. Bank Ltd. and Ors. v. State of Kerala and Ors.(2013) 16 SCC 82DistinguishedThe court noted the petitioner’s reliance on this decision is misplaced; the facts and issues differ, and the judgment does not apply to the question of funding a cooperative hospital by local self-government bodies.

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Extracted Judgment Text

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# **`IN THE HIGH COURT OF KERALA AT ERNAKULAM`** # **`PRESENT`** # **`THE HONOURABLE THE CHIEF JUSTICE MR.S.MANIKUMAR`** ## **`&`** ``` THE HONOURABLE MR.JUSTICE MURALI PURUSHOTHAMAN WEDNESDAY, THE 12[TH] DAY OF APRIL 2023 / 22ND CHAITHRA, 1945 WP(C) NO. 16299 OF 2022 ``` ## **`PETITIONER/S:`** ``` ADV.K.SHREEKANTH AGED 46 YEARS S/O VASUDEVA ARALITHAYA RESIDING AT SHIVA PRASAD NILAYAM, THRIKKANNAD, BEKAL P.O., HOSDURG, KASARAGOD DISTRICT, PIN: 671 318. BY ADVS. SAJITH KUMAR V. J.VISHNU VIVEK A.V. GODWIN JOSEPH REMYA VARMA N.K ALKA WARRIER ``` ## **`RESPONDENT/S:`** - **`1 STATE OF KERALA (DELETED) REPRESENTED BY THE CHIEF SECRETARY, MAIN BLOCK, SECRETARIAT, PALAYAM, THIRUVANANTHAPURAM P. O., 695001 RESPONDENT NO. 1 IS DELETED FROM THE PARTY ARRAY AS PER ORDER DATED 19/05/2022 IN WP(C)16299/22(S).`** - **`2 THE LOCAL SELF GOVERNMENT DEPARTMENT GOVERNMENT OF KERALA, REPRESENTED BY THE PRINCIPAL SECRETARY, MAIN BLOCK, SECRETARIAT, PALAYAM, THIRUVANANTHAPURAM P. O., 695001`** - **`3 THE DEPARTMENT OF FINANCE, GOVERNMENT OF KERALA, REPRESENTED BY THE PRINCIPAL SECRETARY, MAIN BLOCK, SECRETARIAT, PALAYAM, THIRUVANANTHAPURAM P.O., 695001`** - **`4 THE DEPARTMENT OF HEALTH, GOVERNMENT OF KERALA, REPRESENTED BY THE PRINCIPAL SECRETARY, MAIN BLOCK, SECRETARIAT, PALAYAM, THIRUVANANTHAPURAM P. O., 695001`** - **`5 THE KANHANGAD CO-OPERATIVE HOSPITAL SOCIETY, REPRESENTED BY ITS SECRETARY, KANHANGAD P.O., 671315`** W. P. (C) No. 16299 of 2022 -2- ``` BY ADVS. M.SASINDRAN N.MANOJ KUMAR, STATE ATTORNEY S.SHYAM KUMAR V. TEKCHAND, SR. GP. ``` ``` THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 12.04.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ``` W. P. (C) No. 16299 of 2022 -3- ## **J U D G M E N T** ## S. Manikumar, C. J. In this public interest writ petition, petitioner has sought for the following reliefs:- “i. To issue a writ of certiorari calling for records leading to Ext. P1 and quash the same; ii. To declare Ext. P1 order permitting release of fund to the 5[th] respondent by the Local Self-Government Institutions waiving of all restrictions regarding expenditure of public money under the law, is highly illegal and arbitrary.” 2. Short facts leading to the filing of the instant writ petition are as under:- 2.1. Petitioner has submitted that the Secretary, Kanhangad Cooperative Hospital Society, the 5[th] respondent, sought financial assistance to the tune of Rs. 2 Crores from Kanhangad Municipality, Rs. 50 lakhs each from other Municipalities in the District, Rs. 25 lakhs each from Block Panchayats in the District, and an amount of Rs. 1 Crore from the Kasaragod District Panchayat, for starting a W. P. (C) No. 16299 of 2022 -4- hospital, viz., Kanhangad Co-operative Hospital. By Exhibit-P1 dated 16.03.2022, the Local Self Government Department, State of Kerala, issued an order allowing Local Self Government Institutions in Kasaragod District, to release the amounts, without any limit to the respondent Co-operative Society. According to the petitioner, the Hospital Society, which was registered in 2001, had been in limbo during all these years. The Society became active only recently when the Ext. P1 Government Order was issued all of a sudden, granting permission for the local bodies to transfer money from their “own fund” for the proposed hospital. 2.2. Petitioner has further submitted that the said order has been issued misusing the provisions of Sections 212 (9), 213, 216 of the Kerala Panchayat Raj Act, 1994, and Section 283(6) of the Kerala Municipality Act, 1994. Even though the said provisions allow use of funds of local bodies for the welfare of inhabitants of the area, the same cannot be construed as a licence to transfer public funds to nonState entities. The respondent is a Society registered under the provisions of the Kerala Co-operative Societies Act, 1969, and is not a Government/State entity. The mere fact that an activity may be W. P. (C) No. 16299 of 2022 -5- useful to the public would not necessarily render it public service. An activity, however, beneficial and useful to the people, cannot be reasonably regarded as public service, if it is of a type which may be carried on by private individuals, and or even by Government, with a distinct profit motive. If Governments are allowed to use public money to sponsor Societies and institutions run by various political parties, by taking refuge under the aforesaid provisions of the Kerala Panchayat Raj Act, 1994, then the very objective of the Act will be defeated and the public exchequer will be put to great loss. “Public good” cannot be a lose concept, which can be shaped to suit the convenience of political parties or pressure groups with vested interest. 2.3. That apart, it is submitted that such huge funds are being diverted to a private entity when Government Medical College, CHCs, PHCs etc., are reeling under a deficit of funds to maintain and develop its infrastructure. Doctors were on an indefinite strike in Kasaragod Government Medical College against the lack of facilities there. Till date, in-patient facility is not being provided in the Government Medical College due to lack of infrastructure. It is without taking any proactive step to improve its health infrastructure that the Government W. P. (C) No. 16299 of 2022 -6- is pumping money into Co-operative Societies run by full time politicians, over which the Government has no direct control. 3. The Principal Secretary, Local Self Government Department, Thiruvananthapuram, the 2[nd] respondent, has filed a counter affidavit dated 16.01.2023, wherein it was contended as under:- “3. The allegations are not true to the law and facts hence denied. The Exhibit P1 Order is not arbitrary or issued carelessly as alleged. The Order was well deliberated and examined by the Government on the back drop of State's intention to improve the health infrastructure of Kasargod District. The existing health infrastructure in the district is not enough to cater to the present requirement. Moreover, providing universal, affordable and quality health care for everyone is the policy of the Government. As part of this policy of quality and affordable health care, the Government have already started the process of upgrading the State health care infrastructure on global standards. Government have already identified the inadequacy of Kasargod District in health infrastructure and contemplated to overcome the same. Public health and sanitation, hospitals and dispensaries are in the State list, and the State government is responsible for the policy framework that determines public action on health. The State and local governments have complementary roles is ensuring health care for all. W. P. (C) No. 16299 of 2022 -7- 4. It is further submitted that Kasargod Co-operative hospital is established and operated under the Co-operative Act which is also under the supervisory control of the Co-operative Department. Establishment of such a hospital will provide quality and affordable healthcare to the people in the district of Kasargod. This was the intention of the Government while issuing Exhibit P1 Order. Moreover, the order is only a permissive sanction issued to the local bodies to disburse their own fund if their Councils desire so. It is up to the Local Governments to take a decision in the matter, after considering the permissive sanction. The Local Governments can choose to abide by or not to abide by the Exhibit P1 Order. Hence the Exhibit P1 Order cannot be challenged as arbitrary or as issued carelessly. 5. The Local Self Government Institutions are duty bound to work for the attainment of the objectives intended in the 73[rd] and 74[th] Amendments. Health care is one of the functional items conferred to the Panchayats and Municipalities under XIth and XIIth Schedule of the Constitution respectively and Local Governments are empowered both statutorily and constitutionally to expend funds for the healthcare of the people under their jurisdiction. 6. The petitioner equated Co-operative Societies with Private sector entities. Co-operative sector cannot be equated at par with private sector because Co-operative societies are body corporates established in fulfillment of the Constitutional W. P. (C) No. 16299 of 2022 -8- ## provisions under part IX-B of the Constitution. 7. As per the Kerala Co-operative Societies Act the assets of the Co-operative Societies come under public ownership and in any case the Co-operative Society is dissolved the assets of the same will come under Government. 8. Hence the Government Order issued in favour of a hospital under co-operative sector cannot be impugned as arbitrary and as colourable exercise of authority. Sections 216, 213, 212(9) of Kerala Panchayat Act and 283(6) of the Kerala Municipality Act empowers the Government to issue orders permitting the Local Self Government Institutions to provide funds from their own fund for healthcare which would be of benefit to the people in its local area. The permissive sanction would enable Local Governments to participate in ensuring viable and relevant health infrastructure in a district that has constraints. The annual expenditure limit under the provisions for own funds were set by the Government which can be enhanced when reasonable situations warrant such additional expenditure. The power for such enhancement is vested with the Government. Health sector scenario of Kasargod District reasonably warranted the Government to act in support of a Co- operative Hospital, to be established at Kanjangad, by exercising the discretionary powers vested with the Government in adherence to the above said sections which is why Exhibit P1 Government Order, was issued in larger Public Interest. W. P. (C) No. 16299 of 2022 -9- 9. Exhibit P1 Government Order was issued in the larger public interest, by exercising powers under Sections 216, 213, 212(9) and 283(6) of the Kerala Municipality Act, 1994 along with the discretionary power to waive the limits set by these provisions under reasonable situations. Government have already identified the inadequacy of Kasaragod District in health infrastructure and contemplated to overcome the same. Establishment of such a hospital will provide quality and affordable health-care to the people in the district of Kasaragod. This was the intention of the Government while issuing Exhibit P1 Order. 10. As submitted earlier, the Local Self Government Institutions are duty bound to work for the attainment of the objectives intended in the 73[rd] and 74[th] Amendments. Health care is one of the functional items conferred to the Panchayats and Municipalities under XI and XII schedules of the Constitution respectively and it is empowered both statutorily and constitutionally to expend funds for the healthcare of the people under its jurisdiction. Hence the Government Order issued in favour of a hospital under co-operative sector cannot be impugned as arbitrary and as colourable exercise of authority. Sections 216, 213, 212(9) of Kerala Panchayat Act and 283(6) of the Kerala Municipality Act empower the Government to issue orders permitting the Local Self Government Institutions to divulge funds from their own fund for healthcare which may benefit the people in its local area, even though Local Self W. P. (C) No. 16299 of 2022 -10- Government Institutions are not bound to honour such an Order. The annual limit under these provisions were set by the Government which can be enhanced when reasonable situations warranted and such power for enhancement is vested with the Government Health sector scenario of Kasaragod district is reasonably warranted the Government to act in support of a Cooperative Hospital, to be established at Kanjangad, by exercising the discretionary powers vested with the Government in adherence to the above said sections and issued the Ext. P1 Government Order, at larger Public Interest.” ## 4. The Secretary, Kanhangad Co-operative Hospital Society, the 5[th] respondent, has filed a counter affidavit dated 24.02.2023 in the writ petition, wherein it was contended as under: A. The contention raised in the writ petition is that the Ext.P1 order has been issued by the government permitting during financial assistance to the 5[th] respondent which is a Cooperative society. It says that no effort was made by the Government to verify the credentials of the 5[th] respondent before issuing such an order. It further alleges that it is unchecked release of public money to somebody who knocks its door and therefore it is arbitrary. These allegations are absolutely incorrect. The 5[th] respondent is a co operative society registered under the Kerala Co-operative Societies Act and it is a constitutionally recognized institution. **==> picture [325 x 14] intentionally omitted <==** W. P. (C) No. 16299 of 2022 -11- instrumentality of the state and that the co-operative societies are sharply derided on political lines. These statements are absolutely immaterial. Even the Union Government and State Government are politically elected and merely because the election is based on politics, it cannot be said that it is to be excluded from the zone of consideration in all respects. Wild allegations raised against Co-operative Societies absolutely without any factual basis are liable to be discarded. There are good number of Co-operative Institutions in Kerala which renders substantial service to the general public. The co-operative institutions like MVR Cancer Centre, Kozhikode, AKG Hospital, Kannur and number of cooperative hospitals functioning in different part of the state are the prime institutions in health sector, for the general public, especially the down trodden. There is departmental control and statutory regulation over the co- operative societies including periodical audit and inspection and no co-operative societies are permitted to function independently without control and regulation of the Government Department. The co-operative sector is the backbone of the state of Kerala especially in health and banking sector. Therefore the allegations against cooperative societies raised in the writ petition are absolutely without any basis and it can only be suspected as instigated by private sector hospitals. B. If a Co-operative Hospital comes up in Kasaragod, that would reduce the exploitation of the private hospitals of Mangalore. Now the people in Kasaragod Districts are depending W. P. (C) No. 16299 of 2022 -12- the private hospitals in Mangalore and it is only because of the fact that there is no specialty hospitals in Kasaragod Districts. Kasaragod is a backward district in Kerala in health, education, and socio-economic sectors. It is relevant to note that during the outbreak of Covid, when Karnataka state banned travel across the border, we have witnessed several ambulances stopped in Kerala Karnataka boarder at Thalappady, in which patients from Kerala were travelling to Mangalore. Writ petition was filed before this Hon'ble Court, seeking interference and by the time this Hon'ble Court interfered, number of patients were died in the ambulance itself at the border, which was evoked serious response from the social workers in Kerala and out sider. Such a situation has arisen only because of the reason that there is no specialty hospital in Kasaragod. The Exhibit P1 is with an avowed object of providing better treatment facility to the people of the backward district, Kasaragod. A citizen residing in Kasaragod District, would not normally object to such an effort and attempt on the part of the Government and therefore the bonafides of the petitioner is to be seriously doubted. The beneficiary of the relief sought for in the writ petition are the private hospitals in Mangalore and none else. C. It is submitted that Article 43B of the Constitution of India runs thus:- **"43B. Promotion of Co-operative Societies the state shall endeavour to promote voluntary promotion, autonomous functioning, democratic control and professional management of Co- operative Societies."** D. As per Article 47 of the Constitution of India, it is the W. P. (C) No. 16299 of 2022 -13- duty of the state to raise the level of nutrition standard of living and improve public health. Therefore the state is bound to promote the Co-operative Societies and to take steps for improving the public health. Therefore promoting the Cooperative Hospital cannot be said to be a duty alien to state function. Hence an order which would result in improving the public health and promoting the co-operative society is perfectly in accordance with the constitutional provisions and therefore the source of power of the Exhibit P1 with reference to the constitution cannot be disputed at all. E. Article 243 of the Constitution of India deals with the Panchayats. Article 243G speaks about the powers authority and responsibility of the Panchayats. Article 243G of the Constitution of India reads asunder:- **"243G. Powers, authority and responsibilities of Panchayats. Subject to the provisions of this Constitution, the Legislature of a State may, by law, endow the Panchayats with such powers and authority as may be necessary to enable them to function as institutions of self-government and such law may contain provisions for the devolution of powers and responsibilities upon Panchayats at the appropriate level, subject to such conditions as may be specified therein, with respect to:--** **(a) The preparation of plans for economic development and social justice;** **(b) the implementation of schemes for economic development and social justice as may be entrusted to them including those in relation to the matters listed in the Eleventh Schedule".** W. P. (C) No. 16299 of 2022 -14- Therefore, the matters included in the 11[th] schedule are the subject of functions of the Panchayat. Item 23 of the 11[th] schedule is as follows:- ## **"23. Health and sanitations, including hospitals, primary health centres and dispensaries."** F. Therefore, it is the function of the Panchayat to facilitate hospitals for the better health of the people. Therefore even without Exhibit P1 order, the Panchayat is competent to give financial assistance for the hospitals. Likewise, Article 243W enumerates the powers the Municipality which also contains a similar provision, and the schedule applicable to the municipalities is 12[th] schedule. In the 12[th] schedule also public health is included. Therefore, the Municipalities are also vested with the power and duty to improve the health institutions. Therefore, the power and function of the Municipalities taking on, development of health including hospitals. G. It is submitted that the Kasaragod District, as stated above, is a backward District socially, educationally and healthwise. In Ernakulam District, there are number of speciality hospitals in Cochin city and elsewhere. Likewise, in Thrissur, Malappuram, Kozhikode and Kannur also there are number of speciality hospitals, including medical colleges. In Kannur, there are two Medical Colleges and number of speciality hospitals such as Aster Mims, Gems, Koily Hospitals, A.K.G. Hospitals, Thalassery Co-operative Hospital etc.. Whereas in Kasaragod W. P. (C) No. 16299 of 2022 -15- District, there are no speciality hospital at all. The people in Kasaragod are depending on the hospitals in Mangalore in Karnataka State. The trains passing through Kasaragod in the morning would the filled with the people going to Mangalore hospitals, and even when accident occurs in any part of the Kasaragod District, the victim will have to be taken to Mangalore for treatment. This is a serious situation. Therefore, when a cooperative institution comes forth with an attempt to have a speciality hospital which is an absolute necessity of Kasaragod District, the Government should necessarily intervening and promote the same. The Government is empowered to issue the Exhibit P1 order, by virtue of the provisions containing the Kerala Panchayat Raj Act and Kerala Municipality Act. Section 216 of the Kerala Panchayat Raj Act empowers the Panchayat to make contribution, for the purpose authorized by or under the Act. As stated earlier the Panchayat is vested with the power and duty to improve the health condition of the citizen. The Government is having power to issue guidelines, for welfare programs. The power can be traced out from Section 212(9) and Section 213 also. Therefore, it cannot be said that the Exhibit P1 is without source of power. Similarly, Article 283(6) of the Municipalities Act also empowers the Government to issue an order like Exhibit P1. It cannot be said that the order is vitiated in any manner. H. The reliance placed by the petitioner on the decision in **Thalappalam Service Co-op. Bank Ltd. and Ors. v. State of** W. P. (C) No. 16299 of 2022 -16- **Kerala and Ors.** [(2013) 16 SCC 82] is a misplaced one. The judgment has no nexus with the facts of the case. A scanning of the provisions of the Kerala Co-operative Societies Act would show that there are sufficient provisions for auditing and controlling and regulating the functions of the Co-operative Societies and the Government and the Co-operative Department are not teeth-less, when any irregularity is occurred in Cooperative Institution. The averments contained in the writ petition, which says that in Kasaragod District Hospital there are O.P. facility equivalent to PHC etc. would show that the petitioner wanted to protect the interest of the private speciality hospitals in Managalore, by stopping commencement of a speciality hospital in Kasaragod District. I. It is submitted that the Exhibit P1 order does not compel a Grama Panchayat or Municipality to make any financial assistance. Rather, it is the order of restriction fixing a financial cap for assistance. Therefore, there is no justification in contenting that Exhibit P1 would create any burden or compulsion upon the Local Self Government to make contribution/financial assistance. Therefore, the entire contention of the petitioner are without any basis. J. The averments contained in the writ petition, relating to the political divisions and number of Panchayats and Municipalities governed by a political coalition etc., would show that the writ petition is politically motivated. Writ petitioner is a politician, which he does not disclose in the writ petition, and his W. P. (C) No. 16299 of 2022 -17- intention is to see that Kerala State does not improve in any manner. His political party is intervening and creating obstruction to all types of development in Kerala and the writ petition is one among such attempts. Therefore, the writ petition is filed with ulterior motive and not at all with any bonafides. 5. Heard the learned counsel for the parties and perused the material on record. ## 6. Article 43-B of the Constitution of India reads as under: “ **43-B. Promotion of co-operative societies** .- The State shall endeavour to promote voluntary formation, autonomous functioning, autonomous functioning, democratic control and professional management of cooperative societies.” ## 7. Article 47 of the Constitution of India reads as under: “ **47. Duty of the State to raise the level of nutrition and the standard of living and to improve public health** . - The State shall regard the raising of the level of nutrition and the standard of living of its people and the improvement of public health as among its primary duties and, in particular, the State shall endeavour to bring about prohibition of the consumption except for medicinal purposes of intoxicating drinks and of drugs which are injurious to health.” W. P. (C) No. 16299 of 2022 -18- ## 8. Article 243G of the Constitution of India reads as under: “ **243G. Powers, authority and responsibilities of Panchayats.-** Subject to the provisions of this Constitution, the Legislature of a State may, by law, endow the Panchayats with such powers and authority as may be necessary to enable them to function as institutions of selfgovernment and such law may contain provisions for the devolution of powers and responsibilities upon Panchayats at the appropriate level, subject to such conditions as may be specified therein, with respect to— - (a) the preparation of plans for economic development and social justice; - (b) the implementation of schemes for economic development and social justice as may be entrusted to them including those in relation to the matters listed in the Eleventh Schedule.” ## 9. Section 212(9) of the Kerala Panchayat Raj Act, 1994 speaks about Panchayat Funds and it reads as under: “ **212. Panchayat funds** . - (1) Every Panchayat shall constitute a fund in accordance with provisions of this section. xxxxxxxxxxxxxxxxxxx (9) No contribution, grant or expense for a purpose not directly concerned with a function of the Panchayat specified in this Act or any other law shall be made by a Panchayat from the Panchayat fund in excess of an annual limit that may be specified by the Government.” W. P. (C) No. 16299 of 2022 -19- 10. Section 213 of the Kerala Panchayat Raj Act, 1994 speaks about items of expenditure debitable to the Panchayat fund and it reads as under: “ **213. Items of expenditure debitable to panchayat fund** . — (1) The purposes to which a panchayat fund may be applied include all objects authorised by this Act, the rules made there under and by other laws and in general everything necessary for or conducive to the safety, health, education, convenience, comfort and welfare of the inhabitants of the panchayat area concerned and everything incidental to the administration of the panchayat; and the funds shall be applicable thereto within the panchayat area subject to this Act, the rules framed thereunder and shall be applicable thereto outside the panchayat area if the expenditure is specifically sanctioned by the Government. (2) (a) It shall be the duty of every panchayat to provide for the payment of - (i) any amount falling due on any loans contracted by it; (ii) the election expenses including the cost of preparation of the electoral rolls and conduct of elections; (iii) the salaries and allowances and the pensions, pensionary contributions, gratuity and provident fund contributions of its officers and employees and the allowances to the President, Vice-President and members which may be due; (iv) sum due under any decree or order of a court; (v) any other expenses rendered obligatory by or under this Act or any other law; and (vi) amount of fees for audit. (b) The Government shall determine the amount of the election expenses referred to in sub-clause (ii) of clause (a) and their determination shall be final and binding on the W. P. (C) No. 16299 of 2022 -20- panchayat. Such amount shall have priority over all other charges except for the service of authorised loans including the loans and advances referred to in section 217. (3) A panchayat may contribute any fund for the defence of India. (4) A panchayat may by resolution supported by not less than one half of its strength, sanction the payment of - (i) a contribution towards the expenses of any Panchayat conference or association of Panchayats, or (ii) any contribution towards the expenses or reception of important personages or the expenses of any public exhibition, ceremony or entertainments - [or meet the expenses in connection with any matter not specified in the Act or the Rules made there under: Provided that the total annual expenses under this subsection shall not exceed the limit prescribed by the Government.” ## 11. Section 216 of the Kerala Panchayat Raj Act, 1994 speaks about contribution to the expenditure by other Local Self Government Institutions and it reads as under: “ **216. Contribution to the expenditure by other local Self Government Institutions.** - If the expenditure incurred by the Government or by any other Panchayat or by any other Local Self Government Institutions in the State for any purpose authorised by or under this Act, is such as to benefit the inhabitants of the Panchayat area, the Panchayat may, [make a contribution towards such expenditure.]” ## 12. Section 283 of the Kerala Municipalities Act, 1994 speaks about Municipal Fund. Section 283(6) of the Act, 1994 reads as under: W. P. (C) No. 16299 of 2022 -21- “ **283. Municipal Fund** — (1) All moneys received by a Municipality under this Act or the rules made there under or any other law for the time being in force, shall constitute a fund which shall be called the Municipal Fund and shall be utilised and disposed of subject to the provisions of this Act or any other laws. xxxxxxxxxxxxxxxx (6) No expense, financial assistance or grant for a purpose not directly concerned with the function of the Municipality specified in this Act or rules made thereunder or any other law shall be made by a Municipality in excess of the annual limit that may be specified by the Government.” ## 13. Exhibit-P1 Government Order dated 16.03.2022, which is ## under challenge in the writ petition, reads thus:- ## “ **GOVERNMENT OF KERALA** ## Summary Local Self Government Department – Kanhangad Co-operative Hospital – Issuing permission to release donation from local selfgovernment institutions in the Kasargode District. ## **Local Self Government (F.M.) Departments** G. O. (Rt) No. 648/2022/LSGD Dated, Thiruvananthapuram, 16.03.2022 Reference: 1. Letter dated 08.02.2022 of the Secretary, Kanhangad Co-operative Hospital. ## **Order** The President/Secretary of Kanhangad Co-operative Hospital has requested by the above referred letter to give permission to release funds from the local self-government W. P. (C) No. 16299 of 2022 -22- institutions in the Kasaragod District, including Kanhangad Municipality (2crores), other Municipalities and Grama Panchayaths in the district (Fifty Lakh rupees each), block Panchayaths in the district (Twenty Five Lakh rupees each) and from the Kasargode District Panchayath (One crore rupees), in terms of the decision of the governing body Kanhangad Cooperative Hospital held on 04.02.2022 which found that it had become necessary to seek financial assistance for the establishment of Kanhangad Co-operative Hospital centered at Kanhangad, Kasaragod district. The Government examined the matter in detail. Order is being issued permitting local self-government Institutions in the Kasaragod District to give financial assistance to the Kanhangad Co-operative Hospital from own funds, as requested above, subject to the decision of their respective councils. The President/Secretary of the Kanhangad Co-operative Hospital Society is to give an expenditure certificate to the local self-government institutions with regard to expenses. (As per order of the Governor) **==> picture [104 x 29] intentionally omitted <==** 14. Today, when the matter came up for hearing, Mr. V. Tek Chand, learned Senior Government Pleader, submitted that the existing health infrastructure in the district is not enough to cater to the present W. P. (C) No. 16299 of 2022 -23- requirement. Establishment of a multi-speciality hospital will provide quality and affordable health-care to the people in the district of Kasaragod. 15. Mr. M. Sasindran, learned counsel for the Kanhangad Cooperative Hospital Society, the 5[th] respondent, submitted that the petitioner is trying to protect the interest of the private specialty hospitals in Mangalore, by stopping commencement of a specialty hospital in Kasaragod District. He further submitted that the State is bound to promote the Co-operative Societies, and to take steps for improving the public health. 16. Going through Ext. P1 impugned Government Order dated 16.03.2022, it is clear that the order has been issued permitting the Local Self Government Institutions in the Kasargod District to give financial assistance to the Kanhangad Co-operative Hospital from own funds, as requested, subject to the decision of their respective councils. The order does not create any burden or compulsion upon the Local Self Government Institutions to make financial assistance. 17. Moreover, the State Government has a duty to ensure health W. P. (C) No. 16299 of 2022 -24- care for all. Establishment of such a hospital will provide quality and affordable health-care to the people in Kasaragod District. In such circumstances, we are not inclined to entertain the writ petition. Accordingly, writ petition is dismissed. **Sd/S. MANIKUMAR CHIEF JUSTICE** **Sd/MURALI PURUSHOTHAMAN JUDGE** Eb ///TRUE COPY/// P. A. TO JUDGE W. P. (C) No. 16299 of 2022 -25- ## **`APPENDIX OF WP(C) 16299/2022`** ``` PETITIONER EXHIBITS EXHIBIT P1TRUE COPY OF G.O.(RT).NO.648/2022/LSGD DATED 16.03.2022 ALONG WITH ITS TRANSLATION. EXHIBIT P2TRUE COPY OF THE REPORT PUBLISHED IN THE NEW INDIAN EXPRESS, DATED 08.02.2022 EXHIBIT P3TRUE COPY OF THE REPORT PUBLISHED BY THE TIMES OF INDIA, DATED 01.04.2020 ```