- (1.) Order dated 28.01.991 (Annexure P/7) reveals that petitioners were neither heard nor held to be negligent and furthermore, no misconduct on the part of the petitioners was found before imposing penalty of Rs.50,57,500/- for loss caused to the Gram Panchayat. Section 105 of the Punjab Gram Panchayat Act, 1952 (hereinafter referred to as the Act( reads as under:- "105. Liability of members -- (1) Every member of a Gram Panchayat shall be liable for the loss, waste or mis-application of any money or property belonging to that body if such loss, waste or misapplication is a consequence of his neglect or misconduct while a member: [Provided that where such member happens to be the Chairman, Vice- Chairman or a member of the Panchayat Samiti, the proceedings under this sub section shall be taken by the prescribed authority.] (2) The Block Development and Panchayat Officer concerned may, on the application of a Gram Panchayat or otherwise and, after giving the member concerned an opportunity to explain assess by order in writing the amount due from him on account of such loss, waste or misapplication. (3) Any person aggrieved by an order made under sub-section (2) of this section may, within one month of the date of such order apply to the [Deputy Director of Panchayats] to have it set aside and the [Deputy Director of Panchayats] may suspend the execution of the order upon such terms as to costs payment into court or otherwise as he thinks fit but subject to the result of such application, if any, the order shall be conclusive proof of the amount due. (3-A) Notwithstanding anything contained in subsection (3), the Government may, either on its own motion at any time, or on an application received in this behalf within a period of sixty days from the date of the order, call for the records of any proceedings in which the Deputy Director of Panchayats has passed an order under sub section (3) for the purpose of satisfying itself as to the legality or propriety of such order and may pass such order in relation thereto as it may think fit: Provided that the Government shall not pass an order under this sub-section prejudicial to any person without giving him a reasonable opportunity of being heard. 4. Notwithstanding anything contained in this section, no person shall be called upon to explain why he should not be required to make good any loss after the expiry of (six) years from the occurrence of the loss waste or misapplication, or after the expire of (two years from his ceasing to be a member, whichever is earlier." From the perusal of Section 105 of the Act, it is, thus, clear that loss can be directed to be recovered from the Member of the Gram Panchayat, if loss and waste to the Panchayat is caused by negligence or misconduct of the member of the Gram Panchayat, therefore, finding is to be recorded to the effect that petitioners were negligent or their action falls within the definition of misconduct before imposing penalty. Learned counsel for the petitioners states that reply shall be filed before the concerned Block Development and Panchayat Officer to the show cause notice issued to them within such time as fixed by this Court explaining the position. As a result thereof, the impugned order is set aside. Petitioners shall appear before the concerned Block Development and Panchayat Officer, on 17.10.2011 and shall file detailed reply to the notice issued to the petitioners by the Block Development and Panchayat Officer. Block Development and Panchayat Officer, thereafter, shall pass fresh speaking order dealing with every point. Disposed of accordingly. A photocopy of this order be placed on the file of the connected matter.;