The bench allowed the petitioner to continue in the office but imposed restrictions on the exercise of financial and certain other powers by him. He may not hand over the charge as ordered by the district panchayat office, but he would do only routine work, the bench ordered while directing the state to file a reply within three weeks.

The petitioner's election to the panchayat in 1995 was set aside by the panchayat officer on the ground that the nomination paper of one of the candidates was improperly rejected. The DC dismissed his appeal in July last and the DPO asked him to hand over the charge to the vice-president of the panchayat.

The petitioner approached the high court alleging that rejection of nomination of the concerned candidate was in order as the latter was a defaulter having encroached upon panchayat land. Advocate General Sanjay Karol opposed the plea and urged the court to restrain the petitioner from exercising financial powers in case the stay was granted.