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37. The functioning of the Panchayat Raj Institutions was not up to the desired level and in order to make Article 40 of the Constitution more affective, it was considered that there is an imperative need to enshrine in the Constitution certain basic and essential features of Panchayat Raj institutions to impart certainty, continuity and strength to them. Therefore, a new part was added by way of Constitution 73 Amendment Act providing inter alia devolution by State Legislature all powers and responsibilities upon the panchayats subsisting for preparation of plans for economic development and social justice and for implementation of developmental schemes and sound financing of the panchayats by securing authorization from State Legislatures for grant-in-aid to panchayats from the consolidated fund of the State. Under Article 243G of the Constitution, the powers, authority and responsibilities of the panchayat are stipulated. It reads thus:

"Subject to the provisions of the 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

54. The rules framed in A.P. School Education Services were made applicable to teachers working in Government and Panchayat Raj institutions. The said G.O. came to be challenged by the Government Teachers' and also Mandal Education Officers' Association.

55. The Tribunal dismissed the applications filed by the petitioners with certain modifications by an order dated 4.5.2000 extracted supra. Against the said Order, the present writ petitions are filed.

56. It is the contention of the petitioners that the Tribunal having accepted that the Government has no power to frame the rules under Section 78 of the Education Act, erroneously held that the rules can be issued under proviso to Article 309 of the Constitution of India. It is also submitted that when once rules were already framed under relevant statutory provisions, there is no necessity for framing another set of rules. But, the another contention is sought to be made that the distinction between the schools run by the Government and the schools run and maintained by the Panchayat Raj institutions, is always maintained at all levels, so as to keep the status of the Panchayat Raj institutions as local self-Governments. By virtue of the impugned notifications, the Government sought to integrate the service rules of the teachers both in Government and Panchayat Raj institutions, which would go against the spirit of Article 243 of the Constitution of India. In guise of causing devolution of powers on the local self-Governments, the Government cannot take away the existing powers to manage and maintain the educational institutions at their level.