Dismissed

Dharmanilayam Charitable Society v. Union of India

Kerala HC3 Nov 2022WA/999/2014

Case brief

AI extract

What is this about?

In this Writ Appeal, the Dharmanilayam Charitable Society challenged the cancellation of its Jan Shikshan Sansthan sanction and the demand to refund government funds. The High Court found no error in the Single Judge's judgment and dismissed the appeal.

What did the court decide?

The writ appeal was dismissed; the cancellation of the Jan Shikshan Sansthan and the demand for refund were upheld.

Dharmanilayam Charitable Society Vs Union of… — Pension and Retirement Benefits | Kerala HC (2022)

¶1

IN THE HIGH COURT OF KERALA AT ERNAKULAM

¶2

PRESENT

¶3

THE HONOURABLE THE CHIEF JUSTICE MR.S.MANIKUMAR

¶4

¶5

THE HONOURABLE MR. JUSTICE SHAJI P.CHALY THURSDAY, THE 3^RD DAY OF NOVEMBER 2022/12TH KARTHIKA, 1944

¶6

WA NO. 999 OF 2014

¶7

AGAINST THE JUDGMENT DATED 25.02.2014 IN W.P.(C.)NO. 24268/2011 OF HIGH COURT OF KERALA

¶8

APPELLANT/PETITIONER:

¶9

DHARMANILAYAM CHARITABLE SOCIETY KURICHY P O, KOTTAYA, 686549, REP BY ITS VICE CHAIRMAN

¶10

BY ADVS SRI.B.S.SWATHI KUMAR SMT. ANITHA RAVEENDRAN

¶11

RESPONDENT/RESPONDENT:

¶12

UNION OF INDIA REP BY ITS SECRETARY, MINISTRY OF HUMAN RESOURCES DEVELOPMENT, DEPARTMENT OF SCHOOL EDUCATION AND LITERACY, NLM II SECTION, NEW DELHI-110001

¶13

BY SRI.JAISHANKER V. NAIR, CGC

¶14

THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON

¶15

03.11.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

W.A. No. 999/2014

JUDGMENT

S. Manikumar, C.J.

Before the writ court, petitioner has sought for the following reliefs:-

¶21

i) to declare that Ext.P11 is highly illegal, arbitrary, violative of Ext.P14, without competence or jurisdiction hence abinitio void and liable only to set aside and to issue a writ of certiorari or appropriate writ, order or direction calling for the records leading to Ext.P11 and quash the same forthwith;

¶22

ii) to declare that the petitioner is not legally liable to refund even a single paise sanctioned and issue a writ of mandamus or other appropriate writ, order or direction commanding and compelling the respondent not to initiate any steps for recovering the amount demanded vide Ext.P11;

¶23

iii) to issue a writ of mandamus or any other appropriate writ, order or direction to the respondent to allow the petitioner to function the JSS sanctioned to them;

¶24

Short facts leading to the filing of this writ appeal

¶25

are as under:-

¶26

2.1 The appellant is a charitable Society registered under the Travancore-Cochin Literacy, Scientific and Charitable Societies Act, 1950 with registration No. K/245/88. Considering the exemplary service rendered by the appellant in the field of rural development the respondent sanctioned the Jan Shikshan Sansthan in the year 2007 vide order No. 6-4/2007-AE-8 dated 10-10-2007 hereinafter referred to in short as "JSS" by the Ministry of

¶27

W.A. No. 999/2014

¶28

¶29

Human Resources Development, Department of Elementary Education and Literacy, Government of India, and has been working as per the instructions of the Government of India and implementing the scheme formulated by the Government. Ext.P1 shows that the amount disbursed has been utilized for the very same purpose, Ext.P2 shows that the action plan has been approved by the Director General, Ext.P3 and P4 evidences the misappropriation done by the Former Director in Charge Lekshmi.B. Ext.P14 proves that there are no serious financial Irregularities and Ext.P16 evidences that the investigation revealed that the complaint on the basis of which the disbursement was delayed is wrong. The exhibits would also prove that there is neither any allegation or finding of any major financial irregularities or persistent violation of the guidelines which are true mandatory criteria on the basis of which a JSS already sanctioned can be cancelled. Ext.P11 to be quashed and the petitioner be allowed continuing the functioning of the JSS. Then the appellant filed W.P.(C.) No. 24268/2011 before this Court, but the learned Single Judge without a proper appraisal of the issues both legal and factual in correct legal

¶30

W.A. No. 999/2014

¶31

¶32

perspective dismissed the writ petition vide the impugned judgment. Hence, the Writ Appeal is filed.

¶33

Ext.P11 order dated 23.08.2011 of the

¶34

Government of India, Ministry of Human Resource Development, Department of School Education & Literacy, reads thus:-

¶35

“By speed post

¶36

No F.6-12/2007-AE-VAE-1/ NLM-II Government of India

¶37

Ministry of Human Resource Development Department of School Education & Literacy NLM-II Section

¶38

New Delhi, dated the 23rd August 2011

¶39

ORDER

¶40

Subject: Cancellation/Closure of JSS, Kannur sanctioned to voluntary agency namely Dharmanilayam Charitable Society, Kurichy, P.O., Kottayam District Kerala 686 549 on 10-10-2007.

¶41

JSS, Kannur, Kerala was sanctioned to Dharmanilayam Charitable Society Kurichy, P.O., Kottayam District, Kerala - 686549 during 2007-08. During 2008-09, this department received a complaint from the then Director-in-Charge, JSS, Kannur regarding mismanagement of the grants released by this Ministry. An enquiry in the matter was conducted by the Ministry but as the matter was largely related to financial mismanagement of the funds provided to JSS, Kannur by this Ministry, another special audit of the accounts was also conducted by the Internal Audit Wing of the Ministry.

¶42

2. Based on the findings of the inquiry report and the report of the Internal Audit Wing, Ministry issued a Show Cause Notice to JSS Kannur, asking to explain as to why not the sanction of JSS accorded to Dharmanilayam Charitable Society, Kurichy be cancelled on account of following administrative and financial irregularities committed by the organization:

¶43

Books of accounts and other records of JSS Kannur are not being maintained properly due to misclassification of expenditure booked i.e., to identify the course fee from student of Scheduled

¶44

W.A. No. 999/2014

¶45

¶46

Caste and Scheduled tribes has not been taken or not.

¶47

Huge amount of money has been borrowed from parent organization. However, it was repaid.

¶48

Former Director has withdrawn Rs.95,817/- from the bank and an FIR has been lodged.

¶49

JSS has withdrawn cash during 10-10-2007 to 4-

¶50

22008 in the name of parent organization but vouchers do not provide full details of the courses/purpose for which such payments are made.

¶51

It is seen that Sh Chempazhanthi Anil has been member in 2 committees, Smt. A Lakshmi in two committees, Shri. K.P. Balakrishnan in 2 committees Prof. R. Purshothaman in 3 committees and Dr. Sh. P.V. Mohana in all the 5 committees which are formed to look after various work in JSS. The omni presence of the above members has violated the objective of these committees.

¶52

Board meeting of the Board of management approved by the Ministry was not held in the year 2007-08.

¶53

3. Reply to the above show cause notice was submitted by the JSS and the same was examined by the Ministry. On examination, the reply was not found satisfactory in following respects:

¶54

JSS have stated that financial crisis in JSS forced them to take temporary loan from Parent Body. However, this may not be accepted as JSS

¶55

was being given regular grants from the MHRD since its registration.

¶56

Former Director has withdrawn Rs.95,817/illegally from the bank on 17-01-2009 by encashing a Cheque signed by Chairperson on 1812-2008. Although a complaint in the local Police Station is filed on 23-03-2009 by the Chairman but information on current status of investigation has not been given. The complaint appears to be formality.

¶57

The above complaint clearly indicates that the said embezzlement took place on 17.01.2009 whereas; the Director had resigned on 08-01-2009. This proves negligence on part of Chairperson for not instructing the concerned bank not to entertain such Cheques signed by the then Director without proper request from JSS.

¶58

The Chairman himself has admitted signing blank Cheques as per request of the then Director.

¶59

W.A. No. 999/2014

¶60

¶61

As pointed out in Show Cause Notice vouchers for huge cash withdrawals by JSS do not provide details of the courses/purposes for which payment/ expenditure have been incurred. he same has not been produced now also.

¶62

4. In view of the above, the undersigned is directed to intimate that the JSS sanctioned to Dharmanilayam Charitable Society Kurichy PO, Kottayam District, Kerala 686549 is hereby cancelled. Further, it has been decided to intimate legal/penal action against the mother NGO as well as JSS management.

¶63

5. Accordingly, it is directed to refund the entire amount of Rs. 50,46,808/- released to JSS, Kannur since 2007-08 to this Ministry as per the clause of GFR, 2009 (11) along with interest @ 10% within 15 days of receipt of this letter failing which Government would resort to appropraitet legal means to reclaim the amount due.

¶64

Yours faithfully, Sd/-

¶65

(Nasim Ahmad) Assistant Educational Adviser

¶66

1. The Chairperson, Jan Shikshan Sansthan, Moosa Apartments, 1^st Floor, Near Makkani, South Bazar, Kannur – 670 002, Kerala

¶67

2. The Member Secretary, Mass Education, Government of Kerala, Thiruvananthapuram, Kerala with a request to initiate legal proceedings in above lines under intimation to this Department.

¶68

3. District Collector and District Magistrate, District Kannur, Kerala.

¶69

4. Secretary, Dharmanilayam Charitable Society, Kurichy, P.O., Kottayam District, Kerala – 686 549

¶70

Sd/-

¶71

(Nasim Ahmad)

¶72

Assistant Educational Adviser”

¶73

Adverting to the rival submissions, writ court,

¶74

vide judgment dated 25.02.2014 in W.P.(C.) No. 24268/2011 found that an enquiry was conducted into the financial irregularities and persistent violation of guidelines

¶75

W.A. No. 999/2014

¶76

¶77

issued by the Government. A show cause notice has been issued following which an enquiry committee has been constituted comprising of two members to enquire into the allegations against the society.

¶78

Writ court has also taken note of the report of the

¶79

Internal Audit Wing of the Ministry which reads thus:-

¶80

“1. books of accounts and other records of JSS, Kannur are not being maintained properly due to misclassification of expenditure booked i.e. to identify the course fee from student of Scheduled Caste and Scheduled Tribes has not been taken or not.

¶81

2. Huge amount of money has been borrowed from parent organisation. However, it was repaid.

¶82

3. Former Director has withdrawn Rs.95,817/- from the bank and an FIR has been lodged.

¶83

4. JSS has withdrawn cash during 10.10.2007 to 04.02.2008 in the name of parent organisation but vouchers do not provide full details of the courses/purpose for which such payments are made.

¶84

5. It is seen that Sh. Chempazhanthi Anil has been member in two committees, Smt. A. Lakshmi in two committees, Shri. K.P. Balakrishnan in two committees, Prof. R. Purushothaman in three committees and Dr. Sh. P.V. Mohana in all the five committees which are formed to look after various work in JSS. The omni presence of the above members has violated the objective of these committees.

¶85

6. Board meeting of the Board of management approved by the Ministry was not held in the year 2007-08. ”

¶86

Having regard to the power of judicial review

¶87

under Article 226 of the Constitution of India, writ court held that report of the Internal Audit Wing, has found that the irregularities are not of trivial nature. Writ court further

¶88

W.A. No. 999/2014

¶89

¶90

observed that it is absolutely within the competence of the respondent to ensure that the funds are utilised in accordance with the directions of the respondent therein and so saying, sustained the impugned order, Ext.P11 dated 23.08.2011. Accordingly, writ petition has been dismissed.

¶91

Though, several grounds have been raised assailing the correctness of the judgment, giving due consideration of the material on record, we are of the view

¶92

that there is no error in the impugned judgment warranting interference.

¶93

Accordingly, the writ appeal is dismissed.

¶94

sd/-

¶95

S. MANIKUMAR CHIEF JUSTICE

¶96

Sd/-

¶97

SHAJI P. CHALY JUDGE

¶98

DCS/03.11.2022

Dharmanilayam Charitable Society v. Union of India

Case brief

What is this about?

What did the court decide?

Dharmanilayam Charitable Society v. Union of India

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

K.v.Anil, Vs State of Kerala

Regional Transport Officer Vs Sumesh

Sakeer Hussain Vs State of Kerala

Eram Motors Pvt. Ltd. Vs Chandrika

Kandyan Aneesh, Vs the Secretary, Thalassery Municipality

Chalil Kollankandy Shajith, Vs the Secretary, Thalassery Municipality