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1999 DIGILAW 1319 (PAT)

Bihar Yuva Adhivakta Kalyan Samiti v. State of Bihar

1999-12-13

AFTAB ALAM

body1999
ORDER This is in continuation of the earlier orders passed by this court in this matter. In the earlier orders, it was seen that huge amounts (running into several crores of rupees) of the sale proceeds of the Advocates welfare stamps remain unaccounted for. This huge loss has occurred, in all probability, on account of sale of fake stamps by the private stamp vendors who are given licence for selling Advocates welfare stamps. There is no mechanism to control the sale of Advocates welfare stamps by the private stamp vendors as a result of which they seem to have absolute freedom for selling fake stamps resulting in enormous loss to the welfare fund for the Advocates of this State. The present mode of the distribution and sale of the Advocates welfare stamps have, thus, proved to be thoroughly deficient. All the parties involved in this case, namely, the petitioners, the Bihar State Bar Council, the Trustee Committee and the State Government are in agreement on this issue. They are further in agreement that within the parameters of the Bihar State Advocates Welfare Fund Act (hereinafter referred to as 'the Act') some alternative and better mode of distribution and sale of Advocates' welfare stamps has to be evolved in order to save the welfare fund from its enormous losses. In course of deliberations the parties arrived at the concensus that the scheme of the Advocates welfare fund which is established for the lawyers should also be operated and controlled by the lawyers and all intermediaries should be removed as far as practicable. It was further agreed on all quarters that the Bihar State Bar Council which is the democratically constituted statutory body of the Advocates of this State must come forward and take up the responsibilities to ensure proper functioning of the scheme of the Advocates' welfare fund as established under the Act. A greater share of responsibilities for the Bar Council would only be in furtherance of its functions as envisaged under sections 6(1) (d) and 6 (2) of the Advocates Act, 1961. Having regard to the aforesaid all concerned, namely, the petitioners, the Bihar State Bar Council, the Trustee Committee under the Act and the State Government agreed to a scheme for the distribution and sale of Advocates' welfare stamps as provided under section 22 of the Act. Having regard to the aforesaid all concerned, namely, the petitioners, the Bihar State Bar Council, the Trustee Committee under the Act and the State Government agreed to a scheme for the distribution and sale of Advocates' welfare stamps as provided under section 22 of the Act. The scheme agreed upon by all concerned in this case is being incorporated as an order passed by this court and hence, all the parties will be obliged to a strict adherence to it. Henceforth, the distribution and sale of the Advocates' welfare stamps under section 22 of the Act will be made following the directions given below:- (i) The Bihar State Bar Council (hereinafter referred to as 'the Bar Council') will make an application, within fifteen days from today for grant of licence under the rules framed under sections 27 and 34 of the Court Fees Act and section 74 of the Indian Stamps Act. The Collector, Patna being the competent authority, will issue a licence to the Bar Council, within one month from its making the application, only for sale of the Advocates' Welfare Stamps. (ii) On its obtaining the licence, the State Government will issue Advocates' welfare stamps only to the Bar Council and to no one else for the purpose of sale and distribution of the stamps under section 22 of the Bihar Advocate’s Welfare Fund Act, 1983. (iii) The Bar Council will give a bond in favour of the State Government and also an undertaking to cover and, in case called upon, to repay the value of the stamps to be issued to it by the State Government over a period of three months. The Advocate's Welfare Stamps upto the value covered by the bond and the undertaking given by the Bar Council will be issued to it in a quarter on payment of only the actual printing cost of the stamps to the State Government. (iv) On receipt of the Advocates' welfare stamps the Bar Council will not sell those stamps to the consumers directly but for further distribution and sale of the stamps the Bar Council will supply the stamps in requisite numbers to such of the Advocates' Association which are affiliated to it and which have obtained licences for vending the Advocates' welfare stamps from the respective Collectors/Deputy. Commissioners of the districts. Commissioners of the districts. In case any Advocates' Associations in any districts or sub divisions are yet to obtain licences for vending the Advocates' welfare stamps, the Bar Council will take steps to ensure that all the defaulting Advocates' Associations in all the districts and subdivisions should obtain the licence within three months from today. In this connection the concerned District Magistrate/Deputy Commissioner, being the licensing authority are directed that on applications being duly made, licences, only for the sale of the Advocates' welfare stamps, must be Issued without any delay and preferably within one month from the date of making such applications. The failure of the District Magistrate/ Deputy Commissioner to issue licences to the Advocates Association on their making applications within the time specified in this order may be viewed as a deliberate disobedience of this court's order and may make the concerned official liable to be proceeded against for contempt of this court (v) The Bar Council and the Advocates' Associations will be jointly entitled to commission on the sale of the Advocates' welfare stamps which shall not exceed 2% of the total value of stamps sold. (vi) The Bar Council will frame scheme/rules providing for the regulation and control of the supply of the stamps to the different Advocates' Associations for distribution and sale as well as for collecting the sale proceeds of the stamps from each of the Advocates' Associations. Besides other relevant matters, the Rules will provide for the safe keeping of the stamps both at patna in the hands of the Bar Council and at different centres in the hands of the different Advocates Associations. The rules-will also provide for the manner in which the commission on the sale of stamps is to be shared between the Bar Council and the different Advocates Associations. It will be open for the Bar Council to allow the sharing of the commission among the different Advocates' Associations at different rates keeping in mind the special needs of each of the Advocates' Associations. The relevant Rules/Schemes must be framed and formally approved by the Bar Council within two months from today. It will be open for the Bar Council to allow the sharing of the commission among the different Advocates' Associations at different rates keeping in mind the special needs of each of the Advocates' Associations. The relevant Rules/Schemes must be framed and formally approved by the Bar Council within two months from today. (vii) At the end of each quarter the Bar Council will submit the sale proceeds after deducting commission @ not exceeding 2% of the total sale of the stamps issued to it during that quarter, to the State Government and the State Government in turn, will transfer the amount to the accounts of the trustee committee within ten days from its receipt. Any delay after ten days from the receipt of the amount will make the State Government liable to pay interest on the delayed payment @ 15% per annum. Or preferably the State Government may direct the Bar Council to directly transfer the sale proceeds to the account of the trustee committee. Any such direction will be deemed to be in due compliance with the provisions of sub-section (5) of Section 22 of the Act. Further, in case the second alternative is adopted by the Government, the Government treasuries will cease to have any liability in case of loss or damage of any stamps issued by it. (viii) Any fresh supply of the stamps will be made to the Bar Council only after a complete account of the stamps issued to it in the previous quarter is furnished to the State Government jointly by the Bar Council and the Trustee Committee, in case the Government adopts the first course in clause (viii) and by the Bar Council alone in case the second course is adopted by the Government. It is further directed that the sale proceeds of Advocates welfare stamps lying in the different Government treasuries must be transferred by the Government to the account of the Trustee Committee without any delay and preferably within one month. The Bar Council is directed to circulate copies of this order in all the Advocates' Associations where copies of the order will be displayed on the Association Notice Board for wider information. Let copies of this order be given to counsel for the petitioner Mr. Prem Kumar Jha, Mr. Ghosh, A.A.G.II, Mr. Rajendra Pd. Singh for the Bihar State Bar Council and Mr. Let copies of this order be given to counsel for the petitioner Mr. Prem Kumar Jha, Mr. Ghosh, A.A.G.II, Mr. Rajendra Pd. Singh for the Bihar State Bar Council and Mr. Mihir Kumar Jha, counsel appearing for the Trustee Committee. Put up this case after four months, if need be In chambers when this court would see how far the orders passed today are being carried out in letter and spirit.