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Madhya Pradesh High Court · body

2014 DIGILAW 38 (MP)

Sanjay Gupta v. State of M. P.

2014-01-08

G.D.SAXENA, S.K.GANGELE

body2014
ORDER Gangele, J. -- 1. The petitioner has filed this public interest litigation in regard to mismanagement of respondent No.4 Society and the irregularities committed by the respondent No.4 Society. 2. The petitioner pleaded in the petition that due to irregularities and mismanagement of the institution/society the future of near about 1200 students who are getting education in the college and schools run by the respondent No.4 Society is in dark. The respondent No.4 Society has not been running the institution, college and schools properly and there were complaints of financial embezzlement and irregularities. Some enquiries have been conducted by the district authorities and the allegations have been found proved. In spite of that, no action has been taken by the authorities in the matter. 3. The petitioner prayed a relief that respondents No.1 and 2 be directed to take over the respondent No.4 Society and an Administrator of the society be appointed. 4. After issuance of notice some more persons and students including the staff members filed intervention applications and their applications have been allowed. 5. J.C. Mills Education Institutions Managing Society was registered in the year 1964 under the provisions of M.P. Society Registrikaran Adhiniyam applicable at that time. It had started imparting education to the children specially workers of J.C. Mills. For the aforesaid purpose, the society had established Primary, Middle and Higher Secondary Schools. In the year 1976 J.C. Mills Girls College was established. At that time, J.C. Mills had been providing financial assistance to the society. It was declared sick and the management of J.C. Mills stopped providing financial aid to the society. 6. A public interest litigation was filed before this Court. It was registered as Writ Petition No.1280/1994 -- J.K. Bhomia v. Secretary of Government of M.P. In the aforesaid petition, the State of M.P. had agreed to provide financial aid to the Society and the Society was directed to run educational institutions. Thereafter, the State of M.P. granted aid for a period of one year. It was discontinued in the year 1995. The State had sanctioned aid to 12 teachers under the provisions of Madhya Pradesh Ashaskiya Shikshan Sanstha (Adhyapakon Tatha Karmachariyon Ke Vetano Ka Sandaya) Adhiniyam, 1978. Subsequently, the aid was reduced to 50% in pursuance to the judgment passed by the High Court and the matter is pending before the Supreme Court. 7. It was discontinued in the year 1995. The State had sanctioned aid to 12 teachers under the provisions of Madhya Pradesh Ashaskiya Shikshan Sanstha (Adhyapakon Tatha Karmachariyon Ke Vetano Ka Sandaya) Adhiniyam, 1978. Subsequently, the aid was reduced to 50% in pursuance to the judgment passed by the High Court and the matter is pending before the Supreme Court. 7. As per the reply filed by the respondent No.4 Society, near about 1177 students have been enrolled in the colleges and schools run by the society in four courses and 19 subjects. There are 37 teaching staffs and 16 non-teaching staff working in the college. The society in its return pleaded that there are 389 students out of 1177 belonging to SC, ST and OBC. From the aforesaid students, the society received meager fees as per the fees structure approved by the State of M.P. and it is getting some expenses from Tribal Welfare Department. The society denied the allegations that there are any mismanagement or misappropriation of funds or any irregularity in the society. Contrary to this, it is pleaded that the society has been managing the college and other institutions properly. Numbers of the students have been increased time to time. The teachers are getting proper salary. The society also questioned the locus of the petitioner to file PIL and submitted that the petition has been filed on behalf of the teachers, who want that the college be taken over by the Government and it is a sponsored petition. 8. The respondents No.1 and 2 in their reply submitted that the Collector Gwalior had received complaint from some lecturers in regard to working of the society. On the aforesaid complaint two member committee was constituted to enquire into the allegations. The committee in its enquiry report found that there were irregularities in the working of the society and financial irregularities were also reported by the committee. On the basis of the report of the committee, the Collector directed the S.P. Economic Offence Wing, Gwalior to conduct investigation in regard to financial irregularities and illegalities committed by the society. A copy of the report was also forwarded to the Registrar, Firms and Societies by the Collector vide letter dated 20.2.2013 with recommendation to take action against the Governing Body of the society. A copy of the report was also forwarded to the Registrar, Firms and Societies by the Collector vide letter dated 20.2.2013 with recommendation to take action against the Governing Body of the society. The Collector also directed the Assistant Commissioner, Tribal Welfare Department vide letter dated 20.2.2013 to conduct an investigation that various girls students had not received scholarship in accordance with the scheme of the Government. The Commissioner Higher Education had also sought detailed explanation and information in regard to mismanagement of the society. It is further pleaded that in the enquiry report the allegations of mismanagement of college and society have been found proved. 9. This Court appointed two practicing advocates as Court Commissioners to conduct an investigation of J.C. Mills Girls College and submits their report. The Commissioners in their report mentioned various irregularities. 10. From the aforesaid facts, it is clear that the committee constituted by the Collector enquired the affairs of the society and found the allegations of mismanagement and misappropriation of funds proved. The Collector wrote a letter to the Economic Offence Wing to conduct an investigation in this regard. A letter had also been written to the Registrar, Firms and Societies to take appropriate action against the society. The Court Commissioners appointed by this Court also confirmed the mismanagement and irregularities upto some extent in their reports. Additional Director, Higher Education, Gwalior Chambal Division in its letter dated 12.2.2013, a copy of which has been filed an Annexure R-1 along with the return, specifically mentioned that the constitution of Governing Body of the society was not proper, hence, an Administrator be appointed. A copy of the letter dated 20.2.2013 written by the Collector District Gwalior to the S.P. Economic Offence Wing Gwalior in regard to taking action against the respondent No.4 Society has been fileld as Annexure R-3. Similarly, the Collector had also written a letter to the Registrar, Firms and Societies in regard to taking over the society and appointment of Administrator. A copy of the letter dated 20.2.2013 has been filed as Annexure R-4. Similarly a letter written to the Registrar of the Jiwaji University by the Collector has also been filed. The Additional Director in its enquiry report also requested the authorities to take action against the society. 11. A copy of the letter dated 20.2.2013 has been filed as Annexure R-4. Similarly a letter written to the Registrar of the Jiwaji University by the Collector has also been filed. The Additional Director in its enquiry report also requested the authorities to take action against the society. 11. From the aforesaid facts of the case, it is clear that the allegations in regard to mismanagement and financial irregularities and mismanagement of the college have been found proved by the authorities, however, no action has been taken by the authorities in this regard. The future of the girls students, who are getting education in the college run by the society would be affected if proper steps are not taken in the matter. It was the duty of the State authorities to take effective steps in the matter. In spite of the adverse reports, no action has been taken by the authorities. Receive proper education is a part and parcel of Article 21 of the Constitution. 12. Looking to the aforesaid facts of the case, in our opinion, in view of the judgment passed by the Hon’ble Supreme Court in State of Uttaranchal v. Balwant Singh Chaufal and others, reported in (2010)3 SCC 402 , regarding maintainability of the PIL, this writ petition in the shape of PIL is maintainable. 13. Section 32 of the M.P. Society Registrikaran Adhiniyam, 1973 prescribes enquiry and settlement of disputes. In accordance with the aforesaid section, Registrar is authorized to hold an enquiry into the constitution and working and financial conditions of the society. Section 33 of the Act prescribes supersession of the Governing Body, which is as under : “33. Supersession of Governing Body. Section 32 of the M.P. Society Registrikaran Adhiniyam, 1973 prescribes enquiry and settlement of disputes. In accordance with the aforesaid section, Registrar is authorized to hold an enquiry into the constitution and working and financial conditions of the society. Section 33 of the Act prescribes supersession of the Governing Body, which is as under : “33. Supersession of Governing Body. -- (1) If, in the opinion of the State Government, Governing Body of any State of any State aided society -- (a) presistently makes default or is negligent in the performance of the duties imposes on it by or under this Act, regulations or bye-laws of the society or by any lawful order passed by the State Government or Registrar, or is unwilling to perform such duties; or (b) commits acts which are prejudicial to the interest of society or its members; or (c) is otherwise not functioning properly; the State Government may, by order in writing, remove the Governing Body and appoint a person or persons to manage the affairs of the society for a specified period not exceeding two years in the first instance. Provided that where it is proposed to remove the Governing Body of the society exclusively on the ground that election the Governing Body were not held in accordance with the provisions of this Act or the regulations or bye-laws made thereunder, no action shall be taken under this sub-section unless the Registrar or an officer authorised by him in this behalf has convened a meeting of the general body for conducting the election thereto in accordance with the provisions of this Act, or the regulations or bye-laws made there under but has failed to get the new Governing Body elected : Provided further that the Registrar or the officer authorised by him shall, for the purpose of conducting election, have all the necessary powers under the Act or the regulations or bye-laws made thereunder.” 14. In accordance with the aforesaid provisions, the State Government has power to supersede the Governing Body of a State aided society. 15. In the present case, the committee appointed by the Collector in its enquiry had found the allegations of mismanagement proved against respondent No.4 Society. The Additional Director, Higher Education, Gwalior Chambal Division had also found the allegations proved in his enquiry. 15. In the present case, the committee appointed by the Collector in its enquiry had found the allegations of mismanagement proved against respondent No.4 Society. The Additional Director, Higher Education, Gwalior Chambal Division had also found the allegations proved in his enquiry. Both the authorities have recommended that an Administrator be appointed and the Governing Body of the Society be superseded. The Commissioners appointed by the Court clearly stated that there was no President of the Society and only 1-2 persons have been looking after the affairs of the society and they are getting the benefits. Due to mismanagement of the society, the future of more than 1100 girls students and their education is being adversely affected. In such circumstances, in our opinion, this Court has power to appoint Administrator of the society and it would also be just and proper to issue directions to take action in the affairs of the society. 16. Consequently, this petition is disposed of with the following directions : (i) The Additional Collector, Gwalior is hereby appointed as Administrator of the respondent No.4 Society. He shall take over the charge of the society immediately and manage the affairs of the respondent No.4 Society and if it is not possible, Additional District Magistrate or any other equivalent officer nominated by the Collector, shall take over the charge of the Society and he shall work and function as Administrator of the society. He shall also take appropriate steps in regard to proper constitution of the Society. (ii) The Registrar, Firms and Societies shall take steps in regard to proper election of the respondent No.4 Society and he would further inquire whether there are sufficient members in the society or not. (iii) The authority of the Economic Offence Wing shall conduct an investigation in regard to financial irregularities as pointed out by the Collector in its letter within a period of six months from the date of receipt of copy of the order. The authority shall ensure that a proper education be provided to the students who are getting education from college and proper facilities be provided in the college. (iv) A compliance report be filed before the Registry of this Court within a period of four weeks. No order as to costs.