K. N. Anilkumar, S/o Narayanan Nair v. Bar Council of India, Represented By Its Secretary
2020-02-07
P.B.SURESH KUMAR
body2020
DigiLaw.ai
JUDGMENT : 1. The decision of the Bar Council of India constituted under the Advocates Act, 1961 (the Act) conveyed to the Chairman and members of the Bar Council constituted for the State of Kerala under the Act in terms of Exts.P3 and P5 communications are under challenge in the writ petition. 2. The petitioner is an Advocate on the rolls of the State Bar Council. He was elected as a member of the State Bar Council during 2005, 2011 and 2018. In his capacity as a member of the State Bar Council, the petitioner served as a member of the Trustee Committee constituted under the Kerala Advocates' Welfare Fund Act, 1980 (the Welfare Fund Act) also as one of the nominated members of the State Bar Council for some time. It is stated by the petitioner that certain irregularities relating to the printing and distribution of the Advocates Welfare Fund Stamps were detected by the Trustee Committee during 2017 and the matter was reported by the Trustee Committee to the State Government and a vigilance case was consequently registered by the Vigilance and Anti Corruption Bureau of the State Government and the investigation in the case is in progress. It is also stated by the petitioner that while so, the Bar Council of India resolved to constitute a member committee headed by a former Judge of the High Court of Gujarat to visit the State Bar Council, examine the records, summon the concerned persons and submit a report after hearing the persons concerned as to the irregularities detected by the Trustee Committee. Ext.P3 is the communication issued by the Bar Council of India to the Chairman and members of the State Bar Council in this regard. In Ext.P3, the resolution adopted by the Bar Council of India has been reproduced. It is alleged by the petitioner that the aforesaid resolution is one purported to have been adopted based on a disclosure made by the Attorney General of India on 3.10.2018, while addressing a meeting in the presence of the Chief Justice of India that the members and office bearers of the Trustee Committee have siphoned trust money running to several crores. It is also stated by the petitioner that his name is also referred to in the resolution as one among the members of the Trustee Committee who alleged to have siphoned the trust money.
It is also stated by the petitioner that his name is also referred to in the resolution as one among the members of the Trustee Committee who alleged to have siphoned the trust money. It is stated by the petitioner that the Attorney General has not made any such disclosures nor there exists any material to indicate that the petitioner has any role in the irregularities detected, and his name has been included in the resolution at the instance of some lawyers who have an axe to grind against the petitioner. It is also stated by the petitioner that later, the Bar Council of India has informed the Chairman and members of the State Bar Council that the Committee appointed in terms of the resolution mentioned in Ext.P3 is proposing to have their first meeting in the office of the State Bar Council on 23.10.2018 for the purpose of enquiry. 3. The case set out by the petitioner in the writ petition is that the Bar Council of India being a creature of the Act, its powers and functions are conditioned with the provisions of the Act; that the Act does not confer on the Bar Council of India any authority to order an enquiry into the affairs of the State Bar Council as done in the resolution mentioned in Ext.P3 communication; that at any rate, the Bar Council of India has no authority to order an enquiry into the affairs of a statutory authority created under a different statute namely the Welfare Fund Act and that therefore, the resolution of the Bar Council of India mentioned in Ext.P3 communication and the decision of the Bar Council of India mentioned in Ext.P5 communication are illegal and without authority of law. The petitioner, therefore, seeks a declaration that the Bar Council of India has no authority or power to conduct any enquiry into the affairs of the Kerala Advocates Welfare Fund and the functioning of the Kerala Advocates Welfare Fund Trustee Committee. The petitioner also seeks orders quashing Exts.P3 and P5 communications. 4. On 23.10.2018, while admitting the writ petition, this Court passed an interim order permitting the enquiry in terms of Ext.P3 decision to go on. It was, however, made clear that no further action pursuant to the enquiry shall be taken without orders from the Court. 5.
The petitioner also seeks orders quashing Exts.P3 and P5 communications. 4. On 23.10.2018, while admitting the writ petition, this Court passed an interim order permitting the enquiry in terms of Ext.P3 decision to go on. It was, however, made clear that no further action pursuant to the enquiry shall be taken without orders from the Court. 5. On 29.01.2019, the Bar Council of India and its Chairman have preferred I.A. No. 1 of 2019 stating that the Committee appointed in terms of the resolution mentioned in Ext.P3 communication has filed an interim report before the Bar Council of India and after considering the interim report, the Bar Council of India has resolved to exclude persons prima facie involved in the scam from voting in the election to the office bearers of the State Bar Council, and sought orders from this Court to give effect to the said decision. The interim report submitted by the Committee appointed in terms of the resolution mentioned in Ext.P3 communication was also produced before this Court along with the said interlocutory application. 6. A detailed counter affidavit has been filed by the Bar Council of India later in the proceedings asserting that the Bar Council of India has the authority to order an enquiry into the affairs of the Trustee Committee under the Welfare Fund Act. 7. Heard Sri. K. Gopalakrishna Kurup, the learned Senior Counsel for the petitioner, Sri.R.Rajith, the learned counsel for the Bar Council of India and its Chairman as also Sri.Grashious Kuriakose, the learned Senior Counsel for the State Bar Council. 8. The learned Senior Counsel for the petitioner took me to the various provisions contained in the Act as also the Welfare Fund Act, and contended that the provisions therein do not clothe the Bar Council of India the authority to order an enquiry in the nature of one mentioned in Ext.P3 into the affairs of the Trustee Committee constituted under the Welfare Fund Act. I am not referring to the provisions in the statutes referred to above on which my attention was drawn now as I propose to deal with them elaborately a little time later. 9. The learned Senior Counsel for the State Bar Council has supported the contentions taken by the learned Senior Counsel for the petitioner.
I am not referring to the provisions in the statutes referred to above on which my attention was drawn now as I propose to deal with them elaborately a little time later. 9. The learned Senior Counsel for the State Bar Council has supported the contentions taken by the learned Senior Counsel for the petitioner. The learned counsel for the Bar Council of India, however, controverted each and every submission made by the learned Senior Counsel for the petitioner pointing out a few provisions of the Act as also the Welfare Fund Act. It was asserted by the learned counsel for the Bar Council of India that the Bar Council of India has the power and authority to adopt a resolution in the nature of one mentioned in Ext.P3 communication. For the very same reason mentioned in the context of the submission made by the learned counsel for the petitioner, I am not referring to the provisions of law on which my attention was drawn by the learned counsel for the Bar Council of India also. 10. I have bestowed my attention to the arguments advanced by the learned counsel on either side. 11. The fact that amounts running to several crores have been siphoned off from the Advocates Welfare Fund constituted under the Welfare Fund Act over a period of almost ten years is not disputed. Even the petitioner maintains the stand that this is a very serious matter and appropriate action shall be taken against the persons involved. The grievance of the petitioner, however, is only as to the authority of the Bar Council of India to order an enquiry into the matter. The short question falls for consideration, therefore, is as to whether the Bar Council of India is empowered in terms of the provisions of the Act to order an enquiry into the affairs of the Trustee Committee constituted under the Welfare Fund Act. 12. Before proceeding to consider the question, the relevant provisions of the Act and Welfare Fund Act have to be understood. I shall first refer to the provisions of the Act. Section 6 of the Act dealing with the functions of the State Bar Council provides that it shall be the function of the State Bar Council to safeguard the rights, privileges and interests of the lawyers on its roll.
I shall first refer to the provisions of the Act. Section 6 of the Act dealing with the functions of the State Bar Council provides that it shall be the function of the State Bar Council to safeguard the rights, privileges and interests of the lawyers on its roll. Section 7 of the Act dealing with the functions of the Bar Council of India provides, among others, that it is the function of the Bar Council of India to safeguard the rights, privileges and interests of lawyers; to exercise general supervision and control over State Bar Councils and to do all other things necessary for discharging the functions referred to above. Section 12 of the Act deals with accounts and audit which provides that every Bar Council shall cause to be maintained such books of accounts and other books in such form and in such manner as may be prescribed. Section 46A confers power on the Bar Council of India to give such financial assistance as it deems fit to the State Bar Councils. Section 48B of the Act provides that for the proper and efficient discharge of the functions of a State Bar Council or any committee thereof, the Bar Council of India may, in the exercise of its powers of general supervision and control, give such directions to the State Bar Council or to any committee thereof as may appear to it to be necessary, and the State Bar Council or the committee shall comply with such directions. 13. Now I shall refer to the relevant provisions of the Welfare Fund Act. The Welfare Fund Act is a State legislation providing for the constitution of a welfare fund for payment of retirement benefits to lawyers in the State of Kerala and for matters connected therewith or incidental thereto. Section 3(1) of the said Act provides that the Government shall constitute a fund called the Advocates' Welfare Fund. Section 3(2) of the said Act deals with the amounts to be credited to the Welfare Fund which include all amounts paid by the State Bar Council under Section 12, any contribution made by the State Bar Council, all sums collected by way of sale of stamps under Section 22 of the Welfare Fund Act etc. Section 4(1) provides that the Government may, by notification, establish a committee to be called the Kerala Advocates Welfare Fund Trustee Committee.
Section 4(1) provides that the Government may, by notification, establish a committee to be called the Kerala Advocates Welfare Fund Trustee Committee. Section 4(3) provides that the Trustee Committee shall consist of the Advocate General, who shall be the Chairman of the Trustee Committee, ex-officio, the Law Secretary to the State Government, ex-officio, a member nominated by the Government, three members of the State Bar Council nominated by it, the Treasurer and Secretary of the State Bar Council ex-officio, as the Treasurer and Secretary of the Trustee Committee and the President of the Kerala Bar Federation, ex-officio. Section 9(1) of the Welfare Fund Act provides that the Trustee Committee shall administer the Welfare Fund. Section 9(2) provides that the Trustee Committee shall hold the assets of the Welfare Fund in trust and shall send periodical reports to the State Bar Council. Section 10(1) of the Welfare Fund Act provides that the Trustee Committee needs permission of the State Bar Council to borrow money and Section 10(3) of the Act provides that all amounts due and payable under the Welfare Fund Act and all expenditure relating to the management and administration of the Welfare Fund shall be paid out of the Welfare Fund. Section 10 (4) provides that the accounts of the Trustee Committee shall be audited annually by a Chartered Accountant appointed by the State Bar Council. Section 10(5) provides that the accounts of the Trustee Committee as certified by the auditor together with the audit report thereon shall be forwarded to the State Bar Council by the Trustee Committee and the State Bar Council may issue such directions as it deems fit to the Trustee Committee in respect thereof. Section 10(6) provides that the Trustee Committee shall comply with the directions issued by the State Bar Council from time to time. Section 12 of the Welfare Fund Act provides that the Bar Council shall pay to the Fund annually an amount equal to 20% of the enrolment fee realised by it. Section 22(1) of the Welfare Fund Act empowers the Bar Council of Kerala to print and distribute Welfare Fund Stamps. Section 22(4) clarifies that Bar Council shall control the distribution and sale of stamps through Bar Associations or other outlets set up by the Bar Council.
Section 22(1) of the Welfare Fund Act empowers the Bar Council of Kerala to print and distribute Welfare Fund Stamps. Section 22(4) clarifies that Bar Council shall control the distribution and sale of stamps through Bar Associations or other outlets set up by the Bar Council. Section 22(5) provides that the Bar Council shall keep proper accounts for the stamps in such form and in such manner as may be prescribed. Section 27 of the Welfare Fund Act confers power on the State Bar Council to make rules for the purpose of carrying into effect the provisions in the Welfare Fund Act. Similarly, Rule 6(1) of the Rules framed under the Welfare Fund Act provides that the Welfare Fund Stamp shall be printed in such manner and at such press as may be decided by the State Bar Council from time to time. Rule 6(2) of the said Rules provides that the Secretary of the State Bar Council shall be the custodian of the Stamp and he shall maintain the records specified therein. Rule 9 of the said Rules provides that the quorum for the meeting of the Trustee Committee shall be five. 14. As noticed, it is the function of the Bar Council of India to safeguard the rights, privileges and interests of lawyers in the country, and in terms of Section 7 of the Act, it is clothed with the authority to discharge the said function and other functions by doing whatever that is necessary for the said purpose. The said authority is reinforced in terms of the power conferred on the Bar Council of India under the said provision for general supervision and control over the State Bar Councils. The said authority is further reinforced in terms of Section 48B of the Act which confers authority on the Bar Council of India to give directions to the State Bar Councils as may appear to it to be necessary for the proper and efficient discharge of its functions and the provision therein that the State Bar Councils shall comply with such directions. It appears that such wide powers are conferred on the Bar Council of India, for, the Act contains provisions empowering the Bar Council of India to give financial assistance to the State Bar Councils as it deems fit. 15.
It appears that such wide powers are conferred on the Bar Council of India, for, the Act contains provisions empowering the Bar Council of India to give financial assistance to the State Bar Councils as it deems fit. 15. Similarly, as noticed, the Advocate's Welfare Fund constituted under the Welfare Fund Act is a fund to be held in trust and administered by the Trustee Committee constituted under the Welfare Fund Act for payment of retirement benefits and other benefits to lawyers. The welfare fund in terms of the provisions of the Welfare Fund Act is a fund created making use of a portion of the enrolment fee received by the State Bar Council, the contributions made by the State Bar Council and also the amounts collected by the State Bar Council by way of sale of Welfare Fund Stamps. Again, the Trustee Committee under the Welfare Fund Act is a committee consisting of nine members, out of which five are the three members of the State Bar Council nominated by the State Bar Council and the secretary and treasurer of the State Bar Council who are to function as the secretary and treasurer respectively of the Trustee Committee as well. The quorum for the meeting of the Trustee Committee being 5, decisions can be taken by the Trustee Committee only if the State Bar Council so chooses. Likewise, it is to be noted that in terms of the provisions of the Welfare Fund Act, the Trustee Committee has to send periodical reports to the State Bar Council and the Trustee Committee cannot borrow money without the permission of the State Bar Council. Similarly, it is the function of the State Bar Council to print and distribute the Welfare Fund Stamps by making use of the fund. Again, it is seen that in terms of the provisions of the Welfare Fund Act, the accounts of the Trustee Committee is liable to be audited annually by a Chartered Accountant appointed by the State Bar Council and the Trustee Committee is bound to provide audited report to the State Bar Council. The State Bar Council is also seen conferred with the authority to issue directions to the Trustee Committee as regards its accounts and in terms of the provisions of the Act, the Trustee Committee is bound to comply with such directions.
The State Bar Council is also seen conferred with the authority to issue directions to the Trustee Committee as regards its accounts and in terms of the provisions of the Act, the Trustee Committee is bound to comply with such directions. It is also to be noticed that it is the function of the State Bar Council to keep proper accounts for the Welfare Fund Stamps. Similarly, the power to make rules to give effect to the provisions of the Welfare Fund Act is also conferred on the State Bar Council. 16. A conjoined reading of the provisions of the Act as also the Welfare Fund Act indicate beyond doubt that though the Trustee Committee is a creature of the Welfare Fund Act, the provisions in the Welfare Fund Act are couched in such a fashion that the Trustee Committee shall function under the supervision and control of the State Bar Council. The provisions conferring exclusive authority to the State Bar Council to print and distribute Welfare Fund Stamps, the provisions conferring exclusive authority on the State Bar Council to maintain the accounts of the Welfare Fund Stamps printed and distributed, the provisions conferring authority on the State Bar Council to appoint an auditor for auditing the accounts of the Trustee Committee, the provisions conferring authority on the State Bar Council to issue directions to the Trustee Committee for auditing their accounts would all go to show that in terms of the provisions contained in the Welfare Fund Act, it is the obligation of the State Bar Council to ensure that the Trustee Committee manages its affairs and holds its fund in trust for the benefit of the lawyers. As noted, the fact that amounts running to several crores have been siphoned off from the Advocates Welfare Fund over a period of almost ten years is not disputed. In the above background, if the Bar Council of India finds that the State Bar Council, which is also bound in terms of the provisions of the Act to safeguard the rights, privileges and interests of lawyers, has failed to discharge its functions, they are certainly within their powers to do all that is necessary to protect the interests of the lawyers.
Further, according to me, in a case of this nature, the question whether the Bar Council of India has the requisite power to order an enquiry into the affairs of the Trustee Committee is to be resolved by finding out whether the State Bar Council could have prevented the siphoning off the funds to be held in trust by the Trustee Committee. Having regard to the provisions of the Act and the Welfare Fund Act, I have no doubt that had the State Bar Council been vigilant, the irregularities in the nature of one detected could have certainly been avoided. Needless to say that the Bar Council of India has the authority in terms of the provisions of the Act to adopt a resolution in the nature of one mentioned in Ext.P3 communication. The writ petition, in the circumstances, is without merits and the same is, accordingly, dismissed.