JUDGMENT Shaji P.Chaly, J. This writ appeal is preferred by the petitioner in W.P.(C) No.34256/2018 against the judgment dated 7.2.2020, whereby learned Single Judge dismissed the writ petition holding that, the Bar Council of India has got sufficient power as per the provisions of the Advocates Act, 1961, hereinafter called, 'Act, 1961' and the Kerala Advocates Welfare Fund Act, 1980, hereinafter called, 'Act, 1980' and the Kerala Advocates' Welfare Fund Rules, 1981, hereinafter called, 'Rules, 1981', to conduct enquiry into any irregularities committed by the members of the Trustee Committee. Brief material facts for the disposal of the writ appeal are as follows; 2. Appellant is a member of the Bar Council of Kerala from 2005 onwards. He was also a member of the Kerala Advocates Welfare Fund Trustee Committee as nominated by the Bar Council of Kerala. During the year 2017, certain irregularities were detected in respect of the Kerala Advocates Welfare Fund constituted as per the provisions of Act, 1980. A complaint was filed before the Vigilance and Anti Corruption Bureau and a case was thus registered against one of the employees and is under investigation. While so, the Bar Council of India, the 1st respondent herein, constituted a four member committee to conduct an enquiry into the misappropriation of Welfare Fund. The first respondent in its resolution dated 6.10.2018, forwarded to the Bar Council of Kerala, as per Ext.P3 letter dated 12.10.2018, a reference is made naming the appellant as one among those responsible for the misappropriation of funds. The seminal question raised by the appellant in this appeal is, whether the learned Single Judge was right in holding that the Bar Council of India is empowered to conduct enquiry into any irregularity of the Welfare Fund Trust Committee constituted as per Act, 1980 by the Bar Council of Kerala. 3. A detailed counter affidavit was filed by the Bar Council of India as well as Bar Council of Kerala in the writ petition. Bar Council of India has refuted the contentions put forth by the appellant with regard to his innocence in the matter. It was also contended that the Bar Council of India has got sufficient power as per the provisions of Act, 1961, Act, 1980 and the Rules, 1981 specified above to proceed against the members of the Welfare Fund Trustee Committee in view of the complaints received and the decision taken. 4.
It was also contended that the Bar Council of India has got sufficient power as per the provisions of Act, 1961, Act, 1980 and the Rules, 1981 specified above to proceed against the members of the Welfare Fund Trustee Committee in view of the complaints received and the decision taken. 4. On the other hand State Bar Council has disputed the allegations made against it by the Bar Council of India with respect to its negligence in administering the fund as per the Act, 1980 and Rules, 1981 and also contended that, it was administering the fund in accordance with the provisions of the Act and Rules and there was no wilful negligence on its part in administering the fund. 5. Learned Single Judge after taking into account the relevant provisions of Act, 1961, Act, 1980 and the Rules, 1981 has held that, on a reading of the provisions of the Acts and Rules, there is no doubt that the Trustee Committee is a creature of Act, 1980, that the provisions of Act, 1980 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 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. Further it was held that, 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.
It is also held that, 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. It was accordingly that the writ petition was dismissed. 6. The paramount contention advanced by the appellant in the appeal is that except the vague and general statement about the information conveyed by some lawyers of Kerala, no tangible material or any complaint in writing by any persons was before the Bar Council of India while passing Ext.P3 resolution dated 6.10.2018 and that the resolution resolving to institute an enquiry into the alleged irregularities and misappropriation of funds managed by the Kerala Advocates Welfare Fund Trustee Committee is not within the powers of Bar Council of India. Though the powers of general supervision and control is vested with the Bar Council of India, the same is only in respect of the functions and powers under the Act, 1961 and not beyond that. So also it is contended that merely because the provisions of Act, 1980 entrusts certain functions with reference to the management of the Advocate Welfare Fund, it is not sufficient to clothe the Bar Council of India with any powers to institute a committee to enquire into the alleged irregularities in the management of the fund. 7. We have heard learned Senior Counsel for the appellant Sri. K. Gopalakrishna Kurup, assited by Advocate Smt. Anuroopa Jayadeven, Adv.Rajit for the Bar Council of India and learned Senior Council Sri. Gracious Kuriakose assisted by Adv. George Mathews for the Bar Council of Kerala and perused the pleadings and documents on record. 8. Respective counsel have addressed their arguments in accordance with the pleadings put forth in the writ appeal and the writ petition as is discussed above. 9. The discussion made above would make it clear that, the issue relates to misappropriation of funds of the Kerala Advocates Welfare Fund constituted as per Act, 1980. Apparently and indisputably the amount that is siphoned from the fund is more than Rs.7 Crores.
9. The discussion made above would make it clear that, the issue relates to misappropriation of funds of the Kerala Advocates Welfare Fund constituted as per Act, 1980. Apparently and indisputably the amount that is siphoned from the fund is more than Rs.7 Crores. It is true, in connection with the same, an employee of the Bar Council of Kerala, who was also discharging the functions of the Welfare Fund Trustee Committee, was arrested and a case is registered by the Vigilance and Anti Corruption Bureau, evident from Ext.P1 First Information Report, VC 2/2018/CRE under section 13(2) r/w 13(1)(c)(d) of the Prevention of Corruption Act, 1988. On a reading of Ext.P3 letter of the Bar Council of India dated 12.10.2018, what we could gather is that a resolution dated 6.10.2018 is passed by the Bar Council of India while considering item No.402/2018 in relation to the matter of alleged misappropriation of approximately Rs.7 Crores of the Welfare Fund by the trustees of Bar Council of Kerala for the period 2007-2016. It is also stated there under that the said issue was raised by the Attorney General of India in his speech in the Supreme Court, in a function conducted by the Bar Association to felicitate the Hon'ble Chief Justice of India on 3rd October, 2018. The resolution No.402/2018 reads thus: “The Council has consideration the instant matter with due consideration and deliberation. On 3rd of October, 2018 in the felicitation function of Hon'ble the Chief Justice of India, which was organized by the Supreme Court Bar Association (S.C.B.A.), the Hon'ble Attorney General for India Mr. K.K. Venugopal in his address to the audience raised the question of misappropriation of about Rs. 7 crores by the Trustees of Bar Council of Kerala. This issue drew the attention of everybody sitting there including almost all the Hon'ble Judges of Supreme Court, Office-Bearers of S.C.B.A. Sr. Advocates and it was shocking for everybody present in the function. The Chairman, BCI and Chairman, Executive Committee, BCI along with some other members were also present in the function. Subsequently, the office tried to find out the truth and it was informed by some of the Lawyers of Kerala that the Members of the Trustee Committee along with Secretary of the Council have been indulged in misappropriating the Trust money for the welfare of the lawyers of Kerala and during the period 20072015 more than Rs.
Subsequently, the office tried to find out the truth and it was informed by some of the Lawyers of Kerala that the Members of the Trustee Committee along with Secretary of the Council have been indulged in misappropriating the Trust money for the welfare of the lawyers of Kerala and during the period 20072015 more than Rs. 7 crores have been misappropriated/bungled by a few members of the Trustee Committee including one Mr. Anilkumar K N, who was a Member of the Trustee Committee for several years. The Secretary is also alleged to have taken active part it the process. As per the information, some FIRs have been lodged but the Advocates of Kerala are of feeling afraid that since Mr. Anilkumar K N is an active member of the ruling political party and is very close to some of the powerful political leaders of ruling party, the police is not taking interest in proper investigation of the matter and at the instance of the powerful people, the efforts are made to hush up this serious issue. The matter, as stated above, has drawn the attention of the highest Judiciary of the nation and also of the Sr. Advocates practicing in the Supreme Court. The issue was raised by not an ordinary man, but by the Hon'ble Attorney General for India who hails from the State of Kerala itself. Therefore with great pains, he made this issue public, knowing it full well that the Chairman and other Office-bearers of the Council, the Hon'ble Chief Justice of India and other Hon'ble Judges of Supreme Court were present in that function. The Council cannot overlook the seriousness of the issue and since it is the Lawyers' money, it cannot close its eyes only because of the fact that the local police is in the hands and gloves of some of the culprits who are close to the powerful people of the State of Kerala. Council therefore resolved to constitute a 4-men committee headed by Hon'ble Mr.Justice Deepak K.Trivedi, former Judge, High Court of Gujrat, the other members of the committee are Hon'ble Mr. Justice B.C. Kandpal, former Judge, High Court of Uttarakhand, Hon'ble Members, BCI namely Mr. Vijay Bhatt and Mr. Bhoj Chander Thakur.
Council therefore resolved to constitute a 4-men committee headed by Hon'ble Mr.Justice Deepak K.Trivedi, former Judge, High Court of Gujrat, the other members of the committee are Hon'ble Mr. Justice B.C. Kandpal, former Judge, High Court of Uttarakhand, Hon'ble Members, BCI namely Mr. Vijay Bhatt and Mr. Bhoj Chander Thakur. The Committee is requested to visit the Bar Council of Kerala and examine the records, summon the concerned persons (including the Secretary State Bar Council of Kerala) and after examining the materials and/or hearing the persons concerned, submit its report within a period of 3 weeks from the date of receipt of the copy of this resolution. Let a copy of this resolution be forwarded to the Special Committee for the Bar Council of Kerala without any delay. The Special Committee of Bar Council of Kerala is requested and directed to extend its full cooperation to the aforementioned enquiry Committee. Resolved accordingly." 10. Thereafter on 16.10. 2018, yet another order was passed by the Bar Council of India produced as Ext.P4 basically restraining the Advocate General of Kerala, who was the Chairman of the Special Committee of the Bar Council of Kerala, from discharging any function as Chairman of the Special Committee or as the Chairman of the Advocates Welfare Fund Trustee Committee and informing that such functions would be discharged by the nominee of Attorney General of India. It is also stated therein that the decision is being taken in the interest of justice and for saving the institution under the extraordinary unforeseen circumstances. Certain other directions were also issued. 11. So much so it was intimated there under that the Enquiry Committee constituted as per the resolution dated 6.10.2018 will visit the Bar Council of Kerala and initiate enquiry at the earliest and finish the process latest by 15th November, 2018. Later the Bar Council of India as per a communication dated 18.10.2018 has informed the Chairman and the members of the Special committee and the Secretary of the State Bar Council that the Enquiry Committee constituted by the Bar Council of India as per its resolution dated 6.10.2018 will hold its first sitting on 23.10.2018 in the premises of the Bar Council of Kerala.
According to the learned Senior Counsel for the appellant, the Bar Council of India is not vested with any powers to constitute a committee and conduct enquiry into the functions carried out by the Welfare Fund Trustee Committee constituted as per Act, 1980 and has controlled and regulated by the provisions of Act, 1980 and the Rules, 1981. 12. In order to understand the arguments advanced by learned Senior Counsel, it would be worthwhile to refer to some of the provisions of Act, 1961. Section 7 of the Act, 1961 deals with functions of Bar Council of India. Sub-sections 1, 2 and 3 there under, read thus: 7. Functions of Bar Council of India.—[(1)] The functions of the Bar Council of India shall be— a[***] (b) to lay down standards of professional conduct and etiquette for advocates; (c) to lay down the procedure to be followed by its disciplinary committee and the disciplinary committee of each State Bar Council; (d) to safeguard the rights, privileges and interests of advocates; (e) to promote and support law reform; (f) to deal with and dispose of any matter arising under this Act, which may be referred to it by a State Bar Council; (g) to exercise general supervision and control over State Bar Councils; (h) to promote legal education and to lay down standards of such education in consultation with the Universities in India imparting such education and the State Bar Councils; (i) to recognise Universities whose degree in law shall be a qualification for enrollment as an advocate and for that purpose to visit and inspect Universities 3[or cause the State Bar Councils to visit and inspect Universities in accordance with such directions as it may give in this behalf]; 1[(ia) to conduct seminars and organize talks on legal topics by eminent jurists and publish journals and papers of legal interest; (ib) to organise legal aid to the poor in the prescribed manner; (ic) to recognise on a reciprocal basis foreign qualifications in law obtained outside India for the purpose of admission as an advocate under this Act;] (j) to manage and invest the funds of the Bar Council; (k) to provide for the election of its members; (l) to perform all other functions conferred on it by or under this Act.
(m) to do all other things necessary for discharging the aforesaid functions; [(2) The Bar Council of India may constitute one or more funds in the prescribed manner for the purpose of— (a) giving financial assistance to organise welfare schemes for indigent, disabled or other advocates; (b) giving legal aid or advice in accordance with the rules made in this behalf;] (c) establishing law libraries. (3) The Bar Council of India may receive any grants, donations, gifts or benefactions for all or any of the purposes specified in subsection (2) which shall be credited to the appropriate fund or funds constituted under that sub-section.]” 13. On a reading of section 7(1)(d) of Act, 1961, it is clear that Bar Council of India is conferred with a duty to safeguard the rights, privileges and interests of the Advocates. As per clause (g) thereto, it is vested with powers of general supervision and control over the State Bar Councils. As per clause (m), it is vested with powers, coupled with a duty to do all other things necessary for discharging the functions conferred under section 7 of Act, 1961. Section 12 of Act, 1961 deals with accounts and audit and every Bar Council is duty bound to maintain such books of accounts and other books in such form and in such manner as may be prescribed. Sub-section (2) there under stipulates that the accounts of Bar Council shall be audited by auditors duly qualified to act as auditors of companies under the Companies Act, 1956 at such times and in such manner as may be prescribed. Sub-sections (3) and (4) are relevant to the context, which read thus: “(3) As soon as may be practicable at the end of each financial year, but not later than the 31st day of December of the year next following, a State Bar Council shall send a copy of its accounts together with a copy of the report of the auditors thereon to the Bar Council of India and shall cause the same to be published in the Official Gazette.
(4) As soon as may be practicable at the end of each financial year, but not later than the 31st day of December of the year next following, the Bar Council of India shall send a copy of its accounts together with a copy of the report of the auditors thereon to the Central Government and shall cause the same to be published in the Gazette of India.” 14. Therefore, on a conjoint reading of the provisions contained under section 12 of Act, 1961, it is clear and evident that the Bar Council of Kerala was duty bound to conduct audit in terms of the provisions of the said Act and forward the same to the Bar Council of India on or before 31st day of December every year. Section 15 empowers the Bar Council of India to make rules to carry out the purposes of Chapter II containing the provisions discussed above. Section 15(2)(ga) empowers the Bar Council to constitute one or more funds for the purpose of giving financial assistance or giving legal aid or advice referred to in sub-section (2) of section 6 and sub-section (2) of section 7 of Act, 1961. 15. Therefore, on a harmonious reading of the provisions of section 7 of Act, 1961 and the rules discussed above, it would be clear that the fund is constituted in accordance with the provisions of the Act, 1961. Therefore, whatever rules made by the Bar Council of Kerala is by virtue of the powers conferred under the Act, 1961, and whereby the supervisory powers of the Bar Council of India conferred under section 7 of Act, 1961 enables the Bar Council to conduct necessary enquiry if and when it receives any information or complaint with respect to the misappropriation of funds constituted as per the provisions of Act, 1961, Act, 1980 and the Rules framed there under. Again, as per section 19 of Act, 1961 every State Bar Council is enjoined with a duty to send to the Bar Council of India an authenticated copy of the roll of advocates prepared by it for the first time under this Act and shall thereafter communicate to the Bar Council of India all alterations in, the addition to, any such roll, as soon as the same have been made.
The State Bar Council as per section 15 is vested with powers to make rules for carrying out the purposes of Chapter III dealing with admission and enrolment of advocates. The provisions of Chapter III enables the State Bar Council to maintain rolls of advocates, transfer of name from one State roll to another, persons who may be appointed as Advocate on a State roll prescribing his qualification, disposal of application for admission as an advocate, power to remove names from roll etc. etc. Section 46(a) is a very significant provision dealing with financial assistance to State Bar Council which states that the Bar Council of India may, if it satisfies with any State Bar Council, is in need of funds for the purpose of performing its functions under Act, 1961, give such financial assistance, as it deems fit, to that Bar Council by way of grant or otherwise. 17. That apart section 48A of Act, 1961 empowers the Bar Council of India for revising any decision of the State Bar Councils or any committee constituted thereof, which read thus: “48A. Power of revision.--(1) The Bar Council of India may, at any time, call for the record of any proceedings under this Act which has been disposed of by a State Bar Council or a committee thereof, and from which no appeal lies, for the purpose of satisfying itself as to the legality or propriety of such disposal and may pass such orders in relation thereto as it may think fit. Section 48B of Act, 1961 deals with power to give directions, which read thus: “48B. Power to give directions.—(1) 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 any committee thereof as may appear to it to be necessary, and the State Bar Council or the committee shall comply with such directions.
(2) Where a State Bar Council is unable to perform its functions for any reason whatsoever, the Bar Council of India may, without prejudice to the generality of the foregoing power, give such directions to the ex officio member thereof as may appear to it to be necessary, and such directions shall have effect, notwithstanding anything contained in the rules made by the State Bar Council.” 18. Section 49 of Act, 1961 confers power on the Bar Council of India to make rules for discharging its functions under the Act, and in particular such rules may prescribe, among other things, “the conditions subject to which an advocate shall have the right to practise and the circumstances under which a person shall be deemed to practise as an advocate in a court as provided under clause (ah). Sub-section 49(1)(f) specifies “the procedure to be followed by the disciplinary committee of a State Bar Council and by its own disciplinary committee”. 19. Therefore, on an appreciation of the said provisions also, it is clear and convincing that, the Bar Council of India is conferred with power coupled with duty for ensuring the functioning of the State Bar Council and the committees constituted effectively and properly, and ensuring that no manner of prejudice is caused to the welfare and well being of the advocates. The above said findings made by us would be further justified on making reference to certain other provisions of Act, 1980 and Rules, 1981 also. Now coming to the provisions of Act, 1980, section 3 makes it clear that, the Government shall constitute a fund called “Advocates' Welfare Fund”. Sub-section (2) there under deals with creation of fund, which takes in; (a) All amounts paid by the Bar Council under section 12 of the Act, 1980. (b) Any other contribution made by the Bar Council (c) Any voluntary donation or contribution made to the Fund by the Bar Council of India, any Bar Association, any other association or institution, any Advocate or any other person. 20. Those are some of the methods by which the fund is generated towards the Welfare Fund among others. Section 4 of Act, 1980 deals with establishment of Trustee Committee which read thus: 4.
20. Those are some of the methods by which the fund is generated towards the Welfare Fund among others. Section 4 of Act, 1980 deals with establishment of Trustee Committee which read thus: 4. Establishment of Trustee Committee--(1) The Government may, by notification in Gazette, establish with effect such date as may be specified therein, a committee to be called the Kerala Advocates Welfare Fund Trustee Committee. (2) The Trustee Committee shall be a body corporate having perpetual succession and a common seal with power to acquire and hold property and shall, by the said name, sue and be sued. (3) The Trustee Committee shall consists of…… (a) the Advocates General of Kerala,who shall be the Chairman of the Trustee Committee, ex-officio. (b) The Law Secretary to Government, ex-officio. (c) A member nominated by the Government. (d) 1 [ three members ] of the Bar Council nominated by it. (e) the Treasurer of the Bar Council, who shall be the treasurer of the Trustee Committee ex-officio. (f) The Secretary of the Bar Council , who shall be the Secretary of the Trustee Committee, ex-officio. (g) [The President of Kerala Bar Federation ex-officio (4) A member nominated by the Government under clause (c) of subsection (3) shall hold office of a term of four years. (5) A member nominated by the Bar Council under clause (d) of subsection (3) shall hold office for a term of four years or for the duration of his membership in the Bar Council, whichever is less.” 21. Therefore, on a reading of section 4, it is clear that the Trustee Committee includes the members of Bar Council nominated by it, the Treasurer of the Bar Council and the Secretary of Bar Council, who shall be the Secretary of the Trustee Committee ex-officio, which would go to show that the Trustee Committee constituted as per Act, 1980 is not an independent committee detached from the State Bar Council. So much so the State Bar Council has got intrinsic and vital control in the management and regulation of the Trustee Committee. Section 5 deals with disqualifications and removal of nominated members of Trustee Committee for various reasons, and sub-section 1(d) thereto states that if the members of Trustee Committee is a defaulter to the fund (in case he is a member of the Fund) or has committed breach of trust, he shall be removed. 22.
Section 5 deals with disqualifications and removal of nominated members of Trustee Committee for various reasons, and sub-section 1(d) thereto states that if the members of Trustee Committee is a defaulter to the fund (in case he is a member of the Fund) or has committed breach of trust, he shall be removed. 22. True, as per section 5(2) of Act, 1980, the Government is vested with powers to remove any member who is or has become disqualified under sub-section (1) from membership of the Trustee Committee. Section 9 deals with the functions of the Trustee Committee, and sub-section 2(a) there under makes it clear that amounts and assets are held belonging to the Fund in trust. Likewise sub-section 2(c) enables the trustee committee to receive application from the members of the Fund, their nominees or legal representatives, as the case may be, for payment out of the Fund, conduct such enquiry as it deems necessary for the disposal of such applications and dispose of the applications within five months from the date of receipt thereof. Section 10 deals with funds borrowing and investment, and sub-section (5) thereto deals with accounts of the Trustee Committee as certified by the auditor, together with the audit report thereon, shall be forwarded to the Bar Council by the Trustee Committee and the Bar Council may issue such directions as it deems fit to the Trustee Committee in respect thereof. Sub-section (6) makes it clear that the Trustee Committee shall comply with the directions issued by the Bar Council under sub-section (5). Section 11 deals with powers and duties of the Secretary of the Trustee Committee, who is the Secretary of the Bar Council, and who is Chief Executive Authority of the Trustee Committee responsible for carrying out its decisions and who is also vested with powers to operate bank account of the Trustee Committee jointly with the Treasurer, who is the Treasurer of the State Bar Council and to maintain registers and verify periodically the accounts and registers of the Bar Association regarding stamps and the Secretary is also duty bound to carry out all such directions by the Trustee Committee and Bar Council. 23. So much so section 12 of Act, 1980 makes it clear that the Bar Council shall pay to the Welfare Fund annually an amount equal to twenty percent of the enrolment fees realised by it.
23. So much so section 12 of Act, 1980 makes it clear that the Bar Council shall pay to the Welfare Fund annually an amount equal to twenty percent of the enrolment fees realised by it. Section 17 is a protective provisions which restricts alienation, detachment etc., of interest of member in the Fund. Sub-section (1) thereto stipulates that the interest of any member in the Fund or the right of a member or his nominee or legal heirs to receive any amount from the Fund, shall not be assigned, alienated, or charged and shall not be liable to attachment under any decree or order of any Court, Tribunal or other authority and as per sub-section (2) thereunder, no creditors shall be entitled to proceed against the Fund or interest therein of any member or his nominee or legal heirs. Section 21 deals with appeal against decisions of Trustee Committee and such appeals shall lie to the Bar Council. That apart section 22 deals with printing and distribution of stamps by the Bar Council, which empowers the Bar Council to cause to print and distribute Welfare Fund stamps of the value of fifteen rupees and twenty five rupees with the Bar Council emblem and its value inscribed thereon and the size of the stamp and colour shall be in accordance with the decision of the Bar Council from time to time and custody of the stamps shall also be with the Bar Council. The Bar Council is vested with control and distribution and sale of stamps through Bar Associations or through the outlet set up by the Bar Council for the purpose. In accordance with the stipulations contained under section 22, the Bar Council and the Bar Associations shall keep proper accounts of the stamps in such form and in such manner as may be prescribed. The Bar Association are also liable to purchase stamps from the Bar Council after paying the value thereof less ten percent of such value towards incidental expenses. 24. The Rules, 1981 are made under the Act for the purpose of regulating the procedure to be followed to carry out the functions of the Trustee Committee constituted as per Act, 1980. Rule 8 deals with functions of the Trustee Committee.
24. The Rules, 1981 are made under the Act for the purpose of regulating the procedure to be followed to carry out the functions of the Trustee Committee constituted as per Act, 1980. Rule 8 deals with functions of the Trustee Committee. Sub-section (3) thereto stipulates that the Trustee Committee shall send to the Bar Council and Government quarterly and annual reports showing the receipts to and disbursements from the Fund and other particulars and on such other occasions as may be required by the Bar Council. 25. The provisions discussed above would make it clear that the contention advanced by learned Senior Counsel for the appellant that the Trustee Committee constituted as per Act, 1980 is carrying out its functions without any control of the State Bar Council cannot be countenanced. Therefore, on a harmonious and conjoint reading of the provisions of Act, 1961 and Act, 1980, it is clear that the Bar Council of India is having power for controlling the members of the State Bar Council and in turn certain of the members of the Trustee Committee since the Trustee Committee includes members of the State Bar Council, nominated by the State Bar Council, and that apart the Treasurer and the Secretary of the State Bar Council are the Treasurer and Secretary of the Trustee Committee. 26. In this context, in regard to power coupled with duty, The Lord Chancellor Earl Cairns in Julius v. Lord Bishop of Oxford [All England Reporter 43 HL], it is observed thus: "There may be something in the nature of the thing empowered to be done, something in the object for which it is to be done, something, in the conditions under which it is to be done, something in the title of the persons for whose benefit the power is to be exercised, which may couple the power with a duty, and make it the duty of the person in whom the power is reposed to exercise that power when called upon to do so." L.Hirday Narain v. Income Tax Officer, Bareilly [(1970)2 CC 355, it is held as follows in paragraph 13: “13.
xxxxxxxxxxxxx x x x x x x x x x x xxxxxxxxx x xxxx If a statute invests a public officer with authority to do an act in a specified set of circumstances, it is imperative upon him to exercise his authority in a manner appropriate to the case when a party interested and having a right to apply moves in that behalf and circumstances for exercise of authority are shown to exist. Even if the words used in the statute are prima facie enabling the Courts will readily infer a duty to exercise power which is invested in aid of enforcement of a right -public or private -of a citizen.” So also Maxwell on interpretation of Statutes, 11th Edition at page 231 it is observed thus: "Statutes which authorise persons to do acts For the benefit of others, or, as it is sometimes said, for the public good or the advancement of justice, have often given rise to controversy when conferring the authority in terms simply enabling and not mandatory. In enacting that they "may" or "shall, if they think fit", or, "shall have power", or that "it shall be lawful" for them to do such acts, a statute appears to use the language of mere permission, but it has been so often decided as to have become an axiom that in such cases such expressions may have-to say the least-a compulsory force, and so could seem to be modified by judicial exposition. (Emphasis supplied). 27. Moreover, the members of the Bar Council are all practising Advocates, and if any misconduct is detected, the Bar Council of Kerala is vested with powers to take appropriate action irrespective of the fact that they are members of the Bar Council. 28. Thinking so, if a member of the Bar Council or members of the Trustee Committee, who are members of the Bar Council, have committed any irregularity, misappropriation and misconduct, it would be only just and proper that, the enquiry is conducted by the Bar Council of India, which is an independent body, which alone would be in a position to conduct impartial enquiry against the members of the Council. So also the Welfare Fund Trustee Committee is constituted for the purpose of providing benefits of the fund to the members of the Welfare Fund on the members ceasing to be Advocates or on their death.
So also the Welfare Fund Trustee Committee is constituted for the purpose of providing benefits of the fund to the members of the Welfare Fund on the members ceasing to be Advocates or on their death. The fact remains, Fund is generated from the members of the Advocate Welfare Fund, and also the contribution from the enrolment fees paid by the advocates, apart from other contributions, and contribution made by the State Bar Council. 29. So also it is significant to note that the Bar Council of India and Kerala are to make any voluntary donation or contribution to the Fund, if situation warrants and therefore, the Fund is to be managed by the Trustee Committee as such as a trustee of the lawyer fraternity and to their utmost confidence. It is worthwhile to note at this juncture that, a mandatory duty is prescribed as per section 12 of the Act, 1961 in respect of the accounts maintained by the State Bar Council. 30. As is discussed above, twenty percent of the enrolment fees received by the State Bar Council is to be transferred to the Welfare Fund, as provided under Act, 1980. Therefore, audit of the Bar Council has got an intrinsic and indispensable relationship with the Fund managed by the State Bar Council also. It was taking into account such salient features and salutary principles involved in the functions of the Bar Council, the members of the Trustee Committee, and other aspects, the learned Single Judge has arrived at a conclusion that the Bar Council of India is empowered to order enquiry into the affairs of the Welfare Fund Trustee Committee, if situation so warrants. Therefore, in our considered opinion the appellant has not made out any case so as to interfere with the correctness of the findings rendered by the learned Single Judge. It is also to bear in mind that the amount from the Welfare Fund is a solace to the Advocates and their family in the 'Hey day' in life and it shall be released as and when applied for it by the beneficiary. Therefore, if any fraudulent acts like the one at hand is permitted, it will cause fetter to the rights of the advocates. 31.
Therefore, if any fraudulent acts like the one at hand is permitted, it will cause fetter to the rights of the advocates. 31. However, learned Senior Counsel for appellant has a case that, only the name of the appellant is mentioned in the resolution passed by the Bar Council of India on 6.10.2018 communicated as per Ext.P3 communication dated 12.10.2018. However, on a reading of the resolution, it is clear that the name of the appellant happened to be mentioned since he was a member of the Trustee Committee admittedly from the year 2005 to 2017. Incidentally appellant is elected to the State Bar Council during the year 2018 also. It is also clear from the resolution that the enquiry committee is constituted for the purpose of making full-fledged enquiry into the allegation of fraud of siphoning out Rs.7 Crores from the Welfare Fund. 32. By saying so, we are inclined to hold that, mere mention of he name of the appellant would not confine the enquiry to the appellant alone, but to the entire affairs of the Welfare Fund Trustee Committee in respect of the fraud, in terms of the Act, 1961, Act, 1980 and the Rules, 1981. Which thus means, we have no reason to think that the enquiry would confine to the conduct of the appellant alone. Upshot of the above discussion is, there is also no force in the contention so advanced by the learned Senior Counsel for the appellant. Therefore, the writ appeal has no legal or factual basis. Accordingly, it is dismissed, hoping that a full fledged enquiry would be conducted by the committee into the entire affairs of the Welfare Fund Trustee Committee with respect to the pilferage of Rs.7 Crores, which is an admitted fact by all concerned.