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2021 DIGILAW 11 (MAN)

North Eastern Children's Home v. State Bank of India

2021-03-17

M.V.MURALIDARAN

body2021
JUDGMENT : M.V. Muralidaran, J. 1. The writ petition has been filed by the petitioner North Eastern Children's Home, represented by its Secretary Rody Lalmingmoi Hmar, seeking a writ of mandamus for defreezing the FRCA saving account bearing No. 1134 3706 468 of the petitioner in the second respondent bank in the name and style of North Eastern Children's Home, Churachandpur. 2. The Criminal Revision Petition has been filed by the same North Eastern Children's Home, Churachandpur under Sections 397, 401 read with Section 482 of Cr.P.C. for setting aside the order dated 30.3.2019 passed by the Special Judge (POCSO), Imphal West in Special Trial (POCSO) Case No. 2 of 2017. 3. The writ petition has been filed by the North Eastern Children's Home, Churachandpur, (hereinafter referred to as "NECH") stating that the NECH is running a children home in Churachandpur District and funds for running the said home are fully funded from the foreign country and as such the NECH opened a FCRA Saving Account in the branch of the second respondent in the name and style of NECH bearing FCRA Saving Account No. 11343706468 and the said account is operated by the Administrator and the Secretary of NECH. One Timothy L Changsan was the founder member of NECH and he was involved in the function of the NECH in various capacities as Administrator, Director etc. However, the said Changsan had applied to the Chairman/Secretary of the NECH for resignation from the said post of Director along with a prayer to leave the board. The application of Changsan was taken up on 23.7.2017 along with the case of Jane Nancy Marian and the resignation of Changsan was accepted by the Board of Trustees and Nancy was also removed from the member of the Board of Trustees and Society. The change of the Administrator and Secretary of the NECH was duly informed to the second respondent and the present Secretary and the new Administrator had been operating the said account of the NECH since July, 2017. 4. While so, on 9.7.2018, when the Secretary of the NECH went to transact its account, the second respondent informed her that the NECH's account has been freezed. When the Secretary inquired the reason for doing the same, the second respondent did not give any reply. 4. While so, on 9.7.2018, when the Secretary of the NECH went to transact its account, the second respondent informed her that the NECH's account has been freezed. When the Secretary inquired the reason for doing the same, the second respondent did not give any reply. On 12.7.2018, the NECH made an application to the second respondent to defreeze the said account and also to let them know the reason for freezing the account. The said application has not been attended to by the second respondent. 5. It is further alleged that the NECH needs money daily to look after the daily basic needs of food, medicines etc. of 46 children who are presently staying in the home; the act of the second respondent in freezing the account of the NECH is arbitrary and it violates the right to life of the children staying in the home and further it violates the principles of natural justice as no notice was given to the petitioner for taking up such drastic action by the second respondent against the NECH. Hence, the writ petition. 6. The second respondent filed affidavit stating that it is informed by the Inspector of Women Police Station, Churachandpur vide letter dated 31.7.2018 that the Administrator of the NECH namely Timothy L Changsan was convicted in connection with FIR No. 2(2/2015 WPS/CCP & FIR No. 3(2) 2015 WPS/CCP under Section 354/376-C/506 IPC and 6/8/10 POCSO Act by the Special Judge, POCSO, Imphal West, Manipur on 30.4.2018 by sentencing to rigorous imprisonment for life under POCSO Act; imprisonment for seven years under Section 10 of POCSO Act and imprisonment of seven years under Section 506 IPC and thereafter, the convicted person had absconded and his whereabouts is not known till date. Therefore, the Officer-in-Charge, Women Police Station, Churachandpur vide letter dated 31.7.2018 requested the second respondent for freezing of the saving account of the petitioner and on receipt of the such request letter from the said OC, WPS, the account of the NECH has been freezed. 7. Therefore, the Officer-in-Charge, Women Police Station, Churachandpur vide letter dated 31.7.2018 requested the second respondent for freezing of the saving account of the petitioner and on receipt of the such request letter from the said OC, WPS, the account of the NECH has been freezed. 7. Similarly, the Criminal Revision Petition has been filed by the Administrator of the NECH seeking to review the order dated 30.3.2019 of the Special Court (POCSO), Imphal West passed in Criminal Miscellaneous Case No. 87 of 2018 contending that by the said order, three movable properties of the NECH namely (i) Honda Activa bearing registration No. MN-02 7341; (ii) Tata Sumo Vieta Ex-bearing registration No. MN-02 8289 and (iii) Tata Star Bus bearing registration No. MN-02B 0972 and a movable property bearing homestead/ingkhol under patta No. 2208/2631 measuring an area of 0.945 registered in the name of the Administrator of NECH were ordered to be attached by the District Collector, Churachandpur. 8. According to the NECH, all the movable and immovable properties of the NECH were purchased through financier viz., the philanthropist from abroad i.e., U.S.A., U.K. and other European countries and the properties cannot be claimed to be the property of the individual person who holds any of the post of the society at any point of time. 9. It is alleged that since the trial had already been concluded against the accused person, the present attachment of movables and immovable properties of the NECH is misconceived due to the wrong information provided by the prosecution before the learned Special Court as the movable and immovable properties are the properties of the NECH and not of the accused person. Hence, prayed for reviewing the order dated 30.3.2019 as attachment of properties either movable or immovable can be done for the proclaimed offender, but not to the properties of the NECH, being a registered body. 10. The learned counsel for the petitioner NEHC contended that without affording an opportunity, second respondent has freezed the bank account of the NEHC and the said act of the second respondent is in clear violation of the principles of natural justice. Since the NEHC required money daily to look after the daily basic needs of the children who are presently staying in the home, the account of the NECH needs to be de-freezed. 11. Since the NEHC required money daily to look after the daily basic needs of the children who are presently staying in the home, the account of the NECH needs to be de-freezed. 11. The learned counsel further submitted that the attachment of movable and immovable properties ordered by the learned Special Court vide order dated 30.3.2019 is liable to the set aside, as the properties directed to be attached are not the properties of Changsang and the same are the properties of the NECH. He would submit that the properties ordered to be attached are the properties of NECH and registered in the name of the NECH, it cannot be said to be the properties of Changsang and the learned Special Judge erred in passing the impugned order dated 30.3.2019 as the documents filed before him clearly establish that the movable and immovable properties stand in the name of NECH. 12. The learned counsel for the second respondent bank, on the other hand, submitted that they have freezed the account of the NECH based on the letter received from the Office-in-Charge of Women Police Station, Churachandpur and therefore, the petitioner NECH cannot complain that the second respondent has arbitrarily freezed the account of the NECH. 13. This Court also heard the submission of the learned Public Prosecutor, who submitted that the order dated 30.3.2019 need not be reviewed/set aside, as the present Administrator being the niece of Changsan would know the whereabouts of Changsan and till today, the accused Changsan through the foreign funds which he received from NECH had enough money to abscond and live in hiding. Therefore, it is necessary that all movable and immovable Properties stood in his name are to be attached and seized so that he will surrender himself and serve his sentence as ordered by the learned Special Judge. 14. This Court considered the submissions raised by the respective parties and also perused the materials available on record. 15. Before going into the merits and demerits of the writ petition as well as the criminal revision petition, certain facts and the previous filing of cases need to be stated for the sake of convenience and for proper adjudication of the matter. 16. 15. Before going into the merits and demerits of the writ petition as well as the criminal revision petition, certain facts and the previous filing of cases need to be stated for the sake of convenience and for proper adjudication of the matter. 16. As is evident from the pleadings of the parties, Timonthy Lalhmunmawi Changsan was in London for Theological and Pastoral training from 2003 till 2005 and during that time, he conceived the idea of establishing a Children Home and collected funds from sponsors in London and other foreign countries. He came to India in 2004 during his training and established NECH and he became the defacto Administrator of the Children Home. The said Children Home become the main source of income for the Changsan and his family and relatives which enable them to lead a lavish life. 17. The so called Administrator of NECH viz., Changsan was convicted on 30.4.2018 under Sections 6 and 10 of POCSO Act and under Section 506 of IPC. However, on the day of pronouncement of the judgment, the Changson failed to appear and accordingly, issued warrant of arrest against him fixing the sentence date on 5.5.2018. On 5.5.2018, the investigating officer has submitted a report for non-execution of the warrant of arrest on the ground that Changson had already left Manipur for Guwahati by Air Asia Flight 784. The learned Special Court, after hearing the prosecution and the learned counsel for Changsan awarded sentence to undergo rigorous life imprisonment under Section 6 of the POCSO Act; seven years imprisonment under Section 10 of the POCSO Act and another seven years imprisonment under Section 506 of IPC. The said judgment and order was forwarded to the Director General of Police, Manipur and the Superintendent of Police, Churachandpur for taking necessary steps to enable to execute the warrant of arrest issued by the Court. 18. It appears that despite warrant of arrest, repeated house search, due publication in newspapers as well as messages to all the Police Stations of Manipur and the Director General of Police, Assam, the accused convict Changan has not been traced out till date and the Court has also declared him as absconding accused. In fact, proclamation requiring the appearance of Changsang was issued and surety action was also initiated. In fact, proclamation requiring the appearance of Changsang was issued and surety action was also initiated. The publication of the proclamation order in the local newspaper has been done and the report circular with proforma had been sent to the CBI also. The Officer-in-Charge of Women Police Station has also submitted a letter of request to the Superintendent of Police, Churachandpur District to forward the request letter to the sister States namely Assam, Nagaland, Meghalaya, Arunachal Pradesh, Mizoram, Tripura and Sikkim for action to nab the fugitive. Letter to the FRO Superintendent of Police, Churachandpur, CID (SB), Imphal addressed seeking travel particulars of the fugitive using the passport number K1150556 and also called upon the Deputy Director, Bureau of Immigration, New Delhi to process the request of the Superintendent of Police, Churachandpur District for ensuring that the Look Out Notice is forwarded to all enforcement authorities so as to secure the convict/fugitive at the earliest. 19. It also appears that still the matter is pending before the learned Special Judge, POCSO, Imphal West for appearance of the convict/fugitive. In this regard, while dealing with as public interest litigation, the Hon'ble Division Bench of this Court vide order dated 14.3.2019, also directed the Special Court to take all appropriate and necessary steps as required by law to secure the convict/fugitive, if there is a failure on the part of the convict/fugitive to appear. Thus, the Police Department is taking effective steps in securing the convict/fugitive Changan. 20. By the order dated 18.7.2019, the Hon'ble Division Bench of this Court, directed the writ petition to be tagged with Criminal Revision Petition No. 6 of 2019 and accordingly, both the cases were listed before the Single Judge and heard the arguments of the respective counsel. 21. Coming to the merits of the writ petition, it is contended on behalf of the petitioner NECH that all of a sudden on 9.7.2018 when the Secretary of the NECH went to the second respondent bank to transact its account, the second respondent informed the petitioner that the account stood in the name of NECH has been freezed. 22. 21. Coming to the merits of the writ petition, it is contended on behalf of the petitioner NECH that all of a sudden on 9.7.2018 when the Secretary of the NECH went to the second respondent bank to transact its account, the second respondent informed the petitioner that the account stood in the name of NECH has been freezed. 22. By placing reliance upon the letter of the Office-in-Charge of Women Police Station, Churachandpur, the learned counsel for the second respondent contended that the said freezing of the account of the NECH has been made based on the letter received from the OC/WPS/Churachandpur and therefore, the second respondent has not acted on their own and therefore, the petitioner NECH is not entitled to maintain the writ petition for direction to de-freeze the FRCA Saving Account bearing No. 1134 3706 468. 23. It appears that the action of the second respondent in freezing the FRCA Saving Account of the petitioner NECH is based on the letter received by them from the OC/WPS/Churachandpur, Manipur dated 31.7.2018, wherein it has been stated that Timothy Lalhmunmawi Changsan, who is the Administrator of NECH was convicted in connection with FIR No. 2(2) 2015 WPS/CCP and FIR No. 3(2) 2015 WPS/CCP under Sections 354/376-C/506 IPC and 6/8/10 POCSO Act by the Special Judge, POCSO, Imphal West on 30.4.2018 and sentenced to undergo rigorous imprisonment of life and other sentences. However, the convict Changsan had absconded and his whereabouts is not known till today. In the said letter, it is also stated that all the bank accounts and any accounts which have link with the absconded convict was freezed by the second respondent and would like to request the second respondent to continue to freeze all the accounts and accounts which have link with the absconding convicted person Changsan as the crime happened at the NECH and the absconding convict is likely to benefit directly or indirectly from those accounts if not freezed. The letter further states that though the absconding person has been removed as the Administrator, the new Administrator and new Secretary who are presently operating the account are elder brother and niece of the absconding person. As such, he will still have access to the funds in the account indirectly. The letter further states that though the absconding person has been removed as the Administrator, the new Administrator and new Secretary who are presently operating the account are elder brother and niece of the absconding person. As such, he will still have access to the funds in the account indirectly. In such circumstances, it is necessary to continue to freeze the particular account viz., Account No. 11343706468 as the NECH is now controlled by the relatives and family members of the absconding convict Changsan. 24. Taking note of the ground reality of the matter that the absconding convict viz., Changsan still has access to the funds in the account indirectly, the second respondent has passed the impugned order freezing the Account No. 11343706468. This Court finds no Infirmity In the order of the second respondent freezing the Particular account of the NECH and, in fact, the freezing order has been passed by the second respondent in order to avoid diversion of funds by the absconding convict and as such there is no ill-motive on the part of the second respondent in freezing the account of the NECH. 25. As far as the Criminal Revision Petition is concerned, the learned counsel for the petitioner contended that the impugned order dated 30.3.2019 passed by the learned Special Court is bad in the eyes of law and that the learned Special Court has failed to take into consideration that when the properties are in the name of NECH, how can it be presumed that it is the property of the accused Changsan. 26. The learned counsel further submitted that unless this Court set aside the order dated 30.3.2019 and further proceedings of the learned Special Court against the properties, it is likely to cause irreparable injury and damage to the NECH as well as the vehicles of NECH have been seized and there is no vehicle for transportation of the members of the NECH. 27. In reply, the learned Public Prosecutor submitted that though Changsan is no longer the Administrator, he still maintains control over the NECH as the people who are running the NECH today are all his family and relatives. He would submit that the NECH is the brain child of the absconding convict Changsan and no other local persons are involved in its establishment and administration, therefore, it can be concluded that the NECH belongs to the absconding convict. 28. He would submit that the NECH is the brain child of the absconding convict Changsan and no other local persons are involved in its establishment and administration, therefore, it can be concluded that the NECH belongs to the absconding convict. 28. The learned Public Prosecutor further submitted that the learned Special Court, after analysing the materials produced before it, has rightly ordered attachment of three immovable properties and one homestead belonging to the convict Changsang. 29. This Court considered the submissions of the learned counsel for the petitioner and the learned Public Prosecutor. 30. It appears that as per the order dated 25.2.2019, the learned Special Court issued proclamation under Section 82 of Cr.P.C. as well as attachment of properties belonging to Changsang. Pursuant to the order of the learned Special Court, the Sub-Inspector of Police, WPS, CCP submitted a report for execution of the proclamation and also submitted photographs of affixing the proclamation. It also appears that the proclamation order was published in the daily newspapers having wide circulation. Insofar as the attachment of properties is concerned, the investigating Officer has submitted a report dated 19.10.2018 in which the list of movable and immovable properties belonging to the convict were also mentioned. In his report, the Investigating officer has given three movable properties and one homestead/ingkhol under patta No. 2208/2631 measuring an area of 0.945 acre. Thus, the learned Special Court, directed the Officer-in-Charge of Churachandpur to attach the aforesaid three movable properties and submit a report and the District Collector, Churachandpur is also directed to attach the aforesaid immovable property and submit a report. 31. It is pertinent to note that as per the impugned attachment order of the learned Special Court, the following movable properties belonging to Changsan were seized by observing formalities: (i) Honda Activa/Registration No. MN02/7341 (ii) TATA Sumo VICTA-Ex.B/Registration No. MN02/8289 (iii) TATA STAR Bus B/Registration No. MN02B/0972 32. Since the order of the learned Special Court impugned in the Criminal Revision Petition is based on the materials produced before it, it cannot be said that the impugned order is bad in the eyes of law. Since the order of the learned Special Court impugned in the Criminal Revision Petition is based on the materials produced before it, it cannot be said that the impugned order is bad in the eyes of law. The fact remains that if the order of the learned Special Court impugned in the Criminal Revision Petition is reviewed and the seized movables and immovable properties are released, then the proclaimed absconder viz., Timothy Lalhmunmawi Changsan will not surrender himself and he will continue to abscond as his business is thriving and he will enjoy the income of the Children Home from his place of hiding. In such view of the matter, this Court finds that there is no merit in the Criminal Revision Petition and the same is liable to be dismissed. 33. As stated supra, the NECH was started by the convict Changsang and he was administering the same and now his family members alone are running the Home and no outsiders are in the administration of the home. Further, contrary to the objects of the creation of the Home, the relatives of the convict are staying in the home, which is earmarked only for the purpose of the Children Home. Though the bank accounts and the attached properties are stood in the name of the NECH, the present Administrator is the relative of the convict Changsang. Since the NECH is run from the funds donated by the public in India and the foreign countries and is not run by the individual fund of the convict, in the interest of the children staying in the NECH, the NECH should be taken over by the Government and run through the Social Welfare Department of the State. That apart, since the present Administrator and Trustees are relatives of the convict Changsang, it would be appropriate to take over the NECH by the Government and appoint an independent Administrator and other office bearers in accordance with law. 34. In the result, (a) The Writ Petition No. 622 of 2018 is dismissed. (b) The Criminal Revision Petition No. 6 of 2019 is dismissed. (c) M.C. No. 184 of 2019 is closed. 34. In the result, (a) The Writ Petition No. 622 of 2018 is dismissed. (b) The Criminal Revision Petition No. 6 of 2019 is dismissed. (c) M.C. No. 184 of 2019 is closed. (d) The sixth respondent in the Writ Petition, namely, the Principal Secretary, Home Department, State of Manipur, is directed to take the custody of the North Eastern Children Home (NECH), Rengkai Village, Churachandpur and the children staying in it immediately and run the same as Government Children Home through the Social Welfare Department, Government of Manipur. (e) The Principal Secretary, Home Department, is directed to submit a, compliance report before this Court on 19.04.2021. (f) The Principal Secretary, Home Department, Government of Manipur and the Social Welfare Department, Government of Manipur are also hereby directed to submit a periodical report before this Court qua running of the Home and the welfare of the children once in six months. 35. Registry is directed to post this matter on 19.04.2021 for reporting compliance. 36. Registry is directed to issue copy of this order to both the parties through their WhatsApp/e-mail.