Chattisgarh High Court
Yashraj Singh vs State Of Chhattisgarh on 18 November, 2022
Bench: Arup Kumar Goswami, Parth Prateem Sahu
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NAFR / AFR
HIGH COURT OF CHHATTISGARH, BILASPUR
W.P.(P.I.L.) No. 71 of 2016
1. Yashraj Singh, S/o. Late H. W. Singh, aged about 64 years, R/o.
29/38 Christian Colony Canal Linking Road, Raipur District
Raipur Chhattisgarh., Chhattisgarh
2. Ismanual Kirtan, S/o. Late Rubeen Kirtan, aged about 72 years,
R/o. 34/225, Dr. Solanki Nursing Home, in front of Dena Bank
Road, Katora, Talab, Raipur, Police Station Civil Lines, Raipur
District Raipur Chhattisgarh.
---- Petitioners
Versus
1. State of Chhattisgarh, Through : Secretary, School Education
Department Mahanadi Bhawan, Mantralaya New Raipur, Raipur
Chhattisgarh., Chhattisgarh
2. Church of North India, New Delhi (CNI Synod) Through Its
General Secretary, 16 Pt. Pant Marg, New Delhi.
3. Board of Education, Church of North India, Jabalpur Diocese
(Society Registered under the Societies Act, 1860), Through Its
Chairman, Bishops Houses, 2131 Napier Town, District Jabalpur
Madhya Pradesh.
4. Board of Secondary Education and Teachers Training MP CNI,
Jabalpur Diocese (Society Registered Under the Societies Act,
1860) through : Its Chairman, Bishops Houses, 2131 Napier
Town Jabalpur District Jabalpur Madhya Pradesh.
5. Chhattisgarh Diocese Board of Education, Church North India,
Raipur, (Society Registered Under the Societies Act, 1860),
Through Its Secretary, Opposite Rajbhawan Gate No. 1, Raipur
District Raipur Chhattisgarh.
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6. Mission Higher Secondary School, Through Principal, Mission
Higher Secondary School, Near Brahaspati Bazar, Bilaspur,
District Bilaspur Chhattisgarh.
7. Burgess Memorial Girls Higher Secondary School, Through
Principal, Burgess Memorial Girls Higher Secondary School, Link
Road, Opposite Police Ground, Bilaspur District Bilaspur
Chhattisgarh.
8. Salem Girls Higher Secondary School, Through Principal Salem
Girls Higher Secondary School, In front of Motibagh, Raipur
District Raipur Chhattisgarh.
9. St. Paul's Hindi Higher Secondary School, Through Principal, St
Pouls Hindi Higher Secondary School, In front of Police Ground
Byron Bazar, Raipur Chhattisgarh., District : Raipur, Chhattisgarh
10. Mission Higher Secondary School, Through Principal Mission
Higher Secondary School, In front of Civil Thana, Gaurela,
Pendra Road, District Bilaspur Chhattisgarh.
11. Brooks Higher Secondary School, Through Principal, Brooks
Higher Secondary School, Motimpur, Jarhagaon Tehsil and
District Bilaspur Chhattisgarh.
12. Mission Middle School, Through Principal, Mission Middle
School, Tehsil Bishrampur, District Ambikapur, Chhattisgarh.
13. Mission Middle School, Through Principal, Mission Middle
School, Baitalpur, Tehsil And District Mungeli Chhattisgarh.
14. Burgess English Medium School, Through Principal, Burgess
English Medium School, Link Road, Opposite Police Ground,
Bilaspur District Bilaspur Chhattisgarh.
15. Salem English Higher Secondary School, Through Principal,
Salem Girls Higher Secondary School, In front of Motibagh,
Raipur District Raipur Chhattisgarh.
16. St. Thomas English Higher Secondary School, Risali Sector
Ruabandha, Bhilai, District Durg Chhattisgarh.
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---- Respondents
(Cause-title taken from Case Information System)
For Petitioners : Mr. Sudeep Johri, Advocate
For State No.1 : Ms. Meena Shastri, Additional Advocate General
For Respondents No. 2 to 4 : Mr. Anshuman Singh & Mr. Vaibhav A. Goverdhan,
Advocates
For Respondents No. 5 to 16 : Mr. Manoj Paranjpe & Mr. Shreyansh Agrawal
Advocates
For Intervenor : Mr. Devershi Thakur, Advocate
Date of hearing : 20.07.2022
Date of order : 18.11.2022
Hon'ble Shri Arup Kumar Goswami, Chief Justice
Hon'ble Shri Parth Prateem Sahu, Judge
C A V Order
Per Parth Prateem Sahu, Judge
1. Petitioners are members of St. Paul's Church, C.G. Diocese,
CNI, Raipur and are residents of Raipur city. Petitioners have
filed this public interest litigation against alleged mismanagement
of affairs, mis-utilization of funds by irresponsible unscrupulous
persons of Chhattisgarh Dioceses under whose aegis the
schools are running in Chhattisgarh and against mass corruption,
seeking following reliefs :-
"10.1 That respondent state may be directed to
take over the administration and management of
all 11 schools under Board of Education, CNI,
Jabalpur and Board of Secondary Education
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Teachers Training, CNI, Jabalpur from
Chhattisgarh diocese Board of Education, CNI
Raipur situated in State of Chhattisgarh.
10.2 It may declared that the Chhattisgarh
Diocese Board of Education, CNI Raipur is not
authorized to administer and run all 11 Schools
and Administrator be appointed to take care of
the said schools.
10.3 That Chhattisgarh Diocese Board of
Education Raipur may be restrained from dealing
with any of the affairs of the schools under Board
of Education Jabalpur and board of Secondary
Education Teachers Training, CNI, Jabalpur.
Further, an enquiry may be instituted through
independent authority to investigate malpractice
and corruption done by the respondents
Chhattisgarh Diocese Board of Education Board
during last 2 years and to register criminal case
against the responsible office bearers of CDBE,
CNI, Raipur.
10.4 That the Respondent State may be
directed to take immediate action against
Chhattisgarh Diocese Board of Education Raipur
or the responsible Board or person under the law
for unauthorizedly, misusing and administering
the funds extracted from the students.
10.5 Any other relief may also be granted to the
petitioner which this Hon'ble Court may deem fit
and proper in the facts and circumstances of the
case"
2. Petitioners in writ petition have pleaded that six uniting Churches
dissolved and united to become one church to be known as "the
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Church of Northern India" (henceforth "the CNI") to be legal
continuation and successor of United Churches. The Negotiating
Committee thereafter on or about 29.11.1970 took decision to
formally inaugurate CNI at Jabalpur (M.P.). CNI was registered
as a company under Companies Act, 1956 in the year 1976. CNI,
New Delhi is engaged in religious, charitable, social work,
education and other allied activities and it is spread all over
geographical area of Indian sub-continent and abroad. Under
CNI, India Diocese of Jabalpur is constituted to look after the
churches in Madhya Pradesh and educational work in area of
erstwhile State of Madhya Pradesh. Under Jabalpur Diocese,
CNI, a Board of Education, CNI Jabalpur Diocese and Board of
Secondary Education, M.P. CNI Jabalpur is being separately
constituted under the under Chhattisgarh Society Registrikaran
Adhiniyam, 1973 (For short the 'Act, 1973') to look after and
manage the school/education institutions under management of
Jabalpur Diocese. The Board of Education, CNI Jabalpur
Diocese and Board of Secondary Education and Teachers
Training M.P. CNI continued to run and manage the schools
within the territory of Chhattisgarh even after formation of State of
Chhattisgarh after being carved out from erstwhile State of
Madhya Pradesh. In the year 2008, separate Diocese was
constituted in State of Chhattisgarh, known as Diocese of
Chhattisgarh, CNI, Raipur to look after the schools within the
territorial jurisdiction of State of Chhattisgarh, which were earlier
under Board of Education CNI, Jabalpur Diocese, Diocese of
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Chhattisgarh formed Chhattisgarh Diocese Board of Education,
CNI (henceforth "CDBE"), which also got registered under
Chhattisgarh Societies Registrikaran Adhiniyam, 1973. Vide
resolution dated 17.10.2013, CDBE, CNI Raipur Diocese was
asked to complete all the formalities regarding transfer of schools
affiliated by CBSE, ICSE, ISCE and Chahattisgah State Board.
CDBE, CNI, Raipur failed to obtain statutory permission/affiliation
from Registrar, Firms and Societies, Raipur and Chhattisgarh
Diocese in contravention of the resolution passed earlier, started
applying coercive method to get rid of staff appointed by earlier
School Management Committee. There was misappropriation of
fund, received through fees collected from students of school.
Under Board of Education, CNI, Jabalpur Diocese, there were
three residential schools (i) Burgess English Medium School,
Bilaspur (ii) Salem English Medium Higher Secondary School,
Raipur and (iii) St. Thomas English Medium School, Bhilai. Apart
from above schools, there are 13 other schools and three hostels
under control and management of Board of Education, CNI,
Jabalpur Diocese, which were not transferred to CDBE, CNI,
Raipur, but even then the funds collected by the said schools are
being managed by Chhattisgarh Diocese. CDBE, CNI, Raipur
directed Principals and Heads of schools and institutions under
CDBE, CNI, Raipur to contribute the funds in the building
contribution funds and the same is being utilized for non-
educational purpose. The schools are 100% aided schools and
under no circumstances, the funds collected from school funds
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can be used for non-educational purpose. The gratuity to the staff
of schools is paid by State funds but in the respondent schools,
the fund of gratuity is being paid from school funds collected from
students. Illegally elected office bearers of Chhattisgarh Diocese,
are involved in illegal transactions and alienation of government
lands allotted to the Diocese for educational and social welfare
purposes for their own profitable use. CDBE, CNI, Raipur has
failed to obtain affiliation of schools from office of Registrar, Firms
and Societies, Raipur, but even then schools in area of
Chhattisgarh are managed by Chhattisgarh Diocese Board of
Education, Raipur. As per resolution dated 17.10.2013,
Chhattisgarh Diocese failed in its obligation, to perform the work
vested in it by irrevocable power of attorney granted by BE, CNI,
Jabalpur Diocese. Due to regular complaint of forgery,
maladministration, corrupt practice, violation of resolution passed
and approved on 17.10.2013, Board of Education, CNI, Jabalpur
Diocese in its meeting dated 18.03.2015 withdrew the power of
attorney granted in favour of CDBE, CNI, Raipur and took over
the administration. Petitioners being members of Chhattisgarh
Diocese are concerned about proper management of affairs of
society and therefore, they made regular complaint to Synod,
CNI, New Delhi to check and control ongoing illegal activities.
3. The pleadings made in the writ petition were replied on behalf of
the respondents. Respondents No. 2, 3 and 4 in their reply
submitted that Jabalpur Diocese of CNI has two separate
registered bodies namely Board of Education, Church North
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India, Jabalpur Diocese (Henceforth "BECNIJD") and the Board
of Secondary Education & Teachers Training (Henceforth "BSE &
TT"). These two registered bodies were having several schools
within the territorial jurisdiction of State of Chhattisgarh in name
and style of respondents No. 6 to 16. Considering the need for
separating institutions in territorial jurisdiction of Chhattisgarh
from Jabalpur Diocese and to bring them under separate body
registered within the State of Chhattisgarh based on the decision
of Synod, BECNIJD and BSE & TT, passed resolution for transfer
of educational institutions in the State of Chhattisgarh to the body
registered in State of Chhattisgarh and under Chhattisgarh
Diocese known as "Chhattisgarh Diocese Board of Education"
(CDBE). Though there being a specific decision for transfer of
institutions to the new Board CDBE, effective steps were not
taken by office bearers of CDBE or the Chhattisgarh Diocese and
various irregularities were committed. It was also noticed that
revengeful action was being taken against teachers and staff
working in the institution employed prior to formation of CDBE.
After getting knowledge of irregularities, issue was taken up in
the 209th meeting of CNI, Synod Office Bearers held on
15.01.2015 and taking note of irregularities, Chairman of CDBE
cum Bishop of Chhattisgarh Diocese, was summoned by Bishop
of Jabalpur Diocese to resolve the matter. Respondent No.2 CNI
Synod, took the complaint and the allegations of financial
irregularities seriously and by letter dated 10.02.2015 suspended
all administrative powers of the then Bishop-cum-Chairman of
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CDBE, directed him to proceed on leave and one Rt. Rev. Probal
K. Dutta Bishop of Durgapur Diocese of West Bengal was
appointed as Moderator's and Episcopal Commissary. It also took
the direction given to schools to deposit certain amount with
Diocese seriously and emergent meeting was called on
18.03.2015 in Jabalpur, took decision that institution which were
being placed under newly formed "CDBE", to continue to function
under BECNIJD and BSE & TT., though administratively they
continued under the CDBE. The malafide disciplinary actions
against staff were revoked and further power of attorney in favour
of Rt. Rev. P.S. Nag had also been revoked. The joint meeting
was called of the office bearers of Jabalpur Diocese and
Chhattisgarh Diocese as also CDBE, BECNIJD and BSE & TT,
which was held on 17-18th of April, 2015 at New Delhi. In the
meantime, Rt. Rev. P.S. Nag Bhishop of Chhatisgarh Diocese-
cum- Chairman CDBE tendered his resignation and one Rt. Rev.
Robert Ali, who was working as Bishop of Bhopal Diocese was
transferred to the post of Bishop Chhattisgarh Diocese. Vide
letter dated 13.06.2016 Rt. Rev. Robert Ali was directed to take
charge from Moderator's Episcopal Commissary and to start
functioning. The Education Board under different Dioceses
manages educational institution, it does not have any separate
source of funds, it is dependent upon the institutions for
necessary funds required to run the Board effectively. The
properties on which institutions are established are owned by
Trust Association. In case of institutions at Chhattisgarh, the
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United Church of Northern India Trust Association is the owner of
properties (in short "UCNITA"). Transfer of funds should be
through clean process, recorded transactions and not through
any fictitious mode or methods. The report of District Education
Officer does not show proper enquiry on the subject to cover the
aspects of proper transfer of funds recording all transactions.
The CDBE is managing the institution since 2013 till date and it is
the responsibility of office bearers that receipt of funds and its
utilization should be properly done for betterment of institutions.
Synod of CNI had also constituted a three member Enquiry
Committee, to enquire into various allegations against office
bearers. The Enquiry Committee submitted report, showing
involvement of members of CDBE in demanding money from
institutions and being guilty of diversion of funds and
unwarranted disciplinary action against the staff by office bearers
of CDBE. In the enquiry, it also revealed that one Mr. Wilson Lal,
who was working as Secretary under dissolved body of CDBE
was signatory to transactions regarding illegal transfers and use
of funds of institutions along with another signatory Ajay
Dharmraj. Governing Body of CDBE was reconstituted, new set
of signatories of various accounts of institutions was prepared for
proper functioning and managing of the institution. At present,
functioning and management of institution has been improved
significantly. The CNI Synod took note of the fact that funds,
which were transferred from the institutions remained
unaccounted and not being recovered so far, effective steps have
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not been taken. The respondents had taken all remedial
measures in the matter and issue raised by petitioners had
already been redressed and the only issue now remains is of
recovery of funds illegally transferred and action against persons
responsible for the same. The allegation of misuse of funds
received from State Government towards grant-in-aid is false and
baseless. The amount received in the account of CDBE is
directly credited to the accounts of institutions for grant of salary
to staff and teachers and there is no irregularity in the same. The
allegation that Synod CNI has not taken any action, is misplaced
and misconceived.
4. Respondent-State also submitted reply to the writ petition
pleading that grant in aid is being given by State of Chhattisgarh
to CDBE, CNI, Raipur in order to assist them to have an effective
education program by School Education Department. The fund
that is being given by State of Chhattisgarh is utilized by them
only for payment of salaries to the teachers and employees
working in the school. It is informed by the Secretary of CDBE,
that fund given under grant in aid is utilized in payment of
salaries. Copy of declaration given by school stating that aid
which is being provided by State Government is being utilized
with respect to payment of salaries to teachers and staff. The
allegations are mainly against CDBE CNI Raipur under which
schools are running, which is an independent legal entity and
competent to defend itself.
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5. Respondents No. 5 to 16 submitted reply denying the allegations
made in the writ petition by petitioners and pleaded that with
regard to diversion of funds Synod of CNI constituted an enquiry
committee. The remedial action has already been taken and
earlier body of CDBE has been dissolved and erring persons
have already been removed. New body is constituted, which is
discharging duties with all sincerity. With regard to allegation of
illegal transfer of Rs.20 Lakhs by Salem English Medium School
Raipur, it was pleaded that no notice of aforesaid enquiry was
served on the respondents by the District Education Officer
concerned and enquiry was conducted behind back of
respondents. The properties on which educational institutions are
functioning are owned by United Church of Northern India Trust
Association (henceforth "UCNITA"), which is registered under the
Companies Act, 1956. The CNI is the legal successor of UCNITA.
For administrative control of Diocese or the Educational Board
registered by the Diocese and for management of the property
and the educational institution, UCNITA executes power of
attorney in favour of Bishop of the Diocese. Nominal fund is
charged from educational institutions against use of property,
land and building owned by UCNITA on which educational
institutions are functioning. Transfer of funds is required to be
properly accounted for both in terms of receipt and expenditure.
Actions have been taken against the Secretary, Treasure and
earlier office bearers for recovery of funds of institution, which
were not properly accounted by them.
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6. The petitioners submitted rejoinder to the return stating that
respondents No.2 to 4 admitted irregularities to have been
committed in transfer of funds from schools and institutions but
have cleverly leveled the allegation on the shoulders of only two
persons, who were the office bearers at that relevant point of
time and shifted their burden. The present Chairman, continued
with same persons and was hands in gloves with Secretary and
Treasurer. An attempt is made to escape from the liability by
shifting the same upon Mr. Wilson Lal. Principal of allied school
at Raipur, namely, Salem English Medium School is holding the
post on the basis of fake degree.
7. Learned counsel for petitioners would further submit that vide
proceeding dated 17.10.2013 (Annexure P-2A), Board of
Education Church of North India, Jabalpur Diocese transferred
schools/institutions to the Chhattisgarh Diocese Board of
Education CNI. In the minutes of meeting of Finance Committee
dated 8th of October, 2014 it is resolved to pay heavy amount
collected from different schools, for other than educational
purposes to Diocese of Chhattisgarh CNI. Money of school is
being diverted to the Diocese. Money is being withdrawn from
school accounts for affiliation, which is per-se wrong. He also
submitted that some proceedings are also initiated by the
department of Income Tax with regard to evasion of tax, which is
evident from documents placed along with writ petition, from
page Nos. 124 to 126 of paper book. Referring to page No.234,
he submits that in the enquiry conducted by Synod of the Church
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of North India, present Chairman of CDBE and Bishop, Robert Ali
being custodian of Constitution was directly found responsible for
such irregularities, but even then he is continuing as Chairman of
Chhattisgarh Diocese. The schools within the Chhattisgarh
Diocese are being used as commodity for generating income. He
also submits that in reply also the respondents have pleaded that
respondents No.3 to 4 found CDBE functioning with many
irregularities.
8. Learned counsel for respondents No.2 to 4 would submit that the
complaint filed by petitioner No.2 before the Judicial Magistrate
First Class, Raipur was challenged by filing petition under
Section 482 of Cr.P.C., which came to be allowed and
proceedings initiated by learned Judicial Magistrate First Class,
Raipur on complaint was quashed in Cr.M.P. 458 of 2013 vide
order dated 24.07.2015. The status of petitioners are under
cloud, hence, the writ petition filed in the style of 'Public Interest
Litigation' is not maintainable. The grant-in-aid given by State
Government to the schools running under C.G. Diocese is not
misused, which is also the finding in the enquiry. The funds,
which are being accounted in the accounts of schools, are not
only the fees collected but some other funds which are also
generated. Some time funds are diverted from one school fund to
the other school fund, which is not doing well. The funds are
being used only for the schools and their management and not
for any other purpose. Upon receiving the complaint after
handing over the schools to CDBE, actions were taken against
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the then Bishop and subsequently he submitted his resignation.
The grievance of petitioners is of the year 2016 against the
person, who as of now is not holding any post because he
already resigned. CNI is a body consisting of 27 Dioceses
including two Dioceses in Madhya Pradesh and one Diocese in
Chhattisgarh. The schools under Chhattisgarh Diocese Board of
Education (CDBE) are running under supervision of Bishop with
aid of Executive Council. Bishop is ex-officio Chairman of CDBE.
All the properties of schools are owned by UCNITA, (United
Church of North India Trust Association). He also submits that
State Government has submitted return specifying that grant-in-
aid of State Government is not being misused but it is being used
only for the purpose for which grant-in-aid is sanctioned. He also
contended that there is no allegation against the present Bishop
and Chairman of CDBE. Robert Ali retired on 09.12.2021 and
new Committee is formed with new Bishop. Bishop Robert Ali
was permitted to occupy the accommodation only for 11 months
after his reitrement. He vehemently argued that merely showing
transfer of a sum of Rs.20 lakhs to CDBE is not sufficient without
there being any allegation that it was transferred to Diocese other
than for the benefit and interest of schools under CDBE. Enquiry
conducted by District Education Officer is behind the back of
respodnents. Only one report is referred by the petitioners.
Annexure- R-2/7 is the first report and thereafter another report is
submitted by enquiry committee on 27.04.2019 and as per the
conclusions and recommendations made therein, one Mr. Wilson
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Lal, former Treasurer, along with Mr. Manish Heeradhar and Mr.
Sandeep, have been found to have committed financial
irregularities and misused the funds. Corrective measures have
been recommended by the Enquiry Committee and now it is
being followed.
9. In reply Mr. Johari, learned counsel for petitioner would submit
that the accounts of 2015-16 also mention about payment of
salary to the staff of Diocese. In support of his contention, he
placed reliance on the judgment of Supreme Court in case of
Modern School vs Union Of India & Ors, reported in (2004) 5
SCC 583.
10. We have heard learned counsel for parties and perused the
documents placed on record.
11. Perusal of the pleadings made in the writ petition would show that
mainly it is against inaction of CDBE, CNI Raipur of not getting
schools registered, irregularities committed by the office bearers
of CDBE and financial irregularities committed by the members
by withdrawing amount from the institutions without proper
accounting. This Writ Petition (PIL) is filed on 04.08.2016. In
reply to the writ petition, the respondents No.2 to 4 have clearly
stated that Synod CNI, after getting knowledge of irregularities,
effective steps were taken. Body of CDBE constituted initially
was dissolved. Irrevocable power of attorney executed in favour
of Rt. Ref. P.S. Nag, Bishop of Diocese of Chhattisgarh was
revoked. The malicious action taken against the teachers and
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staffs of educational institutions were withdrawn. Taking note of
complaint of irregularities, schools within the State of Chhatisgarh
were continued under Board of Education Church of North India,
Jabalpur, Diocese (BECNIJD) and Board of Secondary Education
and Teachers Training (BSE & TT) during intervening period.
New body of CDBE was formed and new office bearers were
appointed for proper functioning of CDBE. Enquiry was also
conducted against the allegations of financial irregularities and in
the enquiry conducted by three members enquiry team
involvement of earlier members of CDBE is reported. The
Secretary of CDBE and Secretary of Diocese found to have
committed financial irregularities. The Synod of CNI vide letter
dated 11.02.2019 had issued directions to Robert Ali, Bishop of
Diocese of Chhattisgarh, to take effective steps as per law.
Bishop-cum-Chairman along with Secretary of CDBE submitted
complaint dated 11.02.2019 before Police Station Civil Lines,
Raipur for taking appropriate action. Action against Bishop-cum-
Chairman of CDBE Rt. Rev. P.S. Nag was taken in the year
2015, prior to filing of writ petition, new Bishop was appointed by
Synod's resolution dated 10.06.2016. Other remedial actions
were also taken after filing of writ petition. Remedial action taken
by respondents No.2 to 4 have not been denied/disputed in its
entirety but the allegation is leveled that present Chairman of
CDBE is also having hand in gloves with earlier Secretary and
Treasurer. The Enquiry Committee in its enquiry report dated
22.08.2018 (Annexure R-2/7) held that Bishop Robert Ali
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completely failed to have administrative control. After getting
knowledge of financial irregularities committed by earlier body,
emergent meeting was called of, BSE & TT & BECNIJD as
pleaded in para-8 of reply of respondents No.2 to 4, and the
action taken pursuant to the complaint is reflecting from
documents enclosed along with reply to the writ petition. It is also
pleaded by State and also by other respondents that the grant in
aid received by schools running under CDBE is being utilized for
the purpose for which grant in aid is given by the State
Government i.e. for payment of salary to teachers and other staff.
Though during the course of arguments learned counsel for
petitioners made submission that on account of siphoning of
funds collected by schools, the school building are not managed
properly and conditions of school buildings are deteriorating but
in support thereof, they have not produced any document to
show the condition of school buildings. On the contrary, the
respondents have vehemently opposed the submissions of
counsel for petitioners and stated that existing school buildings
are managed properly and the same are in good condition.
12. With regard to the pleading made in writ petition that heavy
amount from the schools, which were collected by the students,
are being transferred, the accounts show transfer of amount but
the documents available on record would also reflect that the
schools & Church also received the amount through collection
from other sources. The accounts of CDBE and Accounts of
Chhattisgarh Diocese is separately filed by petitioners in
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Annexure P-25. The amount mentioned towards gratuity is
shown in general fund of Salem English Medium School.
13. After filing of reply along with enquiry report dated 22.02.2018,
this petition came up for hearing, before this Court on
25.02.2019. This Court has made certain observations in its
order dated 25.02.2019, which are extracted below :-
"Returns have been filed by all the
respondents, however, what is of significance is the
return filed on behalf of respondents No.2 to 4- the
Apex Body i.e. Church of North India, where some of
the issues raised on behalf of the petitioners were
examined and found to be prima facie a case
requiring deeper look into the matter.
The previous Secretary & Treasurer of the
Chhattisgarh Diocese have been removed, new Body
has been formed, FIR has been lodged and other
cleansing-up exercise have been initiated by the Apex
Body.
Submission of learned counsel for the
petitioners is that it is not only an issue of divergence
or misuse of funds in relation to one institution or
school, but there seems to be a common or uniform
pattern even in relation to other schools, details of
which have been provided in the writ application.
It will be in the interest of things that the
opportunity provided by the petitioners is utilized by
the Church for cleaning-up to ensure that the image of
the institutions as well as of the Apex Body is not
allowed to be sullied by a handful of people, for their
own interest.
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It is hoped and expected that a wider inquiry
will be held in relation to working of other schools as
well and outcome of such exercise will also be made
known to us on behalf of respondents No.2 to 4 by
filing an additional affidavit.
The Court is disappointed with the affidavit filed
on behalf of the State, especially the District
Education Officer, Bilaspur, as despite noticing the
allegations in the earlier part of his affidavit, he has
failed to state as to what steps he has taken to look
into those allegations. It is nothing but sheer
abdication on the part of the District Education Officer,
especially when he has a vital role to play in relation
to utilization of funds released by the Government
since he provides his signature and endorsement as
a proof of fund having been used for payment only to
the teachers and the employees of such institution.
The Court, therefore, directs the District
Education Officer, Bilaspur to file a proper affidavit. If
such frivolous affidavit is filed in future, the Court will
take appropriate action against him because affidavit
which do not assist or help in adjudication of a matter
is nothing but a wasteful exercise.
This is yet another case where attention of the
Court has been drawn that the police authorities are
refusing to register FIR or take cognizance of the
complaints where cognizable offence is made out.
One such instance has been pointed out in the
present writ application on behalf of respondents No.5
to 16 as Annexure R-2/16 dated 11.02.2019.
Let the Director General of Police,
Chhattisgarh, file an affidavit as to how and under
what authority of law the police in the State of
21
Chhattisgarh are refusing to accept and register FIRs
in cognizable cases because the Court has been
getting this kind of reports and complaints from
diverse sections of societies. The Court would also
like to know as to the mechanism he would like to put
in place to check or control such complaints.
List the matter after eight weeks."
14. Based on observations made by this Court, CNI Synod Executive
Committee appointed another Enquiry Committee of three
members, who conducted enquiry on the issues, which are
subject matter of this writ petition. Enquiry report is placed on
record along with covering memo. The enquiry report mentions
that educational institutions are running on land and property
owned by the United Church of Northern India Trust Association
(UCNITA). The management of property is vested in the
trusteeship of Bishop of Diocese through power of attorney.
Chhattisgarh Diocese Board of Education is registered with
Registrar, Firms and Societies, Raipur and CDBE needs funds to
manage the property on which educational institutions are being
run. The funds transferred are used for legal purposes. All the
institutions under affiliation of CDBE are not in good financial
condition to meet out expenses of property and the schools such
as Salem English Medium, Raipur and Burgess English Medium
School, Bilaspur non aided schools are having much better
financial position. The schools having better financial position
share expenses of institution which are not in a position to meet
out their expenses. Details of the schools are mentioned region
22
wise in report. The Enquiry Committee reached to the following
conclusions and made following recommendations :-
"Conclusions and recommendations:
1. It was noted that although funds are required and
have been transferred by the Institutions to meet the
expenses of property which is in the name of the United
Church of Northern India Trust Association,
administrative and other expenses of the Chhattisgarh
Diocese Board of Education, there is no much clarity in
the manner in which the amounts have been utilized.
2. It was noted that Late Ajay Dharmaraj (Ex-
Secretary CDBE) and Mr. Wilson Lal (Ex-Treasurer
CDBE) were involved in serious financial irregularities
and misuse of funds of the funds of the institutions. If the
funds were required for the purpose of property and
administration, the expenditure should have been
properly accounted for. There is no disclosure of the
heads under which the funds received from the school
were spent. This clearly shows that the funds have been
misutilised.
3. A serious matter has been noted that all the
accounts of the CDBE and schools are frozen by bank
on the complaint by Mr. Wilson Lal (who was removed
from the post of Treasurer, CDBE because of his illegal
activities). There is serious concern over running of day
to day affairs of the school and payment of teaching and
non teaching staff.
4. It is therefore recommended that:-
a) The CNI Synod should take serious action
against the persons responsible for the illegal transfer
and misutilisation of funds by Mr. Wilson Lal (Ex -
23
Treasurer of CDBE), Mr. Manish Hiradhar and Mr.
Sandeep Din (of Mission High Secondary, Pendra Road)
including criminal complaint, is required.
b) All efforts should be made by the CDBE and
the Chhattisgarh Diocese to recover the amount of
funds which have been transferred from the institutions
to the Diocese and CDBE, and for which no accounting
is available to show the proper utilization of funds for the
purpose of the institutions.
c) A Charted Accountant should be employed
for the purpose of assessing the exact amount of
unaccounted funds of which recovery is required to be
made.
d) The responsibility of ensuring financial
discipline in the CDBE and the Diocese is that of the
Bishop of the Diocese who is also the Ex-officio
Chairman of the CDBE. Hence, the responsibility to
ensure action against the persons responsible and for
recovery of the amount is also that of the Bishop.
e). The CDBE and the Diocese should ensure
that only that amount is taken from the institutions which
is required for the purpose of the institutions that is
funds towards the property, administrative charges and
other such expenses of the Board. There should not be
any transfer of funds which is unaccounted for."
15. In above conclusions and recommendations made by Enquiry
Committee, there is specific mention for taking serious action
again the persons responsible for illegal transfer and
misutilization of funds and further recommended for efforts to be
made for recovery of funds, which have been transferred from
24
the institutions to Diocese and CDBE, which was unaccounted
and not utilized for the purpose of institution.
16. The decision in case of Modern School Vs. Union of India &
Ors., reported in (2004) 5 SCC 583 is judgment of Hon'ble
Supreme Court, against which Review Petition No.1368 of 2004
and other connected matters were filed and same came to be
decided vide judgment dated 07.08.2009, which is reported in
(2009) 10 SCC 1, Action Committee, Unaided Private Schools
& Ors. Vs. Director of Education, Delhi & Ors.
17. Hon'ble Supreme Court in case of Action Committee, Unaided
Private Schools (supra), where the Hon'ble Supreme Court
considering the transfer of funds from recognized unaided school
to a society or trust or any other institution has observed as
under :-
"20. S/Shri Soli J. Sorabjee and Salman Khurshid,
learned senior counsel appearing on behalf of the
Action Committee and other review petitioners,
submitted that clause 8 of the Order issued by DoE
dated 15.12.1999 is causing administrative difficulties
which needs to be clarified. This Court vide majority
judgment has held that clause 8 is in consonance with
rule 177 of Delhi School Education Rules, 1973. Rule
177 has been quoted hereinabove. Under clause 8,
DoE has stipulated that "no amount whatsoever shall
be transferred from the recognized unaided school
fund of a school to the society or the trust or any other
institution." According to the learned senior counsel, a
rider needs to be introduced in clause 8, namely,
"except under the management of the same society
25
or trust". Thus, according to the learned counsel, if
the suggested rider is added in clause 8 then the
Management would have no grievance with the
majority view. Thus, according to the learned counsel,
clause 8 should be read as follows:
"No amount whatsoever shall be transferred from the
recognized unaided school fund of a school to the
society or the trust or any other institution except
under the management of the same society or trust"
According to the learned counsel, if the
suggested rider is aided to clause 8 then it would
subserve the object underlying the 1973 Act.
21. There is merit in the argument advanced on
behalf of the Action Committee/Management. The
1973 Act and the Rules framed thereunder cannot
come in the way of the Management to establish
more schools. So long as there is a reasonable fee
structure in existence and so long as there is transfer
of funds from one institution to the other under the
same management, there cannot be any objection
from the Department of Education.
24. In this context it may be noted that in T.M.A. Pai
Foundation case (supra) and in Islamic Academy
(supra) the principles for fixing fee structure have
been illustrated. However, they were not exhaustive.
They did not deal with determination of surplus and
appropriation of savings. In fact in the majority view of
the present matter, this Court has found that the
above topics are not dealt with by the 1973 Rules and
therefore clause 8 was found not to be beyond Rule
177 or in conflict thereto as alleged. The Additional
Directions given in the Judgment of the Majority vide
para 27 in Modern School do not go beyond Rule 177
26
but they are a part of gap-filling exercise and
discipline to be followed by the management. For
example: every school shall prepare balance sheet
and profit and loss account. Such conditions do not
supplant Rule 177. If reasonable fee structure is the
test then transparency and accountability are equally
important. In fact, as can be seen from Reports of
Duggal Committee and the earlier Committee,
excessive fees stood charged in some cases despite
the 1973 Rules because proper Accounting Discipline
was not provided for in 1973 Rules. Therefore, the
Further Directions given are merely gap-fillers.
Ultimately, Rule 177 seeks transparency and
accountability and the Further Directions (in para 27)
merely brings about that transparency. Lastly, it may
be noted that the matter has come up to the Apex
Court from PIL. Hence there is no merit in the above
plea.
27. Though I agree with the view of S.B. Sinha, J.
that any direction issued by the High Court or by the rule making authority or any statutory authority must be in conformity with the decision of this Court in the case of T.M.A. Pai Foundation as clarified by the decision of this Court in the case of P.A. Inamdar, in my view, the judgment of S.H. Kapadia, J. does not question or contradict such a legal proposition. On the contrary, it is in recognition of the above legal proposition that modification suggested by the learned counsel for the review petitioners in respect of Clause 8 of the order dated 15.12.1999 issued by the Director of Education has been accepted by S.H. Kapadia, J."
27
18. The Hon'ble Supreme Court has stressed upon the transparency and accountability of utilization of funds.
19. In reply, respondents No.2 to 4 have pleaded and made submission, before this Court that Chhattisgrah Diocese Territorial Division of Church of Northern India and all the schools including Salemn English Medium School and Burgess English Medium School are affiliated to CDBE, which is a body under Chhattisgarh Diocese under CNI of which Bishop of Diocese is Ex-officio Chairman. They are having number of schools running within Raipur region and Bilaspur region, list of which is forming part of record as also specifically discussed in the enquiry report dated 27.04.2019 submitted pursuant to certain observation made by this Court.
20. Further submission of learned counsel for petitioners by way of bringing additional facts on record that Bishop-cum-Chairman called meeting within one year of his retirement to be not proper based on the letter written by Synod of Church of Northern India dated 28.06.2021 to be contrary to the Code of Conduct for Bishop in the Church of Northern India. Perusal of said letter would show that there is restriction on taking any decision in respect of policy of Diocese or its institution during one year prior to superannuation. The agenda of meeting, which is reported to the District Education Officer on 19.07.2021, would reflect that agenda is with respect to promotion of Lecturers, who completed 10 years, for grant of time pay scale who completed 7 years and 28 for grant of time pay scale who completed 30 years of service. The agenda which is mentioned in the complaint/letter written by petitioners to the District Education Officer only deals with service conditions which are governed by the rules and regulations framed in this regard and therefore, it cannot be said that meeting is called for taking any policy decision.
21. Petitioners have raised issue of mis-utilization of funds. After filing of writ petition as also based on the complaint, the higher body has taken cognizance, conducted an enquiry, made certain observations, issued recommendations based upon which the members/persons against whom the allegations were found to be correct were removed, earlier Executive Committee was dissolved and adhoc Executive Committee was constituted. Hence after filing of writ petition, remedial measures were taken by respondents No.2 to 4 by making recommendations and issuing direction for taking action against erring persons, who were found involved in committing wrong including action for recovery of unaccounted money.
22. With regard to initiation of certain proceedings by Income Tax Department, as stated by petitioners, we are of the view that the concerned department is an authorized agency to take action under the Income Tax Act. Hence, it will not be proper for this Court to go into that issue.
23. Relief No.1 sought for in writ petition is with regard to administrative decision to be taken by respondents No.2, 3 and 29
4. Based on the report, aforementioned respondents have taken decision to dissolve the then CDBE and appoint an adhoc Executive Committee. The Bishop of Chhattisgarh Diocese working in the Chhattisgarh on the date of making complaint and prior to filing of writ petition, has resigned and during the pendency of this petition, successor Bishop-cum-Chairman of CDBE also retired in December, 2021.
24. The main grievance raised by petitioners is with regard to diversion and mis-utilization of funds collected in schools under Chhattisgarh Diocese Board of Education, CNI. With respect to grievance raised, two enquiry reports are available in the record. Enquiry Committee constituted by respondents No.2 to 4 conducted enquiry and submitted its report in the year 2019. In the said report also it was concluded that the funds are transferred by the institution. It was also recorded that there is not much clarity as to how the amounts were utilized. There is no disclosure of heads under which funds received from schools were spent. Further in the recommendation it is mentioned that responsibility to ensure financial discipline in CDBE and Diocese was of the Bishop of the Diocese.
25. In the enquiry report dated 27.04.2019 members of Enquiry Committee have not arrived at a conclusion with respect to quantum of funds misutilized and as per conclusion and recommendation made by Committee, no document has been placed before this Court to show, what further steps have been 30 taken by respondents No.2 to 4. In the aforementioned facts of the case and also in light of decision of Hon'ble Supreme Court as discussed above, if the fund collected by school, is found to be transferred to a society, is unaccounted, as held in the enquiry report, it requires further enquiry to ascertain the quantum of amount misutilized and the persons involved in it so as to achieve the object of utilization of funds collected by schools, for betterment and management of schools only. Respondent Nos. 5 to 16 in para-4 of their reply have specifically pleaded that C.G. Diocese Board of Education, CNI is registered as a society with Registrar, Firms and Societies, Chhattisgarh, therefore, we find it appropriate to direct the Registrar, Firms and Societies, Chhattisgarh to enquire into the complaint of petitioners with respect to transfer of funds collected by schools to others. We also direct that enquiry should be limited to the allegation with regard to diversion of school funds for other purposes.
26. In view of above conclusions, recommendations made in the second enquiry report, which involve disputed question of facts and which cannot be decided in a Public Interest Litigation, we find it appropriate to dispose of this petition directing petitioners to submit an application before the Registrar under Chhattisgarh Society Registrikaran Adhiniyam, 1973 with all relevant documents. Copies of proceedings to be filed before the Registrar be supplied to all respondents. The Registrar under the Act, 1973 is directed to decide the application to be submitted by petitioners expeditiously within an outer limit of six months from 31 the date of receipt of application by conducting enquiry as provided under Section 32 of the Act, 1973 after providing opportunity of hearing to all the parties.
Sd/- Sd/-
(Arup Kumar Goswami) (Parth Prateem Sahu)
Chief Justice Judge
Balram