Non-Reportable IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO.486 OF 2003

Swamy Prakasananda & Anr. … Appellants

Vs.

State of Kerala & Ors. … Respondents

O R D E R

R.V.RAVEENDRAN, J.

The  above  appeal  relating  to  the  affairs  of  Sree  Narayana

Dharma Sanghom Trust was disposed of by judgment dated 2.5.2006.

By subsequent  order  dated  26.2.2007  this  Court  had  constituted  a

Monitoring Committee with eleven members, to function as a Board

of  Visitors  advising  the  Trust  Board  on  matters  of  policy  and

functioning, in particular :

(i) to act as a vigilance organization to ensure that the affairs of the Sanghom are conducted in a proper, efficient and fair manner;

(ii) to  inspect  (either  itself  or  by  persons  authorized)  the educational  or  other  institutions  run  by the  Sanghom and  examine

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their records and activities and cause any inquiry to be made in regard to the administration and finances of the Sanghom and its institutions;

(iii) to address the Trust Board with reference to the result of such inspection or inquiry or seek clarifications;

(iv) to tender advice on matters of policy to the Trust Board (which shall   give  due  weight  and  consideration  to  such  advice  and communicate  the particulars  of  action  taken on such advice  to  the Committee and to the General Body of the Sanghom);

This  Court  had  also  clarified  that  (i)  none  of  the  members  of  the

Monitoring Committee will be entitled to any honorarium or fee other

than reasonable expenses incurred for lodging and conveyance from

the Sanghom; (ii) the constitution of the Monitoring Committee or its

functioning shall not be construed as modification of the scheme of

management  of  the  Sanghom;  and  (iii)  the  Monitoring  Committee

will have no say in the day to day administration of the Sanghom by

its elected Trust Board.

2. The  Monitoring  Committee  has  submitted  the  first  Annual

Report  dated  18.4.2008,  wherein  it  has  sought  directions  on  its

following suggestions :

(a) The Convenor should be provided with an imprest amount of Rs.50,000 to meet the expenses for arranging secretarial assistance.

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(b) The  Monitoring  Committee  be  given  express  authority  to appoint  experts  to  enquire  into  the  affairs  connected  with  the administration of the Sanghom and its institutions.

(c) When  any  irregularities  or  malpractices  are  found,  or  any enquiries held into the affairs of the Sanghom or its institutions, the Monitoring  Committee  shall  have  the  authority  to  issue  positive directions to be carried out by the Trust Board, and in case of non- compliance with those directions, take appropriate action to enforce such directions, in the best interest of the Trust.

3. Dr.  K.Balachandran,  Member,  Monitoring  Committee  has

submitted a separate report dated nil (received on 12.7.2008).

4. We have heard learned counsel on both sides on 13.5.2008. We

have  also  taken  note  of  the  fact  that  the  elections  were  held  on

5.10.2006 and the newly elected Committee has now been in office

for  nearly  one  year  and  ten  months  and  has  attained  sufficient

experience  in  matters  of  governance;  and  that  the  Monitoring

Committee appointed on 26.2.2007 has been in office for nearly one

year and six months.  

5. The intention of appointing the Monitoring Committee was not

to make it a superior authority to which the elected Trust Board will

report  nor  to  entrust  it  with  power  to  reverse  the  decisions  of  the

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elected Trust Board. The Monitoring Committee is intended to act as

a group of elders/visitors/mentors interested in the Sanghom who will

advise the Trust Board on matters of policy, conduct and vigilance. If

any  irregularities  in  the  functioning  of  any  of  the  institutions  or

organs of the Sanghom come to its notice, it will place the matter on

record  so  that  the  Trust  Board  could  give  due  weight  to  it  while

taking decisions. The ultimate decision-making will always be that of

the  elected  Trust  Board  and  not  the  nominated  Monitoring

Committee.  In  the  circumstances,  we  clarify  that  while  the

Monitoring  Committee  may  issue  positive  suggestions,  it  cannot

enforce  its  suggestions  as  directions.  The  very  existence  of  a

Monitoring  Committee  with  power  to  enquire,  publish  and  expose

any  irregularities (to the Trust Board, General Body and the public)

is  intended to  be  a deterrent  against  any wrong  doing.  We cannot

however authorize a non-elected advisory body like the Monitoring

Committee  to  reverse or  control  the  decisions  of  the  elected Trust

Board.

6. Having regard to the fact that the elected Trust Board has now

been functioning for a considerable time with the guidance from the

Monitoring Committee, it may no longer be necessary to have such a

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broad-based Monitoring Committee. We accordingly reconstitute the

Monitoring Committee into a more compact one  with the following

seven members from the original eleven :

1. Mr. T N Jayachandran, IAS (Retd.), Convenor 2. Mr. M N Prasad, Former Chairman, Indian Railways 3. Prof. M K Sanoo, Educationist 4. Mr. A M Gopalan, Educationist 5. Mr. A.R.Shankar Narayanan, G. M., Arya Vaidyasala 6. Mr. M N Suganabalan, Senior Advocate 7. Mr. N Dharmadan, Senior Advocate.

Appreciation for services rendered by the other members till now is

placed on record. Their services and/or the services of others may be

indented in future, if and when necessary.

7. We also issue the following further directions/clarifications in

regard to the functioning of the Monitoring Committee :  

(i)  The  Trust  Board  shall  make  available  an  imprest  amount  of Rs.50,000/- to the Convenor of the Monitoring Committee to meet the travel/lodging/miscellaneous/secretarial  expenses.  The  Trust  Board shall replenish the same, as and when required.

(ii)  The  Monitoring  Committee  can  take  the  assistance  of  any Chartered Accountant or other expert to assist it in any enquiry and expenses thereof shall be borne by the Trust Board.

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(iii)  The Monitoring  Committee may continue  its  functions.  But  it will not be necessary for the Monitoring Committee to file any further reports  to  this  Court.  If  any  clarifications  are  required,  the  Trust Board or   the   Monitoring   Committee   or   individual    members may approach the High Court  of Kerala,  by way of an appropriate application in Appeal Suit No.14/1956 disposed of on 26.3.1959.

Copies of this order be sent to the Trust Board and the Monitoring

Committee.

…………………….J. (A K Mathur)

New Delhi;           …………………….J. August 5, 2008. (R V Raveendran)

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