Senior Deputy Director, Kerala State Audit Department, Travancore Devaswom Board Audit v. Secretary, Travancore Devaswom Board

``` IN THE HIGH COURT OF KERALA AT ERNAKULAM ``` ## **`PRESENT`** ``` THE HONOURABLE MR.JUSTICE ANIL K. NARENDRAN ``` ``` & ``` ``` THE HONOURABLE MR.JUSTICE P.G. AJITHKUMAR THURSDAY, THE 13[TH] DAY OF APRIL 2023/23RD CHAITHRA, 1945 ``` ## **`DBAR NO.8 OF 2022`** ## **`PETITIONER:`** ``` SENIOR DEPUTY DIRECTOR, KERALA STATE AUDIT DEPARTMENT, TDB AUDIT, KAWADIYAR,THIRUVANANTHAPURAM, PIN - 695003 ``` ``` BY ADV GOVERNMENT PLEADER ``` ## **`RESPONDENT:`** ``` THE SECRATARY, TRAVANCORE DEVASWOM BOARD, DEVASWOM HEAD QUARTERS, KAWADIAR, NANDANKODE,THIRUVANANTHAPURAM, PIN - 695003 ``` ``` BY ADV G.SANTHOSH KUMAR (P). ``` ## **`OTHER PRESENT:`** ``` SRI S. RAJMOHAN – SR. GOVERNMENT PLEADER ``` ``` THIS DEVASWOM BOARD AUDIT REPORT HAVING COME UP FOR ADMISSION ON 13.04.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ``` 2 DBAR No.8 of 2022 ## **ORDER** ## **Anil K. Narendran, J.** This DBAR filed by the Senior Deputy Director, Kerala State Audit Department, Travancore Devaswom Board Audit, relates to the non-furnishing of the accounts (Annual Financial Statements) of the Travancore Devaswom Board, for the years 2018-19, 2019-20 and 2020-21, and non-adherence of the time schedule fixed vide Devaswom Fund Accounts Rules. 2. On 27.10.2022, when this DBAR came up for consideration, it was noticed that the law laid down by this Court in the order dated 24.05.2022 in DBAR No.4 of 2022, with specific reference to the relevant statutory provisions, has been openly flouted by the Travancore Devaswom Board. The Board has not even chosen to file an application for extension of time for submitting Annual Financial Statements for three years 2018- 19, 2019-20 and 2020-21, taking note of the observations contained in paragraph 21 of that order. By the order dated 27.10.2022, the respondent, who is the Secretary of the Board, was directed to file an affidavit, explaining the facts and circumstances, within a period of two weeks. 3. In terms of the order dated 27.10.2022, the 3 DBAR No.8 of 2022 respondent has filed an affidavit dated 14.11.2022, wherein it is stated that Circular No.D.A.30/21/B.1 dated 25.01.2021 was issued by the Travancore Devaswom Board to all the offices/heads of the institutions under the Board for preparing and submitting Annual Financial Statement on or before 31.03.2021, for the year 2017-18. Only after regular follow-ups through letters and phone calls, flawless account statements were received from many offices, months after the aforesaid circular. The report regarding the delay in getting the Annual Financial Statements and its progress was reported to the Board promptly. After the order of this Court dated 24.05.2022 in DBAR No.4 of 2022, the Board passed an order, i.e., ROC No.2571/21/Esta.1 dated 21.07.2022. Accordingly, a letter dated 26.07.2022 was received from the Devaswom Accounts Officer, wherein it is stated that the Annual Financial Statements, after rectifying the defects, are still pending from Sabarimala Devaswom and Kadakkal CBSE School. The Annual Financial Statement from the office of the Assistant Devaswom Commissioner, Thrikkariyoor, was received on 22.07.2022, after rectifying the defects. The Principal, Kadakkal CBSE School, after appearing before the Reconciliation Department had given 4 DBAR No.8 of 2022 assurance that he would submit the Annual Financial Statements, after rectifying the defects, on or before 22.07.2022. Instruction was given through phone to Sabarimala Devaswom to submit an impeccable Annual Financial Statement forthwith. Vide communication dated 26.07.2022, the Devaswom Accounts Officer has reported that, based on the information obtained from the office of the Chartered Accountant, the Annual Financial Statement for the year 2018-19 can be completed before 30.09.2022. Vide letter No.ROC 2573/21/Est-1 dated 29.07.2022 the respondent entrusted the Law Officer to take steps to file an application before this Court seeking extension of time. However, upon the assurance made by the Chartered Accountant, vide Annexure R1(a) letter dated 26.09.2022, the Devaswom Accounts Officer was under the bona fide belief that the Annual Financial Statements could be submitted within time and therefore, the filing of the petition seeking extension of time was kept in abeyance, for the time being. The respondent has accordingly issued a letter vide ROC.No.2573/21/Est.-1 dated 26.10.2022 to the Joint Director of the Kerala State Audit Department. 4. In the affidavit dated 14.11.2022 of the respondent, 5 DBAR No.8 of 2022 it is stated that, after submitting the Annual Financial Statement for the year 2018-19, the closing balance of 2018-19 has to be shown as the opening balance for the year 2019-20. By keeping that opening balance, the audit works for the year 2019-20 has to be started. Similarly, the closing balance of the year 2019-20 has to be shown as the opening balance for the year 2020-21 and keeping that opening balance the audit works for the year 2020-21 has to be started. Approximately 7 months' time is required to finish the audit works of the Board, for one financial year, considering the fact that the functioning of other offices of the Board will be partially affected during the Sabarimala Pilgrimage. The Annual Financial Statement of the Board for the year 2018-19 was delayed due to various reasons. Even after Covid-19 pandemic issues, several Board officials got affected with Covid virus at various points of time and hence the functioning of the office was interrupted. It has resulted in the pendency of works in various offices and that backlog affected the preparation of Annual Financial Statements also. Even though the Annual Financial Statements of the Board is prepared in the double entry system, from 01.04.2010 onwards, it is not updated after clearing the dues, and hence along with double entry 6 DBAR No.8 of 2022 system, the audit report is also being prepared in single entry system. Accordingly, the workload of the authorised officers has increased. After 1995, it was only in May 2020, that direct recruitment of staff was done in the Board from the rank list prepared by the Recruitment Board. In the year 2011, in order to make good of the shortage of staff, temporary staff were appointed through employment exchange and the assistance of the temporary staff was availed by the respective officers, for preparing the audit reports. Later, the temporary staff were disengaged in May and October of 2020 and permanent appointments were made in June, August and October of 2021. The new appointees were given training in double entry system and also on other aspects in two phases and they were deployed in the respective offices for preparing the audit reports. Therefore, there occurred delay in the audit works for the year 2018-19. The Annual Financial Statement for the year 2018-19, prepared in Double Entry System, was obtained from the Chartered Accountant, by the Devaswom Accounts Officer, which were forwarded to the Board vide Annexure R1(b) letter dated 07.11.2022. Accordingly, the respondent submitted the Annual Financial Statement for the year 2018-19 before the Joint 7 DBAR No.8 of 2022 Director, Kerala State Audit Department, along with Annexure R1(c) letter dated 07.11.2022. Now the work of preparing Annual Financial Statement for the year 2019-20 is progressing in a war footing manner and as assured in Annexure R1(c) letter, it is expected to be completed on or before 30.06.2023 and the Accounts for the year 2020-21 is expected to be completed on or before 30.11.2023. 5. By the order dated 17.11.2022, the learned Standing Counsel for Travancore Devaswom Board was directed to get instructions as to the action taken by the Board in terms of the directions contained in the order dated 24.05.2022 in DBAR No.4 of 2022. 6. After the said order dated 17.11.2022, the respondent has filed an additional counter affidavit dated 12.12.2022, wherein it is stated that after the order of this Court dated 24.05.2022 in DBAR No.4 of 2022, the Board had passed Annexure R1(d) order, i.e., ROC No.2571/21/Esta.1 dated 21.07.2022, whereby strict directions were issued to the officials for providing Annual Financial Statements urgently before the Devaswom Accounts Officer, who was instructed to file a report regarding the delay caused in furnishing the Account Financial 8 DBAR No.8 of 2022 Statements and also the further time required in the matter. The Devaswom Accounts Officer has submitted Annexure R1(e) report dated 26.07.2022 before the respondent, stating various reasons for the delay. The Board after considering the said report and also considering the urgency in the matter, issued directions to the officers referred to in that report to furnish the details of the accounts for the year 2018-2019 to the Devaswom Accounts Officer, before 30.07.2022. Apart from that, the Board has entrusted the Law Officer to take necessary steps to file petition seeking extension of time before this Court, as evidenced by Annexure R1(f) letter dated 29.07.2022. Considering the inordinate delay in submitting the annual accounts, the Board decided to seek explanation from the Concerned Law Officer as well as from the Devaswom Accounts Officer. Accordingly, Annexure R1(g) show cause notice dated 09.12.2022 has been issued to the Assistant Law Officer Grade 2 and Annexure R1(h) show cause notice dated 09.12.2022 to the Devaswom Accounts Officer. The account statements of the year 2018-19, which is computerised and prepared in Double Entry System was obtained from the Chartered Accountant, by the Devaswom Accounts Officer, which was forwarded to the respondent vide Annexure- 9 DBAR No.8 of 2022 R1(b) letter dated 07.11.2022. The respondent submitted the Annual Financial Statement for the year 2018-2019 before the Joint Director, Kerala Audit & Accounts Department along with Annexure-R1(c) letter dated 07.11.2022. Now, the work of preparing Annual Accounts for the year 2019-20 is progressing in a war footing manner, which is expected to be completed on or before 30.06.2023 and Accounts for the year 2020-21 is expected to be completed on or before 30.11.2023. Upon receiving the explanations from the concerned officials to Annexure-R1(g) and Annexure-R1(h) show cause notices, the respondent will place the matter before the Board for initiating further action in the matter. 7. On 01.03.2023, the respondent filed I.A.No.1 of 2023 to place on record Annexures R1(i) to R1(k) as additional documents. In the affidavit filed in support of that interlocutory application it is stated that the Devaswom Accounts Officer has submitted Annexure R1(i) report dated 15.02.2023 and Annexure R1(j) report dated 16.02.2023 before the respondent. As per Annexure R1(i) report 13 institutions/ offices have not yet furnished the account details, despite repeated demands. 26 institutions/offices have not yet re-submitted the account details 10 DBAR No.8 of 2022 after curing the defects. As per Annexure R1(j) report, the institutions/offices at serial Nos.8, 22, 23 and 24 in the list contained in Annexure R1(i) report have already re-submitted the accounts after curing the defects. The Board, after considering Annexure R1(i) and Annexure R1(j) reports, passed Annexure R1(k) order dated 21.02.2023. In the said order, the Board found that the default on the part of the concerned officers in submitting accounts in double entry system, despite repeated requests, amounts to misconduct on their part. They are directed to submit the accounts of the respective institutions/offices for the year 2019-20 before 24.02.2023. In case of default in submitting accounts within the aforesaid date, orders will be passed to withhold the salary of the concerned officers. In the affidavit it is stated that, after obtaining further report from the Devaswom Accounts Officer, the Board will definitely proceed with the matter further as the Board has taken it seriously. The Board and its members are fully aware and duty bound to comply with the decisions rendered by this Court in the matter of Audit Report of the Travancore Devaswom Board for the Year 1967-68 (Sabarimala Improvement Fund) reported in [1990 (1) KLT 347] as well as the provisions under Rule 11 of the Devaswom Fund 11 DBAR No.8 of 2022 Accounts Rules on Double Entry System of Accounting. 8. On 21.03.2023, the respondent has filed I.A.No.2 of 2023 for accepting Annexures R1(l) and Annexure R1(m) as additional documents. In the affidavit filed in support of that interlocutory application it is stated that the Devaswom Accounts Officer on 06.03.2023 submitted Annexure R1(l) report before the respondent, wherein it is stated that 5 institutions/offices have not furnished the account details, despite repeated requests. 18 institutions/offices have not re-submitted the account details after curing the defects. Annexure R1(l) report was followed by Annexure R1(m) report dated 17.03.2023 of the Devaswom Accounts Officer, wherein it is stated that the accounts pertaining to the office of Executive Officer, Sabarimala and that pertaining to the office of the Assistant Devaswom Commissioner, Vaikom have not been furnished. 15 institutions/offices have not resubmitted their account details after curing the defects. In the affidavit, it is stated that the respondent will initiate disciplinary proceedings against the officials who failed to submit accounts before 31[st] March. The latches and delay in furnishing the accounts will not be tolerated and the Board has taken the matter seriously. 12 DBAR No.8 of 2022 9. Today, when this matter is taken up for consideration, the respondent has filed I.A.No.3 of 2023, producing therewith the Board order dated 06.04.2023 as Annexure R1(n). In the affidavit filed in support of that interlocutory application, it is stated that the Devaswom Accounts Officer has placed a report before the respondent on 03.04.2023, as per which the accounts pertaining to the office of Executive Officer, Sabarimala and that of the office of the Assistant Devaswom Commissioner Office, Vaikom has not been received. The matter was discussed in the meeting of the Board and it was decided vide Annexure R1(n) order, i.e., ROC No.2573/23/Est-1 dated 06.04.2023 to initiate disciplinary proceedings against the officers, who have defaulted submission of accounts for the year 2019-20, by issuing show case notice. In the affidavit it is stated that the delay and laches in furnishing the accounts will not be tolerated and the Board has taken the matter seriously. Considering the workload, reasonable time and opportunity was given to the officials of the institutions/offices referred to in Annexure R1(n) for submitting the accounts. The Board is of the opinion that non-furnishing of accounts is a serious lapse on the part of the said officials. 10. Heard the learned Senior Government Pleader for the 13 DBAR No.8 of 2022 petitioner and the learned Standing Counsel for Travancore Devaswom Board for the respondent. 11. Travancore-Cochin Hindu Religious Institutions Act, 1950 enacted by the State Legislature makes provision for the administration, supervision and control of incorporated and unincorporated Devaswoms and of other Hindu Religious Endowments and Funds. As per sub-section (3) of Section 1 of the Act, substituted by the Kerala Adaptation of Laws Order, 1956, Part I of the Act shall extend to Travancore, Part II of the Act shall extend to Cochin and Part III of the Act shall extend to the whole of the State of Kerala, excluding the Malabar District. Section 4 of the Act deals with constitution of the Travancore Devaswom Board. As per sub-section (2) of Section 4, the Board shall be a body corporate having perpetual succession and a common seal with power to hold and acquire properties for and on behalf of the incorporated and unincorporated Devaswoms and Hindu Religious Institutions and Endowments under the management of the Board. 12. Section 25 of the Act defines Devaswom Fund. As per clause (a) of Section 25, the Devaswom Fund constituted for the Devaswoms mentioned in Schedule I shall consist of the amounts 14 DBAR No.8 of 2022 enumerated in sub-clauses (1) to (6). Section 31 of the Act deals with management of Devaswoms. As per Section 31, subject to the provisions of Part I and the rules made thereunder, the Board shall manage the properties and affairs of the Devaswoms, both incorporated and unincorporated as heretofore, and arrange for the conduct of the daily worship and ceremonies and of the festivals in every temple according to its usage. 13. Section 32 of the Act deals with Audit. As per subsection (1) of Section 32, the Board shall keep regular accounts of all receipts and disbursements in respect of the institutions under its administration. As per sub-section (2) of Section 32, the accounts of the Board shall be audited annually. As per subsection (3) of Section 32, the audit shall be made by auditors appointed by the High Court. In view of the provisions under subsection (4) of Section 32, every auditor appointed under this Section shall be deemed to be a public servant within the meaning of the provisions under the Penal Code. 14. As per sub-section (5) of Section 32 of the Act, after completing the audit for any year or for any shorter period or for any transaction or series of transactions, as the case may be, the auditor shall send a report to the High Court. As per sub-section 15 DBAR No.8 of 2022 (6) of Section 32, the auditor shall specify in his report all cases of irregular, illegal or improper expenditure or of failure to recover money or other property due to the Board or to the institutions under its management or of loss or waste of money or other property thereof caused by neglect or misconduct. As per subsection (7) of Section 32, the auditor shall also report on any other matter relating to the accounts as may be prescribed or on which the High Court may require him to report. As per subsection (8) of Section 32, the High Court shall send to the Board a copy of every audit report and it shall be the duty of the Board to remedy any defects or irregularities pointed out by the auditor and report the same to the High Court. 15. As per sub-section (9) of Section 32 of the Act, if, on a consideration of the report of the auditor or otherwise, the High Court thinks that the Board or any member thereof was guilty of misappropriation or wilful waste of the funds of the institutions or of gross neglect resulting in a loss to the institutions under the management of the Board, the High Court may, after giving notice to the Board or the member as the case may be, to show cause why an order of surcharge should not be passed against the Board or the member, and after considering the explanation, 16 DBAR No.8 of 2022 if any, pass an order of surcharge against the Board or the member, as the case may be. As per sub-section (10) of Section 32, the order of surcharge may be executed against the member or members concerned of the Board as if it were a personal decree passed against them by the High Court. As per subsection (11) of Section 32, an order of surcharge under this Section shall not bar a suit for accounts against the Board or the member concerned except in respect of the matter finally dealt with by such order. As per sub-section (12) of Section 32, a copy of the audit report shall be supplied to any person who duly applies for the same. 16. In exercise of the rule making powers under clause (c) of sub-section (2) of Section 35 of the Act, the Travancore Devaswom Board made the Devaswom Fund Accounts Rules on Double Entry System of Accounting, 2012, which was notified vide notification dated 08.10.2020. As stated in the explanatory note, this Court directed the implementation of Double Entry System of Accounting, with effect from 01.04.2010, and the Board decided to implement the said direction. In order to give statutory validity for the new accounting system, the rules formalise the procedures with retrospective effect from 17 DBAR No.8 of 2022 01.04.2010. As per Rule 2, Double Entry System of Accounting is implemented from where bank transactions originate. Hence the basic unit office for Double Entry System of Accounting is treated as Assistant Commissioner Offices/Maramath Division Offices where bank accounts are maintained. In addition, there may be separate bank accounts for P.D. Devaswoms maintained by the Assistant Commissioners concerned. As per Rule 3, for each bank account, separate Cash Book, Ledger and Journal have to be maintained, as per the specimen forms attached as Appendix I(a), I(b) & I(c) respectively. As per Rule 4, the Assistant Commissioner Offices and officials operating bank accounts shall prepare the monthly accounts related to each bank account and forward the same to the Devaswom Accounts Office before the 15[th] of the next month. Bank Reconciliation Statement and copy of Bank scroll shall accompany the monthly statements thus forwarded. The Maramath Divisions are also required to perform likewise. 17. As per Rule 5 of the Rules, the Devaswom Commissioner, Board Secretary and other officials are also required to perform the duties mentioned in Rule 4 within the time limit in respect of bank accounts operated/maintained by 18 DBAR No.8 of 2022 them. As per Rule 6, on receipt of the monthly accounts, the Devaswom Accounts Office will verify its correctness and record the details account-wise in separate registers. As per Rule 7, at the end of each financial year, valuation of assets and liabilities of the Board has to be completed on or before the end of May each year. The responsibility for such work vests with the Estate Division of the Board under the Executive Engineer and details of the Assets and Liabilities have to be forwarded to the Devaswom Accounts Office along with the proposal for the appreciation/ depreciation of their value for the previous year. Such work shall be completed by the Estate Division on or before 31[st] May of each year. As per Rule 8, in the valuation of assets mentioned above, land, buildings, musical instruments and other instruments, ornaments, valuables in the strong rooms, vehicles, animals and birds, machinery, etc., under the possession and ownership of the Board have to be evaluated. Sreekovil of temple, dieties, thazhikakudam, thiruvabharanam and like items are to be exempted from such valuation. 18. As per Rule 9 of the Rules, the valuation of the assets has to be made in money terms. Straight Line Method has to be resorted to for reckoning depreciation of the valuable items. If 19 DBAR No.8 of 2022 the appreciation of assets (like land, gold, etc.) is revalued, the prevailing accounting standards are to be applied. As per Rule 10, evaluation for liabilities will be done in the Devaswom Accounts Office. As per Rule 11, after the close of the financial year, the Devaswom Accounts Office shall prepare the Annual Income and Expenditure Statement, Reconciliation Statement, Assets and Liabilities Statement and Balance Sheet for the year. Such work shall be completed on or before the 30[th] of September of the following year. As per Rule 12, notwithstanding anything contained in the above rules the present system of accounting as appearing in Chapter X of the Travancore Devaswom Manual Vol. I (published in 1955) will continue till such time as the Board will decide. Thus, both systems of accounting shall co-exist till the Double Entry System of Accounting becomes fully operational. 19. The audit of accounts of the Travancore Devaswom Board is conducted by Kerala State Audit Department (formerly known as Local Fund Audit Department) under the provisions in Section 32 of the Act and as entrusted by this Court. In compliance with the order of this Court in DBA No.14 of 2011, the Travancore Devaswom Board adopted Double Entry System of Accounting with effect from 01.04.2010. As per Rule 11 of the 20 DBAR No.8 of 2022 Devaswom Fund Accounts Rule in Double Entry System of Accounting 2012, the time schedule fixed for the preparation of Annual Financial Statements for a year is on or before 30[th] September of the following year. As there was an inordinate delay in furnishing the Annual Financial Statements for the years 2016-17 and 2017-18, the same was reported before this Court in DBAR No.7 of 2019. By the order dated 23.07.2019 in DBAR No.7 of 2019, this Court granted two months’ time to the Devaswom Board to furnish Annual Financial Statement for the year 2016-17 and four months’ time was granted to furnish the Annual Financial Statement for the year 2017-18. Vide order dated 18.11.2019 in I.A.No.1 of 2019 in DBAR No.7 of 2019, this Court granted further time to submit the Annual Financial Statements. The time for submitting Annual Financial Statement for the year 2016-17 was extended to 30.11.2019 and that for 2017-18 was extended to 30.01.2020. Accordingly, Annual Financial Statements for 2016-17 was furnished on 20.12.2019 and that for 2017-18 were furnished on 27.08.2021. The audit report for 2017-18 was submitted before this Court on 30.11.2021. Thereafter, the State Audit Department, vide office letter No.KSA.TDB/C-4/1035/2021 dated 01.11.2021 requested 21 DBAR No.8 of 2022 the Secretary of Travancore Devaswom Board to furnish the Annual Financial Statements for 2018-19, 2019-20 and 2020-21, without delay, which were due for furnishing on 30.09.2019, 30.09.2020 and 30.09.2021 respectively. As no reply was received, a reminder dated 29.12.2021 was sent, which was served on the Secretary of the Board, whereby the Board was directed to furnish the Annual Financial Statements, urgently. Again, a reminder was sent to the Secretary of the Board and the Devaswom Accounts Officer on 01.02.2022, requesting to furnish the Accounts for 2018-19, 2019-20 and 2020-21 urgently, wherein it was stated that non-furnishing of the Annual Financial Statements will be brought to the notice of this Court. However, it did not elicit any response. It was in these circumstances that, the non-furnishing of the accounts of the Travancore Devaswom Board for 2018-19, 2019-20 and 2020-21 and non-adherence of the time schedule fixed vide Devaswom Fund Account Rules were brought to the notice of this Court for appropriate orders, by filing DBAR No.4 of 2022. 20. By the order dated 24.05.2022, DBAR No.4 of 2022 was disposed of by directing the Board to file proper applications before this Court, seeking extension of time for submitting 22 DBAR No.8 of 2022 Annual Financial Statements for 2018-19, 2019-20 and 2020-21, stating sufficient cause for the delay. In the said order it was made clear that the delay on the part of the Board in submitting Annual Financial Statements for any year, beyond the time limit prescribed in Rule 11 of Devaswom Fund Accounts Rules on Double Entry System of Accounting shall be brought to the notice of this Court, by the Joint Director, Kerala State Audit Department, so as to enable this Court to take necessary action against those responsible for such delay. 21. The provisions under Section 32 of the Act make it explicitly clear that the Board is statutorily bound to keep regular accounts of all receipts and disbursements in respect of the institutions under its administration and the accounts of the Board shall be audited annually. After completing audit for any year or for any shorter period or for any transaction or series of transactions, as the case may be, the auditors appointed by this Court, under sub-section (3) of Section 32 of the Act, shall send report to this Court. In view of the provisions under sub-section (6) of Section 32, the auditor shall specify in his report all cases of irregular, illegal or improper expenditure or of failure to recover money or other property due to the Board or to the institutions 23 DBAR No.8 of 2022 under its management or of loss or waste of money or other property thereof caused by neglect or misconduct. 22. Devaswom Fund Accounts Rules on Double Entry System of Accounting, 2012, came into force with retrospective effect from 01.04.2010. Rule 11 of the said Rules mandates that after the close of the financial year, Devaswom Accounts Office shall prepare Annual Income and Expenditure Statement, Reconciliation Statement, Assets and Liabilities Statement and Balance Sheet for the year. Such work shall be completed on or before 30[th] September of the following year. 23. The report of the Joint Director, Kerala State Audit Department, Travancore Devaswom Board Audit and also the affidavits filed by the respondent would make it explicitly clear that there was inordinate delay on the part of the Travancore Devaswom Board in the preparation of the Annual Financial Statements for 2018-19, 2019-20 and 2020-21. In the order dated 24.05.2022 in DBAR No.4 of 2022, this Court noticed that, since there was delay on the part of the Board in submitting the Annual Financial Statements for 2018-19, 2019-20 and 2020-21, which were due on 30.09.2019, 30.09.2020 and 30.09.2021 respectively, the State Audit Department, vide office letter dated 24 DBAR No.8 of 2022 01.11.2021, requested the Secretary of the Board to furnish the same. As no reply was received, a reminder was sent on 29.12.2021, which was followed by another reminder sent on 01.02.2022. In the statement filed in DBAR No.4 of 2022, the respondent has no case that, on receipt of the letter dated 01.11.2021 or the reminder sent on 29.12.2021, a proper reply was given to the State Audit Department, explaining the reason for the delay in submitting the Annual Financial Statements for 2018-19, 2019-20 and 2020-21. After the receipt of the reminder sent on 01.02.2022, the respondent submitted a reply dated 15.02.2022, requiring the State Audit Department to return registers and records for 2018-19. In the said reply, the respondent has not stated any reason whatsoever for the delay in submitting the Annual Financial Statements for 2018-19, 2019-20 and 2020-21. 24. **In the matter of Audit Report of the Travancore Devaswom Board for the year 1967-68 (Sabarimala Improvement Fund)** reported in **[1990 (1) KLT 347]** , in the context of Section 32 of the Act, a Division Bench of this Court reminded the President and members of the Travancore Devaswom Board about their public accountability. In the said 25 DBAR No.8 of 2022 decision it was made clear that it is for all persons concerned to see that greater vigil is exercised by the President and members of the Board in the overall administration of the Board and in the collection and disbursement of funds. Paragraph 16 of the abovesaid decision reads thus: “12. Before concluding, we should record our appreciation of the invaluable services rendered by the audit in bringing to light the way in which the Board had functioned during the relevant time. But, for the untiring efforts of the audit, the entire matter would have escaped attention. We take this opportunity to remind the President and members of the Board, about their public accountability. It is true that there is delay in the submission of the audit report and the consideration of the matter by this Court. In the meanwhile, the term of the President and/or members of the Board may ordinarily expire. These have contributed to the impression that the President and members of the Board or the officers will not be answerable for the lapses or acts or omissions, when the matter is finally adjudicated after some time or delay occurs in considering the matter. Impression seems to have gathered ground in recent times that the members of the Board or the officers can easily ward off their liability or responsibility by putting forth filmsy excuses. This is a matter which cannot be countenanced in public interest. It is for all persons concerned to see that greater vigil is exercised by the President and members of the Board in the overall administration of the Board and in the collection and disbursement of funds. It is also necessary for all concerned 26 DBAR No.8 of 2022 to see that every year the audit is completed, at the quickest possible time, and the matter is considered by this Court, when the President and members of the Board, who are responsible for it, are in a position to have their defences adjudicated effectively. It is also in public interest to see that adequate and proper provisions are made, to make the officers and other outsiders, liable and responsible for all acts of omissions or commissions and for unauthorised collections and for accounting the funds which really belong to the Devaswom. Public accountability should be emphasized and effectuated in larger public interest and appropriate legislation, to suit the needs of the time and situation, in the light of past experience, should be enacted, so that the public will continue to have confidence in such institutions.” 25. In **M.K.Ramachandra Menon v. Cochin Devaswom Board and others [2004 (2) KLJ 820]** a Division Bench of this Court in the context of Section 68 of the Act, which deals with Cochin Devaswom Board, held that Section 102 of the Act states that the accounts of the Board shall be audited annually. The board shall keep regular accounts of all receipts and disbursements. Audit shall be made by auditors appointed by the High Court in the case of the accounts of the Board. After completing the audit for any year or for any shorter period or for any transaction or series of transactions, as the case may be, the auditor shall send a report to the High Court in the case of the 27 DBAR No.8 of 2022 accounts of the Board. Section 104 stipulates that the auditor shall specify in his report all cases of irregular, illegal or improper expenditure or of failure to recover moneys or other property due to the Board or to incorporated or unincorporated Devaswoms or institutions under the management of the Board, as the case may be, or of loss or waste of money or other property thereof caused by neglect or misconduct Section 105 of the Act deals with rectification of irregularities. The High Court may send to the Board a copy of every audit report relating to the accounts of incorporated and unincorporated Devaswoms and those of the Board and it shall be the duty of the Board to remedy any defects or irregularities pointed out by the auditor and report the same to the High Court. The said position was reiterated by the very same Division Bench in **Vijayan v. Cochin Devaswom Board [2004 (3) KLT 670]** . 26. In the order dated 24.05.2022 in DBAR No.4 of 2022, this Court noticed that, in view of the provisions under Rule 11 of Devaswom Fund Accounts Rules on Double Entry System of Accounting, the respondent ought to have submitted the Annual Financial Statements for 2018-19, 2019-20 and 2020-21, on 30.09.2019, 30.09.2020 and 30.09.2021 respectively. The 28 DBAR No.8 of 2022 respondent has also not chosen to file any application before this Court, seeking extension of time for submitting Annual Financial Statements for those years, stating sufficient cause for the delay. As done in the case of Annual Financial Statements for 2016-17 and 2017-18, which was the subject matter in DBAR No.7 of 2019 filed by the Joint Director, Kerala State Audit Department, the respondent is seeking extension of time for submitting Annual Financial Statements for 2018-19, 2019-20 and 2020-21, in the statement filed in this DBAR, harbouring the notion that courts are required to grant such extension as a matter of course. 27. Despite the specific direction contained in the order dated 24.05.2022 in DBAR No.4 of 2022, the Board has not chosen to file proper applications before this Court seeking extension of time for submitting Annual Financial Statements for 2018-19, 2019-20 and 2020-21, stating sufficient cause for the delay. Since there was a direction in the order dated 24.05.2022, whereby the Joint Director, Kerala State Audit Department to bring it to the notice of this Court the delay on the part of the Board in submitting Annual Financial Statements for any year, beyond the time limit prescribed in Rule 11 of the Devaswom Fund Accounts Rules on Double Entry System of Accounting, this 29 DBAR No.8 of 2022 DBAR is filed before this Court seeking appropriate orders. Since the Annual Financial Statement for 2018-19 has already been submitted before the Joint Director, Kerala Audit and Accounts Department along with Annexure R1(c) letter dated 07.11.2022, this DBAR is disposed of recording the said fact and taking note of the stand taken in the additional affidavit filed by the respondent dated 12.12.2022 that the preparation of the Annual Financial Statement for the year 2019-20 is expected to be completed on or before 30.06.2023 and that for the year 202021 on or before 30.11.2023 and that disciplinary proceedings have already been initiated against the officers, who have defaulted submission of accounts for the year 2019-20, by issuing show cause notice, vide Annexure R1(n) order dated 06.04.2023. It is for the Board to file applications seeking extension of time, in terms of the direction contained in the order dated 24.05.2022 in DBAR No.4 of 2022, for the Annual Financial Statements for 2018-19, 2019-20 and 2020-21 stating sufficient cause for the delay. Such applications shall be filed within a period of three weeks from the date of receipt of a certified copy of this order. The question as to whether the Board has sufficient cause for the delay in submitting the Annual Financial Statements 30 DBAR No.8 of 2022 beyond the time limit prescribed in Rule 11 of the Devaswom Fund Accounts Rules on Double Entry System of Accounting will be considered in those applications. Sd/- **ANIL K. NARENDRAN, JUDGE** Sd/- **P.G. AJITHKUMAR, JUDGE** MIN 31 DBAR No.8 of 2022 ## **`APPENDIX OF DBAR 8/2022`** ## **`RESPONDENT ANNEXURES`** - **`ANNEXURE R1(A) TRUE COPY OF THE LETTER DATED 26/09/2022 ISSUED BY THE CHARTERED ACCOUNTANT TO THE DEVASWOM ACCOUNT'S OFFICER.`** - **`ANNEXURE R1(B) TRUE COPY OF THE LETTER DATED 07/11/2022 ISSUED ON BEHALF OF DEVASWOM ACCOUNT'S OFFICER TO THE SECRETARY.`** - **`ANNEXURE-R1(D) TRUE COPY OF THE ORDER DATED 21/07/2022 PASSED BY THE BOARD`** - **`ANNEXURE R1(C) TRUE COPY OF THE LETTER DATED 07/11/2022 ISSUED BY THE SECRETARY OF TRAVANCORE DEVASWOM BOARD TO THE JOINT DIRECTOR, KERALA STATE AUDIT DEPARTMENT.`** - **`ANNEXURE-R1(E) TRUE COPY OF THE REPORT DATED 26/07/2022 SUBMITTED BY THE DEVASWOM ACCOUNTS OFFICER BEFORE THE SECRETARY.`** - **`ANNEXURE-R1(F) TRUE COPY OF THE LETTER DATED 29/07/2022 ISSUED BY THE SECRETARY TO THE LAW OFFICER.`** - **`ANNEXURE-R1(G) TRUE COPY OF THE SHOW CAUSE NOTICE DATED 09/12/2022 ISSUED BY THE SECRETARY TO THE ASSISTANT LAW OFFICER.`** - **`ANNEXURE-R1(H) TRUE COPY OF THE SHOW CAUSE NOTICE DATED 09/12/2022 ISSUED BY THE SECRETARY TO THE DEVASWOM ACCOUNTS OFFICER.`** - **`ANNEXURE-R1(I) TRUE COPY OF THE REPORT DATED 15/02/2023 SUBMITTED BY THE DEVASWOM ACCOUNT'S OFFICER.`** - **`ANNEXURE-R1(J) TRUE COPY OF THE REPORT DATED 16/02/2023 SUBMITTED BY THE DEVASWOM`** 32 DBAR No.8 of 2022 ## **`ACCOUNT'S OFFICER.`** ``` ANNEXURE-R1(K) TRUE COPY OF THE ORDER DATED 21/02/2023 PASSED BY THE BOARD. ANNEXURE-R1(L) TRUE COPY OF THE REPORT DATED 06/03/2023 SUBMITTED BY THE DEVASWOM ACCOUNT'S OFFICER . ANNEXURE-R1(M) TRUE COPY OF THE REPORT DATED 17/03/2023 SUBMITTED BY THE DEVASWOM ACCOUNT'S OFFICER. ANNEXURE R1(N) A TRUE COPY OF THE BOARD ORDER ROC NO. 2573/23/EST-1 DATED 06/04/2023. ```