Travancore Devaswom Board v. Deputy Examiner for Local Fund Audit, Kerala State Audit Department, Travancore Devaswom Board Audit, Travancore Devaswom Head Quarters

# **`IN THE HIGH COURT OF KERALA AT ERNAKULAM`** ``` PRESENT ``` ``` THE HONOURABLE MR. JUSTICE ANIL K. NARENDRAN ``` ``` & ``` ``` THE HONOURABLE MR. JUSTICE G. GIRISH ``` ``` TUESDAY, THE 16[TH] DAY OF JANUARY 2024/26TH POUSHA, 1945 ``` ``` DBA NO. 9 OF 2023 ``` ``` PETITIONER: ``` ``` TRAVANCORE DEVASWOM BOARD, TRAVANCORE DEVASWOM HEAD QUARTERS, NANDANCODE, KOWDIAR POST, THIRUVANANTHAPURAM, REP. BY IT'S SECRETARY, PIN – 695 003 ``` ``` BY ADV G.SANTHOSH KUMAR (P). ``` ``` RESPONDENT: ``` ``` DEPUTY EXAMINER FOR LOCAL FUND AUDIT, KERALA STATE AUDIT DEPARTMENT, TRAVANCORE DEVASWOM BOARD AUDIT, TRAVANCORE DEVASWOM HEAD QUARTERS, NANDANCODE, KOWDIAR POST, THIRUVANANTHAPURAM, PIN – 695 003 ``` ``` BY ADV ``` ``` SRI S.RAJMOHAN- SR GOVERNMENT PLEADER ``` ``` THIS DEVASWOM BOARD APPLICATION HAVING COME UP FOR ADMISSION ON 16.01.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ``` 2 DBA No.9 of 2023 ## **ORDER** ## **Anil K. Narendran, J.** The Travancore Devaswom Board has filed this DBA, seeking an order to grant time till 30.11.2023 for submitting the Annual Accounts Statement for the year 2020-2021 before the Joint Director, Kerala State Audit and Accounts Department. 2. On 05.11.2023, when this matter came up for consideration, the learned Senior Government Pleader sought time to get instructions. Thereafter, the matter was adjourned on 27.11.2023, 12.12.2023 and 21.12.2023. 3. The document marked as Annexure-A2 is the judgment of this Court dated 13.04.2023 in DBAR No.8 of 2022, which was one filed by the Senior Deputy Director, Kerala State Audit Department, Travancore Devaswom Board Audit regarding non furnishing of accounts (Annual financial statements) for the years 2018-19, 2019-20 and 2020-21 and non-adherence of the time schedule fixed by the Devaswom Fund Accounts Rules. That DBAR was disposed of by the order dated 13.04.2023. Paragraphs 23 to 27 of that order read thus: “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 3 DBA No.9 of 2023 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 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 decision it was made clear that it 4 DBA No.9 of 2023 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 to see that every year the audit is completed, at the quickest possible time, and the matter is considered by this Court, when the 5 DBA No.9 of 2023 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 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 6 DBA No.9 of 2023 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 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 201819, 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 7 DBA No.9 of 2023 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 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 2020-21 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 8 DBA No.9 of 2023 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.” 4. Today when this matter is taken up for consideration, the learned Standing Counsel for the Travancore Devaswom Board seeks permission to withdraw this application, since the period of extension sought for has already expired. Based on the aforesaid submission, this DBA is dismissed as withdrawn. Sd/- **ANIL K. NARENDRAN, JUDGE** Sd/- **G. GIRISH, JUDGE** ded 9 DBA No.9 of 2023 ## **`APPENDIX OF DBA 9/2023`** ## **`PETITIONER ANNEXURES`** - **`Annexure-A1 TRUE COPY OF THE BOARD DECISION DATED 29/07/2022.`** ``` Annexure-A2TRUE COPY OF THE JUDGMENT DATED 13/04/2023 IN ``` ``` D.B.A.R. 8/2022. ``` ``` Annexure-A3TRUE COPY OF THE LETTER DATED 29/06/2023 ``` ``` INTIMATED BY THE BOARD TO THE ASSISTANT LAW OFFICER. ```