SHAMSHAD BEGUM DAR Vs. UNION OF INDIA

JUDGEMENT

(1.) This writ petition is filed by the Chairman of the Punjab Wakf Board against the order dated 11-11-1981 superseding the Board -and also against the order of the extension of time of the supersession, Punjab Wakf Board is a composite Board for the States of Punjab, Haryana, Himachal Pradesh and Union Territory of Chandigarh. This is the richest Wakf Board in India. The Board was constituted by nomination of eleven members an 11-8-1978.

(2.) Before the supersession of the Board a Show Cause Notice under Section 64(1) of the Wakf Act, 1954 was issued on 3-10-1981. The said show cause notice reads as under : "F. No. 4(13) [81-Wakf Government of India Ministry of Law, Justice & Company Affairs (Legislative Department) New Delhi, 3rd October, 1981 SHOW CAUSE NOTICE WHEREAS it has come to the notice of the Central Government that the Punjab Wakf Board (hereinafter referred to as the 'Board' : (i) has been unable to perform the duty imposed on it by or under the Wakf Act, 1954 (hereinafter referred to as the Act) as detailed in the accompanying Annexure 1; (ii) has persistantly made default in the performance of the duty imposed on it by or under the Act as detailed in the accompanying Annexure II; and (iii) has exceeded \abused its powers as detailed in the accompanying Annexure III. Now, therefore, in pursuance of the proviso to sub-section (1) of section 64 of the Act read with the Notification of the Government of India in the Ministry of Law, Justice and Company Affairs (Legislative Department) No 413 j 73-Wakf dated 30-12-1975, the Central Government hereby calls upon the Board to show cause within a period of thirty days. from the date of receipt of this notice why a notification superseding the Board under the said subsection (1) should not bemade. Coplios of importan.t documents connected with this notice have been set out in Annexure IV. By order and in the name of the President of India. Punjab Wakf Board (through Chairman) 50, Sardar Patel Marg Ambala Cantt. 133001. (Aslam Mahmud) Deputy Secretary to the Govt. ot India. Ministry of Law, Justice & Company Affairs. Annexure I The Board has exhaused its bank balances and is running an overdraft of several lakhs. "This situation is the result of the Board being unable to manage its financial affairs on the right lines. If the affairs of the Board had been managed prudently, it would have resulted in substantial balances of the order of several lakhs. Annexure II (i) The Board has persistantly failed to comply with the provision of sub-section (2) of section 43A in that it has failed to have acccounts of wakfs under the direct management audited annually. The Central Government, in exercise of the powers conferred by section 63 of the Act, had directed the Board, vide the Ministry of Law, Justice and Company Affairs (Legislative Department) letter No. 4(5)\77-Wakf dated 19-11-1977 that the Board should get the accounts of every wakf under its direct management audited annually by an auditor as required under sub-section (2) of section 43A of the Act and should submit a copy of the audited accounts to the Central Governments latest by 30th June of each year. The audited accounts of the wakfs under the direct management of the Board which should have been recei,ved by the Central Government by 30th June, 1977, 30th June, 1978, 30th June, 1979, 30th June, 1979-80, have not been received by the Central Government. This involves a serious and persistent default of the provisions of section 43A(2) of the Act and of the afore- said direction of the Central Government. (2) The Board has peristently failed, in 'spite of repeated reminders, to furnish information asked for by the Central Government with regard to allegations of a serious nature against one of the members of the Board, Shri Shaukat 'Ali, and also with "respect to allegations against the Board made in several complaints to the Central Government. (i) A complaint against Shri Shaukat Ali, member of the Board, was forwarded to the Board, vide Ministry of Law, Justice & Company Affairs (Legislative Department) registered letter No. 13(14)UU79-Wakf dated 11-10-79 levelling serious allegations against Shri Shaukat Ali, Clarifications were called for with respect to these by the Central Government, vide Ministry of Law, Justice and Company Affairs (Legislative Department) Registered letter No. 13(14) j21-79-Wakf, dated 17-12-1979. The Board, in its reply No. AS(C) 173110417-130, dated 11-1-80, instead of furnishing the clarifications stated that since the complaint was not supported by an affidavit as required under section 44 of the Act the Board was not in a position to consider such a complaint, the said section 44 relates only to applications to the Board by persons interested in a Wakf. In the Ministry of Law Justice and Company Affairs (Legislative Department) registered letter No. 13(14)121179- Wakf dated 13-3-80, it was made clear that the clarifications. were needed by the Central Government in order to determine whether the charges levelled against Shri Shaukat Ali could stand secrutiny. Nevertheless, in spite of subsequent reminders, the Board has not so far furnished the required clarifications. (ii) Copies of various complaints of corruption\and irregularities on the part of the Board were forwarded to the Board, vide Ministry of Law, Justice and Company Affairs (Legislative Department) registered letters No. 4(2)179- Wakf dated 4-3-1979 and No. 4(2)\79-Wakf (2) dated 18-8-79 and comments on the complaints were called for. The Chairman of the Board by letter No. AS(C) 231104151184 dated 10-9-79, the Chairman referred to Section 44 of the Act and stated that any application from a person interested in a Wakf relating to the administration of Wakf should be supported by an affidavit. Although the section had no relevance and it was made clear that the Central Government wanted its comments, the Board failed to furnish the, .comments. (iii) A statement of charges against the Board furnished by Shri) Rahim Khan, one of the members of the Board, was forwarded to the Board for comments vide the Ministry of Law, Justice and Company Affairs (Legislative Department) registered letter No. 4(2) 179-Wakf (2) dated 12-11-79 and in spite of reminders, no reply has been received. (iv) The Board at its meeting held on 2-4-79 resolved that 'the monthly aid to Baba Farid Islamia Middle School Patiala, is raised to Rs. 4800 per month'. As it was understood that the father of one of the members of the Board was the President of the school the remarks of the Board were called for vide Ministry of Law, Justice and Company Affairs (Legislative Department) Registered letter No. 13(14)13\79-Wakf dated 15-11-1979 to clarify the position and also to explain as to whether such a continuing grant is being made in violation of the direction issued by the Central Government under Section 63 of the Act, namely, that the Board should not make a donation to the same individual or organisation from the income of any Wakf for a second time within a period of five years without obtaining the prior sanction of the Central Government. No explanation has been offered by the Board so far. (v) In exercise of the powers conferred bysection 63 of the Act, the Board was directed, vide the Ministry of Law, Justice and Company Affairs (Legislative Department) registered letter No. 15(14) 113\80-Wakf dated 19-3-1981 that, the Board should take steps to furnish the details of the proposed construction of a school building atMalerkotla together with copies of architectural plans and estimate's architect and] or other local authorities and to ensure that the construction work is started only after the approval of the Central Government has been obtained and also the account of the utilisation of rupees eighty lakhs fixed deposit withdrawn from the Ambala Cantt, Banks and transferred to Malerkotla is furnished. The Board has failed to submit the required information to the Central Government. Annexure III ( I ) In exercise of the powers conferred by section 63 of the Act, the Board was directed, vide the Ministry of Law, Justice and Company Affairs (Legislative Department) registered letter No. 4(5)\77-Wakf dated 19-11-1977, that the Board should obtain the prior sanction of the Central Government before any wakf to any individual or organisation. In contravention of the aforeaid direction the Development Committee of the Board sanctioned the following grants : (a) Masjid and Dini Maktah, Ksiraka, District Gurgaon Rs. 25.OOO.OO (b) Masjit and Dini Maktah. Mauza Hathine, District Gurgaon. Rs; 10,000.00 (c)Musafirkhana Malerkotia Rs. 25.000.00 (d) Masjit Palwal Rs. 5,000.00 (e) Masjid Sultanpur Punhana Rs. 5,000.00 (f)ldgah Malerkotia. Rs. 10,000.00 Without obtaining the prior sanction of the Central Government the Board in its meeting held on . 3 Or1 -197 8 accepted these recommendations of the Development Committee made on 28-12-1978. (2) In exercise of the powers conferred by section 63 of the Act, a general direction was issued to the Board [vide the Ministry of Law, Justice and Company Affairs (Legislative Department) registered letter No. 4/5/77-Wakf dated 19-11-1977] to the effect that the Board should ensure that the sale proceeds of the Wakf properties and the amounts received from the Government as a result of the acquisition of the wakf with the same or similar objects for which the properties of wakfs should or acquired were originally meant. A specific direction was also issued to the Board under the said Section 63 (Vide Ministry of Law, Justice and Company Affairs (Legislative Department) registered letter No. 4/5/77-Wakf dated 7-9-79) to the effect that the Board should take immediate steps to withdraw the cheque issued in the name erf the President, Islamia High School Building Committee, Malerkotia; of the amount received an compensation for the Wakf property in Sangrur and deposit the said amount in Fixed Deposit and to report to the Central Government compliance by 15-9-79 positively, The Board has failed to comply with the general direction. The Board has not till the date of this notice reported about the action taken for compliance with the specific direction. (3) The Board terminated the services of Shri Akhtar Hussain, its Secretary, on 23-7-79, notwithstanding that the Board has no powers to terminate the services of Shri Akhtar Hussain. Under Section 21(1) of the Act, read with Section 16 of the General Clauses Act, 1897, and notification No. 4j3]73-Wakf da.ted 30-12-75 (issued under Section 72 of the Punjab Re-organisation Act, 1966), the power can be exercisad only by the Central Government. The Board failed to rescind its aforesaid order which was otherwise null and void, even after the Central Government, vide Ministry of Law, Justice & Company Affairs (Legisiation Department Registered letter No. 13(14) (19) /79-Wakf dated 24-7-79 immediately required the Board to enable the Secretary to function as such. (4) In exercise of the powers conferred by section 63 B of the Act, the Board was directed vide the Ministry of Law, Justice and Company Affairs (Legislative Department) registered letter No. 12(14)/2/79-Wakf dated 26-7-1979 that the Board shall not create any new post or fill up any post already created either on the Wakf Board or on the Aukaf side without the prior held on 11-8-79 the Board created a new post of office on Special Duty for a period of three months and created again the post of five Assistants and four Rent Controllers on the Aukaf side which had been abolished earlier. The creation of all these posts was without the prior approval of the Central Government. The Board have not till the date of this notice even applied for ex-post facto sanction of the Central Government. (5) From the Interim Order, dated 19-12-1980, in Civil Writ Petition No. 4292 of 1980 (Imam-ud-din v. Union of India and others) of Punjab and Haryana High Court it has come to the notice of Central Government that the Board in contravention of the provisions of section 23 of the Act delegated financial powers to a person who is neither the Chairman nor a member Secretary. Officer or servant of the Board."

(3.) As no cause was shown the impugned order of super- session was passed. The order is as under : "MINISTRY OF LAW, JUSTICE AND COMPANY AFFAIRS (Legislative Department) NOTIFICATION New Delhi, the 11th November, 1981, S.O. 796(E). Whereas in pursuance of the proviso to sub-section (1) of Section 64 of the Wakf Act, 1954 (29 of 1954) (hereinafter referred to as the Act) a notice (hereinafter referred to as the show cause notice) stating that it has come to the notice of the Central Government that the Punjab Wakf Board (hereinafter referred to as the Board) (i) has been unable to perform the duty imposed on it by or under the Act as detailed in Arme-xure I to the show cause notice; (ii) has persistently made default in the performance of the duty imposed on it by or under the Act as detailed in Annexure II to the show cause notice; and (iii) has exceeded jabused its powers as detailed in Annexure III to the show cause notice, was issued to the Board on the 3rd day of October, 1981 and 'was duly served on the Chairman of the Board on the same date; AND WHEREAS the show cause notice required the Board to show cause within a period of 30 days from the date of its receipt is why a notification superseding the Board under subsection (1) of Section 64 of the Act should not be made; AND WHEREAS a few days before the expiry of the aforesaid period of 30 days a request was received from the Chairman of the Board for extension of time and the Central Government granted extension of time, as a special the 10th day of November 1981 and also made it clear that the Central Government would not entertain any request for farther extension of time. AND WHEREAS the Chairman of the Board has by her letter dated November 8, 1981, which has been received on the 10th November, 1981, only asked for further extensionof time and the Board has not offered any explanation or raised any objections or shown any cause why it should not be superseded; NOW, THEREFORE, in exercise of the powers conferred by Sub-Section (1) of Section 64 of the Act read with the Notification of the Government of India in the Ministry of Law, Justice and Company Affairs (Legislative Department) No. 4\3\73-Wakf dated 30-12-75, the Central Government hereby supersedes the Board for a period of three months with immediate effect and directs that all the powers and duties which may. by or under the provisions of the Act be exercised or performed by or on behalf of the Board shall during the aforesaid period of supersession, be exercised and performed by Shri S.C. Dhosiwal, Indian Administrative Service . Deputy Commissioner, Ambala. No. 4(13) \81-Wakf. By order and in the name of the President of India. A. K. SRINIVASAMURTHY Joint Secretary and Legislative Counsel."