SATHYA SAI SEVA ORGANIZATION Vs. STATE OF ORISSA

JUDGEMENT

(1.) IN this writ petition, petitioner No.1, a philanthropic Society, established a College in the name and style, Sri Sathya Sai College for Women at Bhubaneswar (Opp.party No.3) in 1981 and the Trust that established the college framed a bye -laws (Annexure -1) for the said College. It is stipulated in the bye -law that -

(2.) OPP .party No.3 College came into the grant -in -aid fold in the year 1984 and as such became a non -Government aided College. As per the case of the petitioners, Shri Sibaram Prasad Gantayat (Opp.party No.4), who was an engineer, managed to become a special invitee of the Governing Body in August 1986 and since then continued to be a member of Governing Body till 2004. On 27.4.1994 he became the President of the Governing Body and continued as such for more than 10 years despite statutory bar. opp.party No.3 College received about Rs.70 lakhs as grant from University Grants Commission for the purpose of development of the College, during last ten years. There are reasons to believe that opp.party No.4 was secreting away the funds of the College. Since opp.party No.4 inducted himself as the President of the Governing Body of opp.party No.3 in 1994, funds of the college have not been audited, even though the bye -law specifically provides that the accounts of the Institution shall annually be audited by a Chartered Accountant duly appointed for the purpose.

(3.) OPP .party No.4, in a separate counter affidavit averred that since he was/is an active member of Sri Sathya Sai Trust, Orissa, he was nominated by the said trust to manage the affairs of opp.party No.3 College. There is no provision under Rule 25 of the Orissa Education (Establishment, Recognition and Management of Private Colleges) Rules, 1991 as amended in the year 2001 for appointing a nominee of the trust as the president of the Governing Body of a college established by it. Moreover, opp.party No.4 was recommended by Sri Sathya Sai Trust as its nominee to be appointed as the President of the Governing Body of opp.party No.3 College from 1992 onwards. There is no bar or impediment for the nominee of a trust to become the President of Governing Body of a trust -managed college for more than two consecutive terms. According to opp.party No.4, opposite party No.3 college did not receive grant of Rs.70 lakhs from the University Grants Commission as alleged, on the contrary, it received Rs.17,98 lakhs till end of 9th plan and the money was spent for the purpose for which it was sanctioned. The funds of the College were duly audited by M/s. A.K. Tripathy and Co., a registered Chartered Accountant Farm up to the end of the financial year 2001. Audit for the subsequent years could not be conducted, because of non -cooperation of the Principal -cum -Secretary of Opp.party No.3 college. Opp.party No.4 denied the allegation of secreting away the funds of the College. Accordingly, he prayed to dismiss the writ petition.