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2007 Supreme(Del) 581

High Court Of Delhi
SWATANTER KUMAR,H. R. MALHOTRA
INDIRA GANDHI NATIONAL CENTRE FOR ARTS EMPLOYEES UNION - Appellant
Versus
UNION OF INDIA - Respondents
W. P. (C) 20242 Of 2005
Decided On : 03/15/2007

Advocates Appeared:
ANIL KUMAR GUPTA, DINESH MALHOTRA, GOPAL SUBRAMANIUM, GUNITA, MANOJ KUMAR SINGH, PUNIT BHARDVAJ, Rajeeve Mehra, RAJESH K.GANDHI, VIJAY KUMAR SINGH, VIVEK SHARMA

The Trust Deed allowed for the appointment of life trustees and the amendment of the deed was approved by the Government. The court found no legal infirmity in the appointment of respondent No. 3 as a life trustee. The court also found that the appointment of respondent No. 3 as a member of the trust was in accordance with the Trust Deed and did not suffer from any legal infirmity.

Headnote:

Financial Irregularities - Trust Deed - Clause 7.2, Clause 8, Clause 24 - The court examined the appointment of respondent No. 3 as a Life Member and as a Member of the Trust. The Trust Deed allowed for the appointment of life trustees and the amendment of the deed was approved by the Government. The court found no legal infirmity in the appointment of respondent No. 3 as a life trustee. The court also found that the appointment of respondent No. 3 as a member of the trust was in accordance with the Trust Deed and did not suffer from any legal infirmity. The court dismissed the petition due to lack of merit.

Fact of the Case:

The petitioner, the General Secretary of the Employees' Union of the Indira Gandhi National Centre for Arts, filed a writ petition challenging the appointment of respondent No. 3 as a member of the Trust and alleging financial irregularities. The petitioner claimed locus standi based on their role as an employee and the General Secretary of the Union.

Finding of the Court:

The court found no legal infirmity in the appointment of respondent No. 3 as a life trustee or as a member of the trust. The court dismissed the petition due to lack of merit.

Issues: The main issues were the legality of the appointment of respondent No. 3 as a life trustee and as a member of the trust, and the alleged financial irregularities in the affairs of the Trust.

Ratio Decidendi: The Trust Deed allowed for the appointment of life trustees and the amendment of the deed was approved by the Government. The court found no legal infirmity in the appointment of respondent No. 3 as a life trustee. The court also found that the appointment of respondent No. 3 as a member of the trust was in accordance with the Trust Deed and did not suffer from any legal infirmity.

Final Decision: The court dismissed the petition due to lack of merit.


SWATANTER KUMAR, J.

( 1 ) MR. K. N. Valsakumar, the General Secretary of the Employees' Union of the Indira Gandhi National Centre for Arts (hereinafter referred to as the 'ignca') and who is also an employee of the said organization, has approached this court under Article 226 of the Constitution of India praying for issuance of a writ of mandamus or certiorari thereby quashing the order dated 2. 2. 2005 issued by the union of India nominating and appointing respondent No. 3 Dr. (Mrs.) Kapila vatsyayan as a member of respondent No. 2- Trust and further directing respondent No. 1 to hold an enquiry by an independent agency into the financial irregu rities of the affairs of the Trust.

( 2 ) TO substantiate the prayer, the petitioner has averred in the writ petition that IGNCA was set up on 24. 3. 1987 to serve as a major resource centre to promote preservation and development of arts for which a deed of declaration was made and a resolution was issued by the Govt. of India, Ministry of Human resource Development on 19th March, 1987 and the Trust was thus set up on or about 24. 2. 1987. The deed of declaration giving its objects, functions and clauses in relation to appointment of trustees and office bearers of the Trust, has been placed on record as Annexure P1 to the Writ petition. According to the petitioner, a Trust which was established to realize all-round cultural enrichment of India and to create inner resources of human beings, has become a place for personal promotion and patronage and even the Government of India is not granting the requisite funds to the Trust. Respondent No. 3 had been appointed as Member Secretary of the IGNCA Trust initially for a period of one year in the year 1990 which was extended for two years w. e. f. 1. 4. 1991. With effect from 1. 4. 1993, she was appointed as an Academic Director for a period of five years. However, before expiry of the said period on 9. 2. 1994, she relinquished the charge of the said post and was appointed to continue as a trustee being one of first seven trustees of the Trust. In a special meeting of the Trustees, certain amendments were made in the deed of declaration and she was made Life Trustee on 18. 5. 1995. This amendment was impermissible and appointment of respondent No. 3 as a Life Trustee was contrary to Clause 7. 1 to 7. 4 of the Deed of Declaration as the tenure of the Trustee is 10 years. The amendment was made as a result of vested interests. The petitioner had earlier filed a writ petition being CW No. 4305/1998 challenging the validity of the amendments and the said petition was dismissed in default. It is also the case of the petitioner that during the pendency of that petition, the Government of india issued order on 7. 1. 2000 cancelling the amendments and it directed that clauses of the original deed of declaration would continue to be in force and the amendment of 18. 5. 1995 would be ignored. The Government of India on 7. 1. 2000 also ordered to retire 12 of 19 trustees including respondent No. 3. The order of the Government was also based upon and refers to the clauses of the original deed which restrict the tenure of a member of the trust to ten years and whereafter member trustee cannot continue in office. . However, the government of India reappointed respondent No. 3 as Member of the Trust on 2. 2. 2005. Publication to that effect was made in the Extra Ordinary Gazette of india and whereafter on 27. 6. 2005 she was nominated as member of the Executive committee of the Trust and thereafter was elected as Chairperson of the executive Committee of the Trust on 30. 7. 2005. According to the petitioner, she has misappropriated the funds of the Trust thereafter. She planned construction and executed a monstrous construction of nearly a hundred crores through an american Architect, private contractor and Chairman, Building Committee. The respondent No. 3 misled the then President of IGNCA, Mrs. Sonia Gandhi on various issues. The respondent No. 3







































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