The appointment of an executive officer for an endowment under the Act is predicated on the gross annual income reaching the statutory threshold. Gross income is calculated without deducting expenses, and evidence of recurring financial discrepancies warrants administrative intervention by regulatory authorities to ensure proper financial management.

JUDGMENT :

MURALEE KRISHNA S., J.

1. The respondents 1 to 5 in W.O.A. No.41 of 2023 on the file of the Wakf Tribunal, Kozhikode (the ‘Tribunal’ for short), filed this M.F.A. under Section 83(9) of the Unified Waqf Management, Empowerment, Efficiency and Development Act, 1995 (the ‘Wakf Act’ for short), challenging the order dated 22.12.2025 passed by the Tribunal in that W.O.A.

2. The facts which led to the filing of this M.F.A. are as follows:

2.1. Respondents 1 to 6 herein claiming themselves as the beneficiaries of the Wakf, Ayilakkad Mahallu Juma Masjid Palli Hayathul Islam Madrassa filed O.P.No.15 of 2020 before the 7^th respondent Kerala State Wakf Board (the ‘Board’ for short) with prayers to remove the existing Mutawalli of the Wakf; to register the unregistered properties of the Wakf with the Board; to frame a proper scheme of administration, to ensure the appointment of the Mutawalli through a transparent and democratic process; to recover the alienated properties of the Wakf; and to conduct inspection and audit of income and expenditure of the Wakf from the year 1980 onwards. In that petition, the Board appointed a Wakf inspector to conduct an investigation regarding the allegations of mismanagement raised in the original petition. Further, a panel auditor was also appointed by the Board to conduct the audit of the accounts of the Wakf for the period from 2016 to 2022. The Wakf Inspector, as well as the auditor, filed separate reports before the Board. Thereafter, respondents 1 to 6 filed I.A.No.174 of 2022 before the Board to appoint an Executive Officer under Section 38 of the Waqf Act for the supervision over the administration and day-to-day affairs of the Wakf, alleging grave and continuous mismanagement, maladministration and financial irregularities by the present Mutawalli. The appellants filed a counter to the said interlocutory application. After hearing both sides, the Board dismissed I.A.No.174 of 2022, finding that no major defect is pointed out in the audit report and on the basis of minor discrepancies, which are the result of the ignorance of the committee in maintaining the accounts in a scientific manner, the Board cannot appoint an Executive Officer expending money from the funds of the Wakf. Challenging the aforesaid order dated 10.05.2023 passed by the Board, respondents 1 to 4 herein approached the Tribunal by filing W.O.A. No.41 of 2023.

2.2. The appellants filed a counter, opposing the pleadings in the W.O.A. From the side of respondents 1 to 4, Exts.A1 to A8 and from the side of the appellants Exts.B1 to B6, documents were marked before the Tribunal. After hearing both sides and on appreciation of the rival contentions raised by the parties, the Tribunal, by the impugned order dated 22.12.2025, allowed the W.O.A., by setting aside the order dated 10.05.2023 passed by the Board in I.A.No.174 of 2022 in O.P. No.15 of 2020. The Tribunal directed the Board to appoint a competent officer of the Board as an Executive Officer for the administration of the 1^st appellant Wakf under their direction, control and supervision. The Board was further directed to specify the terms and conditions of service and other matters relating to the functioning of the Executive Officer and his staff. The salary and allowance of the Executive Officer and his staff were directed to be fixed and paid by the Board as prescribed under the Waqf Act. Being aggrieved, the appellants are now before this Court with this M.F.A.

3. On 20.01.2026, when this M.F.A. came up for admission, this Court admitted the same onto file and ordered urgent notice by speed post to respond