IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE THE CHIEF JUSTICE MR.S.MANIKUMAR &

THE HONOURABLE MR.JUSTICE MURALI PURUSHOTHAMAN WEDNESDAY, THE 12^TH DAY OF APRIL 2023 / 22ND CHAITHRA, 1945 WP(C) NO. 16299 OF 2022 PETITIONER/S:

ADV.K.SHREEKANTH AGED 46 YEARS S/O VASUDEVA ARALITHAYA RESIDING AT SHIVA PRASAD NILAYAM, THRIKKANNAD, BEKAL P.O., HOSDURG, KASARAGOD DISTRICT, PIN: 671 318.

BY ADVS.

SAJITH KUMAR V.

J.VISHNU VIVEK A.V.

GODWIN JOSEPH REMYA VARMA N.K ALKA WARRIER RESPONDENT/S:

1 STATE OF KERALA (DELETED)

REPRESENTED BY THE CHIEF SECRETARY, MAIN BLOCK, SECRETARIAT, PALAYAM, THIRUVANANTHAPURAM P. O., 695001 RESPONDENT NO. 1 IS DELETED FROM THE PARTY ARRAY AS PER ORDER DATED 19/05/2022 IN WP(C)16299/22(S).

2 THE LOCAL SELF GOVERNMENT DEPARTMENT GOVERNMENT OF KERALA, REPRESENTED BY THE PRINCIPAL SECRETARY, MAIN BLOCK, SECRETARIAT, PALAYAM, THIRUVANANTHAPURAM P. O., 695001

3 THE DEPARTMENT OF FINANCE, GOVERNMENT OF KERALA, REPRESENTED BY THE PRINCIPAL SECRETARY, MAIN BLOCK, SECRETARIAT, PALAYAM, THIRUVANANTHAPURAM P.O., 695001

4 THE DEPARTMENT OF HEALTH, GOVERNMENT OF KERALA, REPRESENTED BY THE PRINCIPAL SECRETARY, MAIN BLOCK, SECRETARIAT, PALAYAM, THIRUVANANTHAPURAM P. O., 695001

5 THE KANHANGAD CO-OPERATIVE HOSPITAL SOCIETY, REPRESENTED BY ITS SECRETARY, KANHANGAD P.O., 671315 BY ADVS.

M.SASINDRAN N.MANOJ KUMAR, STATE ATTORNEY S.SHYAM KUMAR V. TEKCHAND, SR. GP.

THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 12.04.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

J U D G M E N T

S. Manikumar, C. J.

In this public interest writ petition, petitioner has sought for the following reliefs:-

“i. To issue a writ of certiorari calling for records leading to Ext. P1 and quash the same;

ii. To declare Ext. P1 order permitting release of fund to the 5^th respondent by the Local Self-Government Institutions waiving of all restrictions regarding expenditure of public money under the law, is highly illegal and arbitrary.”

2. Short facts leading to the filing of the instant writ petition are as under:-

2.1. Petitioner has submitted that the Secretary, Kanhangad Co-

operative Hospital Society, the 5^th respondent, sought financial assistance to the tune of Rs. 2 Crores from Kanhangad Municipality, Rs. 50 lakhs each from other Municipalities in the District, Rs. 25 lakhs each from Block Panchayats in the District, and an amount of Rs. 1 Crore from the Kasaragod District Panchayat, for starting a hospital, viz., Kanhangad Co-operative Hospital. By Exhibit-P1 dated 16.03.2022, the Local Self Government Department, State of Kerala, issued an order allowing Local Self Government Institutions in Kasaragod District, to release the amounts, without any limit to the respondent Co-operative Society. According to the petitioner, the Hospital Society, which was registered in 2001, had been in limbo during all these years. The Society became active only recently when the Ext. P1 Government Order was issued all of a sudden, granting permission for the local bodies to transfer money from their “own fund” for the proposed hospital.

2.2. Petitioner has further submitted that the said order has been issued misusing the provisions of Sections 212 (9), 213, 216 of the Kerala Panchayat Raj Act, 1994, and Section 283(6) of the Kerala Municipality Act, 1994. Even though the said provisions allow use of funds of local bodies for the welfare of inhabitants of the area, the same cannot be construed as a licence to transfer public funds to non- State entities. The respondent is a Society registered under the provisions of the Kerala Co-operative Societies Act, 1969, and is not a Government/State entity. The mere fact that an activity may be useful to the public would not necessarily render it public service. An activity, however, beneficial and useful to the people, cannot be reasonably regarded as public service, if it is of a type which may be carried on by private individuals, and or even by Government, with a distinct profit motive. If Governments are