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2025 Supreme(Online)(Mad) 11647

IN THE HIGH COURT OF JUDICATURE AT MADRAS
A.D.Jagadish Chandira, J
Mammu Sahib – Appellant
Versus
Chairman Tamil Nadu Wakf Board – Respondent
C.R.P.No.88 of 2023|C.M.P.Nos.656 and 659 of 2023



Advocates:
For the Appellants/Petitioners: L.Gavaskar
For the Respondents: S.Haja Mohideen Gisthi, A.Raja Mohammed

An administrative authority’s decision to assume direct control of an endowment committee is justified when evidence of recurring financial mismanagement and non-compliance exists, provided the principles of natural justice are substantially met through participation in inquiries, even if specific documents were not provided to the aggrieved party.

Headnote:(A) Waqf Act, 1995 - Sections 46, 47, 48, 64, 65 - Management of religious endowments - Assumption of direct management - Proof of mismanagement and improper maintenance of accounts - Audit report primacy - Principles of natural justice in administrative proceedings. The Board is empowered to pass orders based on an auditor's report and, while not mandatorily required to solicit explanations for every finding, must act in the interest of the trust. A failure to provide a copy of an audit report does not invalidate a resolution if the aggrieved party participated in the enquiry and failed to raise the objection at the appropriate stage before the lower tribunal. (Paras 14, 15, 16)

(B) Civil Procedure - Scope of Revisional Jurisdiction - Appellate interference - Where the lower tribunal, upon consideration of documents and evidence of recurring misappropriation and mismanagement, finds the assumption of direct management justified, the court in revision will not interfere unless the order is found to be perverse or illegal. (Paras 8, 17)

Facts of the case:
The petitioner, a religious endowment manager, challenged a tribunal order upholding the decision of the governing board to assume direct management of the institution. The board alleged failure to maintain proper accounts, misappropriation of funds, unauthorized construction, and failure to pay mandatory statutory contributions. The petitioner claimed the board resolution was passed without proper inquiry and violated natural justice as he was not provided with the underlying audit report.

Findings of Court:
The documents and evidence corroborated that, despite warnings and multiple inquiries, the management continued with financial irregularities. The petitioner's admission of appearing for the inquiry, coupled with a failure to raise the issue regarding the lack of documentation during the initial stages or before the tribunal, undermined his claims of procedural unfairness.

Issues: The central issues were whether the board was justified in assuming direct management based on audit findings regarding financial misappropriation and whether the failure to furnish a copy of the audit report to the manager vitiated the resolution on grounds of natural justice.

Ratio Decidendi: The board’s authority under the Act to act on audit reports is comprehensive. Because the manager participated in the inquiry and failed to object to the documentation process at the appropriate forum, procedural lapses regarding the supply of the audit report did not invalidate the overarching finding of mismanagement and the necessity of direct intervention to protect the trust's assets.

Result: Civil Revision Petition dismissed.

Table of Content
1. waqf board's authority to assume direct management of a waqf due to mismanagement. (Para 1 , 2)
2. parties' contentions regarding procedural fairness and administrative compliance under the waqf act. (Para 3 , 4)
3. analysis of section 48 compliance and the board's power to manage waqf interests. (Para 5 , 6 , 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16)
4. court's affirmation of the tribunal's decision and dismissal of the revision petition. (Para 17 , 18)

ORDER

1.An order passed by the Tamil Nadu Wakf Tribunal at Chennai dismissing the petition filed by the petitioner challenging the Resolution passed by the first respondent bringing the Masjid-E- Farkundha under the direct management of the Waqf Board is put to challenge in the present civil revision petition.

2. Brief facts of the case:-

i) The applicant Waqf namely Masjid-E-Farkundha is surveyed and notified by the Government of Tamil Nadu and registered with the Tamil Nadu Waqf Board in G.S.No.200/Chennai. As per the proforma report of the above referred waqf, the office bearers have to be elected among the jamathars by way of secret ballot.

ii) The Tamil Nadu Waqf Board had conducted an election by way of secret ballot on 10.11.2019 and the applicant was elected as President/Mutawalli. Since November 2019, the applicant had been functioning as its President/Mutawalli. After the said election, the office bearers decided to construct the Minara for the mosque and the applicant had collected funds from various Muslim people and had been constructing the Minara.

iii) Whileso, the Waqf Inspector, Chennai South/North issued a letter dated 18.02.2021 to the applicant to appear before the Superintendent of Waqf, Chennai Zone on 24.02.2021 for enquiry on the ground of non-submission of accounts for about 10 years, non- payment of contribution of a sum of Rs. 1,71,210/- and construction of Minara in the above referred waqf without getting NOC from the Tamil Nadu Waqf Board.

iv) The applicant appeared before the said Inspector of Waqf, Chennai North/South Zone and gave his reply stating that the President Committee is, in no way concerned about for the past ten years accounts, and that they are ready to pay the contribution amount a sum of Rs.1,71,210/- for their tenure and it is not necessary to get the permission or approval from the Tamil Nady Waqf Board for construction of Minara since at the time construction of mosque, permission was already given by the Tamil Nadu Waqf Board for construction of the Minara.

v) After completion of the said enquiry, the 2nd respondent herein issued a notice dated 19.03.2021 to the applicant stating that the Waqf Board officials had inspected the above referred Waqf on 18.03.2021, during which, the accounts book, register, receipts, day book, particulars of tenants, and other documents were not available in the applicant Waqf and as such the applicant had to prepare/formulate the above referred documents and inform the same to the Tamil Nadu Waqf Board.

vi) Immediately the secretary of the applicant Waqf sent a notice dated 23.03.2021 to the said erstwhile president of the applicant Waqf requesting him to furnish the above referred documents. Even after receipt of the said notice, he did not choose to furnish the above referred documents to the applicant and thereby the applicant sent suitable reply notice/explanation on 10.04.2021 to the 2nd respondent.

vii) After receipt of the said reply, the 2nd respondent had issued a show cause notice dated 29.07.2021 and the applicant gave a suitable reply/explanation to the said show cause notice. Thereafter, the 2nd respondent passed an order dated 14.02.2022, in proceeding of Na.Ka.No.200/21(A1)/Accounts Section stating that in order to formulate the Waqf accounts, the applicant has to get advice from the Senior Accounts Officer of Waqf Board and to maintain monthly accounts and the same has to be shown to the jamathars, the accounts have to be submitted to the Waqf Board officials, the applica

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