PVSSR JAGANNATHA CHARYULU AND ORS.versusSTATE OF ANDHRA PRADESH AND ORS.

                  PVSSR JAGANNATHA CHARYULU AND ORS.                                     A
                                             v.


-                   STATE OF ANDHRA PRADESH AND ORS.

                                       MAY 9, 1997

                   [K. RAMASWAMY AND D.P. WADHWA, JJ.)                                   B

          Andhra Pradesh Charitable a,nd Hindu Religious lnstitUtions and En-
      dowments Ac~ 1987:

             Hindu Law---Archakas and other office holders of temple-Abolition           C
      of hereditary rights---<:onstitution of a Committee for f onnulation of a scheme
      for their welfare measures-Execution of Trust Deid-Constitution and func-
      tions of Board of Trustees-Direction regarding.

            While upholding the constitutional validity of various provisions of
      Andhra Pradesh Charitable and Hindu Ret'igious Institutions and Endow- D
      ments Act, 1987 this Court held that abolition of hereditary rights of
      Archakas and other office bearers was not unconstitutional.* This Court
      also directed that a committee should be constituted to formulate a scheme
      for the welfare measures in respect of the Archakas and other employees
      of the temple and their dependents and religious institutions in the State
      of Andhra Pradesh. A Deed of Trust was designed to be executed with nine E
      members of the Andhra Pradesh Endowments and other Employees Wel-
      fare Fund for its due administration.

            Disposing the matter, this Court

            HELD : 1. The Chief Secretary to the Government of Andhra F
      Pradesh, the Chairman of the Board of Trustees would approach the Chief
      Justice of the Andhra Pradesh High Court for nomi,nation of a retired
...   Judge of the Andhra Pradesh High Court to be a member of the Board of
      Trustees who may suggest the name. (360-A-B]
                                                                                         G
           2. Nominees of Archakas may be from among the Archakas spon-
      sored by their Associations; on from Andhra Region and another from
      Telengana region being representative of the employee as is suggested in
      the Deed of Trust. [360-B-C]

            3. The Government is directed to create a post of Additional Com- H
                                        357
    358                  SUPREME COURT REPORTS [1997] SUPP. 1 S.C.R.

A   missioner, Endowments Department in the office of the Commissioner of
    Endowments to be filled in from amongst in service officers who would be
    kept in charge of the day-to-day management of the Trust. [360-E; F]

          4. Government of India would declare the Trust as notified objectives
    trust under Section 80-G of the Income Tax Act, 1961 so that 100%
B   exemption is granted to the Trust. On exemption so granted, entire income
    yielded from the corpus should be expended towards the objectives men-
    tioned in the Deed of Trust. [360-H; 361-A]                                   ,   '

                                             •
        S. The Committee's suggestion that accounts need to be audited
C periodically by regular auditors and not by local auditors is appropriate.
  The Government is directed to modulate appropriate module for conduct-
  ing regular auditing of the fund and suggest ways and means for the better
  management of the Trust and proper utilisation of the income towards
  welfare measures enumerated in the Deed of Trust. [361-C-D]

D         6. All the objectives of the Trust are self-explanatory and eloquent.
    The terms and conditions and the manner of management of the Trust to
    cater to the needs of Archakas, employees and their family members etc.
    in terms thereof are approved. [360-D]

           *A.S. Narayana Deekshitulu v. State ofAndhra Pradesh & Ors., [1996)
E   9   sec 548.
           CIVIL ORIGINAL JURISDICTION : I.A. No. 2

                                        IN

           Transfer Case No. 38 of 1990.
F
           (Under Article 226 of the Constitution of India)

                                      WITH

           IA. No.4.
G
                                        IN

           Writ Petition (C) No. 1090 of 1987.

           D.D. Thakur, P .P. Rao, Hardev Singh, Dr. Gauri Shankar, C. Mukund,
H T.V. Ratnam, B. Kanta Rao, K. Ram Kumar, C. Balasubramaniam, Mrs.
              PVSSRJ.CHARYULUv. STATF[K.~ASWAMY,J.]                        359

    Asha Nair, V. Balaji, N. Ganpathy, A.T.M. Sampath, Ms. Madhu Mool- A
    chandani, S. Markandeya, Mrs. '.Chitra-'Markandeya, Ms. Meenakshi Ag-
    garwal, A Subba Rao, A.D.N. Rao, V. Balachandran, Jain Hansaria & Co.,
    P.N. Ramalingam, B. Parthasarthy, Y.P. Rao, Ms. Sadhana Ramachandran,
    Ms. B. Sunita Rao and Ms. H. Wahi for the appearing parties.

          The Judgment of the Court was delivered by                             B

           K. RAMASWAMY, J. In paragraph 135 inA.S. Narayana Deekshitulu
    v. State of Andhra Pradesh & Ors., [1996] 9 SCC 548, this Court had
    directed, in addition to grant of the regular scales of pay, that other welfare
    measures be formulated and directed the Government to constitute a C
    permanent fund with, sum of Rs. 75 crores to start with, as corpus and to
    evolve procedure for spending the income to be derived therefrom towards
    welfare measures in respect of the Archakas, other employees and/or their
    dependents, as the case may be. A committee was directed to be con-
    stituted, as specified in the judgment. In accordance therewith, a commit- D
    tee was constituted by the Government which has formulated a scheme for
    the welfare measures in respect of the Archakas and other employees of
    the temple and their dependents and religious institutions in the State of
    Andhra Pradesh. A Deed of Trust was designed to be executed by the
    Principle Secretary to the Government, Revenue Department of the State
    of Andhra Pradesh with the objectives enumerated in the preamble, with E
    nine members of the Andhra Pradesh Endowments Archakas and Other
    Employees Welfare Fund for its due administration.

          It consists of the Chief Secretary to the Government of Andhra
    Pradesh, Principal Secretary to the Government of Andhra Pradesh, F
    Revenue Department, Secretary to the Government of Andhra Pradesh,
    Finance Department, the Commissioner, Endowments Department, the
    Executive Officer of TIO, the P.A. & C.A.O. of TTD, two representatives
    of the Archakas and one representative of the employees to be nominated
    by other trust~es from time to time. The duration of the nominated
    committee is three years from the date of the nomination, i.e., with refer- G
    ence to seven to nine. The Chief Secretary shall be the Chairman of the
    Board of Trustees. The Trust shall be administered and managed by the
    Board of Trustees. In this behalf, it is suggested that a retired Judge of the
    Andhra Pradesh High Court may be drafted a member of the Board. It is
    suggested across the Bar that a retired Judge of the Andhra Pradesh High H

1
i
    360                   SUPREME COURT REPORTS [1997) SUPP. 1 S.C.R.

A Court may be nominated by the Government to be a member of the Board
  of Trustees. His term also would be three years from the date of his
  nomination. We agree with the suggestion and hold that the Chief
  Secretary, the Chairman of the Board of Trustees would approach the
  Chief Justice of the Andhra Pradesh High Court for nomination of a
B retired Judge of the Andhra pradesh High Court to be a member of the
  Board of Trustees who may suggest the name. The Chief Justice may, out
  of the names suggested or in his own discretion, nominate any of the retired
  Judges of the Andhra Pradesh High Court as a member of the Board of
  Trustees. Nominees of Archakas may be from among the Archakas either
  sponsored by their Associations; one from Andhra Region and another
C from Telengana region being representative of the employees as is sug-
  gested in the Deed of Trust. From the date of the first meeting of the Board
  of Trustees, his term should begin to run. The objective of the Trust has       •
  been mentioned in the deed which we have perused. All the objectives of
  the Trust are self- explanatory and eloquent. We approve of the terms and
D conditions and the manner of management of the Trust to cater to the
  needs of Archakas, employees and their family members etc. in terms
  thereof. Since it is a full time work, we think that an officer of Additional
  Commissioner from Endowments Department, from the ranks, should be
  kept in charge of the managements of the Trust, to assist the Board of
  Trustees in the day-to-day management with sufficient secretariat staff. Shri
E P.P. Rao, learned senior counsel for the State, has agreed to the suggestion;
   and if recommendation is made, the Government will create a post of
  Additional Commissioner in this behalf. We, accordingly, direct the
   Government to create a post of Additional Commissioner, Endowments
   Department in the office of the Commissioner of Endowments to be filled
F in from amongst in-service officers who would be kept in charge of the
   day-to-day management of the Trust and would be responsible for due
   implementation with sufficient establishment needed from time to time as
   may be considered appropriate by the Government in this behalf.

           It is also suggested that a direction may be given to Government of
G India to grant 100% exemption from income tax, as notified objectives,
    ·under Section 80-G of the Income Tax Act. The suggestion given is
     appropriate and we agree with and approve the same.

           The Government of India would declare the Trust as notified objec-
H tives trust under Section 80-G of the Income Tax Act, 1961 so that 100%
          PVSSRJ.CHARYULUv. STA1E[K.RAMASWAMY,J.]                        361

exemption is granted to the Trust. On exeinption so granted, entire income     A
yielded from the corpus should be expended towards the objectives men-
tioned in the Deed of Trust. All the objectives being charitable and welfare
in p.ature, the GovernmeJlt of India through the appropriate Ministry
concerned would grant all necessary exemptions under Section 80-G of the
Income Tax Act or any other relevant provisions. They should approach in       B
the first instance the Commissioner of Income Tax, Hyderabad who is
directed to send necessary recommendations after examination to the
Ministry of Finance to grant exemption under Section 80-G or any other
relevant provision of the Income Tax Act.

      It is next suggested that accounts need to be audited periodically by    C
regular auditors and not by local auditors. We think that the suggestion is
appropriate. The Government is directed to modulate appropriate module
for conducting regular auditing of the fund and suggest ways and means
for the better management of the Trust and proper utilisation of the
income towards welfare measures enumerated in the Deed of Trust. The
covenants of the Deed of Trust are reiterated in the report.                   D

     The order is accordingly passed.

T.N.A.                                                 Petition disposed of.