Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

TMI Blog

Home

1985 (4) TMI 340

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... r 7,1980 and December 1, 1981 to December 10, 1981 respectively. Since they had not been complied with notice under sub-section (3) thereof was issued on January 9, 1986 calling upon the management for the reasons mentioned therein, thus: It is evident from above that there are serious irregularities in the school and hence notice is given under section 16D(3) of Inter-mediate Education Act. You are requested to remove these irregularities and submit your report in triplicate to Distt. Inspector of Schools, one copy direct to this office and one copy to Deputy Director of Education, Bareilly within 15 days of the receipt of this letter. If your reply is not received within the time prescribed, it will be considered that you have nothing .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... n or otherwise, if is satisfied that the Committee has substantially diverted, misapplied or misappropriated the property of the institution to its detriment or the affairs of the institution are being otherwise managed. Where the Committee of management of the Institution fails to show case within the time allowed under s.3 or within such extended time as the Director may from time to time allow, or where the Director is, after considering the cause shown by the Committee of Management, satisfied that any of the grounds mentioned in sub-section (3) exists, he may, recommend to the State Government to appoint an Authorised Controller for that institution, and thereupon, the State Government may, by order for reasons to be recorded, auth .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ing which the order of take over is suspended by the High Court is to be excluded in computation of the maximum period of five years. Admittedly, in this case, period of five years has not been expired because of the suspension of the operation of the order right from its inception by the High Court. The question is whether clauses (v) and (vi) to sub-s. (3) of Section 16D have been satisfied on the facts of the case. We have seen that the Director had issued show cause notice on seven charges for diverse reasons stated in the reports submitted by the Auditors-one departmental and another of the Government Audit Department. The explanation given by the respondents was found to be not satisfactory. He submitted the report to the Governmen .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... tion. The existence of the properties is not disputed. Section 2(d) of U.P. Educational Institutions (Prevention of Dissipation of Assets) Act, 1974, defines 'property' in relation to an institution and it includes all immovable properties belonging to or endowed wholly or purely for the benefit of the institution, including lands, buildings and all other rights and interests arising out of such property as may be in the ownership, possession, power or control of the Management. It is not in dispute that the extensive land of about 52 bighas, 15 bighas, 11 bighas and six acres belong to the institution and the income said to have been derived from the vast land appears to be very meagre which would indicate that the management th .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... fflux of time. As no new elections were conducted, old one is continuing the management. In 1986 when show cause notice was issued, Onkar Singh was the Manager. After the elections, his son Munedra Pal Singh is continuing as the Manager. In other words, the family is in the management of the Committee. Under these circumstances, we are of the view that the Committee should not be allowed to be in the management of the Institution. Accordingly the Authorised Controller is directed to immediately take over the management of the Institution and set right the running of the Institution on proper lines; then conduct the elections within the period prescribed under the Act and hand over the management to the newly elected body. The appeal i .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

 

 

 

 

Quick Updates:Latest Updates