Supreme Court To Examine Correctness Of AP HC Order Quashing Compulsory Allocation To Hindu Dharmika Parirakshana Trust

The matter was heard by the division bench of Justices Indira Banerjee and JK Maheshwari. 

The Court  refused to stay the High Court judgment.

Case Before Andhra Pradesh High Court

The Revenue (Endowments- I) Department of the State Government had issued GO dated October 1, 2015 for enhancing the contribution from 5% to 9% for different purposes. One of the clauses (7(2)(b)) of the GO imposed a mandate to compulsorily allocate 2% out of 9% contributed to Common Good Fund for Hindu Dharmik activities. The amount had to be kept at the Trust's disposal in a separate account on a quarterly basis.

Challenging the GO as arbitrary, illegal and contrary to Section 70 of the Andhra Pradesh Charitable & Hindu Religious Institutions & Endowment Act ("Act"), one individual had approached the High Court to set aside the GO as far as it related to the allocation or contribution of 2% out of 9% from the Common Good Fund to the Trust.

The petitioner (O Naresh Kumar) in the writ had contended that the clause for diversion of funds from Common Good Fund to Dharmika activities was illegal as the very establishment of the Trust was without statutory basis.

The petitioner's counsel had contended that the very constitution of the Trust was not based on any order of the Government and it was not a statutory trust created by the Government but it consisted of several organizations and the diversion of 2% funds to Common Good Fund to private institutions was illegal.

Appearing for the Endowments, the Government Pleader, although admitting that the trust was not created under any statutory provision contended that section 152 of the Act provided for the constitution of Andhra Pradesh Dharmika Parishad. It was also his contention that the amount was ordered to be diverted only for the purposes specified in section 70 of the Act and that such diversion was not illegal but for the benefit of Hindus, more particularly for meeting the urgent repairs and renovations of temples.

The division bench of Acting Chief Justice C Praveen Kumar and Justice M Satyanarayana Murthy, taking note that the Trust was not a statutory organisation and would not fall within the meaning of Dharmika Parishad constituted under Section 152 of the Act, observed that diversion of 2% contribution made by various institutions to private organization was contrary to the purpose for which the Common Good Fund was created under section 70 of the Act.

Remarking that such diversion of 2% Common Good Fund was illegal and arbitrary, the High Court had set aside clause 7(2)(b) of the GO.

Case Title: Hindu Dharmika Parirakshana Trust Vijayawada v. The State of Andhra Pradesh and Ors