India News | Office Bearers Involved in Criminal Cases Related to SN Trust Property Cannot Continue in Post: Kerala HC

Kochi, Jan 17 (PTI) The Kerala High Court on Tuesday modified the S N Trust scheme to the extent that any of its office bearers, who is involved in criminal cases connected with its properties, shall not hold that position till they are discharged or acquitted.

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A bench of Justices A Muhamed Mustaque and Shoba Annamma Eapen brought about the modification in the Trust's scheme on a plea moved by a lawyer -- Cherunniyoor V Jayaprakash -- who is also one of its Board of Directors.

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Sree Narayana (SN) Trust was formed in 1952 to manage the educational institutions under S N D P Yogam, an outfit of Kerala's numerically strong Ezhava community.

The plea was moved by Jayaprakash in the wake of implication of the Secretary of the Trust, Vellappally Natesan for various offences under the Indian Penal Code.

"It is alleged that he has misused the funds of the Trust. We are not here to decide upon any matter relating to individual trustees, whether a particular individual has committed breach of trust or he is not fit to continue as a trustee, which are all matters to be considered by an appropriate court," the bench said.

It noted that there was no provision in the scheme to keep a trustee or office bearer in suspension till they are cleared of the criminal charges levelled against them for offences committed in respect of Trust property.

"However, we are wondering if a person is charge sheeted for committing offence in respect of trust property, can he continue to officiate in Trust till he is cleared of the charges?

"In a fair trial before the criminal court, it matters as the witnesses and documents will be in the control and the custody of the office bearers of the Trust. Is it not detrimental to the interest of the Trust, if such an office bearer is permitted to continue in the office," the court asked.

The lawyer appearing for the Trust resisted the modification on the ground that it was easy to implicate a trustee in a criminal case and keep him away from administration.

He contended that if such a modification was made, it would result in chaos in administration of the Trust.

The bench said it cannot countenance the argument.

"Merely by incorporating a clause in a scheme, no trustee can be prevented from functioning as an office bearer or a Member of Board of Trustees.

"However, we must remind ourselves that the trustee is fiduciary and he must not place himself in a position wherein his interest may conflict with his duties," it said.

It further said that the criminal prosecution can be derailed if a trustee implicated in a case in respect of Trust property is permitted to have control over its administration.

"It is not necessary to wait till the final report is filed or charge is framed to take action against such an officer. Having regard to the nature of the allegations in such crime, he should not be permitted to continue to hold the office," the bench said.

It said that the modification in the scheme was necessary to "secure the objective and integrity of the Trust".

"Thus, we are of the view that the request of modification can be acceded with a slight modification as follows as clause 34B:

"If an office bearer of a Trust is involved in a criminal offence of breach of trust or in an offence relating to the property of a Trust and, his continuation in the office is having conflict with the interest of the Trust, or is detrimental to the interest of the Trust, the office bearer shall abstain to hold the office till he is discharged or acquitted in such case," the court said.

The decision was welcomed by Natesan who said that the verdict was not just applicable to him but to every officer bearer in the S N Trust.

He said that while there is a case against him, no charges have been framed against him.

He also alleged that the cases against him were based on complaints by those who are eyeing his position in the Trust and want to replace him.

Natesan also said that it was easy to make anyone an accused in a criminal case.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)