CATHOLIC ARCHDIOCESE OF THRISSUR, V. UNION OF INDIA,

WP(C)/38605/2023

AI Insights

The Catholic Archdiocese of Thrissur filed a writ petition against the Union of India and others, challenging the directive from their banks (South Indian Bank and CSB Bank) to register with the NGO Darpan Portal to continue operating their accounts. The petitioner argued that as a religious institution, it does not qualify as a Non-Governmental Organization (NGO) or a Non-Profit Organization (NPO) under applicable laws, including the Income Tax Act. The banks contended that the registration was only a request applicable if the petitioner identified as an NGO or NPO. The court examined the communications between the parties and found no compulsion for the petitioner to register with the portal, thus dismissing the petition.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 739612 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 09-02-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, Reserve Bank Guidelines
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: P VANDANA; SUNIL SHANKAR; MADHU RADHAKRISHNAN; NELSON JOSEPH; M D JOSEPH; DEEPAK KUMAR; VIDYA GANGADHARAN; GAYATHRI
• Assessee Lawyers: LINDONS DAVIS; E U DHANYA; RAJITH DAVIS; N S SHAMIL; CHINJU JOYIES
• Keywords: Banking regulations; Non-Governmental Organization; Non-profit organization; NGO Darpan Portal; Account Operation
• Section: 2015-2016/18

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN FRIDAY, THE 9TH DAY OF FEBRUARY 2024 / 20TH MAGHA, 1945 WP(C) NO. 38605 OF 2023 PETITIONER: CATHOLIC ARCHDIOCESE OF THRISSUR, SYRO MALABAR SYRIAN CATHOLIC (ROMAN CATHOLIC CHRISTIAN COMMUNITY), BISHOP PALACE, THRISSUR REPRESENTED BY PROCURATOR OF THE ARCHDIOCESE, REV. FR. VARGHESE KUTHOOR, PIN - 680020 BY ADVS. LINDONS C.DAVIS E.U.DHANYA RAJITH DAVIS N.S.SHAMILA CHINJU P. JOYIES RESPONDENTS: 1 UNION OF INDIA, MINISTRY OF COMMERCE AND INDUSTRIES REPRESENTED BY ITS SECRETARY, VANIJYA BHAWAN, NEW DELHI, PIN - 110001 2 NATIONAL INSTITUTION FOR TRANSFORMING INDIA, REPRESENTED BY ITS CHIEF EXECUTIVE OFFICER, NITI AAYOG, PARLIAMENT STREET, NEW DELHI, PIN - 110001 3 RESERVE BANK OF INDIA, BAKERY JUNCTION, THIRUVANANTHAPURAM REPRESENTED BY ITS REGIONAL DIRECTOR, PIN - 695033 4 SOUTH INDIAN BANK LTD., S.I.B.HOUSE, T.B.ROAD, THRISSUR REPRESENTED BY GENERAL MANAGER, PIN - 680001 5 CSB BANK LTD., CSB BHAVAN, ST. MARY'S COLLEGE ROAD, THRISSUR REPRESENTED BY GENERAL MANAGER, PIN - 680020 BY ADVS. P.VANDANA Sunil Shankar A Madhu Radhakrishnan NELSON JOSEPH(K/380/2007) M.D.JOSEPH(K/839/2008) DEEPAK ASHOK KUMAR(K/1624/2018) VIDYA GANGADHARAN(K/000424/2020) GAYATHRI.M.M(K/003350/2022) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 09.02.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 38605 OF 2023 2 JUDGMENT The petitioner is stated to be the Archdiocese of Thrissur and say that even though it is not an Non Governmental Organization (NGO), or an Non Profit Organization (NPO), under the provisions of the applicable legislation, including the Income Tax Act, they have been directed by their bankers, namely respondents 4 and 5, to register themselves in the ‘NGO Darpan Portal’ of the Niti Ayog, for them to be allowed to operate their accounts in future. They say that such instruction given to them is illegal since, it is impossible for them to register with the above said portal - they being not an NGO or an NPO; and hence that they have been constrained to approach this Court through this writ petition particularly because, their explanation given to the 4th respondent – South Indian Bank, namely Ext.P2, has not been yet considered. 2. Sri.Lindons C.Davis – learned counsel for the petitioner, submitted that this is a classic case where the doctine lex non cogit impossibila would apply in its full force because, the Banks are asking them to comply with a condition which is impossible for them to perform. He thus reiteratingly prayed that this writ petition be allowed. WP(C) NO. 38605 OF 2023 3 3. Sri.A.Sunil Shankar - learned Standing Counsel for respondent No.4 and Sri.Madhu Radhakrishnan – learned Standing Counsel for respondent No.5, however, submitted that their clients have only instructed the petitioner to register themselves in the NGO portal, if they come within the definition of NGO or NPO as per the applicable statutes. In fact, Sri.Sunil Shankar referred to Ext.P1 issued by his client to show me that, all which is stated therein is that, if the petitioner belongs to the NPO category, then they are required to register with the afore mentioned Portal. 4. I have examined Ext.P1 letter of the South Indian Bank, as also Ext.P2 explanation given by the petitioner. It is pertinent that the petitioner has not produced any communication from the 5th respondent - Catholic Syrian Bank, though they assert that they have received an intimation similar to ExtP1 from the said Bank also. 5. As matters now stand and is evident from Ext.P1, as also the submissions made on behalf of the Banks, no imperative directions have been issued to the petitioner to register with the NGO Portal; but that they were requested to do so, if they felt that they came within the ambit of being an NGO or an NPO. 6. Obviously, therefore, there is no compulsion on the petitioner at this time, though they may have to face other consequences in WP(C) NO. 38605 OF 2023 4 future if it is found that they are operating as an NGO or an NPO; and this may be at the hand of the other regulatory Authorities and not that of the Banks. 7. In fact, pertinently, as an alternative prayer, the petitioner has sought that they be given permission and time to register with the ‘NGO Darpan Portal’, but without insisting for Trust Deed/ Incorporation Certificate as per the Societies Act and the Companies Act. These are matters over which the Banks have hardly any control; and therefore, if the petitioner is to feel that they are to be registered with the ‘NGO Darpan’, they are at liberty to do so; and to invoke remedies, if they are unable for any reason, including the non production of necessary documents. 8. To paraphrase, this Court fails to understand why the petitioner should have rushed to this Court alleging that respondents 4 and 5 are not allowing them to operate their accounts; particularly when the learned Standing Counsel for the said Banks say that there is no such compulsion, but that it is for the petitioner to act in terms of the applicable law, including the Reserve Bank Guidelines. In the afore circumstances, I close this writ petition, recording the afore submissions made on behalf of the respective Banks by Sri.A.Sunil Shankar and Sri.Madhu Radhakrishnan; thus leaving open WP(C) NO. 38605 OF 2023 5 all other contentions to be pursued and impelled in future, if it become so warranted. I, however, clarify that this Court has not found either way, as to whether the petitioner should register with the ‘NGO Darpan’; and that these issues are also left undecided, subject to any action that may be taken by the competent Authorities in future, if any. Sd/- DEVAN RAMACHANDRAN JUDGE MC/9.2 WP(C) NO. 38605 OF 2023 6 APPENDIX OF WP(C) 38605/2023 PETITIONER EXHIBITS Exhibit P1 A COPY OF THE LETTER DATED 25.09.2023 ISSUED BY SOUTH INDIAN BANK TO LOURDES CATHEDRAL CHURCH Exhibit P2 A COPY OF THE REPLY DATED 01.11.2023 TO EXT P1 BY LOURDES CATHEDRAL CHURCH SUBMITTED BEFORE SOUTH INDIAN BANK Exhibit P3 A COPY OF THE LETTER DATED 05.11.2023 OF CATHEDRAL VICAR OF OUR LAND OF LOURDES METROPOLITAN CATHEDRAL SUBMITTED TO THE CSB BANK ALONG WITH ENDORSEMENT OF THE CSB BANK Exhibit P4 A COPY RELEVANT PAGES OF THE RESERVE BANK OF INDIA (KNOW YOU CUSTOMER (KYC)) DIRECTIONS 2016 CIRCULAR NO.RBI/DBR/2015- 2016/18 DATED 25.02.2016 AND LAST UPDATED ON 29.05.2019 Exhibit P5 A COPY OF THE RELEVANT PAGES OF THE GUIDANCE NOTE FOR NON-PROFIT ORGANIZATIONS AND DONORS TO COMBAT FINANCING OF TERRORISM "