Justices M. Sathyanarayanan and Anita Sumanth directed BCI counsel S.R. Raghunathan and BCTNP counsel C.K. Chandrashekar to submit the details by July 22. They also directed Additional Advocate General S.R. Rajagopal to divulge the quantum of public money granted by the State government to the Advocates Welfare Fund managed by BCTNP in the last five years.
Court directs Bar Councils of India, Tamil Nadu to disclose financials
Mohamed Imranullah S.CHENNAI 01 JULY 2020 23:11 ISTUPDATED: 01 JULY 2020 23:11 IST
Judges want to know their sources of revenue, statements of expenditure
The Madras High Court on Wednesday directed the Bar Council of India (BCI) and the Bar Council of Tamil Nadu and Puducherry (BCTNP) to disclose all details related to their finances. The court wanted to know their sources of income, the actuals received, deposits made, statements of expenditure and the balance sheet for the last two financial years.
Justices M. Sathyanarayanan and Anita Sumanth directed BCI counsel S.R. Raghunathan and BCTNP counsel C.K. Chandrashekar to submit the details by July 22. They also directed Additional Advocate General S.R. Rajagopal to divulge the quantum of public money granted by the State government to the Advocates Welfare Fund managed by BCTNP in the last five years.
The interim directions were issued on a public interest litigation petition filed by designated senior counsel A.E. Chelliah seeking a direction to BCI, BCTNP and the State government to pay ₹50,000 to every advocate and ₹ 25,000 to every advocate clerk in the State to cope up with the financial stress caused due to the COVID-19 lockdown.Advertising
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According to the litigant, the BCTNP receives funds towards the Advocates Welfare Fund as well as Advocate Clerks Welfare Fund by way of sale of stamps that had to be stuck mandatorily on every Vakalatnama (authorisation given by clients to advocates to appear on their behalf) and hence, it was obligated to assist the lawyers during difficult times.
In reply, the BCTNP submitted that the rules applicable to welfare funds do not provide for disbursement of relief during contingencies such as COVID-19. The rules permit use of the funds only in the event of the death of an advocate and so on. Yet, the council had solicited donations to a separate relief fund and disbursed assistance to 12,000 advocates, it claimed.
Mr. Chandrashekar said as on date, 65,000 advocates were on the rolls of BCTNP, which had solicited contributions from designated Senior Counsel for the relief fund. A request was also made to the Chief Ministers of Tamil Nadu and Puducherry for provision of financial assistance. Thereafter, applications were called for from advocates through a mobile application. More than 16,000 applications were received seeking financial assistance. Of them, around 12,000 were found eligible and provided with financial assistance of ₹4,000 each on May 18. Stating that the Government of Tamil Nadu was yet to respond to a request for additional funds, the BCTNP said, the effort taken by it was the best that could be done at this juncture.
On his part, the AAG said that the Advocates Welfare Fund always runs on a deficit and that it was the State government which had been extending a helping hand by granting funds year after year. He said neither the sale of advocates welfare fund stamps nor collections by way of enrolment fee, renewal fee or examination fee by BCTNP had been able to plug the deficit.
Mr. Raghunathan said, some State level bar councils collect ₹1,000 at the time of enrolment of advocates and some like BCTNP collect ₹3,000. Out of those collections, 20% gets appropriated by the BCI and kept in a separate fund so that it could be used for advocates’ welfare at an opportune moment. That fund was also managed by representatives from State bar councils, he said.
After hearing all of them, Justice Sumanth insisted upon knowing the complete financials of the bar councils. She directed them to produce their audited financial statements for the periods ending March 31, 2019 and March 31, 2020. The judge also asked the councils to disclose whether they were being audited by government agencies or through an internal audit.
