K N SATHYANATHAN Vs. DEPUTY EXAMINER LACAL FUND ACCOUNTS
LAWS(SC)-2001-3-31
SUPREME COURT OF INDIA
Decided on March 29,2001

K.N.SATHYANATHAN Appellant
VERSUS
DEPUTY EXAMINER,LOCAL FUND ACCOUNTS Respondents

JUDGEMENT

- (1.) The Cochin Devaswom Board decided to have a new 'gold Golaka' to the deity in Chottanikara Temple. An organisation by name Sree Chottanikara Bhagavathy Seva Sangham (hereinafter referred to as Sangham) volunteered to meet the making charges. The devotees who are members of the said Sangham gave various items of gold, some, in the shape of jewellery also for the said purpose. Thereafter, quotations were called for and it was described thereof that there cannot be wastage beyond 10 gms. per kg. while the gold issued to the goldsmith in the present case was to the extent of 4.541 kgs. On the recommendation of the commissioner the Board allowed the wastage of 332 gms. The Auditor made a report for the period 1989-1990 relating to the period of 1988-1989 in which it was pointed out that wastage beyond 10 gms per kg. of gold cannot be allowed. On that basis the appellants were surcharged with a sum of Rs. 93,141.75 towards the losses sustained to the extent of 286.5 gms. of gold. On the basis of the report the High Court initiated the proceedings for surcharge.
(2.) It was contended before the High Court that the Board allowed the wastage of 332 gms. per kg. on the basis of the recommendation made by the Commissioner; that ornamental works were done on the gold Golaka; that the wastage could not be said to be too high; that there was also wastage in melting, purifying and converting ingots into the sheets. It was stated that the extent of wastage could not be determined.
(3.) Before the High Court three witnesses were examined and the High Court was of the view that when in the quotation beyond a particular percentage was not allowed to be a wastage, the appellants should have taken proper care and found out as to what exactly would be the wastage in a case of this nature and taken a decision in the matter and should not have merely accepted the recommendation made by the Commissioner and on that basis found that the appellants were negligent in causing loss to the temple in question.;


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