Case Study: MOT Business Problem No. 05
MOOT COURT PROBLEM No. 05 CONSTITUTIONAL GOVERNANCE I (U.G. Sem I) Date: 07/09/2015
‘X’ is a non-governmental organisation functioning in the State of Uttar Pradesh, India. It was formed by a ‘Self Help group’ consisting of several rural artisans, farmers, destitute, labourers etc. The primary objective of the organisation is to provide a forum for farmers to sell their produce in cities, artisans from rural areas with a place to sell their services and products in cities. It is also involved in social, economic, cultural, educational and family health activities. The membership fee (nominal sum of Rupees 20) and voluntary donations are the primary financial resources of the organisation. It also earns a small …show more content…
Therefore, the organisation approached the Government of India for a grant-in-aid to keep its public welfare operations running. Aware of the fact that the operations of the organisation are vital to the public interest, the Government of India, agreed to grant them a sum of Rupees 10 Crore annually for next 5 years but with certain regulatory conditions.
The Government proposed that two of its nominees be made the Trustees of the Executive Council and the General body and that prior to their removal, the Government must be ‘consulted’. Unlike the other two Trustees, such Trustees (government nominee) were not to have any ‘voting’ right in matters of appointment or removal of the President, Halo members, and office bearers. However, their prior approval (in writing) was mandatory in matters of withdrawal of any money from the Fund of the organisation, before opening up new training centres (for artisans) and before undertaking any ‘new’ ‘economic’ activity. The salary to such nominee Trustees was to be paid by the Government of India. Moreover, so as to ensure that the funds so granted are properly utilised and not misappropriated, the President of the organisation must undertake to submit to the Comptroller Auditor General of India the updated Financial Account Book of the organisation at the end of every financial year for
‘X’ is a non-governmental organisation functioning in the State of Uttar Pradesh, India. It was formed by a ‘Self Help group’ consisting of several rural artisans, farmers, destitute, labourers etc. The primary objective of the organisation is to provide a forum for farmers to sell their produce in cities, artisans from rural areas with a place to sell their services and products in cities. It is also involved in social, economic, cultural, educational and family health activities. The membership fee (nominal sum of Rupees 20) and voluntary donations are the primary financial resources of the organisation. It also earns a small …show more content…
Therefore, the organisation approached the Government of India for a grant-in-aid to keep its public welfare operations running. Aware of the fact that the operations of the organisation are vital to the public interest, the Government of India, agreed to grant them a sum of Rupees 10 Crore annually for next 5 years but with certain regulatory conditions.
The Government proposed that two of its nominees be made the Trustees of the Executive Council and the General body and that prior to their removal, the Government must be ‘consulted’. Unlike the other two Trustees, such Trustees (government nominee) were not to have any ‘voting’ right in matters of appointment or removal of the President, Halo members, and office bearers. However, their prior approval (in writing) was mandatory in matters of withdrawal of any money from the Fund of the organisation, before opening up new training centres (for artisans) and before undertaking any ‘new’ ‘economic’ activity. The salary to such nominee Trustees was to be paid by the Government of India. Moreover, so as to ensure that the funds so granted are properly utilised and not misappropriated, the President of the organisation must undertake to submit to the Comptroller Auditor General of India the updated Financial Account Book of the organisation at the end of every financial year for