Indian Hockey Federation vs Union Of India
2011 Latest Caselaw 4421 Del

         THE HIGH COURT OF DELHI AT NEW DELHI

%                      Judgment Reserved on: 05.09.2011
                       Judgment Pronounced on: 12.09.2011

+ CS(OS) No. 1371/2010

         Indian Hockey Federation               ..... Plaintiff
                      Through: Mr. D.S.Narula, Sr. Advocate
                      with Mr. A.S.Narula, Advocate

                               versus


         Union of India                         ..... Defendant
                       Through: None

CORAM:-
HON'BLE MR JUSTICE V.K. JAIN

1.

Whether Reporters of local papers may be allowed to see the judgment? No.

2. To be referred to the Reporter or not? No.

3. Whether the judgment should be reported No. in Digest?

V.K. JAIN, J

1. This is a suit for recovery of Rs.85,30,866.68. The

plaintiff is a national sports federation registered under the

Societies Registration Act and is alleged to be the supreme

body controlling and regulating the game of hockey in India.

The plaintiff claims to have conducted various tournaments

and coaching camps and participated in them in India as

well as abroad, for which it is seeking reimbursement by the

defendant. It is alleged that the defendant vide its letter

dated 1.12.2005 cleared the proposal of the plaintiff for

sanction of financial assistance of Rs.6,00,000/- for

organizing the 27th Men's Championship Trophy at Chennai

from 10th to 18th December, 2005 but failed to release the

aforesaid amount despite the plaintiff submitting the

expenditure statement. Vide letter dated 1st August, 2007,

the defendant expressed its difficulty in releasing the

pending grants on account of certain outstanding utilization

certificates. The plaintiff requested the defendant to adjust

the pending utilization certificates and clear all the grants.

A demand draft of Rs.2,27,662/- was also sent to the

defendant towards full and final settlement of the bills

mentioned in para 09 of the plaint but, despite that the

aforesaid amount of Rs.6,00,000/- was not released to the

plaintiff.

2. It is further alleged that the defendant also

approved the proposal of the plaintiff for (i) organizing 27th

Men's Asia Cup at Chennai from 31st August to 9th

September, 2007, (ii) participation of the Indian Hockey

Team for coaching-cum-competition tour at Perth (Australia)

from 1st to 14th February, 2008, (iii) participation of Indian

Hockey Senior Team for training-cum-competition for

Olympic Qualifiers Tournament at Santiago (Chile) from 25 th

February to 9th March, 2008 and (iv) participation of Indian

Hockey Senior team in Four Nation Tournament held in

Perth and Darwain (Australia) from 23rd April to 4th May,

2008. However, the expenditure incurred by the plaintiff

has not been reimbursed by the defendant and

consequently, the principal sum of Rs.58,18,471.68 is now

being claimed by the plaintiff from the defendant along with

interest on the outstanding amount @ 18% p.a., which

comes to Rs.27,12,395/-.

3. The defendant was proceeded ex parte on 5th May,

2011 as no one appeared for it despite service.

4. The plaintiff has filed affidavits of its Honorary

Secretary General Shri Ashok Mathur by way of evidence.

5. Exh. PW-1/20 is the letter of the plaintiff dated

19.22 September, 2005 whereby it sought government

sanction for 27th Men's Champions Trophy at Chennai from

10th to 18th December, 2005 with increased financial

assistance as a special case. Vide letter dated 1 st December,

2005 (Exh. PW-1/2), Government of India, Ministry of Youth

Affairs and Sports cleared the proposal at government cost

with financial assistance of Rs.6,00,000/- in terms of letter

dated 1st December, 2005. Vide letter dated 1st August,

2007 (Exh. PW-1/5), Joint Secretary to the Government of

India, Ministry of Youth Affairs and Sports requested the

President of the Indian Hockey Federation to submit

evidence in respect of pending Utilization Certificates. In

response to this letter, the plaintiff submitted its comment

with respect to un-utilized Certificates vide letter dated 31st

August, 2007 Exh. PW-1/6.

Since the defendant had sanctioned financial

assistance of Rs.6,00,000/- in respect of 27 th Men's

Champions Trophy at Chennai, vide its letter dated 1 st

December, 2005 and there is no evidence of the plaintiff

having committed breach of the conditions subject to which

the financial assistance was approved, the defendant is

obliged to pay the aforesaid amount to the plaintiff.

6. Exh. Pw-1/22 is the letter of the plaintiff dated 8th

January, 2008 whereby it sought approval of the proposal

annexed to the letter regarding participation in coaching-

cum-competition tour at Perth (Australia) for Olympic

Qualifiers from 1st February to 14th February, 2008. A

perusal of annexure to the letter would show that it was an

application form for obtaining approval for sending sports

persons abroad and budget estimates were also attached to

the application. Vide letter dated 31st January, 2008/1st

February, 2008 (Exh. PW-1/10), Government of India,

Ministry of Youth Affairs and Sports conveyed approval of

the Competent Authority for participation of 30 persons

mentioned in the letter. No financial assistance, however,

was committed by the defendant in this letter. The bills for

this tour were submitted by the plaintiff to the defendant

vide letter dated 13th March, 2008 (Exh. PW-1/11).

7. Exh. PW-1/24 is the letter dated 10th April, 2008

from the plaintiff, enclosing therewith the Selection

Committee Minutes giving the list of team members

participating in 4 Nation Tournament at Perth/Darwain

Australia from 18th April to 4th May, 2008 and Azlan Shah

Tournament at Ipoh, Malaysia from 8 th May to 18th May,

2008 and seeking sanction of the government.

Vide letter dated 17th April, 2008 (Exh. PW-1/14),

the Government of India, Ministry of Youth Affairs and

Sports, conveyed approval of the Competent Authority for

participation of 26 persons mentioned in the letter in the

aforesaid events. However, no financial assistance was

committed by the defendant in this letter. The audited

statements along with the bills of the expenditure incurred

on the above referred visits were submitted by the plaintiff

to the defendant vide letter dated 4th July, 2008 (Exh. PW-

1/15).

8. Exh. PW-1/21 is the letter dated 11th July, 2007

from the plaintiff to the defendant submitting proposal for

participation in 9th Asia Cup at Chennai from 1st to 9th

September, 2007 and seeking sanction of the government

with entitled financial assistance. Vide letter dated 31 st

August, 2007 (Exh. PW-1/8), Government of India, Ministry

of Youth Affairs and Sports approved the proposal for

holding the event and inviting teams from other countries.

It was also stated in the letter that details of financial

assistance for holding the event would be intimated

separately. However, no particular amount as financial

assistance was committed by the defendant in this letter.

Vide letter dated 19th August, 2008 (Exh. PW-1/9) the

plaintiff submitted audited statement of income and

expenditure account and receipt and payment statements of

the Asia Cup and sought admissible grant-in-aid of

Rs.10,00,000/-.

9. Vide letter dated 25th January, 2008 (Exh. PW-

1/23) the plaintiff submitted a proposal to the Government

for training-cum-competition visit to Santiago (Chile) for

Olympic Qualifiers Tournament from 25th February, to 9th

March, 2008 and sought sanction for the visit at full cost to

the Government. Vide letter dated 25th February, 2008

(Exh. PW-1/12) the Government conveyed approval of the

Competent Authority for participation of 25 members of the

team in the event. However, no financial assistance was

committed in this letter. Vide letter dated 28th August, 2008

(Exh. PW-1/13), the plaintiff submitted audited statements

along with the bills of expenditure for the aforesaid visit and

sought payment of due amount from the Government.

10. Since, the defendant never committed any financial

assistance for 27th Men's Asia Cup at Chennai, coaching-

cum-competition tour at Perth (Australia), training-cum-

competition for Olympic Qualifiers Tournament at Santiago

(Chile) Four Nation Tournament held in Perth, 07th Asia Cup

at Chennai and Darwin (Australia) and did not agree at any

point of time to meet the expenditure incurred by the

plaintiff association on the aforesaid events, the plaintiff has

no legal right to recover these amounts from it, particularly

in a Civil Suit.

11. It was contended by the learned Counsel for the

plaintiff that since the revised guidelines dated 14 th August,

2001 (PW-1/19) issued by the defendant provided for grant

of funds to national federations and the proposals

submitted by the plaintiff to the defendant were in

consonance with these guidelines, the plaintiff is entitled to

seek reimbursement of the expenditure incurred on these

events. I, however, find no merit in the contention. Though

hockey is included amongst the sports for which

grant/financial assistance could be given by the government

that by itself does not entitle the plaintiff to obtain

reimbursement of the expenditure incurred by it, even if

there is no financial commitment from the government. The

only legal right the plaintiff association had in this regard

was to apply to the government for the release of

grant/financial assistance in terms of the guidelines and

consideration of its request in terms of those guidelines.

But, unless the government commits to release a particular

amount as financial assistance or agrees to reimburse the

expenditure incurred on a particular event, the plaintiff

cannot recover the expenditure incurred on that event by

way of a Civil Suit. It is for the Government to decide

whether to grant financial assistance sought by a National

Federation or not and no Federation can claim such

assistance as a matter of its legal right. If the plaintiff was

aggrieved on account of government not committing

financial assistance/grant in terms of the guidelines issued

by it, the appropriate remedy available to it was to file a Writ

Petition seeking release of the grant. But, in absence of any

financial commitment from the government, the expenditure

incurred by the plaintiff cannot be recovered in a Civil Suit.

The guidelines Ex.PW-1/19 lay down the criteria which the

Government has to apply in the matter of grant of sanction

to National Sports Federations and the conditions which

they are required to fulfil to be eligible for grant of such

assistance. The guidelines do not make it obligatory for the

Government to grant financial assistance whenever and to

whatever extent it is sought by a National Federation.

Vide letter dated 31st January, 2008/1st February,

2008 (Ex.PW-1/10), the Government only approved

participation of the persons mentioned in the letter of the

plaintiff dated 08th January, 2008. No financial assistance

was committed by the Government while approving

participation of those 30 persons. Similarly, vide letter dated

17th April, 2008, Government approved participation of 26

persons mentioned in the letter of the plaintiff dated 10 th

April, 2008, without undertaking any obligation to either

provide any particular financial assistance or to reimburse

the expenditure sought to be incurred by the plaintiff on the

event subject matter of this letter. Vide its letter dated 31st

August, 2007, Government, while approving the holding of

the event, did not sanction any particular amount as

financial assistance to the plaintiff-federation though it was

stated that details of the financial assistance would be

intimately separately. This is not the case of the plaintiff

that subsequent to letter dated 31st August, 2007,

Government had communicated approval of any financial

assistance for holding 9th Asia Cup at Chennai from 1st to

09th September, 2007. Likewise, vide its letter dated 25th

February, 2008, Government, while approving participation

of 25 members team did not provide any financial

assistance to the plaintiff-Federation. Therefore, no amount

in respect of Coaching cum Competition at Perth (Australia),

4 Nation Tournament at Perth/Darwin (Australia), 7th Men's

Asia Cup at Chennai and Training cum Competition for

Olympic Qualifier Tournament, Santiago (Chile) can be said

to be due and legally payable by the defendant to the

plaintiff. I, therefore, hold that the plaintiff has failed to

substantiate its claim with respect to expenditure incurred

on these events.

For the reasons given in the preceding paragraphs,

I hold that the plaintiff is entitled only to recover a sum of

Rs 6 lakh towards financial sanction committed by the

defendant for 27th Championship Trophy at Chennai from

10th December to 18th December, 2005. The plaintiff sent a

legal notice to the defendant on 21st December, 2009,

seeking payment of the various amounts claimed in this

suit. Since interest was also claimed in the notice, it can be

awarded to the plaintiff, on the amount of Rs 6 lakh, under

Section 3 of Interests Act, 1978. In the facts and

circumstances of the case, I am of the view that interest

should be awarded to the plaintiff on the sum of Rs 6 lakh

@ 6% per annum from 21st December, 2009, till the date of

filing of this suit.

The amount of interest on Rs 6 lakh for the period

from 21st September, 2009, till filing of the suit on 03rd

June, 2010, comes to Rs 25,300/-. The plaintiff is entitled

to recover the aforesaid amount as interest from the

defendant.

ORDER

A decree for Rs 6,25,300/- with proportionate

costs and pendente lite and future interest @ 6% per annum

is passed in favour of the plaintiff and against the

defendant.

Decree sheet be drawn accordingly.

(V.K. JAIN) JUDGE SEPTEMBER 12 , 2011 vn/bg