New Delhi: The Supreme Court has ruled that temple funds cannot be used to support financially distressed cooperative banks. It held that such funds must remain secure and be used solely for the temple’s benefit, not as a revenue source or bailout mechanism. The remarks were made during the hearing of a petition in this case.
During the hearing, a Bench of Chief Justice Surya Kant and Justice Joymalya Bagchi examined petitions filed by a few Kerala cooperative banks. These banks had challenged a Kerala High Court order directing them to return the fixed deposits of the Thirunelli Temple Devaswom. The Supreme Court asked what was unreasonable in the High Court’s directive.
Representing the cooperative banks, Advocate Manu Krishnan argued that the High Court’s directive to return the deposits within two months was abrupt and posed operational difficulties. The Chief Justice responded that securing public trust is the bank’s responsibility, and any failure to attract customers or deposits remains the bank’s own problem.
Justice Bagchi further observed that banks are duty-bound to return deposits immediately upon maturity. Ultimately, the Bench dismissed all the petitions but permitted the petitioners to approach the High Court for additional time to comply with the repayment order. The petitions had been filed by the Mananthavady Co-operative Urban Society and the Thirunelli Service Co-operative Bank.
