ORDER
E. Dharma Rao, J.
1. The Chess Association of Hyderabad Division, represented by its President. B. Madhusudhan Reddy and six other District Chess Associations, viz., Medak District Chess Association, Sangeareddy, represented by its General Secretary G. Satyanarayana; Rangareddy District Chess Association, Borabanda, Hyderabad, represented by its General Secretary, C. Bapi Reddy, Khammam District Chess Association, Kothagudem, Khammam, represented by its General Secretary, Ch. Gopi Krishna; Nalgonda District Chess Association, Nalgonda, represented by its General Secretary, Ch. Venkateswarlu; Mahaboobnagar District Chess Association, Achampet. Mahaboobnagar, represented by its President, J. Ramalaxmaiah and Hyderabad District Chess Association, LB Stadium, Hyderabad, represented by its President, K. Kanna Reddy which are registered societies, filed this writ petition against the Government of Andhra Pradesh, Ministry of Sports and Games, the sponsor of the n World Cup Chess Tournament, 2002 at Ramoji Film City, Hyderabad, stating that the Sports Authority of Andhra Pradesh is a body corporate and is a creature of Act IV of 1988 (A.P. Sports Authorities Act) and its Chief Executive is Vice Chairman and Managing Director. Under the Act, District Sports Authority and Mandal Sports Authority are created. The Act further created A.P. Sports Council to include such other bodies as may be notified.
2. According to the petitioners, the Sports Authority of Andhra Pradesh is the principal policy formulating body and shall have the powers and functions specified in Section 4 of the Act, which include approval of the sports calendar of the State, approval of the proposals received from the District Sports Authorities, to implement all the sports programmes of Government of India, Sports Authority of India and Nethaji Subash National Institute of Sports, Patiala, through the District Authorities and Mandal Authorities. It also includes augmentation of the income of the Sports Authority by conduct of tournaments, matches, tests and other sports events and arranging for sale of tickets in connection therewith, but does not empower the Sports Authority to part with its income to any third party, muchless the third respondent herein – All India Chess Federation, represented by its Honorary Secretary, PT Omer Koya, enabling it to conduct World Chess Championship in Ramoji Film City, Hyderabad, in October, 2002 at the cost of the second respondent. It is further stated by the petitioners that Section 16 of the Act the Sports Authority shall function under the general supervision of the Government. Section 17 of the Act deals with funds of the Sports Authority, which says that the Sports Authority, District Authority and Mandal Authority shall have their own funds, from the sources mentioned in Section 17. Section 18 empowers the Authorities to borrow funds, subject to the previous sanction of the Government and provisions of the Act and such conditions as may be prescribed. Under Section 21 of the Act, the Government is empowered to cause an inspection to be made by such person or persons, as they may direct to the affairs and- properties of any Sports Authority, its building, stadia, indoor-stadia, swimming pools, play fields and the site and also to cause an enquiry to be made into the matter connected with the said authorities and under Section 22 of the Act, the Government may give such directions to any Authority constituted under the Act, as it may consider necessary in the interest of sports and games or physical education.
3. The petitioners contend in the affidavit that the 2nd respondent is diverting its funds to the 3rd respondent for conducting the II World Cup Chess Tournament, 2002. It is further alleged that the 3rd respondent which is an unofficial organisation cannot be encouraged by the 1st and 2nd respondents to conduct the Tournament, at the cost of public and contra to the provisions of the Act. It is also stated that the 3rd respondent came forward with a proposal to conduct the II World Cup Chess Tournament at Ramoji Film City and approached the first respondent to provide funds to it and the 1st respondent readily agreed to do so, which is reported in The Hindu English Daily dated 17.7.2002 and the Honourable the Chief Minister agreed to act as the Chairman of the Organising Committee of The World Chess Cup Tournament, 2002, to be conducted by the 3rd respondent in Ramoji Film City, Hyderabad. According to the petitioners, the Honorary Secretary, PT Omer Koya, the budget for the said tournament is about 2.75 to 3.00 crores and it might be up to 5 crores, as major chunk of it could be spent on publicity and the total prize money in the World Cup is Rs.2.00 lakhs or 8000 dollars. It is further stated that the Honourable Chief Minister has agreed to lend his support in hosting the World Chess Tournament at Ramoji Film City, Hyderabad. It is further submitted that the Chairman of the first petitioner submitted a representation dated 24.7.2002 to the Honourable Chief Minister requesting him not to lend his name and not to release funds for the conduct of the World Chess Tournament to be conducted by the third respondent and further requested him to consider the desirability of the A.P. Chess Association and Sports Authority to conduct the World Cup Chess Tournament in collaboration with the 3rd respondent on behalf of the A.P. State, which was not considered.
4. The petitioners further state that Vaartha a Telugu Daily, dated 26.7.2002 reported that the Government of Andhra Pradesh wants to play with the public money to the tune of Rs. 5.00 crores, out of unreasonable love for its own men. It is also stated that the Deputy Speaker, AP Legislative Assembly and Chairman of the 1 st petitioner, have addressed DO letter dated 19.8.2002 to the Chief Executive of the 2nd respondent to involve Chess Association of Hyderabad, in the conduct of World Chess Cup Tournament, 2002 and to permit the players to participate in the World Chess Cup Tournament, 2002, which was replied by the 2nd respondent stating that the World Cup Chess Tournament 2002 is being conducted by the All India Chess Federation, the 3rd respondent herein, which is the Governing Body in all matters connected with Chess in the country and they may address to the National Federation.
5. For all these reasons, the petitioners have sought for the issue of a writ of mandamus declaring that the respondents 1 and 2 have no power to use their revenues for the purpose of conducting World Cup Chess Tournament, 2002 at Ramoji Film City, Hyderabad or any other tournament by the 3rd respondent, that they have only power to use their revenues for the conduct of tournaments, matches, test matches and other sport events by arranging sale of tickets in connection therewith as per Section 4 of the Act and to consequently direct the respondents 1 and 2 not to part with their funds to the 3rd respondent for its activities.
6. As stated earlier, when the petitioners who styled themselves as the Chess Association of Hyderabad Division and other District Associations – which are registered societies, did not receive positive response from the 1st and 2nd respondents to the representation made by them to involve them for the conduct of World Chess Cup Tournament, 2002, based on the newspaper reports viz.. The Hindu an English Daily dated 17.7.2002 and Varatha, a Telugu Daily dated 26.7.2002, came up with the instant writ petition, alleging that at the cost of public revenues, the first and second respondents are conducting the tournament contra to the provision of Section 4 of the Act and diverting the funds to the 3rd respondent, which is a private entity.
7. Before entering into the arena of controversy, it is apposite to look into the provisions of law that are akin to the subject matter.
8. As can be seen from the objects and reasons of the Act, the Sports Authority of Andhra Pradesh is established for the promotion of games and sports in the State of Andhra Pradesh and for matter connected therewith or incidental thereto. Chapter II – Section 3 of the Act contemplates constitution of the Sports Authority. Section 4 of the Act deals with powers and functions of the Sports Authority, most of which are discussed in the foregoing paragraphs. Section 16 mandates that the Sports Authority shall function under the general supervision of the Government and the Government shall have the power to give such directions as it may deem fit from time to time and shall also review the action of the Sports Authority. Section 17 of the Act contemplates that the Sports Authority, District Authority and the Mandal Authority shall have its own funds consisting of:
(a) the grants made by the State Government and the Central Government;
(b) all moneys received by or on its behalf under the provisions of this Act or any
other law for the time being in force, or under any other contract;
(c) all proceeds of the disposals of the property by or on its behalf:
(d) all rents accruing from any of its properties;
(e) all monies received by or on its behalf from any local authority, public corporations, public private companies, public and philanthropists or person by way of grants, endowments, trusts, gifts or deposits or in any form;
(f) all interests and profits arising from any investment or of any form any transaction in connection with any money belong to it;
(g) proceeds from tournaments conducted by the sports authorities and collection of fees for coaching in various sports activities.
9. Section 18 empowers the Sports Authority, District Authority and the Mandal Authority, from time to time with the previous sanction of the Government and subject to the provisions of this Act and to such conditions as may be prescribed, borrow any sum required for the purpose of the Act; whereas Section 21 empowers the Government to cause an inspection to be made by such person or persons, as they may direct to the affairs and properties of any Sports Authority, its building, stadia, indoor-stadia, swimming pools, play fields and the site and also to cause an enquiry to be made into the matter connected with the said authorities. Under Section 22 of the Act, the Government may give such directions to any Authority constituted under the Act, as it may consider necessary in the interest of sports and games or physical education.
10. Evidently, the 2nd respondent is the creature of Statute under Act IV of 1988 by the Government of Andhra Pradesh and that the Government has full control over the activities of the second respondent with regard to its Programmes, accumulation of funds, borrowings, inspection and to give directions from time to time. Thus the Government has superintending powers over the activities of the 2nd respondent.
11. As can be seen from the facts and circumstances of the case, the petitioners have misread the news item and without procuring a piece of document to support their allegations that the first respondent and the second respondent have diverted their funds to conduct the World Chess Championship illegally against public interest more so when there is drought in the State and prepared to spend Rs. 5.00 crores, rushed to this court and filed this writ petition.
12. The news in The Hindu item shows that the meeting was conducted by Mr. N. Srinivasan, Chairman of All India Chess Federation and was attended by Secretary, Mr. Omer Koya, the third respondent herein, along with the Managing Director of the A.P. Sports Authority. The sum and substance of the news release is that the Honourable Chief Minister has agreed to be the Chairman of the Organising Committee and that the estimated cost to conduct the Championship is Rs. 5.00 crores, and Rs. 2.75 crores will be allotted for organising and the prize money at stake is $ 2.8 lakhs, that the object to conduct the Championship at Hyderabad is to provide an opportunity to the upcoming Indian Grandmasters and to give a fillip to Indian chess, which has already made tremendous impact on the world scene and also to turn Hyderabad the Chess Capital of India. The news clipping, nowhere, states that either the first respondent or the second respondent have diverted their funds and hosting the tournament. What all the third respondent released in the press is that the All India Chess Federation has been making efforts to improve the standards of Indian chess and the A.P. State has already two Grandmasters and more are making their presence felt in the international events.
13. This apart, the Deputy Speaker who happened to be the Chairman of the 1st petitioner has addressed DO letter dated 19.8.2002 to the first respondent and then to the second respondent, for the affiliation of the 1st petitioner and for involving them in the conduct of World Chess Cup-2002, the petitioners were informed that the third respondent is the Governing Body in all the matters connected with the Chess in the country and it is the right body to respond to their suggestion and were thus advised to address to the National Federation. Nowhere in the affidavit, the petitioners have stated that they have addressed or approached the third respondent – National Federation for affiliation so as to enable them to participate in the World Chess Cup Tournament-2002. Instead of approaching the National Federation, the petitioners have rushed to this Court, without any material to substantiate the allegations made in the affidavit, and filed this writ petition. The petitioners have callously described the third respondent as Honorary Secretary, whereas Mr. Omer Koya, is the Secretary of the All India Chess Federation (AICF).
14. As stated earlier, when the petitioners request was not considered. by the first and second respondents to affiliate their Association and to associate them with the conduct of World Chess Cup – 2002, based on newspaper reports, the petitioners came up with this writ petition levelling unfounded, baseless and irresponsible allegations against the 1st and 2nd respondents, who are the highest bodies in the arena of sports and games.
15. Coming to the evidentiary value of these news item which are the substratum for the petitioners to file this writ petition, the Apex Court in a decision Samanth N. Balakrishna v. George Fernandez, , has held that a newspaper report without any further proof of what had actually happened through witnesses is of no value. It is at best a second hand secondary evidence. It is well known that reporters collect information and pass it on to the editor who edits the news item and then publishes it. In this process the truth might get perverted or garbled. Such news items cannot be said to prove themselves although they may be taken into account with other evidence if the other evidence is forcible (sic forthcoming).
16. The Apex Court relying on the principle laid down in Samanth’s case (supra) in a decision Laxmi Raj Shetty v, State of Tamil Nadu, , further held that it is well settled that a statement of a fact contained in a news paper is merely hearsay and therefore, inadmissible in evidence in the absence of the maker of the statement appearing in Court and deposing to have perceived the fact reported.
17. As per the rulings of the Supreme Court in the decisions referred supra, it is evident that the facts stated in the news items cannot be taken judicial notice as it is in the nature of hearsay secondary evidence and cannot be treated as evidence referred to in Section 78(2) of the Evidence Act, by which an allegation of fact can be proved and, therefore, the news item is inadmisible in evidence in the absence of the maker of that statement appearing in the Court and deposing to have perceived the facts reported.
18. Further the Government of Andhra Pradesh has issued G.O. Ms. No. 183, Youth Advancement, Tourism and Culture (Sports) Department dated 11-10-2000, whereby it has resolved to utilise the sports as instrument for converting the youth into self confident entities and also to bring sports changes thereby contributing to the economic well-being of the State in particular and Nation in general. The New Sports Policy had set itself a goal of achieving excellence in sports performance in 16 selected sports/ games and sports in the best sport persons in the country in the next 10 years and nationally renowned spoils person in the next 20 years.
19. When such is the New Sports Policy of the first respondent and the aims and objects of the Act IV of 1988 is to promote games and sports in the State of Andhra Pradesh and for matters connected therewith and incidental thereto and more particularly in the absence of any acceptable evidence to the contra filed by the petitioners. Therefore, it cannot be held that hosting the II World Cup Chess Championship at Hyderabad, by the Government of Andhra Pradesh is wrong. Further, I hold that the Government has got the power to control the activities of the second respondent under the provisions of Sections 16, 17, 18, 21 and 22 of the Act; that there is no piece of evidence to show that the 1st and 2nd respondents have diverted their funds to the third respondent to conduct the II World Cup Chess Tournament-2002 and that the news items relied on by the petitioners as the base for filing this writ petition cannot be treated as evidence at all.
20. Further the petitioners are not right in contending that at the instance of private party – the third respondent herein, the State Government has agreed to divert its funds and hosted the tournament. It is evident from the material on record that the third respondent is not a private party and there is participation of State of Andhra Pradesh, its Sport Authority and the third respondent.
21. As stated earlier, the petitioners have filed this writ petition based on the news items appearing in The Hindu., an English daily dated 17.7.2002 and Varatha a Telugu Daily dated 26.7.2002, without verifying the truth or otherwise of the news items levelling reckless and unfounded allegations against the respondents 1 and 2. Therefore, the writ petition deserves to dismissed summarily and is accordingly dismissed with exemplary costs of Rs. 7,000/-to be paid by each of the petitioners viz., The Chess Association of Hyderabad Division, represented by its President, B, Madhusudhan Reddy and six other District Chess Associations, viz., Medak Distirct Chess Association, Sangareddy, represented by its General Secretary G. Satyanarayana; Rangareddy District Chess Association, Borabanda, Hydreabad, represented by its General Secretary, C. Bapi Reddy, Khamman District Chess Association, Kothagudem, Khammam, represented by its General Secretary, Ch. Gopi Krishna; Nalgonda District Chess Association, Nalgonda, represented by its General Secretary, Ch. Venkateswarlu; Mahaboobnagar District Chess Association. Achampet, Mahaboobnagar, represented by its President, J. Ramalaxmaiah and Hyderabad District Chess Association, L.B. Stadium, Hyderabad, represented by its President, K. Kama Reddy; @ Rs. 1,000/- to the credit of Andhra Pradesh Chief Justice Relief Fund.