JUDGMENT : MURALEE KRISHNA S., J. 1. The respondents 1 to 5 in W.O.A. No.41 of 2023 on the file of the Wakf Tribunal, Kozhikode (the ‘Tribunal’ for short), filed this M.F.A. under Section 83(9) of the Unified Waqf Management, Empowerment, Efficiency and Development Act, 1995 (the ‘Wakf Act’ for short), challenging the order dated 22.12.2025 passed by the Tribunal in that W.O.A. 2. The facts which led to the filing of this M.F.A. are as follows: 2.1. Respondents 1 to 6 herein claiming themselves as the beneficiaries of the Wakf, Ayilakkad Mahallu Juma Masjid Palli Hayathul Islam Madrassa filed O.P.No.15 of 2020 before the 7 th respondent Kerala State Wakf Board (the ‘Board’ for short) with prayers to remove the existing Mutawalli of the Wakf; to register the unregistered properties of the Wakf with the Board; to frame a proper scheme of administration, to ensure the appointment of the Mutawalli through a transparent and democratic process; to recover the alienated properties of the Wakf; and to conduct inspection and audit of income and expenditure of the Wakf from the year 1980 onwards. In that petition, the Board appointed a Wakf inspector to conduct an investigation regarding the allegations of mismanagement raised in the original petition. Further, a panel auditor was also appointed by the Board to conduct the audit of the accounts of the Wakf for the period from 2016 to 2022. The Wakf Inspector, as well as the auditor, filed separate reports before the Board. Thereafter, respondents 1 to 6 filed I.A.No.174 of 2022 before the Board to appoint an Executive Officer under Section 38 of the Waqf Act for the supervision over the administration and day-to-day affairs of the Wakf, alleging grave and continuous mismanagement, maladministration and financial irregularities by the present Mutawalli. The appellants filed a counter to the said interlocutory application. After hearing both sides, the Board dismissed I.A.No.174 of 2022, finding that no major defect is pointed out in the audit report and on the basis of minor discrepancies, which are the result of the ignorance of the committee in maintaining the accounts in a scientific manner, the Board cannot appoint an Executive Officer expending money from the funds of the Wakf. Challenging the aforesaid order dated 10.05.2023 passed by the Board, respondents 1 to 4 herein approached the Tribunal by filing W.O.A. No.41 of 2023. 2.2. Challenging the aforesaid order dated 10.05.2023 passed by the Board, respondents 1 to 4 herein approached the Tribunal by filing W.O.A. No.41 of 2023. 2.2. The appellants filed a counter, opposing the pleadings in the W.O.A. From the side of respondents 1 to 4, Exts.A1 to A8 and from the side of the appellants Exts.B1 to B6, documents were marked before the Tribunal. After hearing both sides and on appreciation of the rival contentions raised by the parties, the Tribunal, by the impugned order dated 22.12.2025, allowed the W.O.A., by setting aside the order dated 10.05.2023 passed by the Board in I.A.No.174 of 2022 in O.P. No.15 of 2020. The Tribunal directed the Board to appoint a competent officer of the Board as an Executive Officer for the administration of the 1 st appellant Wakf under their direction, control and supervision. The Board was further directed to specify the terms and conditions of service and other matters relating to the functioning of the Executive Officer and his staff. The salary and allowance of the Executive Officer and his staff were directed to be fixed and paid by the Board as prescribed under the Waqf Act. Being aggrieved, the appellants are now before this Court with this M.F.A. 3. On 20.01.2026, when this M.F.A. came up for admission, this Court admitted the same onto file and ordered urgent notice by speed post to respondents 1 to 6, and the learned Standing Counsel for the Board took notice for the 7 th respondent. On 20.01.2026, this Court stayed the operation of the impugned order of the Tribunal, subject to a rider that the Executive Officer has not taken charge till then. 4. Heard the learned Senior Counsel for the appellants, the learned Standing Counsel for the Board, and the learned counsel for the respondents 1 to 4. Despite service of notice, none appeared for respondents 5 and 6. 5. The learned Senior Counsel appearing for the appellants vehemently argued that the Tribunal has passed the impugned order with the observations against the appellants, which, in effect, is a decision in the original petition pending before the Board. The learned Senior Counsel further submitted that in order to pass the impugned order, the Tribunal relied on Exts.A2 and A7 reports of the Wakf inspectors. The learned Senior Counsel further submitted that in order to pass the impugned order, the Tribunal relied on Exts.A2 and A7 reports of the Wakf inspectors. In fact, even from the said reports, it can be gathered that the discrepancies reported therein do not pertain to the period of the present Mutawalli of the Wakf. Moreover, from the order of the Board dated 10.05.2023 itself, it is clear that in Exts.A2 and A7 reports only minor discrepancies are noted, which were happened due to ignorance of the committee in scientifically maintaining the accounts. The statements in those reports are matter of evidence, and they cannot be accepted to pass an order against the appellants in an interlocutory application. A properly elected committee, as per the provisions of the registered bye-law, is managing the affairs of the Wakf in a proper manner, and therefore, the Board cannot take over the administration of the Wakf. 6. The learned Standing Counsel for the Board also supported the arguments of the learned Senior Counsel and submitted that, as per Section 38 of the Waqf Act, the Board has jurisdiction to appoint an Executive Officer to administer the property of the Wakf only if the gross annual income of the Wakf is not less than 5 lakhs. In the instant case, from Ext. A7 report it can be seen that the gross annual income of the Wakf is below 5 lakhs. It is also the argument of the learned Standing Counsel that, as per Section 48 of the Waqf Act, the Board shall examine the auditor's report and pass such orders as it thinks fit, and the Mutawalli or any other person aggrieved can approach the Tribunal within 30 days from the receipt of such order to modify or set aside the same. In the instant case, no such order has been passed by the Board on the auditor's report. Therefore, the challenge against the order of the Board in I.A.No.174 of 2022 is premature. 7. The learned counsel for respondents 1 to 4, by relying on Sections 3(j), 38 and 72 of the Waqf Act, argued that a combined reading of those Sections and Ext.A7 report would make it clear that the gross annual income mentioned in Section 38 , in the case of the Wakf herein, would exceed 5 lakhs. 7. The learned counsel for respondents 1 to 4, by relying on Sections 3(j), 38 and 72 of the Waqf Act, argued that a combined reading of those Sections and Ext.A7 report would make it clear that the gross annual income mentioned in Section 38 , in the case of the Wakf herein, would exceed 5 lakhs. According to the learned counsel, it is evident from the materials placed on record before the Tribunal that there was gross mismanagement of the properties of the Wakf, and the present office bearers of the committee also failed to exercise their duties properly. It is also clear from Ext.A7 report that the vouchers, receipts and ledgers produced before the auditor were prepared just prior to the audit. Therefore, the order of the Tribunal directing the Board to appoint an Executive Officer is perfectly justified and no interference is needed on the same by exercising appellate jurisdiction. 8. The dispute in O.P.No.15 of 2020 pending before the Board centres around the management of the Wakf properties in question. When respondents 1 to 4 allege mismanagement of the Wakf properties, the appellants contend that there is no such mismanagement. To give a quietus to the said dispute, as per the order in O.P.No.15 of 2020, the Board appointed a Wakf Inspector as well as an auditor to conduct the audit of the accounts of the Wakf for the period from 2016 to 2022. When the Wakf Inspector and the auditor filed reports regarding the status of management of the Wakf properties, the respondents 1 to 6 herein filed I.A.No.174 of 2022 before the Board, seeking appointment of an Executive Officer to manage the Wakf in view of the reports regarding maladministration and financial irregularities committed by the present committee, by exercising the jurisdiction of the Board as provided under Section 38 of the Waqf Act. 9. Section 38 of the Waqf Act, which is relied upon by the respondents 1 to 6 for filing I.A.No.174 of 2022 before the Board in the pending original petition, which gives authority to the Board to appoint an Executive Officer on a whole-time and part-time basis or in an honorary capacity with supporting staff, reads thus: “38. 9. Section 38 of the Waqf Act, which is relied upon by the respondents 1 to 6 for filing I.A.No.174 of 2022 before the Board in the pending original petition, which gives authority to the Board to appoint an Executive Officer on a whole-time and part-time basis or in an honorary capacity with supporting staff, reads thus: “38. Powers of Board to appoint Executive Officer .— (1) Notwithstanding anything contained in this Act, the Board may, if it is of the opinion that it is necessary so to do in the interests of the Waqf, appoint on whole-time or part-time basis or in an honorary capacity, subject to such conditions as may be provided by regulations, an Executive Officer with such supporting staff as it considers necessary for any Waqf having a gross annual income of not less than five lakh rupees: Provided that the person chosen for appointment should be a person professing Islam. (2) Every Executive Officer appointed under sub-section (1) shall exercise such powers and discharge such duties as pertain only to the administration of the property of the Waqf for which he has been appointed and shall exercise those powers and discharge those duties under the direction, control and supervision of the Board: Provided that the Executive Officer who is appointed for a Waqf having a gross annual income of not less than five lakh rupees shall ensure that the budget of the Waqf is submitted, the accounts of the Waqf are regularly maintained, and the yearly statement of accounts are submitted within such time as the Board may specify. (3) While exercising his powers and discharging his functions under sub-section (2), the Executive Officer shall not interfere with any religious duties or any usage or custom of the Waqf sanctioned by the Muslim law. (4) The salaries and allowances of the Executive Officer and his staff shall be fixed by the Board and in fixing the quantum of such salary the Board shall have due regard to the income of the Waqf, the extent and nature of the duties of the Executive Officer and shall also ensure that the amounts of such salaries and allowances are not disproportionate to the income of the Waqf and do not operate as an unnecessary financial burden on it. (5) The salaries and allowances of the Executive Officer and his staff shall be paid by the Board from the Waqf Fund and, if the Waqf generates any additional income as a result of appointment of the Executive Officer, the Board may claim reimbursement of amounts spent on the salaries and allowances from the fund of the Waqf concerned. (6) The Board may, for sufficient reasons, and after giving to the Executive Officer or a member of his staff, a reasonable opportunity of being heard, suspend, remove or dismiss the Executive Officer or a member of his staff from his post. (7) Any Executive Officer or a member of his staff who is aggrieved by any order of removal or dismissal made under sub-section (6) may, within thirty days from the date of communication of the order, prefer an appeal against the order to the Tribunal and the Tribunal may, after considering such representation as the Board may make in the matter, and after giving a reasonable opportunity to the Executive Officer or a member of his staff of being heard, confirm, modify or reverse the order”. 10. As noted above, the first contention of the appellants and the Board against the impugned order of the Tribunal is that the gross annual income of the Wakf in the present case is not Rs.5/- Lakhs and more as provided in Section 38 of the Waqf Act. The perusal of the Waqf Act would show that gross annual income is not defined therein. In ordinary parlance, gross income is the total amount of money earned by an individual or an organisation, without any taxes, benefits or other deductions being subtracted. As per Section 3(j) of the Waqf Act, net annual income in relation to a Wakf means net annual income determined in accordance with the provisions of the Explanation I to sub-section (1) of Section 72 of the said Act. As per Section 3(j) of the Waqf Act, net annual income in relation to a Wakf means net annual income determined in accordance with the provisions of the Explanation I to sub-section (1) of Section 72 of the said Act. While coming to Explanation I of Section 72 (1) of the Waqf Act, net annual income means the gross income of the Wakf from all sources, including nazars and offerings, which do not amount to contributions to the corpus of the Auqaf, in a year after deducting therefrom the following, namely;- (i) the land revenue paid by it to the Government; (ii) the rates, cesses, taxes and licence fees, paid by it to the Government or any local authority; (iii) expenditure incurred for all or any of the following purposes, in respect of lands directly under cultivation by the mutawalli for the benefit of the waqf, namely:— (a) maintenance of, or repairs to, irrigation works, which shall not include the capital cost of irrigation; (b) seeds or seedlings; (c) manure; (d) purchase and maintenance of agricultural implements; (e) purchase and maintenance of cattle for cultivation; (f) wages for ploughing, watering, sowing, transplanting, harvesting, threshing and other agricultural operations: Provided that the total deduction in respect of an expenditure incurred under this clause shall not exceed twenty per cent of the income derived from lands belonging to the Waqf: Provided further that no such deduction shall be permitted in respect of waqf land given on lease, by whatever name called, whether batai or share cropping or any other name. (iv) expenditure on sundry repairs to rented buildings, not exceeding five per cent. (iv) expenditure on sundry repairs to rented buildings, not exceeding five per cent. of the annual rent derived therefrom, or the actual expenditure, whichever is less; (v) sale proceeds of immovable properties or rights relating to, or arising out of immovable properties, if such proceeds are reinvested to earn income for the Waqf: Provided that the following items of receipts shall not be deemed to be income for the purposes of this section, namely:— (a) advances and deposits recovered and loans taken or recovered; (b) deposits made as security by employees, lessees or contractors and other deposits, if any; (c) withdrawals from banks or of investments; (d) amounts recovered towards costs awarded by courts; (e) sale proceeds of religious books and publications where such sales are undertaken as an un-remunerative enterprise with a view to propagating religion; (f) donations in cash or kind or offerings made by the donors as contribution to the corpus of the Waqf: Provided that interest on income, if any, accruing from such donations or offerings shall be taken into account in calculating the gross annual income; (g) voluntary contributions received in cash or kind for a specific service to be performed by the Waqf and expended on such service; (h) audit recoveries. 11. As per Explanation II to Section 72 (1) of the Waqf Act, in determining, the net annual income for the purposes of that section, only the net profit derived by any Waqf from its remunerative undertakings, if any, shall be taken as income, and in respect of its non-remunerative undertakings, such as, schools, colleges, hospitals, poor homes, orphanages or any other similar institutions, the grants given by the Government or any local authority or donations received from the public or fees collected from the pupils of educational institutions shall not be taken as income. 12. The reading of Section 38 along with Section 3(j) and Explanations to Section 72 (1), would make it clear that the gross annual income mentioned in Section 38 is inclusive of the income derived by the Wakf from all sources, and it cannot be calculated after deducting the expenses. From the impugned order of the Tribunal, it can be seen that the income of the subject Wakf during the financial year 2016-17 was Rs.7,09,449/- and the expenditure shown in the said financial year is Rs.7,58,435/-. From the impugned order of the Tribunal, it can be seen that the income of the subject Wakf during the financial year 2016-17 was Rs.7,09,449/- and the expenditure shown in the said financial year is Rs.7,58,435/-. So also, the income of the Wakf for the year 2017-18 was Rs.11,41,750/- and expenditure was Rs.11,41,750/-. For the year 2018-19, the income was Rs.16,40,360/-, and the expense was Rs.16,35,982/-. For the year 2019-20, the income was Rs.21,30,640/- and the expenditure was Rs.21,18,507/-, and for the year 2021-22, the income was Rs.24,70,008/-, and the expenditure was Rs. 24,85,402/-. For the purpose of jurisdiction of the Board under Section 38 , what is relevant is the gross annual income. Only for the purpose of calculating the net income, the above-mentioned expenditures are relevant. From Ext.A3 audit report, it is clear that the annual income of the Wakf for the year 2016-17 till 2021-22 mentioned in that report is more than Rs.5/- Lakhs. Therefore, the Board has jurisdiction under Section 38 of the Waqf Act to appoint an Executive Officer with supporting staff to exercise such powers and discharge such duties pertaining to the administration of the property of the Wakf under its direction, control and supervision. 13. While coming to the contention of the appellants that in Exts.A2 and A7 reports of the Wakf Inspector, as well as in Ext.A3 report of the auditor, only minor defects are noted in the management of the Wakf properties, prima facie, it appears otherwise. As noticed hereinabove, the income of the Wakf was enhanced considerably from 2016-17 to 2021-22. While it was just above Rs.7/- Lakhs in the year 2016-17, the income was more than Rs.24/- Lakhs in the year 2021-22. But as per the accounts submitted by the committee before the auditor, the expenditure also considerably increased every year, and in effect, there was nil net income. According to the Tribunal, there are some unexplained expenditures shown by the committee, even during the period of the COVID pandemic, stating it was for conducting Nabidinam. As per Ext.A3 report, the vouchers, receipts and ledgers produced by the committee before the auditor were prepared just prior to the auditing. The non-production of genuine and actual receipts for the expenses before the auditor prima facie fortifies the contentions of respondents 1 to 4 regarding improper management, or in other words, mismanagement of the Wakf properties. As per Ext.A3 report, the vouchers, receipts and ledgers produced by the committee before the auditor were prepared just prior to the auditing. The non-production of genuine and actual receipts for the expenses before the auditor prima facie fortifies the contentions of respondents 1 to 4 regarding improper management, or in other words, mismanagement of the Wakf properties. In such circumstances, the Board went wrong in holding that it was only minor discrepancies, which were the result of ignorance of the committee in maintaining the accounts in a scientific manner. Being bound to supervise the proper management of the Wakfs under it, the Board ought to have exercised its power under Section 38 of the Waqf Act till a properly constituted committee was put in operation as per law. It is prima facie satisfying the necessity of passing such an order for proper management of the Wakf properties till a final decision has been taken by the Board in O.P.No.15 of 2020, the Tribunal passed the impugned order. 14. Having considered the pleadings and materials on record and the submissions made at the Bar, we find no illegality or impropriety in the impugned order which warrants interference by exercising appellate jurisdiction. Resultantly, this MFA stands dismissed. However, considering the fact that O.P.No.15 of 2020 filed by the respondents 1 to 6 is still under consideration of the Board which needs a detailed consideration of materials on record and the impugned order was passed by the Tribunal only based on prima facie satisfaction of the need of exercising power under Section 38 by the Board, we make it clear that the Board shall take an independent decision in O.P.No.15 of 2020, untrammelled by the observations and the findings in the impugned order dated 22.12.2025 passed by the Tribunal in W.O.A.No.41 of 2023 and this Court in this M.F.A.