New Delhi: In a significant ruling safeguarding temple assets dedicated for religious purposes and maintenance of sacred institutions, the Supreme Court of India has held that money belonging to temples and deposited with cooperative banks cannot be appropriated or retained to revive financially distressed banking institutions. The Court emphasized that temple funds are the property of the deity and must be used exclusively for temple-related purposes and welfare, and not as a survival mechanism for cooperative banks facing liquidity crises.
The matter arose from petitions filed by cooperative banks challenging a direction to return fixed deposits belonging to the Thirunelly Temple Devaswom. The Kerala High Court had ordered immediate release of the temple funds, prompting the banks to contend before the Supreme Court that such withdrawal would adversely impact their financial viability.
The Bench, after hearing the learned counsel for the parties, made a categorical observation reinforcing the sanctity of temple wealth, stating:
“Temple money, first of all, belongs to the deity. Therefore, this money has to be saved, protected and utilised only for the interests of the temple. It can’t become a source of income or survival for a cooperative bank.”
The Court further questioned the justification for retaining temple deposits in weak banks when safer alternatives were available, remarking:
“If the bank is breathing with great difficulty, the deposit cannot be forced to remain there. Why should the money not go to a healthy nationalised bank offering better security?”
The petitions were ultimately dismissed, and the Supreme Court upheld the High Court’s order directing return of the deposits. However, liberty was granted to the cooperative banks to approach the High Court for a reasonable extension of time for repayment, depending on their financial circumstances.
Also Watch
The judgment reinforces longstanding jurisprudence recognizing the deity as a juridical person and temple offerings as trust property protected for religious and charitable use. The ruling reiterates that devotees’ contributions must be safeguarded and cannot be diverted to other institutional interests.
The case concerned Mananthawady Co-operative Urban Society Ltd. and Thirunelly Service Co-operative Bank Ltd., which had sought protection regarding deposits placed by the Thirunelly Temple Devaswom following maturity of fixed deposits.
Case Details:
Case name(s) and citation(s):
The Thirunelly Service Cooperative Bank Ltd. and Anr. v. Sree Thirunelly Devaswom and Ors., SLP (C) No. 34386/2025
The Mananthawady Co-operative Urban Society Ltd. and Anr. v. Ravi Ulliyeri and Ors., Diary No. 64079/2025
Coram:
Hon’ble The Chief Justice of India
Hon’ble Mr. Justice Joymalya Bagchi
Date of Order: 05-12-2025
