Citation : 2021 Latest Caselaw 372 Guj
Judgement Date : 12 January, 2021
C/SCA/16628/2020 ORDER
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/SPECIAL CIVIL APPLICATION NO. 16628 of 2020
With
CIVIL APPLICATION (FOR DIRECTION) NO. 1 of 2020
In R/SPECIAL CIVIL APPLICATION NO. 16628 of 2020
==========================================================
BRAHMACHARI SWAMI CHANDRASVARUPANANDJI GURU BRAHMCHARI
SWAMI CHANDRAPRAKASHNANDJI
Versus
JOINT CHARITY COMMISSIONER
==========================================================
Appearance:
MR PERCY KAVINA, SENIOR ADVOCATE WITH MR TARAK
DAMANI(6089) for the Petitioner(s) No. 1,2,3
NOTICE NOT RECD BACK(3) for the Respondent(s) No. 1
MR NAVIN PAHWA, SENIOR ADVOCATE FOR THAKKAR AND PAHWA
ADVOCATES(1357) for the Respondent(s) No. 2
MR MIHIR JOSHI, SENIOR ADVOCATE for Respondent(s) No.3
CORAM: HONOURABLE MR. JUSTICE VIPUL M. PANCHOLI
Date : 12/01/2021
ORAL ORDER
1. This petition is filed under Article 226 of the Constitution of India in which the petitioners have prayed for the following relief/s:
"A. Be pleased to issue a writ of mandamus or a writ in the nature of mandamus or any other appropriate writ, order or direction and be pleased to quash and set aside the order passed by the Respondent no.1 dated 14.12.2020 in application below Exh.5 in Adjudication Misc. Application No.41A/13/2020.
B. Be pleased to issue a writ of prohibition or a writ in the nature of prohibition or any other appropriate writ, order or direction and be pleased to hold and declare that the Respondent no.1 has no power, competence or authority to hear the application submitted before him recorded in
C/SCA/16628/2020 ORDER
Adjudication Misc. Application No.41A/13/2020 dated 14.12.2020 in application below Exh.5.
C. Pending admission and final disposal of the present petition, be pleased to stay the impugned order passed by the Respondent no.1 dated 14.12.2020 in application below Exh.5 in Adjudication Misc. Application No.41A/13/2020.
D. Pending admission and final disposal of the present petition, be pleased to restrain the Respondent no.1 from further hearing of the Adjudication Misc. Application No.41A/13/2020."
2. Heard learned Senior Advocate Mr. Percy Kavina assisted by learned advocate Mr. Tarak Damani for the petitioners, learned Senior Advocate Mr. Navin Pahwa for the respondent No.2 and learned Senior Advocate Mr. Mihir Joshi for the respondent No.3.
3. Learned Senior Advocate Mr. Percy Kavina appearing for the petitioners submitted that the District Judge, Bhavnagar in Civil Suit No.1 of 1975 framed the scheme for the purpose of administration and management of Gopinathji Dev Mandir Trust (hereinafter referred to as 'the trust' for short). As per the provisions contained in the Scheme, the Board of Trustees is consisted of 7 trustees. It is submitted that last general election of the Board of Trustees was held as per the direction issued by the Hon'ble Supreme Court. It is submitted that serious disputes are pending before the Assistant Charity Commissioner, Rajkot about election of Board of Trustees. At this stage, it is contended that as per the scheme, the Chairman of the Trust is entitled to call the meeting of Board of Trustees. The Chairman, vide his notice dated 11.11.2020, called the meeting of
C/SCA/16628/2020 ORDER
the Board of Trustees of the trust. The said meeting was called on 22.11.2020. It is submitted that the respondent Nos. 2 to 5 did not remain present in the said meeting. Therefore, as per Clause 24b of the Scheme, the meeting was adjourned in absence of quorum. It is submitted that in the meeting, petitioners have decided to convene the meeting after two weeks i.e. on 06.12.2020.
4. Learned counsel for the petitioners further submitted that on 06.12.2020, meeting was held in which once again the present respondent Nos. 2 to 5 did not remain present. In fact, the private respondents were informed vide notice dated 22.11.2020 about the meeting of 06.12.2020. The petitioners herein remained present in the said meting and as per the agenda, the meeting was conducted and in the said meeting one of the petitioners was elected as Chairman of the meeting. By Resolution No.4, it was decided to hold and resolve that Shastri Swami HariJivandasji i.e. respondent No.2 herein was not holding the qualification to continue as the Trustee of the Board of Trustees and therefore he was removed from the office of the trustees of the Board of Trustees of the temple. Petitioner No.1 was also elected as the Chairman of the Trust and that was done by passing resolution No.5. Another resolution No.6 was also passed, whereby the decision was taken to change the names of the trustees for transacting the business of the trust with the bank. Thereafter, resolution No.8 was passed, wherein the post which was fallen vacant on account of removal of respondent No.2, Swami Bhakti Prasadji has been co-opted as trustee for the remaining term of the Board of Trustees. Learned
C/SCA/16628/2020 ORDER
counsel has referred the minutes of the said meeting.
5. At this stage, learned Senior Advocate Mr. Kavina would refer clause 24b of the Scheme and contend that as per the said clause, meeting was convened on 06.12.2020 and therefore no illegality is committed by the petitioners. He would further submit that on 08.12.2020, the change report was submitted to the Assistant Charity Commissioner and therefore as per the provisions contained in Section 22 of the Bombay Public Trust Act (hereinafter referred to as the Act), the Assistant Charity Commissioner has jurisdiction to consider the said change report. It is further submitted that after the decision is taken by the Assistant Charity Commissioner, the aggrieved party can file a statutory appeal before the Charity Commissioner. The change report is still pending before the concerned Assistant Charity Commissioner.
6. At this stage, learned counsel for the petitioners contended that the petitioners had called the meeting of Board of Trustees on 15.12.2020 by issuing the agenda notice dated 11.12.2020. The respondent No.2 also issued the agenda notice calling the meeting on the very same day i.e. 15.12.2020 and thereafter respondent No.2 has approached the Joint Charity Commissioner, Bhavnagar by filing an application under Section 41A of the Act. It is prayed in the said application that the proceedings of minutes of meeting dated 06.12.2020 be declared illegal and also prayed that all the business transacted in the said meeting shall be declared void and petitioner no.1 be restrained from functioning as Chairman of the Trust
C/SCA/16628/2020 ORDER
and further be directed not to publish any news that he
- petitioner No.1 is the Chairman of the Trust. At this stage, learned counsel further submitted that on the very same day the respondent No.1 passed the impugned order, whereby notice was issued making it returnable on 08.01.2021. Moreover, by way of the impugned order, the respondent No.1 stayed the meeting called by the petitioners on 15.12.2020 and also directed that the petitioners herein shall not act against the interest of the trust. Petitioners have, therefore, filed the present petition.
7. At this stage, it is also submitted that petitioners have filed separate civil application challenging the communication dated 25.12.2020 by which the private respondents herein had called the meeting on 03.01.2021.
8. Learned counsel Mr. Kavina has assailed the impugned order passed by respondent No.1 mainly on the ground that when the specific powers are given to the Assistant Charity Commissioner to consider the change report, general powers under Section 41A of the Act could not have been exercised by the Higher Forum i.e. the Charity Commissioner. Whether the change report submitted by the petitioners on 08.12.2020 is valid or not can be examined by the Assistant Charity Commissioner and the respondents herein can take objection before the said authority. In fact change report is statutory proceeding and any order passed by the Assistant Charity Commissioner in such proceeding can be challenged by way of appeal under Section 22(3) of the Act before the Charity Commissioner and even
C/SCA/16628/2020 ORDER
against the order passed by the Charity Commissioner while exercising powers under Section 22(3) of the Act, appeal can be filed under Section 70 of the Act before the District Court. In fact the issue with regard to the change report/removal of the concerned private respondent and appointment of another trustee can be decided by the lowest forum/court as per the provisions contained in Section 15 of the Code of Civil Procedure, 1973. Thus, invocation of jurisdiction by the respondent no.1 is illegal and while exercising the jurisdiction the respondent No.1 has passed illegal order and therefore this Court may quash and set aside the impugned order passed by the respondent No.1.
9. Learned counsel for the petitioners further submitted that there cannot be two parallel jurisdiction one is to be exercised by the Assistant Charity Commissioner and another by the Joint Charity Commissioner.
10. Learned counsel further submitted that when the private respondents did not remain present in the meeting which was held on 06.12.2020, with the permission of the Chairman additional agenda as suggested by the Chairman were transacted. Hence, it cannot be said that the petitioners have committed any illegality.
11. On the other hand, learned Senior Advocate Mr. Mihir Joshi appearing for respondent No.3 referred the history of the dispute between the parties and thereafter contended that the concerned trustees, at the relevant point of time, were not holding the
C/SCA/16628/2020 ORDER
election of the trust. However, the Hon'ble Supreme Court has, vide order dated 13.12.2018, directed to hold the election of the trust under the supervision of a retired High Court Judge. Copy of the said order is placed on record at page 218 of the compilation.
12. At this stage, learned counsel Mr. Joshi has pointed out the order dated 28.01.2019 passed by this Court in Special Civil Application No.1327 of 2019 filed by the group of the present petitioners, wherein, in para 8, this Court observed that the said petition clearly appears to have been filed in defiance of the order passed by consensus by the Hon'ble Supreme Court by raising the issues already decided by the Hon'ble Supreme Court and raising the controversy against the election authority appointed by the Hon'ble Supreme Court, dragging the said authority into litigation. It is submitted that the said petition came to be dismissed with cost of Rs.1 lakh. At this stage, it is pointed out that the Letters Patent Appeal filed against the said order passed by the learned Single Judge came to be withdrawn with a view to approach the Apex Court with regard to the said subject matter and grievances raised in the said LPA. At this stage, it is also pointed out that thereafter the Hon'ble Supreme Court passed an order dated 12.03.2019, copy of which is placed on record at page 207, whereby the Hon'ble Supreme Court has disposed of the said MCA by observing that the trust has unnecessarily delayed the holding of election and therefore the said body should not manage the affairs of the trust any further. The Hon'ble Supreme Court appointed Hon'ble Mr. Justice Mohit Shah, former Chief Justice of the High Court of Judicature at
C/SCA/16628/2020 ORDER
Bombay, to administer the trust.
13. In the aforesaid background, it is contended by learned counsel Mr. Joshi that only thereafter election was held in which the present private respondents and the present petitioners came to be elected. Thus, there are four persons i.e. the private respondents on one side and three petitioners on the other side. It is submitted that respondent No.2 herein was elected as a Chairman on 09.05.2019 for a period of 1 year as per Clause 19 of the scheme. After the period of one year was over, once again on 09.05.2020, respondent No.2 was elected as a Chairman. Thus, present petitioners had not raised any objection with regard to the election of present respondent No.2 as a Chairman of the trust.
14. Learned counsel Mr. Joshi submits that on 11.11.2020, notice was issued by respondent No.2 calling the meeting of the trust on 22.11.2020. On 22.11.2020, respondent No.2 was sick and therefore the group of respondent No.2 did not remain present in the said meeting and therefore the said non-quorum meeting was adjourned. It is alleged that on 06.12.2020, the meeting was conducted by the present petitioners illegally and without information to the private respondents minutes were prepared illegally and in fact the minutes of the meeting dated 06.12.2020 is concocted document. At this stage, it is further submitted that even in the adjourned meeting, only the agenda which were in the previous meeting dated 22.11.2020 can be transacted and no additional agenda can be considered. It is submitted that there was no agenda for removal of respondent No.2 as Chairman and
C/SCA/16628/2020 ORDER
trustee of the trust. No notice was given to the present respondents, in spite of that the respondent No.2 herein has been removed as a Chairman and the trustee of the concerned trust.
15. Learned counsel appearing for the respondent No.3 would further submit that in fact the meeting was held on 07.12.2020 by the private respondents. The petitioners have not challenged the meeting conducted by the private respondents on 07.12.2020. It is submitted that when the petitioners tried to run parallel administration of the trust by calling the meeting on 15.12.2020, the private respondents filed an application under Section 41A of the Act before the respondent No.1 and the respondent No.1, in the interest of trust, passed the impugned order. Learned counsel would submit that under Section 41A of the Act, respondent No.1 is having wide powers to pass any order in the interest of a trust and looking to the facts and circumstances of the present case, when such powers are exercised and respondent No.1 has passed an interim order, this Court may not interfere with the same. Learned counsel, therefore, urged that this petition be dismissed.
16. Learned Senior Advocate Mr. Navin Pahwa appearing for the respondent No.2 has supported the submissions canvassed by learned advocate Mr. Mihir Joshi for the respondent No.3. Learned counsel Mr. Pahwa has referred the affidavit-in-reply filed by the respondent No.2 and the orders passed by this Court as well as Hon'ble Supreme Court with regard to the disputes between the trustees. Copies of the said orders are placed along
C/SCA/16628/2020 ORDER
with the affidavit.
17. Learned counsel Mr. Pahwa submits that as per Clause 19 of the scheme, respondent No.2 was appointed as a Chairman of the trust and therefore the concerned trustees have no power to remove the elected Chairman. Learned counsel has also referred the relevant clause Nos. 23, 25 and 26 of the scheme. Thereafter, it is contended that the impugned order has been passed by the respondent No.1 for the meeting dated 15.12.2020 and the said date is already over. It is further submitted that the change report for May, 2019 is yet to be adjudicated by the Assistant Charity Commissioner. Therefore, in the meantime, petitioners have no powers to remove the elected Chairman/Trustee of the trust. It is also submitted that in fact the Chairman i.e. respondent No.2 has called the meeting on 07.12.2020. However, petitioners refused to accept the notice issued for the said meeting. Notice was sent on 23.11.2020 for the meeting of 07.12.2020. Thus, learned counsel Mr. Pahwa would submit that as per the scheme, only Chairman is empowered to send the notice and therefore the respondent No.2 issued the notice on 23.11.2020 for the meeting on 07.12.2020. Hence, the meeting called on 06.12.2020 is illegal and the so- called resolutions passed in the said meeting are contrary to the scheme sanctioned by the District Court.
18. At this stage, it is also pointed out that petitioners issued another agenda on 28.12.2020 calling the meeting on 02.01.2021 despite the order passed by the respondent No.1 and therefore the respondents
C/SCA/16628/2020 ORDER
herein filed civil application on 31.12.2020 before the respondent No.1. The respondent No.1 passed an order dated 01.01.2021, copy of which is placed on record by the learned counsel Mr.Pahwa during the course of hearing.
19. Learned counsel Mr. Pahwa has placed reliance on the decision rendered by this Court in the case of Balvantbhai Jinabhai Dhami v. Shantilal Kanjibhai Ratanpara and others, reported in 2010 51 (2) GLR 1399. It is submitted that this decision is confirmed up to Hon'ble Supreme Court. Learned counsel has also placed reliance on the decision rendered by the Division Bench of this Court in the case of Pavankumar Jain & Others v. Priyavadan Ambalal Patel & Others, reported in 2016 (2) GLH 360.
20. Learned counsel Mr. Pahwa further submitted that even assuming that non-quorum meeting was required to be conducted on 06.12.2020, only the agenda which were in the previous meeting of 22.11.2020 can be transacted and no additional agenda can be taken into consideration in the said meeting. It is further submitted that the impugned order is interim order and therefore this Court may not interfere with the said order at this stage and therefore the petition be dismissed.
21. Having heard the learned counsel appearing for the parties and having gone through the material placed on record, it would emerge that the present petitioners and the private respondents herein are elected as trustees pursuant to the election of the trust which
C/SCA/16628/2020 ORDER
was held as per the direction issued by the Hon'ble Supreme Court. It is not in dispute that the respondent No.2 has been elected as a Chairman in the meeting which was held in May, 2019 for a period of one year as per clause 19 of the scheme. The private respondents are in majority, whereas petitioners are in minority. The change report of May, 2019 is also under challenge before the Assistant Charity Commissioner. Once again the respondent No.2 has been elected as a Chairman on 09.05.2020. At that time, objection was not raised. Notice was issued by the respondent No.2 as a Chairman on 11.11.2020 for holding the meeting on 22.11.2020. The said notice was duly served to all the trustees. There were three agenda mentioned in the said meeting viz. (1) for discussion with regard to 'Thal'(Prasad); (2) for discussion of rented premises and (3) other item as suggested by the President/Chairman.
22. It is not in dispute that the private respondents herein had not remained present in the said meeting and therefore in absence of quorum, the said meeting was required to be adjourned for transacting the same agenda. Thereafter, as per the contention of the petitioners the adjourned meeting was held on 06.12.2020, in which the private respondents did not remain present and therefore the petitioners conducted the said meeting and passed various resolutions. In the said meeting the petitioners removed the respondent No.2 as Chairman as well as trustee of the trust as respondent No.2 is alleged to have not qualified to be appointed as a trustee. Thereafter, on 08.12.2020, change report was submitted by the petitioners before the Assistant Charity Commissioner. It has also emerged
C/SCA/16628/2020 ORDER
from the record that the respondent No.2, as a Chairman of the trust, issued the notice on 23.11.2020 for holding the meeting on 07.12.2020, in which the petitioners did not remain present and in fact it is alleged that the petitioners have refused to accept the notice dated 23.11.2020 and therefore the private respondents herein conducted the meeting in absence of the present petitioners.
23. In the aforesaid background of the case, when the petitioners called the meeting on 15.12.2020, the private respondents filed an application on 14.12.2020 before the respondent No.1 under Section 41A of the Act in which present respondents - applicants therein have prayed that the meeting dated 15.12.2020, called by petitioner No.2 on the basis of the resolution passed in the meeting dated 06.12.2020 electing him as a Chairman, be stayed and the meeting called by the present respondent No.2 on 15.12.2020 may not be interfered with by the present petitioners - opponents of the said application. It is also prayed in the said application that the original opponents - present petitioners have no right to call the meeting of the trust and the transaction carried out in the meeting dated 06.12.2020 be declared as illegal and the present petitioners - original opponents be restrained from acting on the basis of the resolution passed in the meeting dated 06.12.2020. Copy of the said application is placed on record at page 57 of the compilation.
24. Now, the impugned order has been passed by the respondent No.1 while exercising powers under Section 41A of the Act by which the present petitioners are
C/SCA/16628/2020 ORDER
restrained from conducting the meeting on 15.12.2020 and directed not to act against the interest of the trust.
25. At the outset, it is required to be noted that the petitioners have challenged the interim order passed by the respondent No.1 and the respondent No.1 has thereafter kept the matter on 08.01.2021 for further hearing. In the meantime, this petition has been filed by the petitioners. Therefore, it would not be proper on the part of this Court to decide the issues which are yet to be decided by the respondent No.1. However, when the petitioners have challenged the jurisdiction of the respondent No.1, this Court has to consider the submissions canvassed on behalf of learned counsel appearing for the parties. For considering the submissions, the provisions contained in the Act as well as the decisions on which reliance is placed are required to be kept in view.
26. Section 22 of the Act provides as under:
"22. Change. - (1) Where any change occurs in any of the entries recorded in the register kept under section 17, the trustee shall, within 90 days from the date of occurrence of such change, or where any change is desired in such entries in the interest of the administration of such public trust, report such change or proposed change to the Deputy or Assistant Charity Commissioner in charge of the Public Trusts Registration Office where the register is kept. Such report shall be made in the prescribed form. [(1A) Where the change to be reported under sub-section (1) relates to any immovable property, the trustee shall along with the report, furnish a memorandum in the prescribed form
C/SCA/16628/2020 ORDER
containing the particulars (including the name and description of the public trust) relating to any change in the immovable property of such public trust, for forwarding it to the Sub-Registrar referred to in sub- section (7) of section 18. Such memorandum shall be signed and verified in the prescribed manner by the trustee or his agent specially authorised by him in this behalf.] (2) For the purpose of verifying the correctness of the entries in the register kept under section 17 or ascertaining whether any change has occurred in any of the particulars recorded in the register, the Deputy or Assistant Charity Commissioner may hold an inquiry. (3) If the Deputy or Assistant Charity Commissioner, as the case may be after receiving a report under sub- section (1) and holding an inquiry, if necessary under subsection (2), or merely after holding an inquiry under the said sub- section (2), is satisfied that a change has occurred in any of the entries recorded in the register kept under section 17 in regard to a particular public trust, he shall record a finding with the reasons therefor to that effect. Such finding shall be appealable to the Charity Commissioner. The Deputy or Assistant Charity Commissioner shall amend the entries in the said register in accordance with such finding and if appeals [or applications] were made against such finding, in accordance with the final decision of the competent authority provided by this Act. The amendments in the entries so made shall, subject to any further amendment on the occurrence of a change, be final and conclusive. [(4) Whenever an entry is amended under sub-section (3), the Deputy or Assistant Charity Commissioner, as the case may be, shall forward the memorandum furnished to him under sub-section (1A), after certifying the amended entry to the Sub-Registrar referred to in sub-section (7) of section 18, for the purposes of registering the change.]"
26.1.Section 41A of the Act provides as under:
C/SCA/16628/2020 ORDER
"41A. Power of Charity Commissioner to issue directions to trustees and other persons. - (1) Subject to the provisions of this Act, the Charity Commissioner may, from time to time, issue directions to any trustee of a public trust or any person connected therewith to ensure that such trust is properly administered and the income thereof is properly accounted for or duly appropriated and applied to the objects and for the purposes of the trust. (2) It shall be the duty of every such trustee and person to comply with a direction issued to him under sub-section (1)."
27. It is the case of the petitioners that when the change report dated 08.12.2020 is pending before the Assistant Charity Commissioner, the respondent No.1 could not have passed the impugned order while exercising powers under Section 41A of the Act. From the provisions contained in Section 41A, it is revealed that Charity Commissioner is empowered to issue direction for proper administration of a public trust, proper accounting of its income, due appropriation and application of the income to the objects and for the purposes of the trust. Thus, this Court is of the view that the power of the Charity Commissioner to issue directions to ensure that the Trust is properly administered is itself by very nature a wide power.
28. At this stage, the decision rendered by this Court in the case of Balvantbhai Jinabhai Dhami (supra) is required to be kept in view. In the said case, this Court observed in para 33, 34 and 35 as under:
"33. Essentially, the issues relating to running the day-to-day affairs of a public
C/SCA/16628/2020 ORDER
trust fall under the scope of Section 41A of the Act. However, the question relating to the right of a person to be admitted as a member of the trust is an independent right, which a person may be claiming upon the items and conditions of the trust, against the trustees of the trust. While ascertaining such right, an inquiry is required to be held for the purpose of deciding the issue as to whether such person/s, who are asserting the right, are actually entitled to claim such right or not. Such process would require adjudication of the facts by the authority.
34. It is well settled that when express power is provided under a statute for dealing with a particular situation, then the general power cannot be made applicable to such situation. Section 22 of the Act provides for the submission of change report and holding of an inquiry. Therefore, in a given case, if the issue pertains to Section 22 of the Act, then it cannot be made subject-matter of issuing directions u/s.41A of the Act but, if the action is wholly without jurisdiction, then the matter would fall outside the applicability of such provision. In other words, the action of filing of a change report or the raising of an objection against the filing of such change report would not be a sufficient ground to oust the jurisdiction u/s.41A of the Act but, if the action of filing of a change report is in purported exercise of the power for bringing about the change, then it would fall within the purview of Section 22 of the Act.
35. Keeping in mind the above settled legal position, it can be said that if the action of bringing about the change is dehors the scheme of the trust, then it would fall within the domain of proper administration of the trust u/s. 41A of the Act and would not fall within the purview of Section 22 of the Act. The issue involved in these petitions pertain to the legality of appointment of some of the members to particular posts of the Committee and also the powers of a member to participate in the first meeting of the
C/SCA/16628/2020 ORDER
Committee and to cast the vote. Such issues could not be gone into by the authority under the provisions of Section 22 of the Act and could be examined under the provisions of Section 41A of the Act, as it falls under the domain of proper administration of the trust. In my opinion, by going into the said issues, the authority has not traveled beyond the scope of Section 41A of the Act as it pertained to issues relating to the proper administration of the trust."
28.1.Thus, in the aforesaid decision, this Court has observed that, if the issue pertains to Section 22 of the Act, then it cannot be made subject-matter of issuing directions u/s.41A of the Act. However, if the action is wholly without jurisdiction, then the matter would fall outside the applicability of such provision. In other words, it was observed that the action of filing of a change report or raising of an objection against filing of such change report would not be a sufficient ground to oust the jurisdiction u/s.41A of the Act. Thus, if the action of bringing about the change is dehors the scheme of the trust, then it would fall within the domain of proper administration of the trust u/s. 41A of the Act and would not fall within the purview of Section 22 of the Act.
28.2.The Division Bench of this Court in the case of Pavankumar Jain (supra), observed in paragraphs 7, 7.1, 7.2, 8 and 9 as under:
"7. It cannot be disputed that me administration and management of the Trust can always be as per the provisions contained in me Trust-Deed and in accordance with provisions of the Act and Rules. Therefore,
C/SCA/16628/2020 ORDER
considering me provision of Sec. 41A of the Trust Act whenever it is found by the Charity Commissioner that the Trust and/or its trustees are not managing the affairs of the Trust as per the provision contained in Trust-Deed and/or as per the provisions of me Act and Rules, me Charity Commissioner can in exercise of powers under Sec. 41A of the Act issue direction for appropriate administration and management of the Trust.
However, it is the case of the appellants relying upon the decision of the Division Bench of this Court in the case of Syedna Mohamed Burhanuddin, [1992 (1) GLH 331], that even while exercising the powers under Sec.
41A of the Trust Act, the Charity Commissioner can issue direction only in respect of the matter falling under Secs. 32 to 41 of the Trust Act. However, considering the aforesaid decision of the Division Bench in detail and the observations made by the Division Bench with respect to question posed before the Division Bench in the case of Syedna Mohamed Burhanuddin, [1992 (1) GLH 331], we are of the opinion that as such there is no absolute proposition of law laid down by the Division Bench in the said decision that in exercise of powers conferred under Sec. 41A of the Trust Act, the Charity Commissioner can issue the direction in respect of the matters falling under Secs. 32 to 41 of the Trust Act only.
In the case before the Division Bench while challenging the certain directions issued by the Charity Commissioner, Gujarat State, under Sec. 41A of the Trust Act, vires of Sec. 41A of the Trust Act also were challenged on the ground that it violates Arts. 25 and 26 of the Constitution of India. Before the Division Bench the petitioner challenged the constitutional validity of Sec. 41A of the Trust Act mainly on the following grounds/contentions:
"(1) Sec. 41A of the Bombay Public Trusts Act, 1950, insofar as it applies to trusts of religious denominations, is ultra vires Arts.
25 and 26 of the Constitution. C/SCA/16628/2020 ORDER
(2) Sec. 41A is not ultra vires Arts. 25 and 26, the impugned directions are wholly beyond the purview of Sec. 41A and are in conflict with Arts. 25 and 26 .
(3) Such directions cannot be issued without hearing the party affected thereby either on the ground of principles of Natural Justice if they are quasi-judicial or on the ground of principles of Fair-Play if they are purely executive or administrative in character."
While dealing with the aforesaid contentions, this Court also noted/considered sub-sec. (1) of Sec. 41A of the Trust Act and firstly observed that sub-sec. (1) of Sec. 41A of the Trust Act empowers the Charity Commissioner to issue direction only for the following purpose and no others : (a) Proper administration of a public trust; (b) Proper accounting of its income; (c) Due appropriation and application of the income to the objects and for the purpose of trust.
While dealing with the contention on behalf of the petitioners that Sec. 41A of the Trust Act impinge upon any fundamental fight of a person or religious denomination and suffers from constitutional infirmity, the Court observed that Sec. 41A of the Trust Act is merely enabling and ancillary provision intended to make implementation and enforcement of provisions of Secs. 32 to 41 more effective. It is to be noted that there was no controversy before the Division Bench that whether the powers of the Charity Commissioner to issue direction shall confine in respect of matters falling under Secs. 32 to 41 only. It will be misreading of decision of the Division Bench if it is read like that. On the contrary, in the aforesaid decision, it is further observed that by enacting Sec. 41A, the Legislature has not introduced any new principle which is not there elsewhere but has merely filled in the lacuna for effective implementation of the provision of Act.
C/SCA/16628/2020 ORDER
7.1. Even it could not have been the intention of the Legislature to restrict the powers of the Charity Commissioner while issuing the direction under Sec. 41A of the Trust Act in respect of matters under Secs. 32 to 41 of the Act only. If the legislature had intended to restrict the exercise of the Charity Commissioner's powers under Sec. 41A to only matters contained in Secs. 32 to 41, there was absolutely no reason for the Legislature to have provided under Sec. 41A the categories of situations under which the powers can be exercised. The fact that Sec. 41A enumerates the situations in which powers can be exercised i.e. to ensure that such Trust is properly administered and the income thereof is properly accounted for or duly appropriated and applied to the objects and for the purposes of the Trust, itself shows that Sec. 41A is a provision that stands by itself and that directions can be given under Sec. 41A as long the same are given for the matters specified in the said provision i.e. in Sec. 41A . If such a restrictive meaning as sought to be contended on behalf of the appellants is accepted, it will negate that part of the Sec. 41A which confers power upon Charity Commissioner to issue direction from time to time, to ensure that such trust is properly administered, however subject to provision of the Trust Act. The presence of the words "subject to other provisions of this Act, the Charity Commissioner may issue..." can only mean that the Charity Commissioner cannot issue directions that may violate or run contrary to some other provision of the Act and can never mean that Sec. 41A is restricted to the matters contained in Secs. 32 to 41 only.
7.2. As observed hereinabove, there was no controversy before the Division Bench in the aforesaid decision that whether the powers of the Charity Commissioner to issue direction under Sec. 41A of the Trust Act, shall be restricted to matters in respect of Secs. 32 to 41 only. Therefore, if the judgment of the Division Bench in the case of Syedna Mohamed Burhanuddin, [1992 (1) GLH 331], if read as a
C/SCA/16628/2020 ORDER
whole and its true perspective, as such it does not hold that Sec. 41A is restricted to Secs. 32 to 41 only. As such, in the aforesaid decision, the Division Bench has not restricted the powers under Sec. 41A of the Trust Act to the matters contained in Secs. 32 to 41 of the Trust Act only. As per the catena of decision of the Hon'ble Supreme Court, more particularly in the case of Zee Telefilms Limited v. Union of India, reported in , AIR 2005 SC 2677 (Para 275-278); in the case of Natural Resources Allocation, in Re. Special Reference No. 1 of 2012, reported in , 2012 (10) SCC 1 (Para 73) and in the case of Mehboob Dawood Shaikh v. State of Maharashtra, reported in , 2004 (2) SCC 362 (Para 12), a judgment is to be read as a whole and that it is not a precedent for a question that was not before the Court.
Under the circumstances and for the reasons stated above, we are of the opinion that the Division Bench in the case of Syedna Mohamed Burhanuddin, [1992 (1) GLH 331], does not hold that powers conferred under Sec. 41A of the Trust Act to issue direction by the Charity Commissioner is restricted to Secs. 32 to 41 of the Trust Act only.
8. On the contrary, in the case of Navsari Taluka Halpati Shikshan Prachar Sangh, [L.P.A. No. 2 of 2004] after considering the aforesaid decision of the Division Bench in the case of Syedna Mohamed Burhanuddin, [1992 (1) GLH 331], more particularly, the observations made in Paras 41 and 42 in decision of Syedna Mohamed Burhanuddin (supra), it is held that the Charity Commissioner can exercise the powers under Sec. 41A of the Act in connection with the matters falling under the Act for proper administration of the Trust and are not restricted to the matters falling under Secs. 32 to 41 of the Act only. It is further observed and held by the Division Bench in the said decision the power of the Charity Commissioner to issue directions to ensure that the Trust is properly administered is itself by very nature a wide power. It is
C/SCA/16628/2020 ORDER
further observed that Administration of Trust would mean administration by a body which under the Trust-Deed is required to be administered the same. It is further observed that in absence of proper elected body as required under the Trust-Deed, a proper administration of the Trust cannot be ensured. It is further observed that the Administration of the Trust would include various aspects, which would fall under the provisions of the Act and in absence of a properly constituted administrative body, the affairs of the Trust can hardly be conducted in furtherance of its objects. Thereafter, it is held that the direction to hold election of the trustee in consonance with the terms of the Trust-Deed would clearly fall within the ambit of Sec. 41A of the Act. It is required to be noted that after the aforesaid decision of the Division Bench in the case of Navsari Taluka Halpati Shikshan Prachar Sangh, [L.P.A. No. 2 of 2004] in the following decisions, the learned Single Judges of this Court have categorically observed and held that in exercise of powers under Sec. 41A of the Act, the Charity Commissioner can issue direction for better administration of trust:
"(a) Acharyashree M. R.B. Mandir Trust v. C.R. Chandulal, 1997 (1) GLH 16 (Single Judge) (Paras 5, 8, 11, 12 and 13)
(b) Devkrushnadasji Guru Dharmadasji v. State of Gujarat, 2008 (1) GLH 427 : [, 2008 (3) GLR 1981] (Single Judge) (Paras 13-16, 18-24)
(c) Balvantbhai Jinabhai Dharni v. Shantilal Kantibhai Ratanpara, Spl. C.A. No. 9819 of 2009 and other cognate matters (Single Judge) (Paras 18.1, 18.2,23,23.1,29-31)
(d) Ratilal Hansraj Gajjar v. Kamleshbhai Narsibhai Kharechha, 2011 (0) GLHEL-HC 224834 (Single Judge) (Pages 9-11)
(e) Shree Laxminarayan Dev Temple Board v.
Jasubhai Bhailalbhai Patel,
C/SCA/16628/2020 ORDER
Spl. C.A. No. 4069 of 2012 (Single Judge) (Paras 14-15)
(f) Gopinath Dev Mandir Trust v. State of Gujarat, Spl. C.A. No. 11706 of 2012 (Pages 31-35). It may be noted that this judgment has been confirmed by the Division Bench in L.P.A. No. 479 of 2013. (Paras 9-11)."
9. For the reasons stated above and considering the scheme of the Trust Act and object and purpose for which Sec. 41A of the Trust Act is enacted, restricted meaning as canvassed on behalf of the appellant that in exercise of powers under Sec. 41A of the Trust Act, the Charity Commissioner can issue the directions only in respect of the matters under Secs. 32 to 41 of the Act cannot be accepted. As observed hereinabove, the Legislature has never intended to confer such narrow powers to the Charity Commissioner. The Charity Commissioner can issue the directions in exercise of powers under Sec. 41A of the Act with respect to (a) proper administration of a public trust; (b) proper accounting of its income; (c) due appropriation and application of the income to the objects and for the purpose of trust however, subject to provisions of the Act and Rules how even as observed in the case of Syedna Mohamed Burhanuddin, [1992 (1) GLH 331] and other decisions, while issuing direction under Sec. 41A of the Act Charity Commissioner has no adjudicatory powers and cannot decide lis between the parties. Therefore, subject to the aforesaid rider, for administration of the Trust, the Charity Commissioner can issue the directions to the Trust/Trust-Deed and can issue the directions to them to act as per the scheme of the Trust or provision of the Trust-Deed and/or Trust Act."
29. Thus, keeping in view the aforesaid decisions, if the facts of the present case are examined, it is revealed that the petitioners passed resolution on 06.12.2020, whereby the respondent No.2 has been
C/SCA/16628/2020 ORDER
removed as Chairman as well as trustee of the trust and one Swami Bhakti Prasadji has been co-opted as trustee for the remaining term of the Board of Trustees. It is the specific case of the private respondents that the petitioners have no authority to call the meeting on 06.12.2020 and the said meeting was illegal and the minutes of the meeting is concocted. It is further the specific case of the private respondents that there were only two agenda in the meeting dated 22.11.2020, in spite of that, without authority of law, present petitioners have passed various resolutions and on the basis of the said resolutions, change report is submitted under Section 22 of the Act before the Assistant Charity Commissioner. The petitioners had called the meeting on 15.12.2020 and therefore it is specifically alleged by the private respondents that petitioners are trying to run parallel administration of the trust. Thus, in the facts of the present case, this Court is of the view that no error is committed by the respondent No.1 while passing the impugned interim order dated 14.12.2020. The aforesaid decisions rendered by this Court would be applicable in the facts of the present case. The respondent No.1 can proceed further with the hearing of Adjudication Misc. Application no.41A/13/2020 filed by the private respondents. It is open for the petitioners to raise all the contentions before the respondent No.1 at the time of hearing of the said application.
30. In view of the aforesaid discussion, petition is dismissed. However, it is clarified that the respondent No.1 shall decide the issues raised before it in
C/SCA/16628/2020 ORDER
accordance with law, without being influenced by the observations made by this Court in the present order.
31. In view of dismissal of the main petition, civil application stands disposed of accordingly.
(VIPUL M. PANCHOLI, J) LAVKUMAR J JANI
Publish Your Article
Campus Ambassador
Media Partner
Campus Buzz
LatestLaws.com presents: Lexidem Offline Internship Program, 2026
LatestLaws.com presents 'Lexidem Online Internship, 2026', Apply Now!