Case Note & Summary
The appeal before the Supreme Court arose out of a writ petition filed by the respondent settlor in the Patna High Court challenging proceedings initiated by the Bihar State Board of Religious Trusts under the Bihar Hindu Religious Trusts Act, 1950. The dispute concerned the Srimati Charusila Trust created by a trust deed executed on March 11, 1938 by Sm. Charusila Dasi, widow of Akshaya Kumar Ghose, who resided at Charu Niwas, Deoghar in Santhal Parganas, Bihar. She settled properties described in schedules B, C and D; schedules B and C comprised land and buildings in Deoghar, while schedule D comprised houses and land in Calcutta valued around Rs 8,50,000 with total annual income about Rs 87,839. The deed recited that the settlor had installed deity Iswar Srigopal in her house, was constructing a twin temple and Nat Mandir in memory of her deceased son, intended to install the deity in one temple and a marble image of her preceptor Sri Sri Balanand Brahmachari in the other, and desired to establish a hospital for Hindu females and a charitable dispensary for all patients. Five trustees were appointed, including the settlor and her adopted son; three other trustees were not family members. The trusts included completing temples at cost up to three lakhs, providing daily worship and festivals for deity and image at annual sums of Rs 13,600 and Rs 4,500 respectively, and establishing hospital/dispensary with Rs 12,000 annually after temple construction. On October 27, 1952, the Superintendent of the Bihar State Board of Religious Trusts issued notice under Section 59 of the Act requiring a return. The respondent replied that the trust was a private family endowment and the Act did not apply. The Board disagreed, and on February 5, 1953 the President authorised fee assessment under Section 70. The respondent then filed a writ petition under Article 226 before Patna High Court on April 6, 1953, seeking to quash the proceedings on grounds that the trust was private, the Act did not apply to private trusts, the Act was ultra vires the Constitution for infringing Part III rights, and some trust properties were outside Bihar. The High Court, by order dated October 5, 1953, accepted the respondent's contention that the trust was private and quashed the proceedings. The State of Bihar and the Board appealed. The Supreme Court examined the trust deed and held that on true construction it created a religious and charitable trust of a public nature. It noted that provisions for public festivals, free distribution of food and water on a large scale, a hospital for Hindu females, and a charitable dispensary for all religions indicated an intention to benefit the public or a section thereof. A relevant consideration was whether the deed gave any right of worship to the public or any section of the public answering a particular description. The Court followed earlier decisions in Mahant Ram Saroop Dasji and Mahant Moti Das to hold that the Act applies only to public trusts and that its provisions do not violate Part III. On the territorial question, the Court held that Section 3 made the Act applicable to public religious and charitable institutions situated in Bihar with any part of property in that State. Because the trust was situated in Bihar, the State legislature had power over the trust and its trustees, and could control trustees in personam even as to property outside the State; there was no extra-territorial operation. The presence of temples and proposed hospital/dispensary in Bihar provided sufficient territorial nexus. Ultimately, the Court allowed the appeal, set aside the High Court order, and dismissed the writ petition.
Headnote
A) Trust Law - Charitable and Religious Trusts - Construction of Trust Deed - Public vs Private Trust - Bihar Hindu Religious Trusts Act, 1950 (Bihar Act 1 of 1951), Section 2(1) - The trust deed executed on March 11, 1938 by the settlor for worship of Iswar Srigopal and image of preceptor, with provisions for public festivals, free distribution of food and water on a large scale, a hospital for Hindu females and a charitable dispensary for all, indicated an intention to benefit the public or a section of the public and thus created a public religious and charitable trust. The court considered Deoki Nandan v. Murlidhar and In re Charusila Dasi, and held that a relevant consideration is whether the deed gives any right of worship to the public or any section thereof answering a particular description. Held, the trust was public. (Paras not mentioned) B) Hindu Religious Trusts - Applicability of Act - Private Endowments Excluded - Bihar Hindu Religious Trusts Act, 1950 (Bihar Act 1 of 1951), Sections 1(2), 2(1), 3 - The Act applies only to public religious and charitable trusts and not to private endowments. Since the trust in question was held to be public, the Act applied. Followed Mahant Ram Saroop Dasji v. S.P. Sahi. Held, Act does not apply to private trusts. (Paras not mentioned) C) Constitutional Law - Fundamental Rights - Validity of Act under Part III - Constitution of India, Part III - The provisions of the Act did not take away or abridge any of the rights conferred by Part III of the Constitution and were thus constitutionally valid. Followed Mahant Moti Das v. S.P. Sahi. Held, Act is intra vires. (Paras not mentioned) D) Constitutional Law - Legislative Competence - Territorial Nexus and Extra-territorial Operation - Constitution of India, Articles 245, 246, Schedule VI List III Item 28; Bihar Hindu Religious Trusts Act, 1950 (Bihar Act 1 of 1951), Section 3 - Section 3 made the Act applicable to all public religious and charitable institutions situated in the State of Bihar and any part of whose property is in that State. Where the trust is situated in Bihar, the State has legislative power over it and over its trustees or their servants and agents who must be in Bihar to administer the trust; control over trustees in personam regarding property outside the State does not amount to extra-territorial operation. Held, Bihar legislature competent. (Paras not mentioned) E) Constitutional Law - Territorial Nexus - Sufficiency of Connection - Constitution of India, Articles 245, 246 - In the present case, the circumstance that the temples where the deities were installed are situated in Bihar and that the hospital and charitable dispensary are to be established in Bihar for the benefit of the Hindu public in Bihar gives enough territorial connection to enable the legislature of Bihar to make a law with respect to such trust. Relied on Tata Iron & Steel Co. Ltd. v. State of Bihar and State of Bombay v. R.M.D. Chamarbaugwala; distinguished Gurdyal Singh v. Rajah of Faridkote. Held, sufficient territorial nexus. (Paras not mentioned)
Issue of Consideration
Whether the trust deed dated March 11, 1938 created a private endowment or a public religious and charitable trust; whether the Bihar Hindu Religious Trusts Act, 1950 applies to private trusts; whether the Act violates Part III of the Constitution; whether the Act can apply to trust property situated outside Bihar and whether the Bihar legislature had legislative competence over such property without extra-territorial operation
Final Decision
The Supreme Court allowed the appeal, set aside the High Court order dated October 5, 1953, held that the trust deed created a public religious and charitable trust to which the Bihar Hindu Religious Trusts Act, 1950 applied, and dismissed the writ petition.
Law Points
- Legal points not extracted
- Construction of trust deed determines public or private nature
- a trust is public if right of worship is given to public or any section of public
- Bihar Hindu Religious Trusts Act
- 1950 applies only to public trusts
- not private endowments
- provisions of the Act do not violate Part III of Constitution
- Section 3 of the Act applies to public religious and charitable institutions situated in Bihar if any part of property is in that State
- state legislature has legislative power over trust situated in Bihar and can control trustees in personam over property outside state
- no extra-territorial operation
- sufficient territorial nexus exists if temples and hospital/dispensary are in Bihar
