Bombay High Court Allows Petition Challenging Charity Commissioner's Order in Osho Foundation Dispute — Appointment of Trustees Set Aside for Violation of Natural Justice and Trust Deed Provisions. The court held that the Charity Commissioner's power under Section 47 of the Maharashtra Public Trusts Act, 1950 must be exercised in accordance with the trust deed and after hearing all interested parties.

High Court: Bombay High Court Bench: BOMBAY In Favour of Prosecution
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Case Note & Summary

The petitioner, Osho International Foundation, a public trust, challenged the order of the Charity Commissioner, Maharashtra State, dated 8 April 2024, appointing 26 individuals as trustees of the trust. The petitioner, a trustee, contended that the appointment was made without notice to the trust or its trustees, and without considering the trust deed's provisions. The court found that the Charity Commissioner acted in violation of principles of natural justice and the trust deed, and set aside the order. The court directed the Charity Commissioner to decide the matter afresh after hearing all parties.

Headnote

A) Trust Law - Appointment of Trustees - Natural Justice - Section 47 of Maharashtra Public Trusts Act, 1950 - The Charity Commissioner appointed 26 individuals as trustees without hearing the petitioner, a trustee of the trust, and without considering the trust deed's provisions regarding appointment of trustees. The court held that such appointment violated principles of natural justice and the trust deed, and set aside the order. (Paras 1-50)

B) Trust Law - Charity Commissioner's Powers - Section 47 of Maharashtra Public Trusts Act, 1950 - The Charity Commissioner's power to appoint trustees under Section 47 must be exercised in accordance with the trust deed and after giving an opportunity of hearing to all interested parties. The court held that the Commissioner failed to do so, rendering the order invalid. (Paras 1-50)

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Issue of Consideration

Whether the Charity Commissioner's order appointing respondents as trustees of the Osho International Foundation was valid and in accordance with the trust deed and principles of natural justice.

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Final Decision

The court allowed the writ petition, set aside the Charity Commissioner's order dated 8 April 2024, and directed the Charity Commissioner to decide the matter afresh after hearing all parties.

Law Points

  • Natural justice
  • Right to be heard
  • Appointment of trustees
  • Trust deed interpretation
  • Charity Commissioner's powers
  • Section 47 of Maharashtra Public Trusts Act
  • 1950
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Case Details

2024 LawText (BOM) (04) 96

Writ Petition No. 63 of 2024

2024-04-08

G. S. Kulkarni, Firdosh P. Pooniwalla

2024:BHC-AS:16663

Aspi Chinoy, Senior Advocate a/w. Vineet Naik, Senior Advocate, Mr. Sagheer Khan, Mr. Sharique Nachan, Mr. A.H. Ansari and Mr. Parth Zaveri i/b. Judicare Law Associates for the petitioner; Mr. Anil Anturkar, Senior Advocate a/w. Mr. Ashish Venugopal, Mr. Aman Dutta and Ms. Vibha Joshi i/b. RHP Partners for respondent no. 2; Mr. Anil V. Anturkar, Senior Advocate a/w. Mr. Vaibhav Kulkarni for respondent no. 24; Mr. Radhikesh Uttarwar a/w. Ms. Pooja R. Thakur for respondent nos. 8, 17, 20, 25 and 26; Ms. Shruti D. Vyas, Addl. G.P. a/w. P.J. Gavhane, AGP for the State

Osho International Foundation

Mr. Kishor Raval alias Swami Anandi & Ors.

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Nature of Litigation

Writ petition challenging the order of the Charity Commissioner appointing trustees.

Remedy Sought

Petitioner sought quashing of the Charity Commissioner's order appointing respondents as trustees.

Filing Reason

The petitioner, a trustee of Osho International Foundation, alleged that the Charity Commissioner appointed 26 individuals as trustees without notice to the trust and without considering the trust deed.

Previous Decisions

The Charity Commissioner passed an order on 8 April 2024 appointing the respondents as trustees.

Issues

Whether the Charity Commissioner's order appointing trustees was in violation of principles of natural justice. Whether the appointment was in accordance with the trust deed.

Submissions/Arguments

Petitioner argued that the Charity Commissioner did not give notice or hearing to the trust before appointing trustees. Respondents argued that the appointment was valid and in accordance with law.

Ratio Decidendi

The Charity Commissioner's power under Section 47 of the Maharashtra Public Trusts Act, 1950 to appoint trustees must be exercised in accordance with the trust deed and after giving an opportunity of hearing to all interested parties. Failure to do so renders the order invalid.

Judgment Excerpts

The court held that the appointment of trustees by the Charity Commissioner without hearing the petitioner and without considering the trust deed was violative of natural justice.

Procedural History

The Charity Commissioner passed an order on 8 April 2024 appointing 26 individuals as trustees of Osho International Foundation. The petitioner filed a writ petition challenging this order. The High Court heard the matter and delivered judgment on the same day.

Acts & Sections

  • Maharashtra Public Trusts Act, 1950: Section 47
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