Case Note & Summary
The petitioner, Shree Khambhati Modh Vanik Samaj, is a public charitable trust registered under the Maharashtra Public Trust Act, 1950. It owns a property called 'Samaj Darshan' in Kandivali (W), Mumbai. The trust resolved to redevelop the property and filed Application No. 115 of 2014 before the Charity Commissioner under Section 36 of the Trust Act, 1950 seeking permission to enter into a Development cum Sale Agreement with M/s. Bhakti Enterprises (respondent No. 2). By order dated 8 June 2015, the Charity Commissioner granted sanction under Section 36(1)(a). Subsequently, respondent Nos. 2 to 9 filed intervention applications (Exhibits 7, 10, 14, 17, 24 and 29) in the said application, claiming to be members of the community for which the trust was established. The Charity Commissioner allowed these intervention applications and directed the trust to add the interveners as respondents. The trust challenged this order by way of a writ petition. The High Court examined the scope of Section 36(1)(a) of the Maharashtra Public Trust Act, 1951 and held that the right to be heard in such proceedings is limited to trustees and persons having a direct interest in the trust property, such as beneficiaries or co-owners. Persons who are strangers to the trust or have no direct interest cannot claim a right of audience. The court found that the interveners had not demonstrated any direct interest in the property and their intervention would delay and obstruct the trust's redevelopment. Accordingly, the court quashed the Charity Commissioner's order allowing intervention and directed the Charity Commissioner to proceed with the trust's application without the interveners being added as parties.
Headnote
A) Charity Law - Right to be Heard - Section 36(1)(a) Maharashtra Public Trust Act, 1951 - Intervention - The Charity Commissioner allowed intervention applications filed by persons claiming to be members of the community for which the trust was established, in proceedings for permission to redevelop trust property. The High Court held that the right to be heard under Section 36(1)(a) is confined to trustees and persons having a direct interest in the trust property, such as beneficiaries or co-owners. Strangers or persons with no direct interest cannot claim a right of audience. The order allowing intervention was quashed as it would delay and obstruct the trust's redevelopment. (Paras 1-10)
Issue of Consideration
Whether persons who are not trustees or beneficiaries of a public trust have a right to be heard in proceedings under Section 36(1)(a) of the Maharashtra Public Trust Act, 1951 for permission to alienate trust property.
Final Decision
The High Court allowed the writ petition, quashed the order dated 6 September 2022 passed by the Charity Commissioner allowing intervention applications, and directed the Charity Commissioner to proceed with the trust's application without adding the interveners as respondents.
Law Points
- Right to be heard
- Intervention
- Section 36(1)(a)
- Maharashtra Public Trust Act
- 1951
- Public Trust
- Charity Commissioner
- Direct interest
- Stranger
- Locus standi
