Bombay High Court Dismisses Petition Challenging Scheme for Trust Management in Succession Dispute. Court upholds scheme framed under Section 50A of Maharashtra Public Trusts Act, 1950, holding that scheme supersedes mode of succession by inheritance.

High Court: Bombay High Court Bench: NAGPUR
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Case Note & Summary

The petitioner, Hemkant Kombe, challenged an order of the Principal District Judge, Wardha, which confirmed an order dated 30.12.2006 passed by the Assistant Charity Commissioner framing a scheme for the management of a public trust called 'Shri Mahadeo Deosthan, Babapur'. The trust was originally registered under the Madhya Pradesh Public Trusts Act, 1951, on 21.06.1955, and later under the Bombay Public Trusts Act, 1950 (now Maharashtra Public Trusts Act, 1950). The mode of succession of trustees was recorded as 'by law of inheritance'. In 1995, due to controversies in management, the Assistant Charity Commissioner initiated proceedings under Section 50A of the Act of 1950 and directed the parties to file draft schemes. After hearing the parties, the Assistant Charity Commissioner framed a scheme on 30.12.2006, appointing the petitioner and respondents as trustees. The petitioner appealed to the District Judge under Section 72 of the Act, arguing that the scheme could not override the mode of succession by inheritance. The District Judge dismissed the appeal, confirming the scheme. The petitioner then filed the present writ petition. The High Court examined the provisions of Section 50A and Section 72 of the Maharashtra Public Trusts Act, 1950. It held that the power under Section 50A is independent and can be exercised for better management of the trust, even if the mode of succession is by inheritance. Once a scheme is framed, the mode of succession as per inheritance is superseded and the scheme governs appointment of trustees. The court also noted that the scheme had been in operation for over 15 years and had worked well. The court found no perversity or illegality in the orders of the authorities below and dismissed the petition, upholding the scheme.

Headnote

A) Trust Law - Scheme under Section 50A - Supersession of Mode of Succession - Maharashtra Public Trusts Act, 1950, Section 50A - The court considered whether a scheme framed under Section 50A can override the mode of succession by inheritance recorded in the register. Held that once a scheme is framed, the mode of succession as per inheritance is superseded and the scheme governs appointment of trustees. (Paras 8-10)

B) Trust Law - Appeal under Section 72 - Scope of Interference - Maharashtra Public Trusts Act, 1950, Section 72 - The court examined the scope of the District Judge's appellate jurisdiction under Section 72. Held that the District Judge could not have interfered with the scheme merely because the mode of succession was by inheritance, as the power under Section 50A is independent and can be exercised for better management. (Paras 11-12)

C) Trust Law - Appointment of Trustees - Scheme vs. Inheritance - Maharashtra Public Trusts Act, 1950, Sections 50A, 72 - The court addressed the contention that the scheme should not have been framed because the mode of succession was by inheritance. Held that the Assistant Charity Commissioner has jurisdiction to frame a scheme even if the mode of succession is by inheritance, and the scheme can provide for appointment of trustees from among the family members. (Paras 13-14)

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Issue of Consideration

Whether the Assistant Charity Commissioner and the District Judge erred in framing a scheme for the Trust under Section 50A of the Maharashtra Public Trusts Act, 1950, and whether the scheme could override the mode of succession by inheritance recorded in the register.

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Final Decision

The High Court dismissed the writ petition, upholding the orders of the Assistant Charity Commissioner and the District Judge. The scheme framed under Section 50A was confirmed.

Law Points

  • Scheme under Section 50A supersedes mode of succession by inheritance
  • Once scheme is framed
  • appointment of trustees must be as per scheme
  • Section 50A Maharashtra Public Trusts Act
  • 1950
  • Section 72 Maharashtra Public Trusts Act
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Case Details

2022 LawText (BOM) (04) 118

WRIT PETITION NO. 3114 OF 2019

2022-04-22

MANISH PITALE, J.

Mr. S.K. Bhoyar for petitioner, Mr. S.V. Sohoni for respondent Nos.1 & 2

Hemkant s/o Madhavrao Kombe

Purushottam s/o Wamanrao Kombe, Ramdasji s/o Anandrao Barde, Dadaji s/o Ganuji Bhoyar, Nathuji Vithalrao Kakade (Dead), Tatyaji s/o Bapurao Kakade (Dead)

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Nature of Litigation

Writ petition challenging order of Principal District Judge confirming scheme framed by Assistant Charity Commissioner under Section 50A of Maharashtra Public Trusts Act, 1950.

Remedy Sought

Petitioner sought quashing of the order dated 30.12.2006 passed by Assistant Charity Commissioner and the order of the District Judge confirming it.

Filing Reason

Petitioner contended that the scheme could not override the mode of succession by inheritance recorded in the register of trusts.

Previous Decisions

Assistant Charity Commissioner passed order on 30.12.2006 framing a scheme; District Judge dismissed appeal on 22.04.2022 confirming the scheme.

Issues

Whether the Assistant Charity Commissioner had jurisdiction to frame a scheme under Section 50A of the Maharashtra Public Trusts Act, 1950, when the mode of succession was by inheritance. Whether the District Judge erred in confirming the scheme under Section 72 of the Act.

Submissions/Arguments

Petitioner argued that the scheme could not override the mode of succession by inheritance and that the Assistant Charity Commissioner had no jurisdiction to frame a scheme. Respondents supported the scheme, contending that it was necessary for better management and that the power under Section 50A is independent.

Ratio Decidendi

The power under Section 50A of the Maharashtra Public Trusts Act, 1950, to frame a scheme for better management of a public trust is independent and can be exercised even if the mode of succession of trustees is by inheritance. Once a scheme is framed, the mode of succession as per inheritance is superseded and the scheme governs appointment of trustees.

Judgment Excerpts

The power under Section 50A of the Act of 1950 is independent and can be exercised for better management of the trust, even if the mode of succession is by inheritance. Once a scheme is framed, the mode of succession as per inheritance is superseded and the scheme governs appointment of trustees.

Procedural History

The trust was registered on 21.06.1955 under Madhya Pradesh Public Trusts Act, 1951. On 19.08.1959, Registrar Public Trusts declared Gulabrao Dajiba Kombe as successor trustee by inheritance. The trust was re-registered under Bombay Public Trusts Act, 1950 on 11.01.1963. On 22.11.1995, Assistant Charity Commissioner initiated proceedings under Section 50A. On 30.12.2006, Assistant Charity Commissioner framed a scheme. Petitioner appealed to District Judge under Section 72, which was dismissed on 22.04.2022. Petitioner then filed writ petition in High Court.

Acts & Sections

  • Maharashtra Public Trusts Act, 1950: 50A, 72
  • Madhya Pradesh Public Trusts Act, 1951:
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