Case Note & Summary
The matter involved two connected proceedings before the Bombay High Court, Aurangabad Bench: Writ Petition No. 6703 of 2020 filed by Shirdi Nagar Panchayat and Public Interest Litigation No. 46 of 2021 filed by two residents, along with a Civil Application in the writ petition. The dispute concerned funding for cleanliness and sanitation of Shirdi town and the statutory powers of Shree Saibaba Sansthan Trust under the Shree Saibaba Sansthan Trust (Shirdi) Act, 2004. The Nagar Panchayat is the municipal body for Shirdi, and the Sansthan Trust is constituted under the 2004 Act. On 19 January 2018, the Trust's Scrutiny Committee resolved to release Rs.30,00,000 per month for five years to the Panchayat for sanitation. Following this, the State Government on 27 April 2018 exercised powers under Section 21(2)(ii) and resolved to release the amount. On 22 November 2018, the State issued a corrigendum raising the monthly amount to Rs.42,51,599 effective from 1 December 2017 for five years. The Panchayat entered into an agreement with BVG India Limited for sanitation work and started receiving funds. In 2018, PILs No.152 of 2018 and 86 of 2018 were filed; on 30 January 2019, the High Court ordered the Trust not to disburse funds, though the excerpt ends mid-sentence. On 9 June 2020, the Ad-hoc Committee of the Trust passed Resolution No.323, which the Panchayat challenged in Writ Petition No. 6703 of 2020, seeking certiorari to quash it and mandamus to release funds from May 2020 onwards as per the Government Resolutions. In Public Interest Litigation No. 46 of 2021, the petitioners challenged the Government Resolutions dated 07.04.2018, 17.04.2018, and 22.04.2018, and sought directions for the Trust to decide afresh the quantum and for the Panchayat to submit accounts. The core legal issues were the validity of Resolution No.323, the entitlement of the Panchayat to funds under Section 21(2)(ii) of the 2004 Act, the validity of the Government Resolutions, and the accountability of the Trust and Panchayat. The Panchayat argued statutory entitlement to the funds for local services, while the PIL petitioners argued that the resolutions were contrary to the Trust's own decisions and sought transparency and auditing. The court noted the statutory provisions of Section 21 and the sequence of resolutions. It heard both matters together and closed them for judgment on 08.04.2022. The judgment was pronounced on 15.07.2022, but the final operative order and reasoning are not included in the provided excerpt. Thus, the final holding cannot be extracted from the text supplied.
Headnote
A) Constitutional Law - Writ Jurisdiction - Certiorari and Mandamus - Constitution of India, Article 226 and Shree Saibaba Sansthan Trust (Shirdi) Act, 2004, Section 21(2)(ii) - The writ petition prayed for quashing of Resolution No. 323 dated 09.06.2020 passed by the Ad-hoc Committee of the Shree Saibaba Sansthan Trust and for release of monthly funds to the Shirdi Nagar Panchayat for cleanliness and sanitation. The public interest litigation also sought quashing of three Government Resolutions dated 07.04.2018, 17.04.2018 and 22.04.2018. Both matters were heard together and reserved for judgment on 08.04.2022. Held: final order not included in the provided excerpt (Paras 1-3).
B) Trust Law - Utilization of Trust Funds - Statutory Allocation for Local Services - Shree Saibaba Sansthan Trust (Shirdi) Act, 2004, Section 21(2)(ii) - Section 21(2)(ii) permits the Trust, after making provision for maintenance and administration, to utilize a portion of surplus not exceeding thirty percent of distributable income, with previous State Government sanction, for improvement of local services in Shirdi. The State Government by resolution dated 27.04.2018 and corrigendum dated 22.11.2018 directed monthly payments of Rs.30,00,000 and later Rs.42,51,599 to the Nagar Panchayat. The court was to determine whether the Ad-hoc Committee resolution dated 09.06.2020 validly superseded these directions. Held: not provided in excerpt (Paras 5-8).
C) Public Interest Litigation - Accountability of Public Trust - Financial Audit and Policy - Shree Saibaba Sansthan Trust (Shirdi) Act, 2004, Section 21 - The PIL petitioners contended that the Government Resolutions directing payment were contrary to the Sansthan's own resolutions and sought directions for the Trust to decide afresh the quantum and for the Nagar Panchayat to submit accounts of taxes and grants. The court considered these prayers along with the writ petition. Held: not provided in excerpt (Paras 3, 10).
Issue of Consideration
Whether Resolution No.323 dated 09.06.2020 passed by the Ad-hoc Committee of the Shree Saibaba Sansthan Trust is valid; whether Shirdi Nagar Panchayat is entitled to release of monthly funds for cleanliness and sanitation under Section 21(2)(ii) of the Shree Saibaba Sansthan Trust (Shirdi) Act, 2004 from May 2020 onwards; whether the Government Resolutions dated 07.04.2018, 17.04.2018 and 22.04.2018 are legal and valid; whether the Sansthan Trust should decide afresh the quantum of amount and whether accounts must be submitted.
Final Decision
The matter was heard together with the PIL and Civil Application, closed for judgment on 08.04.2022, and judgment was pronounced on 15.07.2022. The provided excerpt does not include the final operative order or reasoning.
Law Points
- Section 21(2)(ii) permits Trust to utilize surplus for local services with State sanction
- Trust resolution dated 19.01.2018 recommended Rs.30 lakh/month
- State GR dated 27.04.2018 and corrigendum 22.11.2018 fixed payments
- Writ of certiorari available to challenge Trust resolution
- Writ of mandamus sought to enforce release of funds
- PIL seeks judicial review of executive resolutions and accountability
Case Details
2022 LawText (BOM) (07) 15
Writ Petition No. 6703 of 2020 along with Civil Application No. 8478 of 2020 and Public Interest Litigation No. 46 of 2021
R. D. Dhanuka, S. G. Mehare
Shri V. D. Hon, Senior Advocate i/by Shri A. V. Hon, Advocate for the Petitioner; Shri D. R. Kale, Incharge G.P. for Respondent No. 1; Shri A. S. Bajaj, Advocate for Respondent No. 2; Shri N. K. Chaudhari, Advocate h/f Shri K. B. Chaudhari, Advocate for Respondent No. 3; Ms. P. S. Talekar, Advocate i/by Talekar and Associates, Advocate for Petitioners; Shri D. R. Kale, Incharge G.P. for Respondent Nos. 1 to 3; Shri A. S. Bajaj, Advocate for Respondent No. 4; Shri V. D. Hon, Senior Advocate i/by Shri A. V. Hon, Advocate for Respondent No. 5; Shri N. K. Chaudhari, Advocate h/f Shri K. B. Chaudhari, Advocate for Respondent No. 6
Shirdi Nagar Panchayat, Shirdi, Tq. Rahata District Ahmednagar Through its Chief Officer Kakasaheb S/o Doiphode (Writ Petition No. 6703 of 2020); Sachin S/o Paraji Kote and Sanjay S/o Bhagwat Shinde (Public Interest Litigation No. 46 of 2021)
The State of Maharashtra through Principal Secretary, Law and Judiciary Department; Shree Saibaba Sansthan Trust, Shirdi through its Chief Executive Officer; The Assistant Provident Fund Commissioner, Nashik; The Principal Secretary, Urban Development Department; The Commissioner, Municipal Administration; Regional Provident Fund Commissioner, Nasik
Subscribe to unlock Case Details (Citation, Judge, Date & more)
Subscribe Now
Nature of Litigation
Writ petition seeking certiorari to quash Trust resolution and mandamus to release funds, heard together with public interest litigation challenging Government Resolutions and seeking accountability.
Remedy Sought
In Writ Petition No. 6703 of 2020, Shirdi Nagar Panchayat sought quashing of Resolution No. 323 dated 09.06.2020 passed by the Ad-hoc Committee of Shree Saibaba Sansthan Trust and release of monthly amounts payable under Government Resolution dated 07.04.2018 and corrigendum dated 22.11.2018 from May 2020 onwards. In PIL No. 46 of 2021, petitioners sought quashing of Government Resolutions dated 07.04.2018, 17.04.2018 and 22.04.2018, directions to decide afresh quantum and submission of accounts.
Filing Reason
The Trust's Ad-hoc Committee passed Resolution No. 323 halting or affecting release of funds for cleanliness and sanitation of Shirdi town; the Panchayat sought enforcement of statutory funding under Section 21(2)(ii) of the Act, while PIL petitioners alleged the Government Resolutions were contrary to Trust resolutions and sought judicial review.
Previous Decisions
On 30 January 2019, the High Court in PIL Nos. 152 of 2018 and 86 of 2018 passed an order that the Sansthan Trust shall not disburse the funds (excerpt incomplete). No other prior judicial decisions are mentioned.
Issues
Whether Resolution No. 323 dated 09.06.2020 passed by the Ad-hoc Committee of the Shree Saibaba Sansthan Trust is valid and liable to be quashed.
Whether Shirdi Nagar Panchayat is entitled to release of monthly funds under Section 21(2)(ii) of the Shree Saibaba Sansthan Trust (Shirdi) Act, 2004 from May 2020 onwards.
Whether the Government Resolutions dated 07.04.2018, 17.04.2018 and 22.04.2018 are legal and valid.
Whether the Sansthan Trust should decide afresh the quantum of amount to be paid and whether the Nagar Panchayat should submit accounts of taxes, funds and grants received for sanitation.
Submissions/Arguments
The writ petitioner contended that Section 21(2)(ii) specifically allows the Trust to utilize funds for improvement of local services in Shirdi and that the Government Resolutions created a legal obligation to release monthly amounts.
The PIL petitioners contended that the Government Resolutions directing payment were contrary to the Sansthan's own resolutions and sought directions for fresh determination of quantum and submission of accounts for transparency.
Ratio Decidendi
The ratio decidendi cannot be extracted from the provided excerpt as the final reasoning and operative order are not included. The court was to interpret Section 21(2)(ii) of the Shree Saibaba Sansthan Trust (Shirdi) Act, 2004 regarding utilization of Trust funds for local services and the validity of the resolutions.
Judgment Excerpts
Rule. The learned counsel appearing for respondents waive service of rule. Rule is made returnable forthwith. By consent of parties both the aforesaid matters were heard together and are being disposed of by common order.
In Writ Petition No. 6703 of 2020, the petitioner has prayed for writ of certiorari for quashing and setting aside Resolution No. 323 passed by the Ad-hoc Committee of Shri Saiba Sansthan Trust Shirdi in the meeting dated 09.06.2020.
Section 21 of the said Act provides for the utilization of the Trust’s funds for the purposes viz. maintenance, management and administration of temple and properties of the Trust.
On 19th January 2018 in the Scrutiny committee meeting held by the said Santhan Trust, it was resolved to release the amount of Rs.30,00,000/- per month for a period of five years for utilization of the petitioner for carrying out the work of cleanliness and sanitation at Shirdi.
On 22nd November 2018, Government of Maharashtra issued corrigendum to the effect that from 1st December 2017, the amount payable from Sansthan funds to the petitioner for cleanliness and sanitation purposes would be Rs.42,51,599/- per month for a term of five years.
Procedural History
On 19.01.2018, the Scrutiny Committee of the Sansthan Trust resolved to release Rs.30,00,000 per month for five years to the Shirdi Nagar Panchayat for cleanliness and sanitation. On 27.04.2018, the State Government in exercise of powers under Section 21(2)(ii) resolved to release that amount. On 22.11.2018, the Government issued a corrigendum raising the monthly amount to Rs.42,51,599 effective from 01.12.2017 for five years. In 2018, PIL Nos. 152 of 2018 and 86 of 2018 were filed against the State and the Trust; on 30.01.2019, the High Court passed an order that the Trust shall not disburse the funds (excerpt incomplete). On 09.06.2020, the Ad-hoc Committee passed Resolution No.323, which was challenged in Writ Petition No.6703 of 2020. Civil Application No.8478 of 2020 was filed in the writ petition by Sanjay Bhaskarrao Kale. Thereafter, Public Interest Litigation No.46 of 2021 was filed by Sachin Kote and Sanjay Shinde challenging the Government Resolutions. Both matters were heard together, closed for judgment on 08.04.2022, and judgment pronounced on 15.07.2022.
Acts & Sections
- Shree Saibaba Sansthan Trust (Shirdi) Act, 2004: Section 21, Section 21(1), Section 21(2)(ii)
