Case Note & Summary
The petitioners, trustees of a registered public trust, challenged an order dated 16.04.2018 passed by the Assistant Charity Commissioner under Section 41A of the Maharashtra Public Trusts Act, 1950. The order directed the petitioners not to restrain respondent no.1 from taking part in the management of the trust, ignoring a resolution dated 22.02.2017 passed by the trust. The respondent nos.1 and 2 claimed to be persons interested in the trust and had initiated proceedings under Section 41D and Section 50A(1) of the Act against the petitioners for alleged malfeasance and misfeasance. They alleged that the petitioners threatened them to withdraw those proceedings. The Assistant Charity Commissioner, without issuing notice to the petitioners or conducting a proper inquiry, passed the interim order. The High Court held that the order was passed in violation of principles of natural justice as the petitioners were not heard. The court further held that Section 41A does not empower the Charity Commissioner to decide the validity of resolutions or title to manage the trust in a summary manner. The impugned order was quashed and set aside, and the matter was remitted back to the Assistant Charity Commissioner for fresh consideration after hearing all parties.
Headnote
A) Charity Law - Interim Orders under Section 41A - Scope of Power - Section 41A, Maharashtra Public Trusts Act, 1950 - The Assistant Charity Commissioner passed an interim order directing trustees not to restrain respondent no.1 from participating in trust management, ignoring a resolution dated 22.02.2017 passed by the Trust. The High Court held that such an order could not be passed without a proper inquiry and without considering the effect of the resolution, as Section 41A does not confer power to decide title or validity of resolutions in a summary manner. (Paras 2, 6-8) B) Charity Law - Natural Justice - Hearing Before Adverse Order - Section 41A, Maharashtra Public Trusts Act, 1950 - The impugned order was passed without giving an opportunity of hearing to the petitioners, who were the trustees. The High Court held that any order under Section 41A that affects the rights of parties must be passed after hearing all affected parties, and failure to do so violates principles of natural justice. (Paras 6-8) C) Charity Law - Resolution of Trust - Binding Effect - Section 41A, Maharashtra Public Trusts Act, 1950 - The Trust had passed a resolution on 22.02.2017 regarding management. The Assistant Charity Commissioner ignored this resolution while passing the interim order. The High Court held that the Charity Commissioner must consider the effect of such resolutions and cannot bypass them without proper adjudication. (Paras 2, 7-8)
Issue of Consideration
Whether the Assistant Charity Commissioner under Section 41A of the Maharashtra Public Trusts Act, 1950 could pass an interim order directing the trustees not to restrain a person from taking part in management, ignoring the effect of a resolution passed by the Trust, without conducting a proper inquiry and without hearing all parties.
Final Decision
The High Court allowed the writ petition, quashed and set aside the order dated 16.04.2018 passed by the Assistant Charity Commissioner, and remitted the matter back to the Assistant Charity Commissioner for fresh consideration after hearing all parties and considering the resolution dated 22.02.2017.
Law Points
- Section 41A of Maharashtra Public Trusts Act
- 1950
- interim orders
- natural justice
- trust management
- resolution validity
