Bombay High Court Dismisses Petition Challenging No-Confidence Motion Against Trust Office Bearers. Scheme of Administration Does Not Prohibit No-Confidence Motion; Resolution Valid Under Maharashtra Public Trusts Act, 1950.

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

The petitioners, Lakhichand Marotrao Dhoble and Kisangopal Chunnilalji Gandhi, were the Chairman and Treasurer respectively of a public trust named Shri Ganesh Mandir Tekdi, Nagpur, registered under the Maharashtra Public Trusts Act, 1950. The trust had a Scheme of administration settled by the Bombay High Court in First Appeal No. 182/1973. On 05.07.2020, the Managing Committee passed a resolution expressing no-confidence against the petitioners, removing them from their posts. The petitioners challenged this resolution by filing a writ petition under Article 226 of the Constitution of India, seeking a declaration that the Scheme did not contemplate a no-confidence motion against office bearers. The legal issue was whether the Scheme permitted such a motion. The petitioners argued that the Scheme provided for a fixed term of five years for office bearers and did not allow removal by no-confidence. The respondents contended that the Scheme did not prohibit such a motion and that the Managing Committee had the power to remove office bearers. The Court analyzed the Scheme and found that it did not contain any provision for removal of office bearers, nor did it prohibit a no-confidence motion. The Court held that the Managing Committee, being the supreme body, had the inherent power to remove office bearers by a no-confidence motion, as the Act was silent on the mode of removal. The Court dismissed the petition, upholding the validity of the resolution.

Headnote

A) Trust Law - Scheme of Administration - No-Confidence Motion - Maharashtra Public Trusts Act, 1950 - Interpretation of Scheme - The issue was whether the Scheme of administration of a public trust permitted removal of office bearers by a no-confidence motion. The Court held that since the Scheme did not prohibit such a motion and the Act did not provide for removal of office bearers, the Managing Committee could pass a no-confidence motion to remove office bearers, as it was an internal management matter. (Paras 3-10)

B) Trust Law - Removal of Office Bearers - Managing Committee Powers - Maharashtra Public Trusts Act, 1950 - The Court held that the Managing Committee, as the supreme body, had the power to remove office bearers by a no-confidence motion, as the Scheme did not specify any mode of removal and the Act was silent. The resolution dated 05.07.2020 was valid. (Paras 11-15)

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Issue of Consideration

Whether the Scheme of administration of the Trust contemplates passing of a no-confidence motion against the office bearers of the Managing Committee of the Trust.

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Final Decision

The writ petition is dismissed. The resolution dated 05.07.2020 expressing no-confidence against the petitioners is held valid.

Law Points

  • Interpretation of Scheme of Administration
  • No-confidence motion against office bearers of public trust
  • Maharashtra Public Trusts Act
  • 1950
  • Article 226 of Constitution of India
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Case Details

2020 LawText (BOM) (11) 63

Writ Petition Stamp No. 8356/2020

2020-11-03

A.S. Chandurkar, N.B. Suryawanshi

C.S. Kaptan, S.V. Bhutada, M.A. Kadu, Ashwini Athalye, Shakil Deshmukh, S.P. Dharmadhikari, R.K. Joshi

Lakhichand Marotrao Dhoble and Kisangopal Chunnilalji Gandhi

Joint Charity Commissioner, Nagpur and others

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Nature of Litigation

Writ petition under Article 226 of the Constitution of India challenging a no-confidence motion passed by the Managing Committee of a public trust.

Remedy Sought

Declaration that the Scheme of administration does not contemplate passing of a no-confidence motion against office bearers and quashing of resolution dated 05.07.2020.

Filing Reason

The petitioners, Chairman and Treasurer of the trust, were removed by a no-confidence motion passed by the Managing Committee.

Previous Decisions

A Scheme of administration was settled by the Bombay High Court in First Appeal No. 182/1973.

Issues

Whether the Scheme of administration of the Trust contemplates passing of a no-confidence motion against the office bearers of the Managing Committee of the Trust.

Submissions/Arguments

Petitioners argued that the Scheme provides for a fixed term of five years for office bearers and does not contemplate removal by no-confidence motion. Respondents argued that the Scheme does not prohibit a no-confidence motion and the Managing Committee has the power to remove office bearers.

Ratio Decidendi

The Scheme of administration of a public trust, which does not contain any provision for removal of office bearers, does not prohibit the Managing Committee from passing a no-confidence motion to remove office bearers. The Managing Committee, being the supreme body, has the inherent power to remove office bearers by such a motion, as the Act is silent on the mode of removal.

Judgment Excerpts

The petitioners who are the Chairman and Treasurer respectively of a public trust by name Shri Ganesh Mandir Tekdi, Nagpur have been removed from their posts by other members of the Managing Committee of the Trust by passing a motion of no-confidence. A Scheme of administration of the affairs of the Trust came to be formulated and thereafter settled by this Court in First Appeal No. 182/1973. The Managing Committee of the Trust was to comprise of eleven members who were deemed to be trustees of the Trust.

Procedural History

The petitioners filed a writ petition under Article 226 of the Constitution of India challenging a no-confidence motion passed on 05.07.2020. The petition was heard and disposed of by the Bombay High Court, Nagpur Bench, on 03.11.2020.

Acts & Sections

  • Maharashtra Public Trusts Act, 1950:
  • Constitution of India: Article 226
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High Court Bombay High Court Dismisses Petition Challenging No-Confidence Motion Against Trust Office Bearers. Scheme of Administration Does Not Prohibit No-Confidence Motion; Resolution Valid Under Maharashtra Public Trusts Act, 1950.
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