Bombay High Court Dismisses Revision Against Rejection of Preliminary Objection on Maintainability of Suit Against Public Trust. Permission of Charity Commissioner Not Required When Suit is by a Third Party for Enforcement of Civil Rights Unconnected with Trust Administration.

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

The applicant, Maharashtra Shetkari Seva Mandal, a public trust, challenged an order dated 16.7.2008 passed by the Civil Judge, Junior Division, Manmad City, rejecting its preliminary objection regarding maintainability of Regular Civil Suit No.23 of 2008 filed by the respondent, Bhaurao Bayaji Garud. The respondent/plaintiff sought a perpetual injunction and declaration, alleging that in 1971 he had permitted the trust to use 4 ares of his ancestral land for a godown for farmers' benefit. Later, one trustee returned the land and godown to him, but other trustees obstructed his possession, prompting the suit in June 2008. The trust contended that the suit was barred under Sections 50, 51, and 80 of the Bombay Public Trusts Act, 1950, as no sanction of the Charity Commissioner was obtained. Preliminary issues were framed under Section 9A of the CPC. The trial court answered the issues in favor of the plaintiff, holding the suit maintainable. The High Court, in civil revision, considered whether a third party not interested in the trust requires prior sanction to sue. The applicant's counsel argued that Section 50 mandates prior permission for any suit against a public trust, citing Mahibubi Abdul Aziz v. Sayed Abdul Majid, Virupakshayya Shakarayya v. Neelakanta Shivacharya, and Yasinmian Amirmian Faroqui v. I.A. Shaikh. The respondent's counsel relied on Sainath Mandir Trust, Amravati v. Vijaya w/o. Vithalrao Mandale, which held that a person not interested in the trust need not seek sanction. The High Court agreed, distinguishing the cited cases as involving persons interested in the trust. It held that the plaintiff's suit was for enforcement of civil rights over land, not relating to trust administration, and thus no sanction was required. The revision application was dismissed, upholding the trial court's order.

Headnote

A) Civil Procedure - Maintainability of Suit - Preliminary Objection under Section 9A CPC - The trial court rejected the defendant trust's objection that the suit was barred under Sections 50, 51, and 80 of the Bombay Public Trusts Act, 1950. The High Court upheld the rejection, holding that the plaintiff, a third party not interested in the trust, sought enforcement of his civil rights over land allegedly permitted to the trust, which does not require prior sanction of the Charity Commissioner. (Paras 1-6)

B) Trusts - Bombay Public Trusts Act, 1950 - Sections 50, 51, 80 - Sanction of Charity Commissioner - The requirement of prior sanction under Section 50 applies only to suits by or against a public trust relating to the trust or trust property. A suit by a third party for declaration of title and injunction based on civil rights, not involving any issue of trust administration or breach of trust, is not barred. The bar under Section 80 applies only to issues that can be decided by authorities under the Act. (Paras 4-6)

C) Precedent - Sainath Mandir Trust, Amravati v. Vijaya w/o. Vithalrao Mandale & Ors., 2003(4) Mh.L.J. 187 - Followed - A person who is not interested in the trust and agitates his civil rights against the trust need not seek sanction of the Charity Commissioner. The decision in Mahibubi Abdul Aziz v. Sayed Abdul Majid, 2001(3) Bom.C.R. 33, distinguished as it pertained to a suit by a person interested in the trust. (Paras 5-6)

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Issue of Consideration

Whether a civil suit filed by a third party against a public trust for declaration and injunction regarding possession of land is maintainable without prior sanction of the Charity Commissioner under Section 50 of the Bombay Public Trusts Act, 1950.

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Final Decision

The High Court dismissed the civil revision application, upholding the trial court's order that the suit is maintainable. The court held that the plaintiff, being a third party not interested in the trust, does not require prior sanction of the Charity Commissioner under Section 50 of the Bombay Public Trusts Act, 1950, as the suit is for enforcement of civil rights over land and not relating to trust administration.

Law Points

  • Section 50 of Bombay Public Trusts Act
  • 1950 requires prior sanction of Charity Commissioner only for suits by or against a public trust relating to the trust or trust property
  • Section 80 bars civil suits only in respect of issues which can be decided by authorities under the Act
  • a third party not interested in the trust can sue for enforcement of civil rights without such sanction.
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Case Details

2010 LawText (BOM) (02) 52

Civil Revision Application No.526 of 2008

2010-02-04

Smt. Nishita Mhatre, J.

Mr.S.K. Shinde i/b Sagar Kasar for Applicant, Mr.Anilkumar Patil for Respondents

Maharashtra Shetkari Seva Mandal

Bhaurao Bayaji Garud

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Nature of Litigation

Civil revision application against rejection of preliminary objection regarding maintainability of suit and jurisdiction of civil court.

Remedy Sought

The applicant trust sought dismissal of the suit as not maintainable for want of sanction under Bombay Public Trusts Act.

Filing Reason

The respondent/plaintiff filed a suit for perpetual injunction and declaration alleging that the trust was obstructing his possession of land which he had permitted them to use.

Previous Decisions

The trial court (Civil Judge, Junior Division, Manmad City) rejected the trust's preliminary objection on 16.7.2008, holding the suit maintainable.

Issues

Whether a civil suit filed by a third party against a public trust for declaration and injunction regarding possession of land is maintainable without prior sanction of the Charity Commissioner under Section 50 of the Bombay Public Trusts Act, 1950.

Submissions/Arguments

Applicant trust argued that under Sections 50, 51, and 80 of the Bombay Public Trusts Act, no suit against a public trust can be instituted without prior sanction of the Charity Commissioner, and the civil court has no jurisdiction. Respondent/plaintiff argued that a person not interested in the trust need not obtain sanction to enforce civil rights, relying on Sainath Mandir Trust case.

Ratio Decidendi

The requirement of prior sanction under Section 50 of the Bombay Public Trusts Act, 1950 applies only to suits by or against a public trust relating to the trust or trust property. A third party not interested in the trust can sue for enforcement of civil rights without such sanction. The bar under Section 80 applies only to issues that can be decided by authorities under the Act.

Judgment Excerpts

The learned counsel for the respondent submits that the issue as to whether a person who has no connection with the Trust can file a civil suit without obtaining permission from the Charity Commissioner is no longer res integra in view of the decision of the learned Single Judge of this Court in the case of Sainath Mandir Trust, Amravati v. Vijaya w/o. Vithalrao Mandale & Ors., 2003(4) Mh.L.J. 187. In my opinion, the trial Court has correctly held that the suit is maintainable and that the civil Court has jurisdiction to entertain the suit.

Procedural History

The respondent/plaintiff filed Regular Civil Suit No.23 of 2008 in June 2008 before the Civil Judge, Junior Division, Manmad City, seeking perpetual injunction and declaration. The applicant trust filed an application under Section 9A of CPC raising preliminary objection as to maintainability and jurisdiction. The trial court framed preliminary issues and rejected the objection on 16.7.2008. The trust filed Civil Revision Application No.526 of 2008 in the Bombay High Court against that order. The High Court reserved judgment on 13.1.2010 and pronounced it on 4.2.2010, dismissing the revision.

Acts & Sections

  • Bombay Public Trusts Act, 1950: 50, 51, 80
  • Code of Civil Procedure, 1908 (CPC): 9A
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