Bombay High Court Allows Second Appeal in Trust Dispute Over Appointment of Adhoc Trustees Under Section 41D of Bombay Public Trusts Act, 1950. Court Holds That Assistant Charity Commissioner Has Power to Appoint Adhoc Trustees Pending Scheme Finalization and That Such Appointment Does Not Require Prior Notice to All Interested Parties.

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

The dispute in this Second Appeal arises from the administration of a public trust named 'Bhartiya Shikshan Sanstha, Bhisi' governed by the Bombay Public Trusts Act, 1950. The appellants, who were applicants in Scheme Application No. 126/2007, sought the removal of the existing Board of Trustees and appointment of an adhoc body. The Assistant Charity Commissioner, by order dated 14th February 2010, partly allowed the scheme application, removed the existing trustees, and appointed an adhoc body of seven persons including the appellants. However, the respondents, who were the original trustees and other interested parties, filed Misc. Civil Applications before the District Judge, who by order dated 23rd August 2010, set aside the Assistant Charity Commissioner's order and modified the scheme to include three different persons as adhoc trustees. The appellants challenged this order in the present Second Appeal. The core legal issue was whether the Assistant Charity Commissioner had the power to appoint adhoc trustees under Section 41D of the Act and whether such appointment required prior notice to all interested parties. The appellants argued that the Assistant Charity Commissioner had the jurisdiction to appoint adhoc trustees as an interim measure and that the District Judge erred in interfering with that order. The respondents contended that the appointment was made without notice and violated principles of natural justice. The High Court analyzed Section 41D and held that the Assistant Charity Commissioner has the power to appoint adhoc trustees pending finalization of a scheme, and such appointment is an interim measure not requiring prior notice to all parties. The court found that the District Judge had exceeded his jurisdiction by substituting his own choice of trustees. Consequently, the High Court allowed the appeal, set aside the District Judge's order, and restored the Assistant Charity Commissioner's order dated 14th February 2010.

Headnote

A) Bombay Public Trusts Act, 1950 - Section 41D - Appointment of Adhoc Trustees - Power of Charity Commissioner - The Assistant Charity Commissioner has the power to appoint adhoc trustees pending finalization of a scheme under Section 41D of the Act. Such appointment is an interim measure and does not require prior notice to all interested parties as it is not a final determination of rights. (Paras 1-10)

B) Natural Justice - Notice - Interim Orders - The requirement of notice under principles of natural justice is not mandatory for interim orders passed under Section 41D of the Bombay Public Trusts Act, 1950, as the order is temporary and subject to final scheme. (Paras 8-10)

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Issue of Consideration

Whether the Assistant Charity Commissioner has the power to appoint adhoc trustees under Section 41D of the Bombay Public Trusts Act, 1950, and whether such appointment requires prior notice to all interested parties.

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Final Decision

Second Appeal allowed. Order dated 23.8.2010 passed by District Judge in Misc. Civil Application Nos.7/2010, 8/2010, 9/2010 and 16/2010 is set aside. Order dated 14th February 2010 passed by Assistant Charity Commissioner is restored.

Law Points

  • Section 41D of Bombay Public Trusts Act
  • 1950
  • Appointment of adhoc trustees
  • Power of Charity Commissioner
  • Natural justice
  • Notice requirement
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Case Details

2011 LawText (BOM) (02) 102

Second Appeal No.483/2010

2011-02-04

R.M. Savant

Mr. P. C. Madkholkar for appellants, Mr. S. D. Abhaynkar for respondents 1 and 5, Mr. S. P. Bhandarkar for respondent no.3, Mr. S. V. Manohar for respondents 2 and 6, Mr. A. Naik for respondent no.4

Murlidhar Haribhau Nimje, Ramchandra Bapurao Adhal, Natu Mahadeo Gongal, Pratap Trimbakrao Badkas, Vijay Balaji Murkute

Bhagwan s/o Dinbaji Jambhule, Dilip Maroti Gujbhe, Shyamrao Keshavrao Nagpure, Uttam Rane, Anil Nathuji Dekate, Prakash Ramji Nannaware

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Nature of Litigation

Second Appeal against order of District Judge in Misc. Civil Applications arising from scheme application under Section 41D of Bombay Public Trusts Act, 1950.

Remedy Sought

Appellants sought restoration of Assistant Charity Commissioner's order appointing them as adhoc trustees.

Filing Reason

Appellants challenged the District Judge's order setting aside the Assistant Charity Commissioner's appointment of adhoc trustees.

Previous Decisions

Assistant Charity Commissioner partly allowed Scheme Application No.126/2007 and appointed adhoc trustees. District Judge in Misc. Civil Application Nos.7/2010, 8/2010, 9/2010, 16/2010 set aside that order and modified scheme to appoint different persons.

Issues

Whether the Assistant Charity Commissioner has power to appoint adhoc trustees under Section 41D of the Bombay Public Trusts Act, 1950. Whether such appointment requires prior notice to all interested parties.

Submissions/Arguments

Appellants argued that Assistant Charity Commissioner had jurisdiction to appoint adhoc trustees as interim measure and District Judge erred in interfering. Respondents contended that appointment was made without notice and violated principles of natural justice.

Ratio Decidendi

Under Section 41D of the Bombay Public Trusts Act, 1950, the Assistant Charity Commissioner has the power to appoint adhoc trustees pending finalization of a scheme. Such appointment is an interim measure and does not require prior notice to all interested parties as it is not a final determination of rights.

Judgment Excerpts

The genesis of the dispute involved in the above proceedings lie in the application filed under Section 41D of the Bombay Public Trusts Act, 1950. The Assistant Charity Commissioner has the power to appoint adhoc trustees pending finalization of a scheme under Section 41D of the Act.

Procedural History

Scheme Application No.126/2007 filed by appellants before Assistant Charity Commissioner. Assistant Charity Commissioner partly allowed it on 14.2.2010. Respondents filed Misc. Civil Application Nos.7/2010, 8/2010, 9/2010, 16/2010 before District Judge. District Judge allowed Misc. Civil Application No.7/2010 and modified scheme on 23.8.2010. Appellants filed Second Appeal No.483/2010 in High Court.

Acts & Sections

  • Bombay Public Trusts Act, 1950: 41D
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