Bombay High Court Quashes Restraint Order Against Trust Secretary in Bombay Public Trusts Act Case — Interim Relief Granted Pending Change Report Decision. Court holds that newly elected body cannot assume office without acceptance of change under Section 41-A of Bombay Public Trusts Act, 1950.

High Court: Bombay High Court Bench: NAGPUR In Favour of Accused
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Case Note & Summary

The petitioner, Babanrao Jawade, was the Secretary of a trust and claimed to have been acting as such since 1985. The last elections to the trust were held on 26/10/2008. The respondent no.1, Dnyaneshwar Bhoyar, filed an application under Section 41-A of the Bombay Public Trusts Act, 1950, alleging that elections were held on 10/2/2010 and that the newly elected body should be allowed to function. The Assistant Charity Commissioner, Bhandara, allowed the application by order dated 4/7/2011, restraining the petitioner from issuing any notice, circular, or letter for calling meetings of the trust as Secretary. The petitioner challenged this order by way of a writ petition under Articles 226 and 227 of the Constitution of India. The High Court noted that the Assistant Charity Commissioner had recorded that changes had occurred on 26/10/2008 and 10/2/2010, but did not go into the validity of those changes. The court observed that the impugned order was passed without considering the merits of the change report and that the newly elected body could not assume office without acceptance of the change. The court quashed the impugned order and directed the Assistant Charity Commissioner to decide the change report within three months. The petition was allowed.

Headnote

A) Bombay Public Trusts Act - Section 41-A - Interim Relief - Restraint Order - The Assistant Charity Commissioner allowed an application under Section 41-A and restrained the petitioner from issuing notices for meetings as Secretary, based on elections held on 10/2/2010. The court held that the newly elected body cannot assume office without acceptance of the change report, and the impugned order was passed without considering the validity of the elections. The order was quashed and set aside. (Paras 2-5)

B) Trust Law - Change Report - Acceptance - Assumption of Office - The court observed that it is not necessary that the change should be accepted for the newly elected body to assume office, but the Assistant Charity Commissioner's order was premature as the change report was pending. The court directed the Assistant Charity Commissioner to decide the change report within three months. (Paras 4-5)

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Issue of Consideration

Whether the Assistant Charity Commissioner could restrain the petitioner from acting as Secretary and allow the newly elected body to function without acceptance of the change report under Section 41-A of the Bombay Public Trusts Act, 1950.

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Final Decision

The writ petition is allowed. The impugned order dated 4/7/2011 passed by the Assistant Charity Commissioner, Bhandara, is quashed and set aside. The Assistant Charity Commissioner is directed to decide the change report within three months from the date of the order. Rule is made absolute accordingly.

Law Points

  • Section 41-A of Bombay Public Trusts Act
  • 1950
  • Interim relief
  • Change report
  • Assumption of office
  • Prima facie case
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Case Details

2011 LawText (BOM) (08) 125

Writ Petition No.3521 of 2011

2011-08-03

R.M. Savant, J.

Shri R.L. Khapre for petitioner, Shri S.A. Abhyankar for respondent no.1

Babanrao s/o Damduji Jawade

Dnyaneshwar s/o Ramaji Bhoyar, The Assistant Charity Commissioner, Bhandara

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Nature of Litigation

Writ petition challenging an order passed by the Assistant Charity Commissioner under Section 41-A of the Bombay Public Trusts Act, 1950, restraining the petitioner from acting as Secretary of a trust.

Remedy Sought

The petitioner sought quashing of the order dated 4/7/2011 passed by the Assistant Charity Commissioner, Bhandara.

Filing Reason

The petitioner was restrained from issuing notices for meetings as Secretary of the trust based on an application filed by respondent no.1 claiming that elections were held on 10/2/2010.

Previous Decisions

The Assistant Charity Commissioner allowed the application under Section 41-A and restrained the petitioner.

Issues

Whether the Assistant Charity Commissioner could restrain the petitioner from acting as Secretary without deciding the validity of the elections? Whether the newly elected body can assume office without acceptance of the change report under Section 41-A?

Submissions/Arguments

The petitioner argued that he was the Secretary since 1985 and the impugned order was passed without considering the merits of the change report. The respondent no.1 contended that elections were held on 10/2/2010 and the newly elected body should be allowed to function.

Ratio Decidendi

The newly elected body of a trust cannot assume office without acceptance of the change report under Section 41-A of the Bombay Public Trusts Act, 1950. The Assistant Charity Commissioner cannot pass an interim restraint order without considering the validity of the elections.

Judgment Excerpts

The Assistant Charity Commissioner has recorded that changes have occurred on 26/10/2008 and 10/2/2010 and, therefore, merits as to whether the changes are valid or not need not be gone into at this stage. It is required to be noted that in terms of the Constitution of the Trust, the elections are to be held every three years.

Procedural History

The respondent no.1 filed an application under Section 41-A of the Bombay Public Trusts Act, 1950, before the Assistant Charity Commissioner, Bhandara. The Assistant Charity Commissioner allowed the application by order dated 4/7/2011, restraining the petitioner. The petitioner challenged this order by filing Writ Petition No.3521 of 2011 before the Bombay High Court, Nagpur Bench.

Acts & Sections

  • Bombay Public Trusts Act, 1950: 41-A
  • Constitution of India: 226, 227
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