Bombay High Court Allows Appeal by Public Trust in Property Dispute — Civil Court Jurisdiction Not Barred Under Sections 79 and 80 of Bombay Public Trust Act. Suit for Declaration of Ownership and Recovery of Possession by Trust Against Third Parties is Maintainable Under Section 50 of the Act.

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

The present appeal arises from a suit filed by Seth Kasturmal Dalsukh Dharmashala, a public trust registered under the Bombay Public Trust Act, 1950 (B.P.T. Act), through its trustees, against the respondents for declaration of ownership and recovery of possession of trust property. The trust had obtained necessary sanction from the Charity Commissioner under Section 51 of the B.P.T. Act before filing the suit. The District Court dismissed the suit for want of jurisdiction, holding that in view of Sections 79 and 80 of the B.P.T. Act, the Civil Court does not have jurisdiction to try and entertain the suit. The appellants challenged this dismissal. The only issue before the High Court was whether the District Court had jurisdiction to try the suit. The appellants argued that the suit was maintainable under Section 50 of the B.P.T. Act and that the bar under Section 80 applies only to disputes under Section 79, which pertain to matters concerning the trust or trustees inter se, not to suits by a trust against third parties for possession and declaration of ownership. The respondents supported the District Court's view. The High Court analyzed Sections 79 and 80 of the B.P.T. Act and held that Section 80 bars the jurisdiction of civil courts only in respect of disputes falling under Section 79, which include questions regarding the validity of a trust, the appointment of trustees, or the administration of the trust. A suit by a trust against third parties for declaration of ownership and recovery of possession does not fall within the ambit of Section 79. Therefore, the civil court has jurisdiction to entertain such a suit. The High Court allowed the appeal, set aside the judgment of the District Court, and remanded the matter for trial on merits, directing the District Court to decide the suit in accordance with law.

Headnote

A) Civil Procedure - Jurisdiction of Civil Court - Bar under Bombay Public Trust Act - Sections 79, 80, 50, 51 Bombay Public Trust Act, 1950 - The suit was filed by a public trust for declaration of ownership and recovery of possession of trust property against third parties after obtaining sanction under Section 51 of the Act. The District Court dismissed the suit for want of jurisdiction holding that Sections 79 and 80 bar the civil court's jurisdiction. The High Court held that the bar under Section 80 applies only to disputes under Section 79, which relate to matters concerning the trust or trustees inter se, and not to suits by a trust against third parties for possession and declaration of ownership. Such suits are maintainable under Section 50 of the Act. The appeal was allowed and the matter remanded for trial on merits. (Paras 2-8)

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Issue of Consideration

Whether the District Court has jurisdiction to try and entertain a suit for declaration of ownership and recovery of possession filed by a public trust against third parties, in view of Sections 79 and 80 of the Bombay Public Trust Act.

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Final Decision

The appeal is allowed. The judgment and order of the District Court dated 13/09/2012 dismissing the suit for want of jurisdiction is set aside. The matter is remanded back to the District Court for trial on merits. The District Court is directed to decide the suit in accordance with law. No order as to costs.

Law Points

  • Jurisdiction of Civil Court
  • Bar of suit under Bombay Public Trust Act
  • Section 79 and 80 B.P.T. Act
  • Section 50 B.P.T. Act
  • Section 51 B.P.T. Act
  • Declaration of ownership
  • Recovery of possession
  • Public trust property
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Case Details

2012 LawText (BOM) (10) 13

First Appeal No. 3061 of 2009

2012-10-03

S. V. Gangapurwala

Shri S. P. Shah for Appellants, Shri P. B. Pawar for Respondent Nos. 1 to 5, Smt. R. K. Ladda, A.G.P. for Respondent Nos. 6 to 8

Seth Kasturmal Dalsukh Dharmashala through its trustees Shamlal S/o Jankilal Agrawal and Gopal S/o Jagdish Agrawal

Smt. Shantidevi W/o Laxminarayan Agrawal, Jagdish S/o Laxminarayan Agrawal, Mahendra S/o Laxminarayan Agrawal, Krushnachandra S/o Laxminarayan Agrawal, Rajshree W/o Anil Agrawal, The Collector Dhule, The State of Maharashtra, The Charity Commissioner Nasik

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Nature of Litigation

First appeal against dismissal of suit for want of jurisdiction

Remedy Sought

Appellants sought to set aside the District Court's order dismissing the suit and to remand the matter for trial on merits

Filing Reason

The District Court dismissed the suit for declaration of ownership and recovery of possession filed by the appellant trust, holding that the civil court lacked jurisdiction under Sections 79 and 80 of the Bombay Public Trust Act.

Previous Decisions

The District Court dismissed the suit for want of jurisdiction.

Issues

Whether the District Court has jurisdiction to try and entertain a suit for declaration of ownership and recovery of possession filed by a public trust against third parties, in view of Sections 79 and 80 of the Bombay Public Trust Act.

Submissions/Arguments

Appellants argued that the suit was maintainable under Section 50 of the B.P.T. Act and that the bar under Section 80 applies only to disputes under Section 79, which relate to matters concerning the trust or trustees inter se, not to suits by a trust against third parties for possession and declaration of ownership. Respondents supported the District Court's view that the civil court lacks jurisdiction.

Ratio Decidendi

The bar under Section 80 of the Bombay Public Trust Act applies only to disputes falling under Section 79, which pertain to matters concerning the trust or trustees inter se. A suit by a public trust against third parties for declaration of ownership and recovery of possession does not fall within the ambit of Section 79, and therefore the civil court has jurisdiction to entertain such a suit under Section 50 of the Act.

Judgment Excerpts

The only issue involved in the present appeal is about the jurisdiction of the District Court, to try and entertain the suit for declaration of ownership and recovery of possession in view of Sec. 79 and 80 of the Bombay Public Trust Act. The bar under Sec. 80 of the B.P.T. Act is only in respect of the disputes falling under Sec. 79 of the B.P.T. Act. The suit filed by the plaintiff trust for declaration of ownership and recovery of possession against the defendants who are third parties would not fall within the ambit of Sec. 79 of the B.P.T. Act.

Procedural History

The appellant trust filed a suit for declaration of ownership and recovery of possession in the District Court. The District Court dismissed the suit for want of jurisdiction. The trust appealed to the High Court.

Acts & Sections

  • Bombay Public Trust Act, 1950: 50, 51, 79, 80
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