Bombay High Court Allows Appeal Against Removal of Trustees Under Bombay Public Trusts Act — Charges Not Proved. Section 41D Removal Requires Proof of Specific Charges; Mere Default in Filing Returns Not Sufficient for Removal.

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

The case involves a second appeal filed by eleven trustees (appellants) against the judgment and order dated 6-3-2012 passed by the Joint Charity Commissioner, Nagpur, partly allowing Application No.42 of 2005 filed by the respondent No.1 and his deceased father under Section 41D of the Bombay Public Trusts Act, 1950, for removal of the appellants as trustees of Om Shri Sainath Baba Sewa Sanstha, Civil Lines, Gondia, a public trust bearing P.T.R. No.F2689(B). The Joint Charity Commissioner had framed seven charges against the appellants on 19-3-2009, including persistent default in submission of accounts, misappropriation of funds, and other irregularities. After hearing the parties, the Commissioner partly allowed the application and removed the appellants as trustees. The appellants challenged this order in the High Court. The High Court examined the evidence and found that none of the charges were proved. The court noted that the trust had filed returns for several years, and there was no evidence of misappropriation or other misconduct. The court held that the Commissioner's findings were perverse and not based on evidence. Consequently, the High Court allowed the appeal, set aside the order of removal, and restored the appellants as trustees. The court also directed that the trust's administration should continue as per law.

Headnote

A) Bombay Public Trusts Act - Removal of Trustees - Section 41D - Charges Not Proved - The Joint Charity Commissioner framed seven charges against the trustees, but the evidence did not prove any of them. The court held that the order of removal was unsustainable as the charges were not established. (Paras 1-6)

B) Bombay Public Trusts Act - Default in Submission of Accounts - Section 41D - Persistent Default - The charge of persistent default in submission of accounts was not proved as the trust had filed returns for several years. The court found that the Commissioner's finding was perverse. (Paras 5-6)

C) Bombay Public Trusts Act - Misappropriation of Funds - Section 41D - No Evidence - The charge of misappropriation of trust funds was not supported by any evidence. The court held that mere allegations without proof cannot justify removal. (Paras 5-6)

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Issue of Consideration

Whether the Joint Charity Commissioner was justified in removing the appellants as trustees under Section 41D of the Bombay Public Trusts Act, 1950, based on the charges framed.

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Final Decision

The High Court allowed the appeal, set aside the order of the Joint Charity Commissioner dated 6-3-2012, and restored the appellants as trustees of the trust. The court directed that the administration of the trust shall continue in accordance with law.

Law Points

  • Section 41D of Bombay Public Trusts Act
  • 1950
  • removal of trustees
  • burden of proof
  • charges not proved
  • default in submission of accounts
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Case Details

2012 LawText (BOM) (10) 163

Second Appeal No.360 of 2012

2012-10-17

R.K. Deshpande, J.

Shri Sunil Manohar, Senior Advocate, assisted by Shri S.D. Abhyankar, Advocate for Appellant; Shri R.S. Parsodkar, Advocate for Respondents

Santoshkumar s/o Nandkishor Pande and others

Vinaykumar s/o Sattyanarayan Mishra and The Joint Charity Commissioner, Nagpur

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Nature of Litigation

Second appeal against order of Joint Charity Commissioner removing trustees under Section 41D of Bombay Public Trusts Act.

Remedy Sought

Appellants sought setting aside of the order of removal and restoration as trustees.

Filing Reason

The Joint Charity Commissioner partly allowed an application for removal of trustees, and the trustees appealed.

Previous Decisions

Joint Charity Commissioner partly allowed Application No.42 of 2005 and removed the appellants as trustees.

Issues

Whether the Joint Charity Commissioner was justified in removing the appellants as trustees under Section 41D of the Bombay Public Trusts Act, 1950, based on the charges framed.

Submissions/Arguments

Appellants argued that none of the charges were proved and the order was perverse. Respondents supported the order of removal.

Ratio Decidendi

Under Section 41D of the Bombay Public Trusts Act, 1950, removal of trustees requires proof of specific charges. Mere default in filing returns or allegations without evidence cannot justify removal. The burden of proof lies on the applicant seeking removal.

Judgment Excerpts

This second appeal challenges the judgment and order dated 6-3-2012 passed by the learned Joint Charity Commissioner, Nagpur, thereby partly allowing Application No.42 of 2005 filed by the respondent No.1 and his deceased father under Section 41D of the Bombay Public Trusts Act, 1950 for removal of the appellants as Trustees. On 19-3-2009, seven charges were framed against the appellants in the proceedings under Section 41D of the Bombay Public Trusts Act as under : ... The order passed by the Joint Charity Commissioner is unsustainable and is liable to be set aside.

Procedural History

Application No.42 of 2005 was filed by respondent No.1 and his deceased father under Section 41D of the Bombay Public Trusts Act, 1950, before the Joint Charity Commissioner, Nagpur, seeking removal of the appellants as trustees. On 19-3-2009, seven charges were framed. After hearing, the Joint Charity Commissioner partly allowed the application on 6-3-2012, removing the appellants. The appellants filed Second Appeal No.360 of 2012 in the Bombay High Court, Nagpur Bench, which was allowed on 17-10-2012.

Acts & Sections

  • Bombay Public Trusts Act, 1950: Section 41D
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