Case Note & Summary
The petitioner, Shri Shivaji Shikshan Sanstha, Amravati, challenged an order dated 3.7.2019 passed by the Assistant Charity Commissioner, Bhandara, which allowed an application filed by respondent Nos.1 and 2 under Section 51 of the Maharashtra Public Trusts Act, 1950, granting them permission to file a civil suit against the petitioner society. The petitioner contended that the order was passed without giving any notice or opportunity of hearing to the petitioner, in violation of the proviso to Sub-Rule (3) of Rule 27 of the Maharashtra Public Trusts Rules, 1951. The respondents argued that neither Section 51 nor Rule 27 required impleading the proposed defendants as non-applicants, and that they had complied with Rule 27(1)(f) by providing names of trustees of the Maharashtra Shivaji Shikshan Sanstha, Sihora. However, the Court noted that the application itself stated that the contesting defendant would be the petitioner trust, and the subsequent plaint showed the petitioner as defendant No.4, while the Sihora trust was not made a defendant. The Court found the respondents' submission misleading. Relying on the proviso to Rule 27(3), which explicitly requires that no consent be granted unless the trustees of the trust against which the suit is proposed are given an opportunity of hearing, the Court held that the impugned order was passed in gross violation of natural justice. The Court also referred to the judgment in Bai W/o Mohamed Mulla v. Charity Commissioner, 1999(2) Mh.LJ.26, which supported the petitioner's position. Consequently, the Court quashed and set aside the impugned order and remitted the matter back to the Assistant Charity Commissioner for fresh consideration after giving notice and hearing to the petitioner trust.
Headnote
A) Charity Law - Consent to Sue - Section 51 Maharashtra Public Trusts Act, 1950 - Rule 27(3) proviso Maharashtra Public Trusts Rules, 1951 - Natural Justice - The Assistant Charity Commissioner granted permission to respondent Nos.1 and 2 to file a civil suit against the petitioner trust without issuing notice or hearing the petitioner. The Court held that the proviso to Rule 27(3) mandates that no consent shall be granted unless the trustees of the public trust against which the suit is proposed are given an opportunity of hearing. The impugned order was quashed as it violated principles of natural justice. (Paras 3-6)
Issue of Consideration
Whether the Assistant Charity Commissioner can grant permission under Section 51 of the Maharashtra Public Trusts Act, 1950 to file a civil suit against a trust without giving notice and hearing to the proposed defendant trust.
Final Decision
The Court quashed and set aside the impugned order passed by the Assistant Charity Commissioner and remitted the matter back for fresh consideration after giving notice and hearing to the petitioner trust.
Law Points
- Natural justice
- opportunity of hearing
- Section 51 Maharashtra Public Trusts Act
- 1950
- Rule 27 Maharashtra Public Trusts Rules
- 1951
- consent to sue
Case Details
2019 LawText (BOM) (07) 199
Writ Petition No.1269/2019
Shri P.K. Mohta for petitioner, Shri C.S. Dhabe with Shri V.A. Dhabe for respondent Nos.1 and 2, Shri N.R. Patil, A.G.P. for respondent No.3
Shri Shivaji Shikshan Sanstha
Rajiv S/o Martandrao Dalal, Sanjeev S/o Martandrao Dalal, Assistant Charity Commissioner
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Nature of Litigation
Writ petition challenging order of Assistant Charity Commissioner granting permission to file civil suit under Section 51 of Maharashtra Public Trusts Act, 1950.
Remedy Sought
Petitioner sought quashing of the order granting permission to file civil suit against it.
Filing Reason
The impugned order was passed without giving notice or hearing to the petitioner trust, violating principles of natural justice.
Previous Decisions
Assistant Charity Commissioner allowed application of respondent Nos.1 and 2 under Section 51 of the Act of 1950, granting permission to file civil suit against the petitioner.
Issues
Whether the Assistant Charity Commissioner can grant permission under Section 51 of the Maharashtra Public Trusts Act, 1950 to file a civil suit against a trust without giving notice and hearing to the proposed defendant trust.
Submissions/Arguments
Petitioner argued that the proviso to Rule 27(3) of the Maharashtra Public Trusts Rules, 1951 mandates that no consent shall be granted unless the trustees of the public trust against which the suit is proposed are given an opportunity of hearing.
Respondent Nos.1 and 2 argued that neither Section 51 nor Rule 27 requires impleading the proposed defendants as non-applicants, and they had complied with Rule 27(1)(f) by providing names of trustees of the Sihora trust.
Ratio Decidendi
The proviso to Sub-Rule (3) of Rule 27 of the Maharashtra Public Trusts Rules, 1951 mandates that no consent under Section 51 of the Maharashtra Public Trusts Act, 1950 shall be granted unless the trustees of the public trust against which the civil suit is proposed to be filed are given an opportunity of hearing. The order granting consent without such hearing is in gross violation of principles of natural justice and is liable to be quashed.
Judgment Excerpts
Relying on the proviso below SubRule (3) of Rule 27 of the Maharashtra Public Trusts Rules, 1951, it is argued by learned Advocate for the petitioner that consent to file civil suit as per Section 51 of the Act of 1950 cannot be granted unless trustees of the public trust against which the civil suit is proposed to be filed are given an opportunity of hearing.
In these facts, I find that the submission made on behalf of respondent Nos.1 and 2 that Shri Shivaji Shikshan Sanstha, Amravati i.e. present petitioner was not required to be impleaded as nonapplicant in the application filed under Section 51 of the Act of 1950, is misleading.
Procedural History
Respondent Nos.1 and 2 filed an application under Section 51 of the Maharashtra Public Trusts Act, 1950 before the Assistant Charity Commissioner, Bhandara, seeking permission to file a civil suit against the petitioner trust. The Assistant Charity Commissioner allowed the application and granted permission. The petitioner challenged this order by filing Writ Petition No.1269/2019 before the Bombay High Court, Nagpur Bench.
Acts & Sections
- Maharashtra Public Trusts Act, 1950: Section 51
- Maharashtra Public Trusts Rules, 1951: Rule 27
