Bombay High Court Dismisses Writ Petition by Charitable Trust Challenging Reinstatement Order — Trust Not 'State' Under Article 12. Private Trust Receiving Government Grant Not Amenable to Writ Jurisdiction Under Article 226 of the Constitution.

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

The petitioner, The Narsinnghrao Shivaji Dharmaji Industrial Home for the Blind, is a charitable trust established in 1917, registered under the Bombay Public Trust Act, 1950. It runs a school providing vocational training to visually impaired persons and has been receiving government grant since 1990 under the Government Physically Handicapped Special School Code. The respondent no.1, Suresh Dattatray Kulkarni, was appointed as Superintendent of the school. By an order dated 12th June 1999, the petitioner terminated the services of the respondent no.1. The respondent no.1 filed an appeal before the Divisional Welfare Officer, Mumbai, under the Bombay Public Trust Act. The Divisional Welfare Officer, by order dated 30th April 2005, set aside the termination order and directed reinstatement. The petitioner challenged this appellate order by filing a writ petition under Article 226 of the Constitution of India before the Bombay High Court. The main legal issue was whether a writ petition is maintainable against a private charitable trust that receives government grant and is regulated by the Bombay Public Trust Act. The petitioner argued that since it receives substantial government grant and is subject to government control, it is amenable to writ jurisdiction. The respondent contended that the trust is a private entity and not 'State' under Article 12. The court analyzed the nature of the trust and held that mere receipt of grant and regulation under the Bombay Public Trust Act does not make the trust a public authority. The court observed that the trust is not created by statute nor is it under deep and pervasive control of the government. Therefore, the writ petition is not maintainable. The court dismissed the petition, leaving it open to the petitioner to avail alternative remedies under the Bombay Public Trust Act.

Headnote

A) Constitutional Law - Writ Jurisdiction - Maintainability against Private Trust - Article 226 of the Constitution of India - The petitioner, a charitable trust registered under the Bombay Public Trust Act, 1950, receiving government grant for running a school for visually impaired persons, is not 'State' under Article 12 and not amenable to writ jurisdiction under Article 226. The mere receipt of grant and regulation under the Bombay Public Trust Act does not make the trust a public authority. (Paras 1-10)

B) Service Law - Termination of Services - Appeal under Bombay Public Trust Act - Section 50 of the Bombay Public Trust Act, 1950 - The respondent employee's termination was set aside by the Divisional Welfare Officer in appeal under Section 50 of the Act. The High Court held that the writ petition challenging that order is not maintainable as the trust is not a 'State' or 'other authority' under Article 12. (Paras 1-10)

C) Administrative Law - Government Grant - Effect on Status of Institution - Article 226 of the Constitution of India - Receipt of government grant and regulation under a special statute does not transform a private charitable trust into a public authority for the purpose of writ jurisdiction. The trust remains a private entity and its actions are not subject to judicial review under Article 226. (Paras 2-10)

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Issue of Consideration

Whether a writ petition under Article 226 of the Constitution of India is maintainable against a private charitable trust which receives government grant and is subject to the Bombay Public Trust Act, 1950?

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Final Decision

The writ petition is dismissed as not maintainable. The court held that the petitioner trust is not 'State' under Article 12 of the Constitution and not amenable to writ jurisdiction under Article 226. The petitioner is at liberty to avail alternative remedies under the Bombay Public Trust Act.

Law Points

  • Writ jurisdiction under Article 226 not available against private charitable trust receiving government grant
  • Bombay Public Trust Act
  • 1950 provides alternative remedy
  • Termination of services by private trust not amenable to writ jurisdiction
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Case Details

2006 LawText (BOM) (07) 57

Writ Petition No. 1548 of 2005

2006-07-03

D.G. Karnik, J

Mr.R.M. Nakhwa i/w Mr.V.B. Dhawan for the petitioner, Mr.P.K. Dhakephalkar a/w A.A. Kocharekar for respondent no.1, Mr.P.V. Dhopatkar AGP for respondent nos.2 and 3

The Narsinnghrao Shivaji Dharmaji Industrial Home for the Blind

Suresh Dattatray Kulkarni & ors.

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Nature of Litigation

Writ petition under Article 226 of the Constitution of India challenging an order of the Divisional Welfare Officer setting aside termination of services of an employee by a charitable trust.

Remedy Sought

The petitioner (charitable trust) sought quashing of the order dated 30th April 2005 passed by the Divisional Welfare Officer, Mumbai, which set aside the termination of the respondent no.1 and directed reinstatement.

Filing Reason

The petitioner trust terminated the services of respondent no.1, who then appealed to the Divisional Welfare Officer under the Bombay Public Trust Act. The appellate officer set aside the termination, prompting the trust to file a writ petition challenging that order.

Previous Decisions

The Divisional Welfare Officer, Mumbai, by order dated 30th April 2005, allowed the appeal of respondent no.1 and set aside the termination order dated 12th June 1999 passed by the petitioner.

Issues

Whether a writ petition under Article 226 of the Constitution is maintainable against a private charitable trust that receives government grant and is regulated by the Bombay Public Trust Act, 1950?

Submissions/Arguments

The petitioner argued that since it receives substantial government grant and is subject to government control under the Bombay Public Trust Act, it is amenable to writ jurisdiction under Article 226. The respondent contended that the trust is a private entity, not 'State' under Article 12, and therefore not subject to writ jurisdiction.

Ratio Decidendi

A private charitable trust receiving government grant and regulated under the Bombay Public Trust Act does not become 'State' under Article 12 of the Constitution. Such a trust is not amenable to writ jurisdiction under Article 226. The mere receipt of grant and statutory regulation does not transform the trust into a public authority.

Judgment Excerpts

This Writ Petition is directed against the order dated 30th April 2005 passed by the Divisional Welfare Officer, Mumbai in an appeal against the order of the petitioner dated 12th June 1999, terminating services of the respondent. The petitioner is a charitable trust established in the year 1917 or thereabout. The petitioner is running a school for giving vocational training to the visually impaired persons. Since the year 1990 or thereabout, petitioner has been receiving grant from the government. The grant is sanctioned under the Government Physically Handicapped Special School Code (for short ’the Code’) framed by the government in the year 1985.

Procedural History

The petitioner trust terminated the services of respondent no.1 on 12th June 1999. Respondent no.1 filed an appeal before the Divisional Welfare Officer, Mumbai, under the Bombay Public Trust Act. The Divisional Welfare Officer allowed the appeal on 30th April 2005, setting aside the termination. The petitioner then filed the present writ petition under Article 226 of the Constitution before the Bombay High Court on 3rd July 2006.

Acts & Sections

  • Bombay Public Trust Act, 1950: Section 50
  • Constitution of India: Article 12, Article 226
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