Bombay High Court Allows Second Appeal in Trust Dispute Over Meeting Validity — Rejection of Plaint Upheld as Suit Barred by Section 80 of Maharashtra Public Trusts Act. The court held that civil court lacks jurisdiction to entertain disputes relating to internal management of public trusts, and the proper remedy lies before the Charity Commissioner under the Act.

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

The case involves a dispute concerning the internal management of Pune Vidyarthi Griha, a society registered under the Maharashtra Public Charitable Trusts Act. The plaintiffs, who claimed to be the Chairman and Treasurer of the Trust, filed a civil suit seeking a declaration that a meeting of the Council held on 28 April 2012 was illegal and void. They alleged that the meeting was improperly conducted after the Chairman left. The defendants, including the Secretary and other members, contested the suit. The trial court rejected the plaint under Order VII Rule 11 of the Code of Civil Procedure, 1908, holding that the suit was barred by Section 80 of the Maharashtra Public Trusts Act, 1950, which vests exclusive jurisdiction in the Charity Commissioner over disputes relating to the administration of public trusts. The plaintiffs appealed, and the District Judge allowed the appeal, restoring the suit. The defendants then filed a second appeal in the High Court. The High Court examined the plaint allegations and found that the dispute pertained to the internal management of the trust, specifically the validity of a meeting of its Council. The court held that such a dispute falls within the exclusive jurisdiction of the Charity Commissioner under Section 80 of the Act, and the civil court has no jurisdiction to entertain the suit. Consequently, the High Court allowed the second appeal, set aside the order of the District Judge, and restored the trial court's order rejecting the plaint. The court emphasized that the plaint on its face disclosed no cause of action in a civil court and that the proper remedy for the plaintiffs was to approach the Charity Commissioner.

Headnote

A) Trust Law - Jurisdiction of Civil Court - Section 80 of Maharashtra Public Trusts Act, 1950 - Bar of Suit - The suit sought declaration that a meeting of the Council of the Trust was illegal and void. The court held that the dispute relates to the internal management of a public trust and falls within the exclusive jurisdiction of the Charity Commissioner under Section 80 of the Act. The civil court has no jurisdiction to entertain such a suit, and the plaint was rightly rejected under Order VII Rule 11 CPC. (Paras 1-10)

B) Civil Procedure - Rejection of Plaint - Order VII Rule 11 of Code of Civil Procedure, 1908 - Lack of Jurisdiction - The plaint was rejected by the trial court on the ground that the suit was barred by Section 80 of the Maharashtra Public Trusts Act. The appellate court reversed, but the High Court restored the rejection, holding that the plaint on its face disclosed no cause of action and the civil court lacked jurisdiction. (Paras 2-10)

C) Trust Law - Internal Management - Remedy under Maharashtra Public Trusts Act - The court observed that the dispute regarding the validity of a meeting of the Council of a public trust is a matter of internal management and must be agitated before the Charity Commissioner under the provisions of the Act, not in a civil suit. (Paras 5-10)

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Issue of Consideration

Whether the civil court has jurisdiction to entertain a suit challenging the validity of a meeting of the governing body of a public trust registered under the Maharashtra Public Trusts Act, 1950, and whether the plaint was rightly rejected under Order VII Rule 11 of the Code of Civil Procedure, 1908.

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Final Decision

The High Court allowed the Second Appeal, set aside the judgment and order dated 2 May 2015 passed by the District Judge, Pune, and restored the order dated 14 July 2014 passed by the Civil Judge, Pune, rejecting the plaint in Regular Civil Suit No.5314 of 2012. Civil Application No.989 of 2015 also stands disposed of.

Law Points

  • Jurisdiction of civil court barred under Section 80 of Maharashtra Public Trusts Act
  • 1950
  • Suit for declaration of meeting as illegal not maintainable
  • Proper remedy before Charity Commissioner
  • Rejection of plaint under Order VII Rule 11 CPC for lack of jurisdiction
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Case Details

2016 LawText (BOM) (08) 144

Second Appeal No. 460 of 2015 with Civil Application No. 989 of 2015

2016-08-05

N.M. Jamdar

Mr. Ram Apte, Senior Advocate i/b Mr. Saurabh Oka for Appellants; Mr. S.V. Pitre for Respondent Nos.1 to 3

Dr. Rangnath Pandurang Joshi, Madhukar Narhar Deshmukh, Pune Vidyarthi Griha (a Society)

Hanmant Ganpati Bhosale, Ramchandra Laxman Shete, Krishnaji Narayan Shirkande

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Nature of Litigation

Second Appeal against order of District Judge restoring civil suit challenging validity of meeting of trust council.

Remedy Sought

Appellants sought setting aside of the District Judge's order and restoration of trial court's rejection of plaint.

Filing Reason

Appellants contended that the civil suit was barred by Section 80 of the Maharashtra Public Trusts Act, 1950, and the plaint was rightly rejected.

Previous Decisions

Trial court rejected plaint under Order VII Rule 11 CPC on 14 July 2014; District Judge allowed appeal and restored suit on 2 May 2015.

Issues

Whether the civil court has jurisdiction to entertain a suit challenging the validity of a meeting of the governing body of a public trust registered under the Maharashtra Public Trusts Act, 1950. Whether the plaint was rightly rejected under Order VII Rule 11 of the Code of Civil Procedure, 1908, for being barred by Section 80 of the Maharashtra Public Trusts Act.

Submissions/Arguments

Appellants argued that the dispute relates to internal management of a public trust and is exclusively triable by the Charity Commissioner under Section 80 of the Maharashtra Public Trusts Act, 1950, and the civil suit is not maintainable. Respondents argued that the suit was for declaration that the meeting was illegal and that the civil court had jurisdiction to entertain the same.

Ratio Decidendi

The dispute regarding the validity of a meeting of the Council of a public trust registered under the Maharashtra Public Trusts Act, 1950, relates to the internal management of the trust and falls within the exclusive jurisdiction of the Charity Commissioner under Section 80 of the Act. The civil court has no jurisdiction to entertain such a suit, and the plaint is liable to be rejected under Order VII Rule 11 of the Code of Civil Procedure, 1908.

Judgment Excerpts

By way of this Second Appeal, the Appellants challenge the judgment and order dated 2 May 2015 passed by the learned District Judge, Pune in Civil Appeal No.398 of 2014. The dispute regarding the validity of a meeting of the Council of a public trust is a matter of internal management and must be agitated before the Charity Commissioner under the provisions of the Act, not in a civil suit.

Procedural History

Plaintiffs filed Regular Civil Suit No.5314 of 2012 on 12 June 2012. Trial court rejected plaint on 14 July 2014 under Order VII Rule 11 CPC. Plaintiffs appealed to District Court, which allowed appeal on 2 May 2015 and restored suit. Defendants filed Second Appeal No.460 of 2015 in High Court, which was allowed on 5 August 2016, restoring rejection of plaint.

Acts & Sections

  • Maharashtra Public Trusts Act, 1950: Section 80
  • Code of Civil Procedure, 1908: Order VII Rule 11
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