Bombay High Court Allows Trustees' Petition Challenging Charity Commissioner's Order in Public Trust Dispute — Appointment of New Trustees Set Aside for Violation of Natural Justice and Lack of Compliance with Section 41A of Maharashtra Public Trusts Act, 1950. The court held that the order was passed without giving an opportunity of hearing and without following the procedure under Section 41A, and directed the Charity Commissioner to pass a fresh order after hearing all parties.

A) Public Trusts - Appointment of Trustees - Section 41A, Maharashtra Public Trusts Act, 1950 - Show Cause Notice - The Joint Charity Commissioner issued a show cause notice to the petitioners under Section 41A of the Act for alleged mismanagement and failure to file accounts, but without providing an opportunity of hearing or considering the petitioners' reply, proceeded to appoint new trustees. The court held that the order was passed in violation of principles of natural justice and without compliance with the mandatory requirements of Section 41A, which requires a show cause notice and an opportunity of hearing before any action is taken. (Paras 10-15)

B) Public Trusts - Alternative Remedy - Section 70, Maharashtra Public Trusts Act, 1950 - Maintainability of Writ Petition - The respondents raised a preliminary objection that the petitioners have an alternative remedy of appeal under Section 70 of the Act. The court held that the availability of an alternative remedy is not an absolute bar to the maintainability of a writ petition, especially when the impugned order is passed in violation of natural justice or without jurisdiction. Since the order was passed without giving an opportunity of hearing, the writ petition was held to be maintainable. (Paras 16-20)

C) Public Trusts - Appointment of Trustees - Section 47, Maharashtra Public Trusts Act, 1950 - Power of Charity Commissioner - The court examined the scope of Section 47, which empowers the Charity Commissioner to appoint trustees in certain circumstances. However, the court noted that the power under Section 47 must be exercised in accordance with the procedure prescribed under Section 41A, and any appointment made without following the due process is liable to be set aside. (Paras 21-25)

D) Public Trusts - Interim Relief - Section 80A, Maharashtra Public Trusts Act, 1950 - Status Quo - The court, while allowing the writ petitions, directed that the newly appointed trustees shall not act as trustees and the earlier trustees shall continue to manage the trust affairs until the Charity Commissioner passes a fresh order after giving an opportunity of hearing to all concerned parties. (Paras 26-30)

Whether the impugned order dated 30/09/2024 passed by the Joint Charity Commissioner appointing new trustees is sustainable in law, and whether the writ petitions are maintainable despite availability of alternative remedy under Section 70 of the Maharashtra Public Trusts Act, 1950.

• Natural justice
• Section 41A Maharashtra Public Trusts Act
• 1950
• Section 47 Maharashtra Public Trusts Act
• Section 70 Maharashtra Public Trusts Act
• Section 80A Maharashtra Public Trusts Act
• maintainability of writ petition
• alternative remedy
• appointment of trustees
• show cause notice
• opportunity of hearing
• reasoned order