Bombay High Court Allows Appeal in Trust Scheme Matter Due to Violation of Natural Justice - ACC Failed to Verify Service of Notice on Existing Trustees Before Framing New Scheme Under Section 50A of Maharashtra Public Trusts Act, 1950.

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

The appeal arose from an order of the Assistant Charity Commissioner (ACC) dated 29 May 2009 framing a new scheme for the management of the Shikshan Prasarak Mandal Trust under Section 50A of the Maharashtra Public Trusts Act, 1950. The new scheme reduced the governing body from 17 to 7 trustees and curtailed the tenure of existing trustees. The appellants, who were existing trustees, challenged the order on the ground that they were not served with notice of the proceedings. The ACC had relied on an address pursis filed by one Mote (R6) indicating a changed address for the existing trustees, without verification. Notices were sent to that address, and Santosh Shinde (R5) filed an affidavit claiming service was complete based on registered acknowledgement due cards purportedly bearing signatures of the trustees. The ACC accepted this and passed the ex parte order. The District Judge dismissed the appeal under Section 72(2). The High Court found that the ACC failed to discharge its quasi-judicial duty to verify the correctness of the address and ensure proper service. The court noted that the address provided by Mote was not supported by any evidence, and the ACC did not make any independent inquiry. The court held that the principles of natural justice were violated, and the orders of the ACC and the District Judge were set aside. The matter was remitted to the ACC for fresh consideration after giving notice to all concerned parties.

Headnote

A) Administrative Law - Natural Justice - Service of Notice - Maharashtra Public Trusts Act, 1950, Section 50A - The Assistant Charity Commissioner framed a new scheme removing existing trustees without verifying the correctness of the address provided by a third party and without ensuring actual service of notice. The court held that the ACC acted in violation of principles of natural justice and the order was liable to be set aside (Paras 3-5).

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Issue of Consideration

Whether the Assistant Charity Commissioner (ACC) was justified in framing a new scheme under Section 50A of the Maharashtra Public Trusts Act, 1950, without ensuring proper service of notice on the existing trustees, thereby violating principles of natural justice.

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Final Decision

Appeal allowed. Orders dated 29 May 2009 and 17 July 2010 set aside. Matter remitted to Assistant Charity Commissioner for fresh consideration after giving notice to all concerned parties.

Law Points

  • Natural justice
  • Service of notice
  • Section 50A Maharashtra Public Trusts Act
  • 1950
  • Scheme framing
  • Duty of quasi-judicial authority
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Case Details

2017 LawText (BOM) (02) 63

First Appeal No. 1346 of 2010

2017-02-15

M. S. Sonak, J.

Mr. R. V. Bansode for Appellants, Mr. I. M. Khairdi for Respondent Nos. 1 to 8

Shri Shivajirao Bhavanrao Patil & Anr.

Shikshan Prasarak Mandal Malshiras & Ors.

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Nature of Litigation

Appeal against order framing new scheme for trust management under Section 50A of Maharashtra Public Trusts Act, 1950.

Remedy Sought

Setting aside of orders dated 29 May 2009 and 17 July 2010 framing new scheme and dismissing appeal.

Filing Reason

Appellants, existing trustees, were removed without proper notice and opportunity of hearing.

Previous Decisions

ACC order dated 29 May 2009 framing new scheme; District Judge order dated 17 July 2010 dismissing appeal under Section 72(2).

Issues

Whether the ACC violated principles of natural justice by not ensuring proper service of notice on existing trustees before framing new scheme. Whether the ACC was justified in relying on an unverified address pursis filed by a third party.

Submissions/Arguments

Appellants argued that they were not served with notice and the ACC acted on an incorrect address provided by Mote without verification. Respondents contended that service was complete based on registered acknowledgement due cards and affidavit.

Ratio Decidendi

A quasi-judicial authority must ensure proper service of notice on all affected parties before passing an order. Relying on an unverified address provided by a third party without independent inquiry violates principles of natural justice.

Judgment Excerpts

The ACC, without verification, addressed notices to the existing trustees at the new address indicated by Mote in the address pursis. The ACC, relying upon such affidavit, on 29 May 2009 made an order framing the new scheme in substitution of the existing scheme.

Procedural History

On 4 November 2008, members applied to ACC for new scheme. On 18 March 2009, Mote filed address pursis. ACC sent notices to new address without verification. On 25 May 2009, Shinde filed affidavit claiming service. On 29 May 2009, ACC passed order framing new scheme. Appellants appealed to District Judge under Section 72(2), dismissed on 17 July 2010. Present appeal under Section 72(4) to High Court.

Acts & Sections

  • Maharashtra Public Trusts Act, 1950: 50A, 72(2), 72(4)
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High Court Bombay High Court Allows Appeal in Trust Scheme Matter Due to Violation of Natural Justice - ACC Failed to Verify Service of Notice on Existing Trustees Before Framing New Scheme Under Section 50A of Maharashtra Public Trusts Act, 1950.
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