Bombay High Court Allows Appeal Holding Order Under Section 73A Not Appealable Under Section 70 of Mumbai Public Trust Act. Intervention Order Under Section 73A Is Interlocutory and Not a Final Order Under Section 22, Hence No Appeal Lies Under Section 70.

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

The appellant, a registered reporting trustee of a public trust, filed a change report under Section 22 of the Mumbai Public Trust Act, 1950. The respondents, claiming interest in the trust, filed an intervention application under Section 73A of the Act. The Deputy Charity Commissioner rejected the intervention application on 14.12.2015. The respondents appealed under Section 70 to the Joint Charity Commissioner, who allowed the appeal on 21.10.2016, setting aside the rejection and granting intervention. The appellant then challenged that order under Section 72 before the City Civil Court, which dismissed the application on 6.3.2017, confirming the Joint Charity Commissioner's order. The appellant filed the present first appeal. The key legal issue was whether an order under Section 73A (intervention) is appealable under Section 70. The court analyzed the scheme of the Act: Section 22 deals with change reports and final orders; Section 70 provides appeals against orders under Section 22; Section 73A allows intervention but does not provide for any appeal. The court held that an order under Section 73A is interlocutory and not a final order under Section 22, hence not appealable under Section 70. The appeal before the Joint Charity Commissioner was therefore not maintainable. Consequently, the subsequent proceedings before the City Civil Court and the present appeal were also not maintainable. The court allowed the appeal, set aside the orders of the Joint Charity Commissioner and the City Civil Court, and restored the Deputy Charity Commissioner's order rejecting the intervention application. However, the court clarified that the respondents could still participate in the change report proceedings if they file a fresh application under Section 73A or otherwise.

Headnote

A) Charity Law - Appealability - Section 70 vs Section 73A - Mumbai Public Trust Act, 1950 - Sections 22, 70, 73A - The issue was whether an order passed under Section 73A (intervention application) is appealable under Section 70. The court held that Section 70 provides appeal only against final orders under Section 22, and an order under Section 73A is interlocutory and not a final order under Section 22. Therefore, no appeal lies under Section 70 against an order under Section 73A. (Paras 4-15)

B) Charity Law - Intervention - Section 73A - Mumbai Public Trust Act, 1950 - Section 73A - The court held that Section 73A does not provide for any appeal against an order granting or rejecting intervention. The remedy, if any, is only under Section 72 against an order under Section 70, but since Section 73A order is not under Section 70, no appeal lies. (Paras 10-15)

C) Charity Law - Final Order - Section 22 - Mumbai Public Trust Act, 1950 - Section 22 - The court distinguished between final orders under Section 22 (change report) and interlocutory orders under Section 73A (intervention). Only final orders under Section 22 are appealable under Section 70. (Paras 5-12)

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Issue of Consideration

Whether the order passed by the Deputy Charity Commissioner in proceedings under Section 73A of the Mumbai Public Trust Act is appealable under Section 70 of the Mumbai Public Trust Act?

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Final Decision

The appeal is allowed. The order of the Joint Charity Commissioner dated 21.10.2016 in Appeal No.3 of 2016 and the order of the City Civil Court dated 6.3.2017 in Charity Application No.37 of 2016 are set aside. The order of the Deputy Charity Commissioner dated 14.12.2015 rejecting the intervention application is restored. However, the respondents are at liberty to file a fresh application under Section 73A or otherwise to participate in the change report proceedings.

Law Points

  • Section 70 appeal only against final orders under Section 22
  • Section 73A order is interlocutory
  • Section 73A does not provide for appeal
  • Section 72 appeal against orders under Section 70
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Case Details

2018:BHC-AS:22857

First Appeal No.1064 of 2017 with Civil Application No.2961 of 2017

2018-08-16

Mrs. Mridula Bhatkar

2018:BHC-AS:22857

Mr. G.S. Godbole i/b D.S. Jadhav for the Appellant, Mr. A. Dholakia i/b N.A. Dholakia for Respondent Nos.1 to 4, Mr. A.R. Patil, AGP, for Resp. Nos.5 & 6

Shri Kashyap Odhavji Thakkar

Shri Chandrakant R. Ganatra & Ors.

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Nature of Litigation

First Appeal against judgment and order of City Civil Court dismissing Charity Application challenging order of Joint Charity Commissioner which allowed appeal under Section 70 against order under Section 73A.

Remedy Sought

Appellant sought to set aside the order of the City Civil Court and the Joint Charity Commissioner, contending that the appeal under Section 70 was not maintainable against an order under Section 73A.

Filing Reason

Appellant challenged the maintainability of the appeal proceedings before the Joint Charity Commissioner under Section 70 against an order under Section 73A.

Previous Decisions

Deputy Charity Commissioner rejected intervention application under Section 73A on 14.12.2015; Joint Charity Commissioner allowed appeal under Section 70 on 21.10.2016 setting aside rejection; City Civil Court dismissed Charity Application under Section 72 on 6.3.2017 confirming Joint Charity Commissioner's order.

Issues

Whether an order passed under Section 73A of the Mumbai Public Trust Act is appealable under Section 70 of the Act?

Submissions/Arguments

Appellant argued that Section 70 only provides appeal against final orders under Section 22, and an order under Section 73A is interlocutory and not appealable. Respondents argued that the order under Section 73A is a final order affecting rights and hence appealable under Section 70.

Ratio Decidendi

An order under Section 73A of the Mumbai Public Trust Act is an interlocutory order and not a final order under Section 22. Therefore, no appeal lies under Section 70 against such an order. The appeal before the Joint Charity Commissioner was not maintainable, and consequently, the subsequent proceedings before the City Civil Court and the present appeal are also not maintainable.

Judgment Excerpts

Whether the order passed by the Deputy Charity Commissioner in the proceedings u/s 73A of the Mumbai Public Trust Act is appealable under section 70 of the Mumbai Public Trust Act? The issue revolves around only the distinction between the final order under Section 22 and the interlocutory order under Section 73A. Section 73A does not provide for any appeal against an order granting or rejecting intervention.

Procedural History

Deputy Charity Commissioner rejected intervention application under Section 73A on 14.12.2015. Respondents appealed under Section 70 to Joint Charity Commissioner, who allowed appeal on 21.10.2016. Appellant challenged under Section 72 before City Civil Court, which dismissed application on 6.3.2017. Appellant filed First Appeal No.1064 of 2017 in Bombay High Court.

Acts & Sections

  • Mumbai Public Trust Act, 1950: 22, 70, 72, 73A
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