Bombay High Court Allows Petition Challenging Charity Commissioner's Order in Trust Dispute - Resignation Withdrawal Before Acceptance Valid. Trust President's Resignation Withdrawn Before Governing Body Acceptance; Joint Charity Commissioner's Order Quashed for Ignoring Withdrawal Letter Under Maharashtra Public Trusts Act, 1950.

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

The petitioner, Dr. Yashwant S. Mashankar, was elected President of respondent No.2 Trust in 2003 for a three-year term. He tendered his resignation on 12.2.2010, but before it was accepted by the governing body, he withdrew it via letter dated 19.2.2010, received by the Secretary on 23.2.2010. The governing body met on 25.2.2010 and accepted the resignation without considering the withdrawal letter. The Assistant Charity Commissioner rejected the Change Report reflecting the resignation, but the Joint Charity Commissioner allowed the appeal and quashed that order. The petitioner challenged the Joint Charity Commissioner's order. The court analyzed whether a resignation can be withdrawn before acceptance, relying on principles of contract law and trust law. It held that a resignation is effective only upon acceptance, and the withdrawal before acceptance is valid. The governing body was obligated to consider the withdrawal letter. The Joint Charity Commissioner's order was set aside for ignoring material evidence, and the Assistant Charity Commissioner's order was restored. The court allowed the petition and quashed the impugned order.

Headnote

A) Trust Law - Resignation and Withdrawal - Validity of Withdrawal Before Acceptance - Maharashtra Public Trusts Act, 1950 - The petitioner tendered resignation on 12.2.2010 and withdrew it on 19.2.2010 before the governing body meeting on 25.2.2010 where resignation was accepted. The court held that a resignation can be withdrawn at any time before it is accepted, and the governing body was bound to consider the withdrawal letter. The Joint Charity Commissioner's order ignoring the withdrawal letter was set aside. (Paras 4-15)

B) Charity Commissioner - Appellate Jurisdiction - Scope of Interference - Maharashtra Public Trusts Act, 1950, Section 70 - The Joint Charity Commissioner, in appeal, quashed the Assistant Charity Commissioner's order rejecting the Change Report. The court held that the appellate authority must consider all relevant material, including the withdrawal letter, and cannot ignore evidence. The impugned order was quashed as it failed to consider the withdrawal letter. (Paras 16-20)

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Issue of Consideration

Whether the withdrawal of resignation by the petitioner before its acceptance by the governing body of the trust was valid and whether the Joint Charity Commissioner erred in quashing the Assistant Charity Commissioner's order rejecting the Change Report.

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Final Decision

The petition is allowed. The impugned order dated 3.4.2018 passed by the Joint Charity Commissioner is quashed and set aside. The order dated 29.4.2017 passed by the Assistant Charity Commissioner is restored.

Law Points

  • Resignation can be withdrawn before acceptance
  • Withdrawal of resignation valid if communicated before acceptance
  • Trust governing body must consider withdrawal letter
  • Charity Commissioner's order set aside for ignoring material evidence
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Case Details

2018 LawText (BOM) (10) 166

Writ Petition No.3352 of 2018

2018-10-05

S.B. Shukre, J.

Shri M.G. Bhangde, Senior Advocate for the Petitioner; Shri Sunil V. Manohar, Senior Advocate with Shri Atharva Manohar with Shri N.A. Gaikwad, Advocate for the Respondent Nos.2 and 3; Shri S.M. Ukey, Additional Government Pleader for Respondent No.1

Dr. Yashwant S. Mashankar

The Joint Charity Commissioner, Amravati; The Nutan Vidarbha Shikshan Mandal; Mr. Ninad s/o. Wasudeorao Soman

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Nature of Litigation

Writ petition challenging order of Joint Charity Commissioner quashing Assistant Charity Commissioner's order rejecting Change Report.

Remedy Sought

Petitioner sought quashing of Joint Charity Commissioner's order dated 3.4.2018 and restoration of Assistant Charity Commissioner's order dated 29.4.2017.

Filing Reason

Petitioner's resignation as President of Trust was accepted by governing body without considering his withdrawal letter, and Change Report reflecting resignation was rejected by Assistant Charity Commissioner but allowed by Joint Charity Commissioner.

Previous Decisions

Assistant Charity Commissioner rejected Change Report on 29.4.2017; Joint Charity Commissioner quashed that order on 3.4.2018.

Issues

Whether the withdrawal of resignation before acceptance by the governing body is valid. Whether the Joint Charity Commissioner erred in ignoring the withdrawal letter.

Submissions/Arguments

Petitioner argued that resignation can be withdrawn before acceptance, and the governing body failed to consider the withdrawal letter. Respondents argued that resignation was accepted and withdrawal was not valid as it was not placed before the governing body.

Ratio Decidendi

A resignation can be withdrawn at any time before it is accepted by the competent authority. The governing body of a trust is bound to consider a withdrawal letter if received before acceptance. Failure to do so renders the acceptance invalid.

Judgment Excerpts

A resignation can be withdrawn at any time before it is accepted. The governing body was bound to consider the withdrawal letter.

Procedural History

Petitioner resigned on 12.2.2010, withdrew on 19.2.2010. Governing body accepted resignation on 25.2.2010 without considering withdrawal. Change Report filed; Assistant Charity Commissioner rejected it on 29.4.2017. Joint Charity Commissioner allowed appeal on 3.4.2018, quashing rejection. Petitioner filed writ petition on 5.10.2018.

Acts & Sections

  • Maharashtra Public Trusts Act, 1950: Section 70
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