Case Note & Summary
The appellant, Charu Kishor Mehta, is the permanent trustee of the Lilavati Kirtilal Mehta Medical Trust, a public registered trust governed by the Bombay Public Trusts Act, 1950. The trust deed required the consent of all trustees for alienation of trust property. The appellant sought to sell a portion of the trust property and applied to the Joint Charity Commissioner for sanction under Section 36 of the Act. The Charity Commissioner granted sanction, but some trustees objected, leading to litigation. The single judge of the Bombay High Court set aside the sanction, holding that the trust deed required unanimous consent. The Division Bench in LPA upheld that decision. The Supreme Court allowed the appeal, holding that the Bombay Public Trusts Act, 1950 does not require prior consent of all trustees for alienation; the Charity Commissioner's sanction under Section 36 is sufficient. The trust deed's condition requiring unanimous consent was held to be not binding as it conflicts with the statutory scheme. The Court set aside the High Court's orders and restored the Charity Commissioner's sanction.
Headnote
A) Charity Trust - Alienation of Trust Property - Section 36 Bombay Public Trusts Act, 1950 - The Court considered whether the prior consent of all trustees is necessary for sale of trust property. Held that the Act does not require such consent; the Charity Commissioner's sanction under Section 36 is sufficient, and the trust deed cannot impose additional restrictions beyond the Act. (Paras 1-10)
B) Trust Deed Interpretation - Restrictive Covenant - Section 36 Bombay Public Trusts Act, 1950 - The trust deed required consent of all trustees for alienation. The Court held that such a condition is not binding as it conflicts with the statutory scheme under Section 36, which vests power in the Charity Commissioner to sanction alienation. (Paras 5-8)
Issue of Consideration
Whether the prior consent of all trustees is required for alienation of trust property under the Bombay Public Trusts Act, 1950, or whether sanction of the Charity Commissioner under Section 36 is sufficient.
Final Decision
The Supreme Court allowed the appeal, set aside the impugned judgment and order of the High Court, and restored the order of the Joint Charity Commissioner granting sanction for sale of trust property.
Law Points
- Bombay Public Trusts Act
- 1950
- Section 36
- alienation of trust property
- trustee's power
- Charity Commissioner's sanction
- public trust
- trust deed interpretation
Case Details
2015 LawText (SC) (03) 100
Civil Appeal No.2819 of 2015 (Arising Out of SLP (C) No.4148 of 2011)
Joint Charity Commissioner, Greater Bombay Region & Ors.
Subscribe to unlock Case Details (Citation, Judge, Date & more)
Subscribe Now
Nature of Litigation
Civil appeal against judgment of Bombay High Court in Letters Patent Appeal No.268 of 2010, which upheld single judge's order setting aside Charity Commissioner's sanction for sale of trust property.
Remedy Sought
Appellant sought to set aside the impugned judgment and order of the High Court and restore the sanction granted by the Joint Charity Commissioner for sale of trust property.
Filing Reason
The High Court held that the trust deed required consent of all trustees for alienation, and the Charity Commissioner's sanction was insufficient.
Previous Decisions
Single Judge of Bombay High Court set aside Charity Commissioner's sanction; Division Bench in LPA upheld that decision.
Issues
Whether the prior consent of all trustees is required for alienation of trust property under the Bombay Public Trusts Act, 1950.
Whether the Charity Commissioner's sanction under Section 36 is sufficient for alienation of trust property.
Submissions/Arguments
Appellant argued that the Bombay Public Trusts Act, 1950 does not require consent of all trustees; Section 36 vests power in the Charity Commissioner to sanction alienation.
Respondents argued that the trust deed required unanimous consent of trustees, and the Charity Commissioner's sanction was invalid without such consent.
Ratio Decidendi
Under the Bombay Public Trusts Act, 1950, Section 36, the Charity Commissioner has the power to sanction alienation of trust property, and the Act does not require prior consent of all trustees. A condition in the trust deed requiring unanimous consent is not binding as it conflicts with the statutory scheme.
Judgment Excerpts
The appellant herein is the permanent trustee of the Lilavati Kirtilal Mehta Medical Trust...
For the purpose of considering the rival legal contentions urged on behalf of the parties in this appeal...
Procedural History
The appellant filed an application before the Joint Charity Commissioner for sanction to sell trust property under Section 36 of the Bombay Public Trusts Act, 1950. The Charity Commissioner granted sanction. Some trustees objected and filed a writ petition before the Bombay High Court. The single judge set aside the sanction. The appellant filed LPA No.268 of 2010, which was dismissed by the Division Bench. The appellant then filed SLP (C) No.4148 of 2011, which was converted into Civil Appeal No.2819 of 2015.
Acts & Sections
- Bombay Public Trusts Act, 1950: Section 36
