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1967 Supreme(SC) 280
SUPREME COURT OF INDIA
J.C. SHAH AND J.M. SHELAT, JJ.
The Municipality of Taloda, Appellant
Versus
The Charity Commissioner, Bombay and others, Respondents.
Civil Appeal No. 72 of 1965,
D/- 28-9-1967.
Advocates Appeared
Mr. S. G. Patwardhan, Senior Advocate (M/s. R. R. Jahagirdar, V. G. Mudholkar and A. G. Ratnaparkhi, Advocates, with him), for Appellant; M/s. R. H. Dhebar, S. S. Javali and S. P. Nayar, Advocates, for Respondent No. 1, Mr. S. S. Shukla, Advocate, for Respondents Nos. 2 (ii) to (v) :
A.G.Ratnaparkhi, R.H.Dhebar, R.R.Jahagirdar, S.G.PATVARDHAN, S.P.NAIR, S.S.JAVALI, S.S.SHUKLA, V.G.Mudholkar
A trust for either a religious or charitable purpose or for both by the express words of the definition is a public trust.
Headnote:
PUBLIC TRUST - SETTLEMENT OF PROPERTY FOR BENEFIT OF SADHUS, SAINTS AND RELIGIOUS MENDICANTS - HELD TO BE A PUBLIC TRUST - MUNICIPALITY HOLDING PROPERTY AS TRUSTEE - BOMBAY PUBLIC TRUSTS ACT, 1950, SS. 2(13), 9, 10, 19, 72(4).
Fact of the Case:
Dagadu Khushal, claiming to be the owner of the property, transferred it to the Municipality of Taloda for public purpose, i.e., to be utilized for giving shelter to "Sadhus, saints and religious mendicants" in the same manner in which it had been utilized up to the date of transfer.
Finding of the Court:
The Municipality holds the property as a trustee of a public trust. The trust was not limited to the buildings standing on the land, it extended to the entire property. The beneficiaries of the trust are an uncertain and fluctuating body of persons forming a considerable section of the public and answering a particular description, and the fact that they belong to a religious faith or a sect or persons of a certain religious persuasion does not make any difference in the matter.
Issues: Whether the Municipality holds the property or any part thereof as a trustee.
Ratio Decidendi: The Municipality was governed by Act VI of 1873 at the date of the settlement. Section 17 of that Act provided that all property of the nature hereinafter specified shall be vested in and belong to the Municipality, and shall, together with all other property, of what nature or kind soever, which may become vested in the Municipality, be under their direction management, and control, and shall be held and applied by them as trustees for the purposes of this Act.
Final Decision: Appeal dismissed with costs in favour of the Charity Commissioner.
Judgement
SHAH, J. :- One Sambhusing applied under Section 19 of the Bombay Public Trusts Act 29 of 1950 for a declaration that City Survey Nos. 371 to 379 of Taloda were settled by one Dagadu Khushal in favour of the Municipality in 1883 for the benefit of the Johari Panch and for an order that the property be registered as property of a public trust under the Act. The Assistant Charity Commissioner who heard the petition by his order dated January 20, 1956, held that "there was no such institution known as Johari Panch", and that the property in dispute had not been used for the benefit of that community, but Dagadu Khushal had transferred the property to the Municipality for the benefit of members of the Public interested in the Samadhi of Nagabawa. The Assistant Charity Commissioner declared that there was a public trust and City Survey Nos. 371 to 379 of Taloda Municipality were the property of the Trust and that the Municipality held it as trustee of that Trust. That order was confirmed in appeal by the Charity Commissioner. In appeal, the District Court set aside the order of the Charity Commissioner and held that by the deed of transfer executed by Dagadu Khushal no trust was created, that in any event the trust was not a public trust and that the property in City Survey Nos. 371 to 379 was not the property of any such trust. In appeal under Section 72 (4) of the Act, the High Court of Bombay reversed the order passed by the District Court and restored the order passed by the Charity Commissioner. The Municipality of Taloda has filed this petition with special leave.
2. A short history of the property may first be set out. Land which now bears City Survey Nos. 371 to 379 originally belonged to one Charandas who erected a Dharmashala thereon. On May 24, 1878, Charandas sold the land and the Dharamshala to Dagadu Khushal purporting to transfer the property absolutely to the vendee. On August 27, 1883, Dagadu Khushal executed a deed in favour of the Municipality of Taloda the relevant clause of the deed (as translated in the judgment of the High Court) reads as follows :
"Having released all my rights, interest and title in the property mentioned in the boundaries above, I am handing over today all that property in the possession of the Municipality for the purpose of sarvajanik kam (public purpose) as it has been utilised upto date for shelter of Atit, Abhyagat, Sadhu, Sant etc. to be used in the same way as it has been used uptil now."
It was recited in the deed that in the property conveyed "there is a samadhi (grave) of Nagabawa" The Municipality pursuant to the deed, entered into the possession, of the property. It appears that thereafter the. Municipality made certain constructions which were used for its offices and for shops.
3. On September 21, 1936, the Municipality of Taloda filed a suit against one Baba Haridas Guru Shamdas Udasi for a declaration that the defendant had no right or interest over the land City Survey Nos. 371 to 379 and that the defendant had taken unlawful possession thereof and for an order that the obstruction raised by the defendant be removed, and possession of the land be awarded to the Municipality. In this suit it was claimed by the Municipality that it was in possession of the land for more than sixty years and the property was "utilised for municipal purposes and was enjoyed in all ways for necessary municipal requirements", but the defendant had made unauthorised construction thereon. Baba Haridas contended that the Municipality had no right to utilise the property for municipal purposes since it was transferred in trust for the residence of "sages, saints, guests, visitors and others of the Nanak Sect", and the defendant being " a sage or saint of the Nanak Sect" had been residing in the property and was entitled to do so. This suit was decreed by the Subordinate Judge.
4. In 1950 survey proceedings were started in the town of Taloda and an enquiry regarding the title to the land was ma
