CHINNAPPA REDDY, J.

( 1 ) THE Kanyaka Parameswari Varthaka Sangham. Ganapavaram is the appellant before us. This appeal under C1. 15 of the Letters Patent has its roots in a petition died by the Appellant, before the Deputy Commissioner of Endowments, under Section 77 of the Charitable and Hindu Religious Institutions and Endowments Act far a declaration that the pavaram in west Godavari District run by the appellant Accretion was not a charitable institution within the meaning of Section 2 (4) of the Ad. The petition under Section 77 was itself necessitated by the fact that the Assistant Commissioner of endowments had issued 4 notice to the appellant to register the Sathram as a Charitable institution under the provisions of Section 38 of the Charitable and Hindu Religious Institutions and Endowments Act. alleging that the building known as Sathram was constructed by the Appellant, Sangham, a Society registered under the Societies Registration Act, that the ownership of We building was always. and continued to be with the Sangham. that there was never any dedication or divestiture, that though part of the building was used for the purpose of lodging travelers pursuant to a resolution of the Sangham the public had no right to so use the budding, that it was open to the Sangbam to divert the building for some ether propose pt any time and that the building was not a charitable institution, the appellant sought the declaration already mentored before the Deputy Commissioner of Endowments, Kakinada. The Assistant Commissioner of Endowments, Eluru was impleaded as a party in the proceedings under Section 77 before the Deputy Commissioner of Endowments, The Deputy Commissioner, after considering the memorandum of Association of the Sangham and its bye-laws, came to the conclusion that the building was never endowed and was never used by the public as of right and that merely because a portion of the building was let out for convenience by passengers, it did not become a charitable institution. The Deputy Cmnmissioner, therefore, declared that the institution run by the appellant was not a charitable institution. Purporting to be aggrieved by the decision of the Deputy Commissioner, the Commissioner of Endowments and the Assistant Commissioner of Endowments filed the suit out of which the appeal arises under Section 78 of the Andhra Pradesh Charitable and Hindu Religious institutions and Endowments Act "to set aside the order of the Deputy Commissioner. Endowments Department, Kakinada passed in O. A. No. 50/1969 dated 22-11-1969 on the ground that the 1st defendant and its properties are charitable institutions or endowments coming under the purview or Act 17 of 1966".

( 2 ) IT will be noticed at once that while the petition under S. 77 and the order of the Deputy Commissioner concerned themselves with the question whether the building known as Sathram was a Charitable Institution, the relief sought in the suit, though mentioning that the suit was to set aside the order of the Deputy Commissioner. was, in fact, of much wider amplitude, involving the appellant-Sangham itself end not merely the Sathram run by it. The relief sought was that the Sangham itself should be declared a charitable institution

( 3 ) THE suit was resisted by the Sangham. It was contended in the written statement that the Scheme was established for the benefit of its members primarily to install the spirit of mutual help among its members, all of whom were to be drawn from the merchant community under its bye-laws. The members had to pay their subscription by way of Rsums which were compulsory exactions and not donations as appeared to have been understood by the plaintiffs. The charitable objects of the Sangham mentioned in its bye-laws were secondary in nature. The properties acquired by the Sangham were Its exclusive properties and were never dedicated as endowments. The building described as Sathram was the absolute property of the Sangham. A pert of the Buil

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