Point of Law: Doctrine that powers must be exercised reasonably has to be reconciled with the no less important doctrine that the court must not usurp the discretion of the public authority appointed to take the decision.

Headnote:
Income Tax Act, 1961 - Sections 80-G and 12-A - A.P. Charitable and Hindu Religious Institutions and Endowments Act, 1987 - Sections 43, 43(1) 6 , 2(4) 2(5) , 1(3)(a) and 12 AA (1)(b)(i) and 162 - deed of trust - Hindu Religious Institutions and Endowments - public charitable institution - Petitioner in W.P. No. 1502 of 2022, Sri. Dhulipalla Veeraiah Chowdary Memorial Trust, Vadlamudi village, is a registered trust. The trust deed in respect thereof was entered into on 17.09.1994 and it was registered on the same day in the office of the Joint Sub Registrar, Guntur - 2nd petitioner in W.P. No. 1502 of 2022 is described as the donor in this deed of trust while the 1st petitioner in W.P. No. 1470 of 2022 is also one of the trustees of this trust - 2nd petitioner in W.P. No. 1470 of 2022 was former trustee of the same - petitioners in both these writ petitions, was founded in the name of Sri. Dhulipalla Veeraiah Chowdary, who served as the President of Guntur District Milk Producers Cooperative Union Limited and to commemorate his memory - deed of trust relating to the 1st petitioner trust sets out the circumstances under which, it came to be set up, by virtue of the decision in General Body Meeting of Guntur District Milk Producers Cooperative Union Limited, for establishing farmers training centers, milk producers training centers and to establish - contribution of the donor, namely the 2nd petitioner in constituting the trust fund.
Finding of the Court:
Prima-facie material remaining outstanding against the petitioners, initiating action of the present nature cannot be attempted to be shielded on the premise of the concerted action on the part of the present ruling dispensation in the State to victimise the petitioners, by indirect method. Therefore, this ground as sought to be projected by the petitioner cannot afford protection for them against the action of the official respondents under Act 30 of 1987. It cannot be an instance that can lead to hold that an attempt is made in this fashion by the State to get at the 1st petitioner institution to wield control over the Sangam Milk Producers Company Limited. Thus, in the action of the 2nd respondent against the petitioner now sought to be impugned, no mala-fides as such can be attributed. Thus, this point is held - findings recorded on points 1 to 3 lead to an irresistible conclusion that it is a misconceived attempt by the petitioners in both the writ petitions.
Result: Writ petitions are dismissed.

ORDER :

1. In these two writ petitions, the petitioners sought an appropriate writ, order or direction in the nature of writ of mandamus declaring order of the 2nd respondent-Commissioner, Endowments Department, Government of Andhra Pradesh, dated 05.01.2022 being illegal, arbitrary and contrary to the provisions of the Andhra Pradesh Charitable and Hindu Religious Institutions and Endowments Act, 1987, vitiated by mala-fides, colourable exercise of power and unconstitutional.

2. The 1st petitioner in W.P. No. 1502 of 2022, Sri. Dhulipalla Veeraiah Chowdary Memorial Trust, Vadlamudi village, is a registered trust. The trust deed in respect thereof was entered into on 17.09.1994 and it was registered on the same day in the office of the Joint Sub Registrar, Guntur. The 2nd petitioner in W.P. No. 1502 of 2022 is described as the donor in this deed of trust while the 1st petitioner in W.P. No. 1470 of 2022 is also one of the trustees of this trust. The 2nd petitioner in W.P. No. 1470 of 2022 was former trustee of the same.

3. This trust, according to the petitioners in both these writ petitions, was founded in the name of Sri. Dhulipalla Veeraiah Chowdary, who served as the President of Guntur District Milk Producers Cooperative Union Limited and to commemorate his memory.

4. Since both these writ petitions are heard together where identical arguments are addressed except reference to application of Provisions of Indian Trust Act and their effect vis-a-vis Act 30 of 1987 in W.P. No. 1470 of 2022, they are now being disposed of together. The parties as arrayed in W.P. No. 1502 of 2022 shall be referred to hereinafter, for convenience.

5. The deed of trust relating to the 1st petitioner trust sets out the circumstances under which, it came to be set up, by virtue of the decision in General Body Meeting of Guntur District Milk Producers Cooperative Union Limited, for establishing farmers training centers, milk producers training centers and to establish, aid and maintain educational and other institutions. The contribution of the donor, namely the 2nd petitioner in constituting the trust fund was Rs. 1,116/-. Clause-3 of this deed of trust sets out its objectives as under:

“(a) To train farmers, milk producers and rural youth in Dairying, livestock production, agriculture and other allied activities so as to develop self employment in the rural areas.

(b) To establish, aid and maintain educational and other institutions to impart education, at all stages for the promotion of literature, arts, sciences and other subjects specifically in Dairying, Animal husbandry and Agriculture.

(d) To conduct workshops/seminars which are useful to Milk Producers, Farmers and Dairy Industry.

(e) To give financial assistance to the children of Milk Producers of Guntur District for higher education.

(f) To train employees of Dairy for better skill and knowledge in modern Dairying.

(g) To honour every year the best milk producer and the best Milk Producers’ Cooperative Society in the District.

(h) To honour the eminent persons in the fields of animal husbandry, dairying and agriculture for their outstanding services to the Rural Community.”

6. Clause-5 of this deed of trust also provides for a mechanism to derive funds from different sources that included those received from Milk Producers’ Cooperative Societies in Guntur District, donations, subscriptions, contributions, gifts received from the employees of Sangam Dairy and other public at large apart from the funds and properties received from Guntur District Milk Producers Cooperative Union Limited. This deed of trust provides for the management, to vest in the Board of Trustees with a Managing Trustree, who incidentally is the 2nd petitioner.

7. This deed of trust also provides for winding up mechanism in Clause-13, by means of which th

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2022 Supreme(AP) 78

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATIM. VENKATA RAMANA, J.Vutla Buddaiah Chowdary – PetitionerVersusThe State of Andhra Pradesh – RespondentWrit Petition Nos. 1470, 1502 of 2022Decided On : 09-02-2022

Point of Law: Doctrine that powers must be exercised reasonably has to be reconciled with the no less important doctrine that the court must not usurp the discretion of the public authority appointed to take the decision.

Cases Referred (7)

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
M. VENKATA RAMANA, J.
Vutla Buddaiah Chowdary – Petitioner
Versus
The State of Andhra Pradesh – Respondent
Writ Petition Nos. 1470, 1502 of 2022
Decided On : 09-02-2022