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IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH
KRISHNA S.DIXIT, VIJAYKUMAR A.PATIL, JJ.
Paschim Vibhag Shikshana Mandal – Appellant
Versus
Paschim Vibhag Shikshana Mandal – Respondent
Writ Appeal No.100006 of 2022(GM-R/C)
Decided on : 27-08-2024
Legal Framework - Charitable Trusts - KSR Act, 1960; 1920 Act - The court interpreted the provisions of the KSR Act, 1960 and the 1920 Act, emphasizing the importance of proper registration and management of charitable trusts, leading to the dismissal of the Trust's claims and upholding the Society's registration.
Fact of the Case:
The appellant-Trust, registered under the Bombay Public Trusts Act, 1950, challenged the registration of a Society with the same name, formed after the repeal of the 1950 Act, which led to disputes over property and management.
Finding of the Court:
The court found that the registration of the Society was valid despite the Trust's objections, and the Trust's claims regarding the management and property were not supported by the relevant legal provisions.
Issues: The main issues included the validity of the Society's registration, the effect of the repeal of the 1950 Act on the Trust, and the applicability of the 1920 Act in the context of managing charitable trusts.
Ratio Decidendi: The court held that the repeal of the 1950 Act did not extinguish the Trust's existence, but the Society's registration was valid under the KSR Act, and the Trust's claims lacked legal grounding.
Result: The appeal was dismissed, upholding the registration of the Society and the decisions of the lower courts.
JUDGMENT :
(PER: THE HON'BLE MR. JUSTICE KRISHNA S.DIXIT)
This appeal arises from a common judgment dated 01.12.2021, whereby a learned Single Judge of this court has dismissed appellants’ two cases i.e., W.P.Nos.77680/2013 & 101972/2017 and allowed W.P.No.81667/2013 filed by the contesting respondent- Society, represented by its President Sri.Gundu Sonu Bhaskar and its Secretary Sri.Arjun Krishna Nilajkar.
1.1 The operative portion of the above common judgment for the purpose of ease of understanding is reproduced below:
23.1.2. WP No.81667/2013 is allowed a certiorari is issued the order dated 04.03.2013 by the learned Principal District Judge, Belgaum in Miscellaneous Petition No.295/2012 as per Annexure-P and order dated 09.07.2013 on I.A.No.II in Miscellaneous Case No.295/2012 as per Annexure-S are hereby quashed.
23.1.3. WP No.101436/2018 is disposed with a direction that the society forward the claim as regards the amounts due to respondent No.7 therein to the concerned at te authorities and to ensure that the due payments are made to respondent No. 7.
23.1.4. The District Registrar is directed to conduct an enquiry into the affairs of the Society under Section 25 of the KSR Act, 1960 and submit a report as regards the accounts maintained by the Society, management of the Society by exercising all powers under Section 25 of the KSR Act, 1960 within 90 days of the receipt of this order.
23.1.5. The Additional Registrar General of Dharwad Bench is directed to forward a copy of this order to the Jurisdictional District Registrar.”
II) FACTS IN BRIEF:
GENERAL FACTS LEADING TO MULTIPLE CASES:
a) Appellant-Trust (hereafter ‘Trust’) is registered under the erstwhile Bombay Public Trusts Act, 1950 (hereafter ‘1950 Act’) on 20.02.1986, in the office of Assistant Charity Commissioner, Belagavi. It is formed for imparting education. It runs two educational institutions, one in Belagavi Taluka of Karnataka and another in Chandgad Taluka of Maharashtra. The 1950 Act came to be repealed by the Hindu Religious Institutions and Charitable Endowments Act, 1997 w.e.f. 1.5.2003. In view of repeal, a non liquet position (field not occupied by legislation) arose so far as regulating non-religious Trusts are concerned.
b) The non liquet position created some difficulty in the matter of administration of charitable educational Trusts. A few entities of the kind had made some representation to the government seeking clarification as to which Act they would be governed by, post repeal of 1950 Act. The Under Secretary to Revenue Department of Government of Karnataka, therefore issued a Circular dated 19.03.2004 to the effect that such Trusts would be governed by the provisions of the Charitable and Religious Trusts Act, 1920 (hereafter ‘1920 Act’) by virtue of section 85(2) of 1950 Act.
c) One Mr.Gundu Sonu Bhaskar, who was the Chairman of the Trust formed a society with ditto nomenclature i.e., ‘PASCHIM VIBHAG SHIKSHANA MANDAL’ (hereafter ‘Society’) and got it registered on 01.09.2012 under the provisions of the Karnataka Societies Registration Act, 1960 (hereafter ‘1960 Act’). The properties of the Trust have been shown to be of the Society. The Trust on coming to know of the same, objected to the same and that having not yielded any positive result because of Registrar’s order dated 22.02.2013.
III) THUMB NAIL DESCRIPTION OF THREE WRIT PETITIONS:
a) Writ Petition No.77680/2013: This petition is filed by the appellant-Trust represented by its President Tara Chand Monnappa Jadhav, calling in question Registrar’s order dated 22.02.2013 whereby the registration of the respondent-Society with ditto name and properties of the Trust vide order dated 1.9.2012 came to be revived after disposing of the remand made in earlier W.P.No.70187/2012 disposed off on 15.01.2013. This challenge is negatived.
b) Writ Petition No.81667/2013: This petition is filed by the Society, represented by its President Mr.Gundu
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The inquiry held by Deputy or Charity Commissioner under Section 19 is by no means an administrative or an executive inquiry The rules framed under the Act called the Bombay Public Trusts Rules 1951 ....
Charity Commissioner under Maharashtra Public Trusts Act lacks jurisdiction to direct deletion of words suggesting government patronage from public trust names; remedy under Emblems Act if misleading....
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