The amendment of a scheme of management and administration of a public trust is not illegal if it does not change the objects of the trust but merely broadens them. However, such an amendment is not justified if there are no substantial grounds for seeking the amendment.

Headnote:
PUBLIC TRUST - Amendment of Scheme - Procedure - Bombay Public Trusts Act, 1950 (Bom. 29 of 1950), Secs. 50, 50-A, 51, 55, 56, 56-A, 56-B - Bombay City Civil Court Act, 1948 (Bom. 44 of 1948), Sec. 26 - Code of Civil Procedure, 1908 (5 of 1908), Sec. 92 - Res judicata - Explanation IV and VI of Sec. 11 - Liberty to apply - Scope - Religious trust - Objects - Change - Validity.
Fact of the Case:

The trustees of a religious trust sought to amend the scheme of management and administration of the trust by way of a Chamber Summons under Section 26 of the Bombay City Civil Court Act, 1948. The amendment sought to broaden the objects of the trust and to allow for the sale of surplus F.S.I. The petitioners, who were beneficiaries of the trust, challenged the amendment on the grounds that it was illegal and that the procedure followed was improper.
Finding of the Court:

The Court held that the amendment of the scheme was not illegal and that the procedure followed was proper. The Court found that the amendment did not change the objects of the trust but merely broadened them. The Court also found that the procedure followed was in accordance with the provisions of the Bombay Public Trusts Act, 1950. However, the Court held that the amendment was not justified as there were no substantial grounds for seeking the amendment.
Issues: 1. Whether the amendment of the scheme was illegal? 2. Whether the procedure followed was proper? 3. Whether the amendment was justified?
Ratio Decidendi: 1. The Court held that the amendment of the scheme was not illegal as it did not change the objects of the trust but merely broadened them. The Court also found that the procedure followed was in accordance with the provisions of the Bombay Public Trusts Act, 1950. 2. The Court held that the amendment was not justified as there were no substantial grounds for seeking the amendment.
Final Decision: The Court partly allowed the petitions and restored the scheme to its original form as it stood before the amendment in 1977. The Court also held that the sale transaction authorized by the Charity Commissioner and entered into by the trustees was final and would continue to remain so.

JUDGMENT - SUGLA, J.:---By these two petitions under Article 227 of the Constitution of India, the petitioners have challenged the amendments in the scheme of management and administration of the trust "Sheth Motishaw Religious Charitable Trust" allowed in terms of the order dated 5th November, 1977 by Bombay City Civil Court in Chamber Summons No. 991 of 1977, suit being No. 1195 of 1962.

2. Late Seth Khimchand Morichand by his Will dated 13th August, 1869 and Gujarati writing dated 14th August, 1869 settled certain properties on trust. In a suit filed under section 92 of the Code of Civil Procedure, 1908, being Suit No. 82 of 1918, this Court by its judgment and order dated 6th March, 1931 granted a scheme for management and administration of the trust, (hereinafter referred to as the scheme). The scheme evidently envisaged a public trust of a religious nature in which the whole Swetamber Murti Pujak Jain Community is interested. Clause 26 of the scheme provided for liberty to the trustees to apply to a Judge in Chamber for direction as and when necessary on giving notice to the Advocate General. By this Courts order dated 23rd December, 1938, in the same suit, the scheme was modified whereby clause No. 7(b) and Clause No. 23 of the scheme were amended. As a result of the amendment, the objects of the trust became somewhat broad based in the same that while under the original scheme, beneficiaries under Clause 7(b) were Swetamber Murti Pujak Jains only, after the amendment not only the Swetamber Murti Pujak Jains but any Jain in high class vegetarian Hindu and any educational school or institution for boys, girls or ladies also became beneficiaries Amendment of Clause 23 of the scheme is not of significance for deciding these petitions.

3. It is common ground that the Bombay Public Trusts Act, 1950 (hereinafter referred to as the 'Act') came on the statute book on 14th August, 1950 and the trust herein was bound to and got itself registered under the said Act. Another suit, being Suit No. 1195 of 1962, was filed by the trustees against the Charity Commissioner with a prayer that Clause Nos. 12 and 26 of the Scheme be allowed to be amended. This was done by following the procedure in conformity with the provisions of sections 50 and 51 of the Act. By an order dated 12th September, 1962, in the above suit, the Bombay City Civil Court allowed the amendment of Clause Nos. 12 and 26. Clause 26 which is important for decision in this case after amendment reads as under :

"26. In all cases in which it is found necessary to amend this scheme or any clause thereof or to seek advice or directions of the Court on questions of administration or management of the Trust, the Charity Commissioner or the trustees shall have the right under this scheme to apply to the City Civil Court, Bombay. In the case of Trustees so applying they shall give previous notice in writing in that behalf to the Charity Commissioner, Bombay and shall make him a party opponent in such publication."

On 27th July, 1977, the trustees unanimously passed a resolution for seeking amendment of Clause 5 of the scheme. However, when the actual application came to be made by way of Chembur Summons being No. 991 of 1977 in Suit No. 1195 of 1962, the amendment suggested were many and substantial. The Charity Commissioner was made a respondent who was represented by his Advocate in the proceedings. By its order dated 5th November, 1977, the Bombay Civil Court allowed the amendments.

4. Taking the view that it is necessary to raise large sum for 'Jirnodhar' of the temple and for enhancing facilities to the beneficiaries the trustees thought of a scheme of sale of about 65,000 sq. ft. of the surplus F.S.I. The notices inviting tenders were published in a number of English and other news papers on 15th, 16th and 17th November, 1979. In this resolution dated 28th December, 1979, tenders were considered and it was decided to sell the surplus F.S.I to the highest bidder. Permission of

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