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1990 Supreme(Bom) 153

IN THE HIGH COURT OF BOMBAY
S.M. Daud, J.
Vajubhai Patel another.... Petitioners.
Versus
Charity Commissioner, Maharashtra State others .... Respondents.
Writ Petition No. 441 of 1989 with Writ Petition No. 450 of 1989, decided on 5-4-1990.
Advocates appeared :
A.P. Inamdar i/by Kantilal Underkat Co., for petitioners in W.P. 450/89 for respondents 3, 4, 5 in W.P. 441/89.
A.M. Setalvad i/by Rustamji Ginwala, for petitioner in W.P. 441/89 for respond ent No. 1 to 3 W.P. 450/89.
B.E. Patil, for respondent No. 1 in 441/89 for respondent No. 4 in W.P. 450/89.

Headnote:Section 41-D-Removal of trustees-Trustees can be removed on persistent default-When only technical deviation it cannot be used against trustees- In absence of vitiating factors of dishonesty or uttar lack of competence trustees cannot be removed.

       In the case of removal of a trustee the Court should be considerations of the welfare of the trust estate, and before a removal of the trustee is directed, a clear necessity for the intervention of the Court to save the trust property must be established. It is not every mismanagement or neglect of duty which will induce the Court to remove a trusree. There must be such gross negligence or misconduct as to evidence a want either of capacity or of fidelity which is calculated to put the trust in jeopardy. Failure in the discharge of duty on account of mistake or misunderstanding is not a ground for removal unless such failure shows want of capacity to manage the trust. A trustee may be removed if he fraudulently misapplies the revenues of that trust property, and grossly misbehaves himself in the execution of the trust for example, if he renews a lease for his personal benefit. purchases the trust property concurs in a breach of trust, asserts a hostile title with knowledge that it was unfounded, fails to keep accounts, wrongfully alienates trust property, obstructs the management and wants only to waste the estate.

       But the lapse in the instant case cannot be said to be actuated by the vitiating factors of dishonesty or utter lack of competence. The BT was reduced to a decorative body of donors who for a decade were content to be in the imposing but empty husk of trnsteeship conferred on them. The BG with Vajubhai always in it and occupying the centre stage was happy to leave the tiresome tasks to him. Vajubhai with his self imposed weariness may have forgotten the requirement of Section 22. The default was not an act of defiance knowingly repeated year after year.

       EVIDENCE ACT, 1872.

       Section 3-Newspaper items-It cannot be accepted as proof of their contents

       (INDIAN) TRUSTS ACT, 1882.

       Sections 50, 51-Limitation in Sections 50 and 51-It applies to all public trusts and It ill Immaterial which State Act applies to them.

Judgment

S.M. DAUD, J.:---These are cross petitions under Article 226 of the Constitution aimed at the verdict of the Charity Commissioner (CC) in a proceeding under section 41-D r.w. 41-E of the Bombay Public Trusts Act, 1950 (B.P.T.A.).

2. Basic education is one of the many concepts which this country owes to Mahatma Gandhi. To popularise this ideal certain individuals including Vajubhai Patel in 1964 organised themselves into a Council known as the Indian Council of Basic Education. In April 1964, the Council was registered under the Societies Registration Act of 1860 (SR. Act) as also the B.P.T.A. Vajubhai, amongst others was recorded as a Manager as also a Trustee of the Council and the application for registration was moved by him. Accompaniments to the application included a Memorandum of Association and Rules and Regulations. The latter recited that the management of the affairs of the Council vested in the Board of Governors (B.G.) which was to be the sole executive of the Council. It was also stipulated that the General Body of the Council would appoint a Board of Trustees (B.T.) once its assets exceeded the value of Rs. 10,000/-. This came about in 1969 and the General Body elected a B.T. who included Mohanbhai, as also Vajubhai the principal contestants in this litigation. Mohanbhai and Nayanbhai are father and son respectively. Their munificence enabled Vijubhai to obtain sizable donations to enable the Council to start a School and College. The School was to be named after Mohanbhai's father and the College of Education after his mother. The prefix to both names were the words "Gandhi Shikshan Bhawan". It is the alleged misdeeds in relation to the College which gave rise to the proceedings before the CC. It began functioning as from the academic session 1970-71. Till about November 1971, Vijubhai was the Principal of the College. His functioning as such was not accepted as he was a mere B.A. Pass Class coupled with an M.A. from the Columbia University. Neither came upto the qualifications prescribed for a Principalship by the Bombay University to which the College was affiliated. Despite recommendations by some individuals to accept Vajubhai for the post, the university was unrelenting. Vajubhai vacated the office to be followed therein by witnesses Dr. Bhave and Mrs. Ankolvil. The trust had contracted a building for the College on site taken on lease on its behalf by Vajubhai as the sole lessee and therefore in 1973 or thereabouts moved into the same, Vacating the rented premises taken earlier. In course of time Chotabhai and Nayanbhai also became members of the B.T. The proceedings which have given rise to these petitions arise out of an application attributing to Vajubhai, his wife Leelabehn, Sonalbehn Shukla and Kusumbehn Thakkar various sins of omission and commission allegedly attracting section 41-D B.P.T.A. The lapses were formalised into charges numbering 63. The proceeding begun in 1881 dragged on and culminated in 1989 in the verdict of the CC. To be brief, the CC exonerated Vajubhai, Leelabehn, Sonalbehn, and Kusumbehn of all the charges levelled against them. This exoneration is assailed by Mohanbhai, Chotabhai and Nayanbhai through W.P. No. 450 of 1989. The Cc found that there were certain irregularities which needed rectification. The B.G. B.T. were directed to rectify the errors. Following the initial suspension, Vajubhai, Leelabehn and Sonalbehn were restrained from participating in the management of the trust's affairs. This was continued vide orders passed in Writ Petitions bearing Nos. 833 and 1200 of 1981 and 630 of 1982. Initially an interim board of management and administration was appointed until the disposal of one of the above petitions. By order dated 30-7-1986, Pendse, J., made this Board's terms co-extensive with the conclusion of the enquiry by the CC. A sentence from the order, relied upon by Vajubhai etc., reads thus:-

"The CC to pass further orders relating to the management of th





















































































































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