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2005 Supreme(Bom) 1009

IN THE HIGH COURT OF BOMBAY
Pradeep R. Mafatlal
Versus
State
Decided Date: 08/08/05

Headnote:Bombay Public Trusts Act, 1950 - Section 50 - Sanction of proposed amendment of Scheme of Trust. - Writ petition filed by Trustee of Public Charitable Trust for sanctioning proposed amendment of existing scheme of Trust is maintainable.

       Bombay Public Trusts Act, 1950 - Section 50 Scheme of Trust Modification and alteration of Trustees proposed modification and alteration Resisted by intervenors and caveators Trustees have absolute domain over modification and alteration of scheme Advisability of Trustees cannot be questioned by Court. The contention which has been advanced by the learned Chartered Accountant and the Advocate both appearing in person is that the scheme which is proposed is not in the interest of the trust and this Court should either reject the same or modify suitably in the interest of the trust. It has been contended that the provisions providing for expulsion of the member s as proposed should be modified so as to provide for a grading punishment rather that straight away expulsion of the members from the membership of the trust. It has been also contended that the capping of the election of the Managing Committee Trust and the Secretary being six and three times respectively which is sought to be done away by modification of clause 19(dd) and 19(ddd) should be rejected and the capping cover should be retained so as to avoid of the monopoly in the Managing Committee Trust, which will be in the interest of the trust.

       In support of the aforesaid contention the learned counsel has relied upon the judgment of the single Judge of this Court in Misc. Petition No. 31 of 1988 decided on 21.10.1997 in which the original clause 30 was prescribed on the number of times a person can be elected as a Managing Committee Member or a Secretary. The learned counsel for the respondent appearing in person has further contended that he appeared before the learned Judge and the learned Judge modified the scheme so as to avoid capping on the number of times a person can be elected. I have perused the order dated 21.10.1997 passed by the learned single Judge, I do not find any such discussion that the objection of the respondent to provide for capping was taken into consideration. The modification which was proposed to clause 30 itself provided a restriction that no person of the club can be a member of the Managing Committee for more than 6 times. Page 13 of the judgment in para 7(k) provided that no person can be a member of the Managing Committee for more than six times as proposal of the trustees to amend the scheme. In any event both modification or alteration of the scheme are the issues in a absolute domain of the trustees. If the trust have proposed certain modification then the advisability thereof cannot be questioned by the Court nor can propound its own scheme for the purpose of modification in place and instead of the scheme proposed by the trust. In Court view clause 98 does not give to this Court, a completely free hand to frame a fresh scheme altogether which may not be supported by the majority of Trustees or a majority of the members of the Anjuman Committee. In our view, this would not be a correct interpretation of clause 98. Even if assume that the Court has powers to amend or alter the proposals before it is submitted by the Trustees or by the members of the Anjuman Committee, the Court should be slow in exercising such powers. It would not therefore, be proper for Court to ignore the proposals placed before us by the Trustees and frame an altogether different scheme.

       Bombay Public Trusts Act, 1950 - Section 50 Scheme of Trust Amendment of Jurisdiction of Court Proposed amendment sanctioned by Court Objection against Contended that only Charity Commissioner has exclusive jurisdiction to make amendment in Scheme of Trust Contention not tenable High Court framed scheme in a decree passed in earlier suit High Court had jurisdiction to entertain and try application for amendment of scheme under Section 50 of Act. The counsel appearing for the respondent No. 2 has inter alia contended that this Court has no jurisdiction to entertain the petition. He has taken me through the various provisions of Bombay Public Trusts Act, 1950 particularly the definition of the word "Court" under Section 2(4) the provisions of Sections 50, 50(a), 52, 85 and 86 of the Bombay Public Trust Act, 1950. It has been inter alia contended that the word "Court" defined by the provisions of Section 2(a) means in the Great Bombay, the City Civil Court and elsewhere, the District Court. It has been further contended that the application by way of miscellaneous petition would not lie in this Court because for framing of a scheme of variation or alteration therein an application should be made to the Charity Commissioner under Section 50, clause (iv)(j) of the Bombay Public Trusts Act, 1950 and thus he alone would have jurisdiction to alter amend, verify or form a new scheme for the election of Trustees of Parsee Panchayat. It has been contended that under Section 92, the provisions of Sections 52 and 93 of Civil Procedure Code has been repealed and they cease to apply to the Public Trusts and therefore the present proceedings initiated in this Court is totally beyond the jurisdiction of this Court and cannot be entertained. This issue of jurisdiction has also been supported by other intervenors.

       Bombay Public Trusts Act, 1950 - Clause 95 is a consequential clause and it says that any alteration or modification that is sanctioned by the Judge in Chambers shall form part of the scheme. Thus, under the scheme as framed by this Court, the High Court has jurisdiction to entertain a petition for alteration or addition to the provisions of the scheme.

       

Judgment

KAMDAR S. U. , J.

( 1 ) THE present petition is filed by the trustees of a public charitable trust known as Pransukhlal Mafatlal Hindu Swimming Bath and boat Club Trust. By this petition the petitioners are seeking order from this court of sanctioning the proposed amendment of the existing scheme of the said trust. Some of the material facts of the present case can be briefly enumerated are as under :

( 2 ) THE Pransukhlal Mafatlal Hindu Swimming Bath and Boat Club Trust was constituted pursuant to a Declaration of Trust dated 18th August, 1939 made between Mafatlal Gagalbhai, Sunderdas Morarjee and Dwarkadas champsey therein called "the parties of the First Part" of the one part and mafatlal Gagalbhai and others therein called "the Trustees" of the other part. Under the terms and conditions of the said trust an institution called The pransukhlal Mafatlal Hindu Swimming Bath and Boat Club" has come into existence. The said trust is duly registered as a public charitable trust with the Charity Commissioner under the provisions of the Bombay Public trust Act, 1950.

( 3 ) A suit was filed in this Court by Vrandavan Purshottam and Damodar gordhandas being Suit No. 1440 of 1984 against Navinchandra Mafatlal and others who were the then trustees of the said trust. On 9. 11. 1944 this Court has framed a scheme for management and administration of the trust. Under the said scheme the management and administration of the trust was vested in the trustees and they were required to carry on the trust activities in accordance thereof.

( 4 ) SUBSEQUENTLY another suit filed being Suit No. 920 of 1951 pertain to certain interpretation and implementation of the said scheme. The said suit was filed by Mohanlal Narottamdas Mehta and five others against the advocate General of Bombay. In the said suit a decree was passed on 10. 12. 1951 by this decree the Court finalised the scheme and interpreted the said scheme. By the said decree dated 10. 12. 1951 ultimately a final scheme has come into operation. Clause-51 of the said Scheme as finalised in the aforesaid decree provided that the trustees or the Managing Committee will be at liberty to apply to the High Court by way of petition for modification, alterations or amendments or additions to the provisions of the said scheme. The said Clause-51 of the Scheme reads as under :

"51. The trustees or the Managing Committee for the time being shall be at liberty to apply to the High Court of Judicature at Bombay by petition for such modification, alterations or amendments of or additions to the provisions of this scheme or for such directions with reference to the carrying out of the provisions thereof as might be necessary or convenient. "

( 5 ) IT seems that from time to time thereof the scheme has been the subject-matter of modification and alteration. One of the proceedings filed was misc. Petition No. 31 of 1988 under which certain alterations in the scheme were formulated. By order and judgment dated 21/ 10/ 1997 passed by this court, this Court altered the scheme of the said trust and the said altered scheme has come into effect from 21/ 10/ 1997. Thereafter another petition was filed being Misc. Petition No. 52 of 2000 and the trust proposed further alteration to the said scheme and by an order dated 13. 10. 2000 passed by this Court has allowed the said proposed alterations.

( 6 ) IT is the case of the petitioner that the club has around 37,264 members which has been ever increasing and various other facilities are added. It is the case of the petitioner that the said trust is running basically for the benefit of middle class members of the public and was constituted with its main object to advance the cause of physical culture and/or providing the need of swimming pool and other sports activities. It is further the case of the petitioner that a very nominal rate is charged to the members for the purpose of use of the said facilities. It is the case of the petitioner that because of the va








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