The Court can deviate from the directions of the settler under sections 55(1)(b) and 56 of the Bombay Public Trusts Act, 1950, if it finds that it is inexpedient, impracticable, undesirable, unnecessary, or improper in the public interest to abide by his directions. However, this power can only be exercised in respect of funds of a public trust which is not a trust for religious purposes.

Headnote:
PUBLIC TRUST - BOMBAY PUBLIC TRUST ACT, 1950 - SECTIONS 55(1)(B), 56 - APPLICATION FOR DIRECTIONS FOR UTILIZATION OF ACCUMULATIONS OF UNEXPENDED INCOME OF TRUST - COURT'S POWER TO DEVIATE FROM DIRECTIONS OF SETTLER - CONDITIONS - RELIGIOUS TRUST - SWAMIVATSAL FEAST - WHETHER RELIGIOUS OR CHARITABLE PURPOSE - DIRECTIONS FOR UTILIZATION OF ACCUMULATIONS.
Fact of the Case:

A testator created a trust for various religious and charitable purposes, including the giving of an annual Swamivatsal feast to members of his caste. After the death of the testator's niece, the trust was registered as a public trust under the Bombay Public Trusts Act, 1950. The trustees accumulated unexpended income from the trust funds. The Charity Commissioner filed an application under sections 55(1)(b) and 56 of the Act for directions for the utilization of the accumulations. The District Judge held that the Swamivatsal feast was not a religious purpose and that the accumulations could be utilized for educational and medical purposes. The High Court upheld the District Judge's decision. The trustees appealed to the Supreme Court.
Finding of the Court:

The Supreme Court held that the Swamivatsal feast was a religious or meritorious act prescribed by the scriptures of the Jain sect to which the testator belonged. The Court further held that the accumulations of unexpended income should be applied as nearly as possible to the original uses and purposes of the trust. The Court set aside the directions given by the Courts below and gave directions for the utilization of the accumulations.
Issues: 1. Whether the Swamivatsal feast was a religious or charitable purpose. 2. Whether the Court could deviate from the directions of the settler under sections 55(1)(b) and 56 of the Bombay Public Trusts Act, 1950. 3. How the accumulations of unexpended income should be utilized.
Ratio Decidendi: 1. The Court held that the Swamivatsal feast was a religious or meritorious act prescribed by the scriptures of the Jain sect to which the testator belonged. The Court noted that the feast was given on the occasion of a holy festival and that it was intended to promote religious and social harmony among the members of the caste. 2. The Court held that the Court could deviate from the directions of the settler under sections 55(1)(b) and 56 of the Bombay Public Trusts Act, 1950, if it found that it was inexpedient, impracticable, undesirable, unnecessary, or improper in the public interest to abide by his directions. However, the Court noted that this power could only be exercised in respect of funds of a public trust which was not a trust for religious purposes. 3. The Court held that the accumulations of unexpended income should be applied as nearly as possible to the original uses and purposes of the trust. The Court noted that the overriding intention of the founder of the trust was that the sum of Rs. 75,000 set apart by him should be devoted to the objects mentioned in clause (7) of the will, so that those objects may be continued and carried out for ever.
Final Decision: The Supreme Court allowed the appeal, set aside the judgments and decrees passed by the Courts below, and gave directions for the utilization of the accumulations.

BACHAWAT J. - One Jhaverchand Dahyabhai Shah died in 1916, leaving a will dated August 6, 1915. He was a resident of Vejalpore in the suburbs of Broach and a Ladva Shrimali Bania by caste. He professed the Jain religion and believed in the tenets of the Swetambar Murti Pujak sect of Jains. By clause (7) of the will, he directed his executors to spend out of the earnings of his shop every year during the life -time of his niece, Bai Jakore, the amounts mentioned below on the following religious objects:

(1) Rs. 100 for feeding cattle with grass, fodder, oil cakes etc., in the Broach Pinjrapole.

(2) Rs. 100 for Jiva -daya -Khata (fund for kindness to animals).

(3) Rs. 25 for offering flowers for the worship of Lord Rikabdev in the Jain temple at Vejalpore, Broach.

(4) Rs. 200 for providing food to Shravak pilgrims at the Shatroonjaya Hill at Palitana.

(5) Rs. 50 for providing food to pilgrims at Mount Girnar.

(6) Rs. 50 for providing food to pilgrims at Mount Abu.

(7) Rs. 250 for providing cereals, clothes etc., to Shravakas and Shravikas.

(8) Rs. 100 for providing cloth to Jain Saddhu and Sadhavies.

(9) Rs. 200 for education and food of Hindu orphans.

(10) Re. 200 for Jain Gyan Khata (fund for imparting knowledge).

(11) Rs. 100 for feeding Shravaks and Shravikas who have observed fast.

(12) Re. 300 for giving food, cloth etc., to the blind, lame and crippled members of the Hindu Community.

In audition, he also directed his executors to give a Swamivatsal feast or meal consisting of methi -dal and ladu8 made Of sugar to the members of his caste at 15 specified villages and towns in the Broach and Surat Districts every year on the occasion of tbe sacred festival of Pajusan. By clause (15) of the will, he directed that after the death of his niece, Bai Jakore, a sum of Rs. 75,000 should be set apart by the executors, and out of the moneys so set apart, suitable amounts should be sent to the respective Khata8 (funds) in his name, so that the religious acts mentioned in clause (7) be continued for ever.

2. On the death of Bai Jakore on may 20, 1928, the estate vested in the residuary legatee, Bai Chanchal, daughter of Bai Jakore. Mulchandbhai, husband of Bai Chanchal, set apart Rs. 75,000 on trust for the purposes mentioned in olause (7) of the will, and began to manage the trust estate. Out of the trust moneys, he invested Rs. 8,000 in 5 per cent. Tax -free Government Loan, 1944 -45, yielding an annual income of Rs. 400, and pursuant to the directions given in clause (15) of the will, handed over loans of the face value of Rs. 4,000, Rs. 1,000" Rs. 1,000 and Rs. 2.000 respectively to four religious and charitable institutions in full discharge of the obligation of the trust for expending annually the sums of Re. 200, Rs. 50, Rs. 50 and Rs. 100 on items 2,4, 5 and 6 of the religious purposes mentioned in clause (7) of the will. On December 8, 1947, Bai Chanchal executed a trust deed in respect of the investments representing the balance amount of Rs. 67,000 and an accumulation of surplus or unexpended income amounting to Rs. 25,796.6.8. The trust is registered as a public trust under the Bombay Public Trusts Act, 1950, hereinafter referred to as the Act. The trust deed provided that the unexpended accumulation of Re.25,796 -6 -8 should be applied for establishing, maintaining and supporting a Nivas for housing the poor and middle -class Ladva Shrimali Jains at low and cheap rents.

The trust deed also provided that after setting apart the aforesaid sum of Rs. 25,796 -6.8 the balance funds would be held in trust for applying its income to the charities mentioned in clause (7) of the aforesaid will other than items 2, 4, 5 and 6.

3. Now, the trustees had no authority to divert any part of the trust fund for the purposes of the Nivas scheme. The establishment of a Nivas for housing the poor and middle -class Ladva Shrimali Jains is not one of the original objects of the trust. As a matter of fact, the Nivas scheme was not c

Click Here to Read the rest of this document