High Court of Judicature at Bombay
THE HONOURABLE MR. JUSTICE A.M. KHANWILKAR
Vijay K. Mehta & Others - Appellant
Versus
Charu K. Mehta & Others - Respondent
Writ Petition No.8127 of 2008
Decided On : 02 February 2009
(B)Bombay Public Trusts Act (1950), S.41D(3):- Where the charged trustees are not only guilty of breach of duty, but their conduct is actuated by mala fide motive and malice, their suspension by the Joint Charity Commissioner was upheld as just and reasonable.
(C)Bombay Public Trusts Act (1950), S.41D - Where trust funds were spent for lawyers fees to defend the charged trustees in their personal litigation, but not for representing the trust, it is misappropriation of funds and has to be recovered from the charged trustees.
(D)Bombay Public Trusts Act (1950), S.41f D(3):- The power of Joint Charity Commissioner to suspend the trustees is not precluded by the pendency of appeal against the order of framing of charges.
1. This Writ Petition takes exception to the decision of the Joint Charity Commissioner (hereinafter referred to as ‘the JCC’ for the sake of convenience), Greater Mumbai, Region Mumbai dated 10th October 2008 passed on Application (Exhibit 2), whereby, pending enquiry of charges, the five trustees (including the present three Petitioners) have been suspended in exercise of powers under Section 41D(3) of the Bombay Public Trusts Act, 1950 (hereinafter referred to as ‘the Act’). This Petition has been finally heard at the admission stage, by consent.
2. The moot question that needs to be addressed in this Petition is: whether the exercise of powers under Section 41D(3) of the Act by the JCC can be said to be just and proper in the fact situation of the present case?
3. The background in which the present matter arises is that the Respondent No.1 filed Application before the JCC for initiating action under Section 41D of the Act against nine trustees of the Lilavati Kirtilal Mehta Medical Trust (hereinafter referred to as ‘the Trust’) on certain allegations elaborated in the said Application. The said Application is registered as Application No.17 of 2006. The Respondent No.1 claims to be a permanent trustee of the said Trust. The Trust is running a super speciality hospital in the name of "Lilavati Hospital" at Bandra, Mumbai and is a well-known hospital in the Country. The hospital has facility of 300 beds and out patients department, casualty department, etc. It engages nearly 1700 employees and 230 consultant Doctors attached to the hospital. In the said Application moved by the Respondent No.1, after allowing the parties to exchange documents and pleadings, the JCC by his order dated 3rd June 2008 on finding prima facie material to indicate the complicity of the said nine trustees proceeded to frame following eight charges:
"CHARGES
1) The opponents No.1 to 9, trustees of the trust advanced huge amounts more than Rs.15 crores to M/s. Mayfair Realtors Pvt.Ltd. & Vesta India Pvt.Ltd. for procuring medical equipments during years 2001-02 to 2003-04 without taking proper care & despite failure by these companies to supply the equipments, did not take steps to recover the money & thus, continuously neglected their duties & committed mis feasance & also dealt improperly with the trust property.
2) The opponents No.1 to 9, trustees of the trust, gave donations regularly to the tune of Rs.6.36 crores from year 2003-04 to 2005-06 to Madhulaxmi Trust, without verifying that the donations are utilized to fulfil objects of the trust and thus, continuously neglected the duties & committed mis feasance & also dealt improperly with the trust property.
3) The opponents No.1 to 9, trustees of the trust & committed mis feasance & also dealt improperly with the trust property purchased a Honda Accord Car MH 02 MA 4343 for and in the name of Mr. Dushyant Mehta & thus dealt improperly with trust funds & mis appropriated the trust money.
4) Opponent No.9, a trustee of the trust, utilized the trust funds to the tune of Rs.36,06,470/- during financial years 2003-04 to 2005-06 towards payments of his credit cards & thus received personal benefits from trust funds & thereby mis-appropriated the trust money & committed mal feasance.
5) The opponents No.1 to 9, trustees of the trust arranged meetings of the trustees as well as other meetings at Antewerp, Belgium & other foreign countries instead of India & spent huge amounts to the tune of Rs.58,40,456/- from year 2002-03 to August, 2006 & squandered the trust money & committed mis feasance & also dealt improperly with the trust property.
6) The opponents No.1 to 9, trustees of the trust have spent money from trust funds to meet travelling expenses of Mr.Suresh Motwani who has no concern with the trust, for his trips to Goa & Dubai & committed mis feasance & also dealt improperly with the trust property.
7) The opponents No.1 to 9, trustees of the trust, advanced amount of Rs.2.75 cror
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