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1950 Supreme(Bom) 59

HIGH COURT OF BOMBAY
SHAH, J.
Fazlehussein Haiderbhoy Buxamusa
Versus
Yusufally Adamji
O.C.J. Suit No.1227 of 1946
Decided On : 02-08-1950

Advocates:
M.P. Laud with J.M. Thakor, for Plaintiffs; H.D. Banaji and M.L. Manekshah, (for Nos.2 to 9) and S.T. Desai and K.K. Desai, (for Nos.10A to 10F), for Defendants.

The jurisdiction of a court to entertain a suit for the administration of a foreign charity and for removal of trustees and appointment of new trustees depends solely on the existence or otherwise of property which is the subject-matter of the trust within its jurisdiction, and not on other considerations such as the residence of the defendants or the cause of action arising within the jurisdiction.

Headnote:

CHARITY SUIT - JURISDICTION - FOREIGN CHARITY - TRUSTEES NON-RESIDENT FOREIGNERS - PROPERTIES WITHIN JURISDICTION - S.92, CIVIL P.C. - CL.12, LETTERS PATENT, BOMBAY HIGH COURT - JURISDICTION TO ENTERTAIN SUIT - JURISDICTION TO GRANT RELIEF - DISTINCTION - COURT'S DISCRETION.

Fact of the Case:

Suit for administration of a foreign charity, removal of trustees, and appointment of new trustees. Some of the properties belonging to the charity were situated within the jurisdiction of the Bombay High Court, while others were outside the jurisdiction. The trustees were non-resident foreigners residing in territory beyond the territory of the Indian Union.

Finding of the Court:

The Bombay High Court held that it had jurisdiction to entertain the suit, but would not exercise its jurisdiction to remove trustees or appoint new ones, as that would interfere with the administration of a foreign trust.

Issues: 1. Whether the Bombay High Court had jurisdiction to entertain the suit for the administration of a foreign charity, removal of trustees, and appointment of new trustees, when some of the properties belonging to the charity were situated within its jurisdiction and the trustees were non-resident foreigners residing outside the territory of the Indian Union? 2. Whether the Court could grant the reliefs sought, including removal of trustees and appointment of new trustees, in respect of a foreign charity and non-resident foreign trustees?

Ratio Decidendi: 1. The Court's jurisdiction to entertain a suit under S.92, Civil P.C. depends solely on the existence or otherwise of property which is the subject-matter of the trust within its jurisdiction, and not on other considerations such as the residence of the defendants or the cause of action arising within the jurisdiction. 2. The Court has jurisdiction to entertain a suit for the administration of a foreign charity and for removal of trustees and appointment of new trustees, when some of the properties belonging to the charity are situated within its jurisdiction, even if the trustees are non-resident foreigners. 3. However, the Court will not exercise its jurisdiction to grant reliefs which interfere with the administration of a foreign trust in respect of properties outside its jurisdiction, or pass personal directions against non-resident foreigners which it would not be in a position to enforce.

Final Decision: The Court held that it had jurisdiction to entertain the suit, but would not exercise its jurisdiction to grant the reliefs sought, as that would interfere with the administration of a foreign trust.

Judgement

JUDGMENT : - (After setting out the contentions of the parties, his Lordship proceeded:) Now at the date when the suit was filed the defendants were nationals of what then was British India and resided in the British Indian territory, but since the partition of India defendants Nos.1 to 9 have been residents of territory which is beyond the territory of the Union of India, and I will assume for the purpose of argument that defendants Nos.1 to 9 are not residents of the Union of India and may be regarded as non-resident foreigners qua this Court. Again, when the suit was filed some of the properties belonging to the institution were in British India and some were outside British India.

Even though the charity was outside the country, the trustees were residing in British India and the management of the trust was also carried on in British India. Since the suit was filed, however, the position of the parties qua this Court has been fundamentally altered. Not only is the charity a foreign charity in the sense that the benefit which was available to the pilgrims when visiting Iraq, was to be obtained by them outside the limits of British India, but even the trustees who are administering the trust are not residents of the territory where the writ of the State under which the Court functions continues to run.

The effect of the change is of far-reaching importance to the constitution of the suit. As I will hereafter advert, this Court at the date when the suit was instituted have been in a position to grant directions to defendants Nos.1 to 9 in personam, and if the plaintiffs case was established, those directions might have been enforced by directing the defendants personally to comply with the orders, but since partition this Court is incompetent to issue even personal directions against the trustees.

The defendants have not made this submission in their written statement and have not expressly claimed that this Court is incompetent to proceed with the suit on the ground that the reliefs claimed against them are not capable of being granted by this Court, because they are non-resident foreigners, and that the claim is made by the plaintiffs in respect of a foreign charity. However, even without a formal amendment the argument has been permitted to be raised that the Court is incompetent to try the suit when the defendants are non-resident foreigners and the charity in respect of which a claim for administration is made is a foreign charity.

2. Now, some of the properties of the institution, which for the purpose of the present argument I assume is a public trust of a religious or charitable nature, are within the limits of the ordinary original jurisdiction of this Court. It appears, however, that there are several other properties of the institution which are situate outside the limits of the ordinary original jurisdiction of this Court and some are even outside the territory of the Indian Union, and possibly those properties constitute the bulk of the property of the institution.

The question that arises then for decision is: Is this Court competent to entertain a suit for the administration of a charity and for removal of trustees and for appointment of new trustees, when the charity is to all intents and purposes a foreign charity, the management of the charity is carried on in a foreign territory and the trustees are non-resident foreigners, merely because some of the properties which belong to the charity are situate within the territorial jurisdiction of this Court and its income is collected and is required to be applied for purposes of the charity. For the decision of this question I have omitted from consideration the state of things which prevailed when the suit was filed and I have taken into consideration the state of things which exists when this issue as to juridiction is sought to be argued.

It is obvious that even if this Court had jurisdiction to entertain the suit as filed, if by reason of subsequent events









































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