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2017 Supreme(Bom) 942

IN THE HIGH COURT OF JUDICATURE AT BOMBAY BENCH AT NAGPUR
SHALINI PHANSALKAR JOSHI, J.
Santosh S/o Shankarlal Agrawal – Appellant
Versus
Purushottam S/o Jaganath Murme and Others – Respondents
FIRST APPEAL NO. 359 of 1998
Decided On : 18-07-2017

Advocates Appeared:
For the Appellant : Shri. A.S. Mehadia, counsel
For the Respondent: Shri. R.A. Jain, counsel

Headnote:Bombay Public Trusts Act, 1950 - Section 22-Change report.-Resolution of change report passed in meeting of Trust without giving 15 days clear notice would be illegal and invalid.

       Thus, looked at it from any angle, it cannot be said that the change report filed by the respondent No. 1 before the DCC on the basis of the resolution passed in the said meeting was legal, valid and correct. The DCC has rightly rejected the same. The orders passed by the JCC and District Judge, Nagpur in upholding the said change report and setting aside the order of the DCC, being not legal and valid, need to be quashed and set aside.

       Bombay Public Trusts Act, 1950 - Section 22-Constitution of India, Article 14-Resolution of change report.-Resolution of change report not passed after issue of 15 days notice, cannot be held legal and valid.

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JUDGMENT :

This appeal takes an exception to the judgment and order dated 15/12/1997 delivered by 2nd Additional District Judge, Nagpur in Miscellaneous Civil Application No. 363/1995. By the impugned order, the learned Additional District Judge has dismissed the revision application, which was preferred against the judgment and order dated 03/06/1995 passed by the Joint Charity Commissioner, Nagpur (for short, “JCC”) in Appeal No. 28/1994, preferred under section 70 of the Bombay Public Trust Act, 1950 (hereinafter will be referred to as “Act” for convenience). By his impugned order, JCC has allowed the said appeal and set aside the order passed by the Deputy Charity Commissioner, Nagpur (for short “DCC”) rejecting the Change Report No.229/1992 and accepting the same.

2. Brief facts of this appeal can be stated as follows :

Appellant and respondent no.2 are the founder members of the Trust, by name Shri Sadashivrao Patil Shikshan Sanstha, Kamptee, District – Nagpur. It was initially registered as society under the Societies Registration Act, 1860. After the Bombay Public Trust Act, 1950 came into effect, the said society was deemed to be registered as a Trust. Respondent no.2 was also the Secretary of the Society.

3. The grievance of the appellant is that the meeting of the executive committee of the Trust was held on 24/09/1990, in which some of the outsiders were inducted as members and some members alleged to have made payment of arrears of life member subscription at the rate of Rs.1,000/- each. Appellant and respondent no.2 were not given notice about the said meeting nor the Resolution was conveyed to them. Another meeting was thereafter convened on 06/01/1991 at Kamptee for election of new members. The legal and valid notice of 15 days of the said meeting as per the Memorandum of Association of the said Trust, was however not given to the appellant and respondent no.2. The notice is alleged to be issued on 21/12/1990 and is sent by Under Certificate of Posting on 22/12/1990, for the meeting which was proposed to be held on 06/01/1991. Thus, there was no clear 15 days notice of the said meeting. Despite that, the meeting was held on 06/01/1991 and in the said meeting, by passing a Resolution, the appellant and respondent no.2 were removed from the Trust.

4. Respondent no.1 presented the Change Report about the same under section 22 of the Act, in the Office of Charity Commissioner, Nagpur and it came to be registered as Change Report Inquiry No.229/1992. When the notices thereof were issued to appellant and respondent no.2, both of them filed their objection challenging the legality of the Change Report. In the said proceeding respondent no.1 was examined as his witness vide Exh.21. Appellant was also examined vide Exh.36, whereas respondent no.2 was examined vide Exh.53.

5. On appreciation of this evidence and after considering the various clauses in the Memorandum of Association of the Trust, learned DCC was pleased to reject the Change Report, holding it to be illegal on two grounds that 15 days notice of the said meeting was not given, and secondly appellant and respondent no.2 could not have been removed from the life membership, without giving them an opportunity of hearing.

6. Against this order of the DCC, respondent no.1 preferred an appeal under section 70 of the Act. The learned JCC, Nagpur was pleased to allow the appeal holding that as the appellant and respondent no.2 has failed to pay the subscription fee of Rs.2000/, they were no more entitled to participate or vote in the said meeting. Hence the question whether they had received the notice of the said meeting or not, does not assume significance. Accordingly the JCC, vide his order dated 01/08/1995, set aside the order of the DCC rejecting the Change Report.

7. Being aggrieved thereby, appellant and respondent no.2 preferred the appeal under section 72(4) of the Act before the District Judge, Nagpur. Vide his impugned judgment and order, District Judge, Nagpur














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