Jagjeet Singh Gurusharan Singh vs Alka Sahani

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2021 Supreme(Bom) 1667

IN THE HIGH COURT OF BOMBAY
A.S. Chandurkar, Pushpa V. Ganediwala, JJ.
Jagjeet Singh Gurusharan Singh and Others – Appellants
Versus
Alka Sahani and Others - Respondents
F.A. No. 600 of 2016
Decided On : 27-04-2021

Advocates Appeared:
For the Petitioner: R. L. Khapre, M. M. Dhandekar.
For the Respondent: C. S. Kaptan, U. A. Gosavi, N. A. Gaikwad, Anand Parchure, V. V. Bhangde, A. S. Jaiswal, Mrs. Radhika Bajaj, S. Y. Deopujari, A. P. Thakre, S. P. Bhandarkar, Ms. T. Khan.

Headnote:(A) Maharashtra Public Trusts Act, 1950 - Sections 41-A and 47 - Appointment of Trustees - Joint Charity Commissioner appointed Trustees for Vishwa Punarnirman Sangha; appeal initiated rejects petition of existing Trustees claiming rightful authority; necessity of quorum for Administrative Body discussed. Court finds improper procedure in appointments without evaluating eligibility of nominees - Observed that the Joint Charity Commissioner must ensure adherence to articles governing Trust and conduct a proper enquiry - Jurisdiction under section 47 upheld but order for new body quashed; matter remanded for reconstitution compliant with Articles. (Paras 1, 37, 54)

(B) Trustee Appointment - Jurisdiction - The Charity Commissioner must adhere to the provisions of the MPT Act while appointing Trustees; criteria for selection must reflect the interests of the Trust and comply with its governance regulations. (Paras 27, 38, 52)

Facts of the case:
The Joint Charity Commissioner appointed new Trustees for the Sangha amidst allegations of mismanagement by recorded members; appellants are past trustees contesting the legality of the appointments citing procedural violations. (Paras 6, 18)

Findings of Court:
The Court concluded that existing administrations’ validity was compromised due to improper appointments, necessitating a review of the decision to ensure compliance with guidelines. (Paras 41, 54)

Issues: Whether the Joint Charity Commissioner’s order to appoint Trustees was justified; whether selected members adhered to eligibility criteria provided in Acts and Articles of Association. (Paras 28, 38)

Ratio Decidendi: The Joint Charity Commissioner’s authority must be exercised in conformity with statutory requirements; appointment orders lacking sufficient evidence or adherence to governing Articles cannot stand. (Paras 46, 52)

Result: First Appeal allowed in part, remanding the matter for proper reconstitution of the Administrative Body in alignment with the Articles of Association.

Table of Content
1. introduction of the case and factual background. (Para 1 , 2 , 3 , 4 , 5 , 6)
2. allegations and responses concerning trustees' governance. (Para 7 , 8 , 9)
3. interim measures during appeal proceedings. (Para 10 , 11)
4. arguments about the validity of the order under section 47. (Para 13 , 14 , 17 , 18 , 19 , 20 , 21)
5. interpretation of section 47 and its application. (Para 22 , 23 , 25 , 26)
6. court's scrutiny of administrative powers and procedures. (Para 28 , 29 , 30 , 31 , 32 , 33)
7. analysis of the charity commissioner's role. (Para 34 , 35 , 36 , 37 , 38 , 39 , 40 , 41 , 42)
8. legal requirements for appointing and assigning trustees. (Para 43 , 44 , 45 , 46 , 47 , 48 , 49 , 50 , 51 , 52)
9. judgment summary and directives for future proceedings. (Para 53)
10. conclusion and order of the court. (Para 54)

JUDGMENT :

Pushpa V. Ganediwala, J. -

1. This appeal is directed against the judgment and order dated 19-5-2016 passed by the Joint Charity Commissioner, Mumbai, in Application No. 74/2015 which was filed under section 47 and section 41-A of the Bombay Public Trust Act, 1950 (Now the Maharashtra Public Trusts Act) whereby the learned Joint Charity Commissioner allowed the application and appointed 10 (Ten)Trustees-Administrators and 9 (Nine) Co-opted Administrators of the Trust by the name Vishwa Punarnirman Sangha, Nagpur.

By an Order dated 19-10-2016, the learned Single Judge while hearing this appeal, relied on the Judgment in the case of Vanmala Manoharrao Kamdi vs. Deputy Charity Commissioner , 2012(3) Mh.L.J. 594 which held that orders/directions under section 41-A of the Act of 1950 are administrative in nature, hence directed to place this matter before the Division Bench for appropriate orders on this point. Accordingly, this appeal came to be placed before the Division Bench.

The facts leading to filing of this appeal may be stated as under :

2. Vishwa Punarnirman Sangha, Nagpur (World-Reconstruction Society) is a Trust (hereinafter referred to as-Sangha or Trust), registered under the provisions of the Societies Registration Act, 1860 and the Bombay Public Trusts Act (now Maharashtra Public Trusts Act)(for short “MPT Act”) vide Registration No. E-1344(N). The aims and objects of the Sangha is stated in its MEMORANDAM OF ASSOCIATION, and the administration of the Sangha is governed by its ARTICLES OF ASSOCIATION. In furtherance of its aims and objects, the Sangha runs a School by the name Bharti Krishna Vidya Vihar, Telankhedi, Nagpur, having a strength of around 2500 students and around 150 staff members.

3. As per Clause 11 of the Memorandum of Association, the administration of the Sangha is being carried on by the Administrative Body constituted in accordance with the Articles of Association. It shall consists of (1) TRUSTEES-Administrators and (2) Co-opted Administrators, ordinarily totaling 19 persons (representing both sexes) as laid down in the Articles of Association.

4. As per Clause 12 of the Memorandum of Association, the supreme control, governance, superintendence, administration, management, investment, use, application, disbursement or other disposal of any property or funds of the Sangha shall -without prejudice to the trust and the rights of the Trustees-depend on, and be decided at the discretion of and be vested in the Administrative Body of the Sangha duly constituted under its Articles of Association.

5. Applicant No. 1 Smt. Alka Sahani in the application under section 47 of the MPT Act before the learned Joint Charity Commissioner claimed to be the recorded Secretary of the Sangha and the other applicants claimed to be the persons interested in the Sangha. The non-applicant Nos. 1 to 4 in the said application are the recorded trustees of the Sangha.

6. It was the grievance of the applicants that as all the change reports which were filed before the Assistant Charity Commissioner came to be rejected, some outsiders were interfering into the administration of the Trust witho

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2021 Supreme(Bom) 1667

IN THE HIGH COURT OF BOMBAY A.S. Chandurkar, Pushpa V. Ganediwala, JJ. Jagjeet Singh Gurusharan Singh and Others – Appellants Versus Alka Sahani and Others - Respondents F.A. No. 600 of 2016 Decided On : 27-04-2021

Cases Referred (11)

IN THE HIGH COURT OF BOMBAY
A.S. Chandurkar, Pushpa V. Ganediwala, JJ.
Jagjeet Singh Gurusharan Singh and Others – Appellants
Versus
Alka Sahani and Others - Respondents
F.A. No. 600 of 2016
Decided On : 27-04-2021