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2022 Supreme(Bom) 805

IN THE HIGH COURT OF BOMBAY, (AURANGABAD BENCH)
S.G. Mehare, R.D. Dhanuka, JJ.
Shirdi Nagar Panchayat, Shirdi – Petitioner
Versus
The State of Maharashtra & Ors. – Respondents
Writ Petition No. 6703 OF 2020 with Civil Application No.8478 Of 2020 with Public Interest Litigation No. 46 Of 2021
Decided On : 15-07-2022

Advocates Appeared:
For the Petitioner: Shri V. D. Hon, Shri A. V. Hon.
For the Respondent: Shri D. R. Kale, Shri A. S. Bajaj, Shri N. K. Chaudhari, Shri K. B. Chaudhari.

The State Government has the authority to issue GRs directing the Sansthan Trust to release funds for cleanliness and sanitation purposes under Section 21(2)(ii) of the Shree Saibaba Sansthan Trust (Shirdi) Act, 2004. The Sansthan Trust is obligated to comply with the GRs and cannot unilaterally stop payment.

Headnote:

The High Court of Bombay, in this case, examined the validity of Government Resolutions (GRs) issued by the State Government directing the Sansthan Trust to release funds to the petitioner, a Nagar Panchayat, for cleanliness and sanitation purposes in Shirdi. The Court also considered a Public Interest Litigation (PIL) challenging the GRs and alleging misappropriation of funds by the petitioner.

Fact of the Case:

The petitioner, Nagar Panchayat at Shirdi town, sought a writ of certiorari to quash a resolution passed by the ad-hoc committee of Shri Saibaba Sansthan Trust (Sansthan Trust) and a writ of mandamus to forthwith release the amount payable to the petitioner for cleanliness and sanitation as per the GRs and provisions of Section 21(2)(ii) of the Shree Saibaba Sansthan Trust (Shirdi) Act, 2004. A PIL was also filed challenging the GRs and alleging misappropriation of funds by the petitioner.

Finding of the Court:

The Court found that the Sansthan Trust had agreed to pay Rs. 30,00,000/- per month for five years for cleanliness and sanitation in Shirdi, and the State Government had issued GRs directing the Sansthan Trust to release the funds. The Sansthan Trust had implemented the GRs for 2 and ½ years but stopped releasing funds in May 2020, citing the closure of the temple due to the pandemic. The Court held that the Sansthan Trust could not unilaterally stop payment contrary to the GRs and that the petitioner was required to continue providing cleanliness and sanitation services during the pandemic.

Issues: 1. Validity of Government Resolutions (GRs) directing the Sansthan Trust to release funds to the petitioner for cleanliness and sanitation purposes in Shirdi. 2. Allegations of misappropriation of funds by the petitioner.

Ratio Decidendi: 1. The Court held that the GRs issued by the State Government under Section 21(2)(ii) of the Shree Saibaba Sansthan Trust (Shirdi) Act, 2004, were valid and enforceable. The Sansthan Trust was obligated to release the funds as directed by the GRs, and its unilateral decision to stop payment was illegal. 2. The Court found no merit in the allegations of misappropriation of funds by the petitioner. The petitioner had utilized the funds received from the Sansthan Trust for cleanliness and sanitation activities, as evidenced by various certificates and awards received by the petitioner for its cleanliness efforts.

Final Decision: The Court allowed the writ petition filed by the petitioner and quashed the resolution passed by the ad-hoc committee of the Sansthan Trust. It directed the Sansthan Trust to release the balance amount payable under the GRs within four weeks. The PIL challenging the GRs was dismissed.

JUDGMENT :

R.D. Dhanuka, J.

1. Rule. The learned counsel appearing for respondents waive service of rule. Rule is made returnable forthwith. By consent of parties both the aforesaid matters were heard together and are being disposed of by common order.

2. In Writ Petition No. 6703 of 2020, the petitioner has prayed for writ of certiorari for quashing and setting aside Resolution No. 323 passed by the Ad-hoc Committee of Shri Saiba Sansthan Trust Shirdi in the meeting dated 09.06.2020. The petitioner has also prayed for writ of mandamus to forthwith release the amount payable to the petitioner/Municipal Council for the purpose of cleanliness and sanitation as per the Government Resolution dated 07th April, 2018 and corrigendum dated 22nd November, 2018 in accordance with the provisions of Section 21(1)(ii) of the Shree Saibaba Sansthan Trust (Shirdi) Act, 2004 from May 2020 onwards.

3. Public Interest Litigation No. 46 of 2021 is filed by Shri Sachin Paraji Kote and another inter alia praying for quashing and setting aside the impugned Government Resolution dated 07th April, 2018, 17th April, 2018 and 22nd April, 2018 issued by the Law and Judiciary Department, Mantralaya, Mumbai thereby directing the Saibaba Sansthan Shirdi Trust to pay Rs. 42.51 Lakhs for cleanliness and sanitation of Shirdi Town contrary to the resolutions of the Sansthan. The petitioners also prayed for an order and direction to the Sansthan Trust to decide afresh the quantum of amount to be paid to the petitioner, Shirdi considering the rates of previous contractors, funds received from the Government for cleaniness/sanitation and its utility for Sansthan and also to frame policy in that regard. The petitioners seek an order and direction against the petitioner, Shirdi to submit the accounts of taxes collected on account of sanitation/clealiness and its utilization, funds received from Government and its utilisation for sanitation/cleanliness, prizes in term of money received from Government and its utilization for sanitation/cleanliness and the grant in aid received from the Sansthan for sanitation/cleanliness before this Court.

4. Some of the relevant facts for the purpose of deciding this writ petition are as under :-

The petitioner is Nagar Panchayat at Shirdi town. The respondent no.2 is Shree Saibaba Sanstan Trust (hereinafter referred to “the said Sansthan Trust”) formed in accordance with the provisions of the Shree Saibaba Sansthan Trust (Shirdi) Act, 2004 (for short “the said Act”). The Government of Maharashtra enacted the Maharashtra Act No.XIV of 2004 viz. Shree Saibaba Sansthan Trust (Shirdi) Act, 2004 to reconstitute the public Trust and to provide for better management, administration, governance and the controlling the Trust to enable it to undertake to wider welfare activities for the public.

5. Section 21 of the said Act provides for the utilization of the Trust’s funds for the purposes viz. maintenance, management and administration of temple and properties of the Trust. Section 21(2)(ii) provides that after making adequate provision for the purposes referred in sub-section (1) if there is surplus in the Trust fund, a portion of the surplus being not more than thirty percent of the distributable income of the Trust, it may be utilized from time to time with the previous sanction of the State Government.

6. Sub-section (ii) of Section 21 specifically incorporate utilization of the funds for Shirdi Nagar Panchayat for the improvement and augmentation of local services and amenities resulting in improvement of facilities to the Sansthan. It is the case of the petitioner that in view of the said specific provisions made under Section 21(2)(ii) of the said Act, Shirdi Trust can utilize its funds by providing the same to the Shirdi Nagar Panchayat for the improvement of civil services and amenities in the interest of the devotees.

7. On 19th January 2018 in the Scrutiny committee meeting held by the said Santhan Trust, it was resolved to release the

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