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2025 Supreme(Bom) 1432

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
Milind N. Jadhav, J.
Narendra Ramprakash Podar And Ors. - Petitioners
Versus
Pragnesh Narayan Podar And Anr. Respondents
Writ Petition No.15699 of 2022, Writ Petition No.14797 of 2023
Decided On : 01-12-2025

Advocates Appeared:
For the Petitioner:Mr. Kaustubh Thipsay a/w. Ms. Pooja Thakkar, Advocates
For the Respondent:Mr. Prathamesh Kamat a/w. Mr. Kayush Zaiwalla, Ms. Samruddhi Warang and Mr. Abheek Melwani, Advocates i/by Ravi Kant Purohit, Advocates, Mr. Y. D. Patil, AGP, Mr. S. H. Kankal, AGP
For the Intervenor :Mr. Rohan Cama a/w Mr. Kyrus Modi, Advocates i/by Ms. Esha Joshi, Advocates

The court reaffirmed the necessity of proper notice, inquiry, and quorum in Trust administration, establishing that interested parties may challenge Trust governance despite assertions of lack of standing.

Headnote:(A) Maharashtra Public Trusts Act, 1950 - Section 41D and Section 70A - Challenges to changes in Trust administration and appointments of Trustees - Petitioners contend that Respondent No.1, being merely an heir, lacks locus standi to challenge resolutions regarding Trustee appointments and address changes - The Joint Charity Commissioner reversed the Assistant Charity Commissioner's orders due to inadequate inquiry and lack of proper notice to all Trustees, affirming the original Trust structure. (Paras 4.8, 6.1, 10, 12, 13)

(B) Legal standing - Locus standi within Trust disputes examined, especially regarding definitions under the MPT Act concerning beneficiaries - The court found Respondent No.1’s application valid despite Petitioners’ claims, indicating a need for thorough evidentiary support in Trust governance - Quorum rules and procedural compliance for Trustee meetings scrutinized. (Paras 5.1, 9, 10)

Facts of the case:
The Petitioners contested decisions made by the Joint Charity Commissioner reversing earlier approvals for changes in Trust administration allowing for the appointment of family members as Trustees and changes in Trust address, following claims regarding the incapacity of a key Trustee. (Paras 4.1, 4.8)

Findings of Court:
The Joint Charity Commissioner did not conduct a proper inquiry into the legitimacy of the Change Reports leading to Trustee removals; thus, the resulting actions favored Petitioner No.1's family unjustly, undermining the original trust structure. (Paras 10, 13)

Issues: The main issues included the locus standi of the Respondent to file challenges and the procedural validity of decisions made by the Trustees without proper notice and quorum. (Para 6)

Ratio Decidendi: The court ruled that the lack of notice and proper inquiry in decisions involving Trust administration cannot uphold the legitimacy of those decisions; thus, the Respondents intermittently had a legitimate interest to question the actions taken by the Petitioners. (Paras 10, 13)

Result: Writ Petitions dismissed.

JUDGEMENT :

Milind N. Jadhav, J.

1. Heard Mr. Thipsay, learned Advocate for Petitioners in both Writ Petitions; Mr. Kamat, learned Advocate for Respondent No.1; Mr. Patil, learned AGP for Respondent No.2 in Writ Petition No.15699 of 2022; Mr. Kankal, learned AGP Respondent No.2 in Writ Petition No.14797 of 2023 and Mr. Cama, learned Advocate appears for wife of Narayan Tejpal Podar - Intervenor.

2. Writ Petition No.15699 of 2022 is filed for challenging the impugned judgement and order dated 02.02.2022 allowing Revision Application No.112 of 2020 and setting aside of order dated 28.08.2018 passed in Change Report No.3993 of 2018 for change of address of the Trust from 405, Kalbadevi Road, Mumbai – 400002 to C/o Narendra Ramprakash Podar, 573, 1st floor, J.S.S. Road Chira Bazar, Mumbai – 400002.

3. Second Writ Petition No.14797 of 2023 is filed for challenging the impugned judgement 02.02.2022 allowing Revision Application No. 111 of 2020 and setting aside of order dated 28.08.2018 passed in Change Report No.3992 of 2018 accepting the appointment of Petitioner No.2 as Trustee of the said Trust. As facts and parties in both the Writ Petitions are the same, they are disposed of by this common judgement and order.

4. The relevant facts necessary for determining both the Writ Petitions are as under:-

4.1. Juggilal Hanumanbux Podar Charitable Trust (for short ‘Trust”) is a Public Charitable Trust which came into existence vide Trust Deed dated 17.06.1975. It is Petitioners’ case that Petitioner No.1 alongwith his father Mr. Ramprakash Juggilal Podar, Tejpal Juggilal Podar (settlor of the Trust) and Mr. Narayan Tejpal Podar were the original Trustees of the Trust. Today all 5 Petitioners of Petitioner No.1 family are the present Trustees of the Trust. That is under challenge. The Assistant Charity Commissioner rejected the challenge. The Joint Charity Commissioner has set aside the orders of Assistant Charity Commissioner and upheld the challenge. Hence the present Petitions. These Petitions are expedited for hearing by the Supreme Court. Hence by consent they are heard finally.

4.2. It is Petitioners’ case that according to Clause 13 of the Trust Deed there shall be no less than 2 Trustees and not more than 5 Trustees to administer the Trust which would form the quorum as well for appointment of new Trustees. However when vacancy arises, same is required to be filled in by surviving and/or continuing Trustees as per details set out in Clause 23 of the Trust Deed.

4.3. It is Petitioners’ case that Mr. Tejpal Podar expired on 26.01.2014 leaving behind him 3 Trustees i.e. Petitioner No.1, Mr. Ramprakash Juggilal Podar (father of Petitioner No. 1) and Mr. Narayan Tejpal Podar. However Mr. Narayan Tejpal Podar i.e. father of Respondent No.1 went in coma in the year 2016 and therefore became incapable of discharging his duties as Trustee. Hence, Change Report No.3992 of 2018 was filed for deleting Mr. Narayan Tejpal Podar’s name as Trustee after passing of Resolution in Board of Trustees’ Meeting held on 15.03.2018. It is Petitioners’ case that in the said Meeting it was decided to change the address of the Trust from 405, Kalbadevi Road, Mumbai – 400002 to C/o Narendra Ramprakash Podar, 573, 1st floor, J.S.S. Road, Chira Bazar, Mumbai – 400002, therefore Change Report No.3993 of 2018 was filed for recording the change of address of the Trust. It is Petitioners’ case that this meeting was attended by Petitioner No. 1 and his father Ramprakash J. Podar forming the quorum of 2 Trustees and aforesaid two decisions were taken. Accordingly Trust filed two change reports.

4.4. Twin orders dated 28.08.2018 were passed by Assistant Charity Commissioner whereby Change Report No.3992 of 2018 for deletion of name of Mr. Narayan Tejpal Podar and appointment of Petitioner No.2 as Trustee and Change Report No.3993 of 2018 for change of address of Trust were allowed.

4.5. In the interregnum, Respondent No.1 filed Application No.691 of 2018 under Section 41D of th

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