The removal of a member from a Trust results in the loss of the right to intervene in related proceedings, as demonstrated in the absence of a demonstrated interest in a loan sanction application under the public Trust Act.

JUDGMENT :

N.J. Jamadar, J.

1. Rule. Rule made returnable forthwith and, with the consent of the learned Counsel for the parties, heard finally.

2. The challenge in this petition is to an order dated 2^nd April, 2025 passed by the learned Joint Charity Commissioner, Pune, on an application under Section 73A for impleadment of the petitioner as a party to a proceeding under Section 36A(3) of the Maharashtra Public Trust Act, 1950 (“the Trust Act, 1950”), whereby the said application came to be rejected.

3. The background facts necessary for the determination of this petition can be stated as under:

3.1 The Maharashtra Technical Education Society (R2) is a Society registered under the Societies Registration Act, 1860 and a Trust under the Trust Act, 1950. The petitioner claims to be a member of respondent No.2 Trust and also a member of the Board of Control (BOC) of respondent No.2. The petitioner was the Chairman of the BOC of the Trust (R2) from the year 1999 to 2007. The respondent No.2 is a well- known charitable institution, which runs educational institutions including reputed Medical and Engineering Colleges.

3.2 In the wake of the disputes in regard to the management of the affairs of respondent No.2 Trust, numerous proceedings have been initiated by and on behalf of the petitioner and the rival faction. The petitioner was removed from the BOC and, eventually, as a member of respondent No.2 Trust. The proceedings instituted at the instance of the petitioner and others assailing those decisions are sub-judice.

3.3 The Secretary of respondent No.2 Trust filed an application being loan Application No.58 of 2023, under Section 36A(3) of the Trust Act, 1950 seeking permission for availing loan of Rs.10 Crore from Janata Sahakari Bank, to be repaid in seven years, alongwith interest at the rate of 9% p.a to finance the balance construction of MTES International English School building at CTS No.4397, Sangli, Maharashtra. Copy of the sanction letter dated 1^st September, 2023 issued by the Bank was annexed to the said application.

3.4 The petitioner preferred an application under Section 73A of the Trust Act, 1950 seeking a direction to implead him as a party respondent to the said application. It was, inter alia, asserted that the applicant had no authority to file the said application and represent respondent No.2 Trust. Various litigations are pending before the Authorities as well as in Courts. The Resolution dated 8^th February, 2023, passed by the Trust to seek permission of the Charity Commissioner to avail the loan is false and illegal. The alleged Trustees have no authority to pass such Resolution. In fact, the person, who filed application on behalf of respondent No.2 Trust, is neither a trustee nor a member of respondent No.2 Trust. Therefore, it was necessary to give an opportunity to the petitioner to bring all the relevant facts on record.

3.5 The application was resisted by respondent No.2.

3.6 By the impugned order, the learned Joint Charity Commissioner rejected the application for impleadment observing inter alia that there was nothing to show that, the intervenor was interested in the loan application filed on behalf of the respondent No.2. Nor the intervenor could demonstrate that, his intervention would assist the Authority in deciding the loan application. Though there were several proceedings between the parties, yet, having regard to the nature of the p