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1973 Supreme(Guj) 45

Gujarat High Court
Judgename :J.M.SHETH
BIPINCHANDRA PURSHOTTAMDAS PATEL - Appellant
Versus
JASHWANT LALBHAI NAIK - Respondent
First Appeal 90 of 1973
Decided On : 05/03/1973

Advocates Appeared: C.K.TAKVANI, I.M.NANAVATI, N.R.OZA

Headnote:

Bombay Public Trusts Act 1950 –Sections 28 and 72 – Scheme for trust – Charity Commissioner has jurisdiction to frame a scheme – Interpretation of sec. 50-A – Suo motu scheme – First Appeal has been filed by appellants who were alongwith respondent No. 1. trustees of trust known as Shri Sanskar Bharati Trust which was registered under Act 1950 – Against the order passed by learned District Judge Bulsar at Navsari in Civil Miscallaneous Application filed by them under sec. 28 of Act against order passed by learned Charity Commissioner in suo motu scheme proceeding framing scheme for trust in question – MR. I. M. Nanavati appearing for the appellants made following submissions – On a true interpretation of sec. 50-A of Act Charity Commissioner has jurisdiction to frame a scheme only in a case where a trust exists but there is no scheme for its administration – Held, It is evident that learned Charity Commissioner has referred to in detail materials brought on record which go to show that management was not properly done and in interests of trust for proper management and administration of trust it was necessary to frame a scheme – As these acts were of practically indefensible character they have chosen to take up an attitude that persons whose statements were collected at initial inquiry should be asked to confirm to their statements in proceeding itself in their presence and they should be tendered for cross examination. Supervisory authority itself had collected materials and it was in relation to their own acts which they had to explain and they were given sufficient opportunity from time to time to explain – They did not choose to explain them before Charity Commissioner as well as in District Court and no serious attempt has been made to explain before me and to point out any data indicating that conclusion reached by learned Charity Commissioner is not justified – First Appeal is dismissed – Appellants are ordered to pay costs of respondent No. 1 as well as respondent No. 2 in different sets and to bear their own – Civil Application is disposed of on ground that relief regarding vacating stay order does not survive as appeal itself is heard and relief regarding action in respect of contempt of court is not pressed and Court also feels that it is not necessary to take any such action in circumstances of case – FIRST Appeal dismissed.

J. M. SHETH, J.

( 1 ) FIRST Appeal No. 90 of 1973 has been filed by the appellants who were alongwith respondent No. 1. trustees of the trust known as Shri Sanskar Bharati Trust which was registered under the Bombay Public Trusts Act 1950 (which will be hereinafter referred to as the Act ). against the order passed by the learned District Judge Bulsar at Navsari in Civil Miscallaneous Application No. 23 of 1969 filed by them under sec. 28 of the Act against the order passed by the learned Charity Commissioner in suo motu scheme proceeding No. 31 of 1966 framing the scheme for the trust in question. The learned District Judge has dismissed the aforasaid civil application filed by the applicants under sec. 72 of the Act. Respondent No. 2 is the Charity Commissioner. . . . . . . . . . . . . . . . . . . .

( 2 ) MR. I. M. Nanavati appearing for the appellants made the following submissions: (1) On a true interpretation of sec. 50-A of the Act the Charity Commissioner has jurisdiction to frame a scheme only in a case where a trust exists but there is no scheme for its administration. (2) Even if the power under sec. 50-A of the Act can be exercised despite a scheme being in existence for administration or management in the instrument of trust no additional trustees can be appointed by the Charity Commissioner under sec. 50-A of the Act. (3) If sec. 50-A of the Act is construed to be a parallel provision of sec. 50 of the Act then inquiry must be held as a judicial inquiry and no statements recorded on the back of the party and not disclosed to him and not allowed to be tested by cross-examination can form the basis of either for an order initiating inquiry under sec. 50-A of the Act or framing a scheme under sec. 50-A of the Act where it involves appointment of new trustees or a removal of a trustee. (4) In the instant case judicial-inquiry has not been held either at the stage prior to actual initiation of the proceedings under sec. 50 of the Act or in the course of the proceedings under sec. 50 of the Act. Mr. Nanavati has also alternatively made a few submissions in regard to particular clauses of the scheme Ex. I23 framed by the Charity Commissioner.

( 3 ) SEC. 50-A of the Act reads: (1) Notwithstanding anything contained in sec. 50 where the Charity Commissioner has reason to believe that in the interest of the proper management or administration of a public trust a scheme should be settled for it or where two or more persons having interest in a public trust make an application to him in writing in the prescribed manner that in the interest of the proper management or administration of a public trust a scheme should be settled for it the Charity Commissioner may if after giving the trustees of such trust due opportunity to be heard he is satisfied that it is necessary or 0expedient so to do frame a scheme for the management or administration of such public trust. (2) Where the Charity Commissioner is of opinion that in the interest of the proper management of administration two or more public trusts may be amalgamated by framing a common scheme for the same he may after (a) publishing a notice in the Official Gazette and also in at least two newspapers (one in English and the other in the language of the region) with a wide circulation in the region in which the trust is registered and (b)giving the trustees of such trusts and all other interested persons due opportunity to be heard. frame a common scheme for the same. (2-A) A scheme under this section may provide for the number of trustees the mode of appointment of trustees including the appointment of the first trustees vesting of the trust property in the trustees so appointed mode of filling any vacancy of a trustee the remuneration of a trustee of manager of the public trust and where necessary a clarification of the objects of the public trust. (3) The Charity Commissioner may at any time after bearing the trustees modify the scheme framed by him under sub-sec. (1) or su






























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