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2001 Supreme(Guj) 347

Gujarat High Court
Judgename :D.M.Dharmadhikari, K.R.VYAS
JAYMAL THAKORE - Appellant
Versus
CHARITY COMMISSIONER,gujarat STATE - Respondent
S.C.A. 7152 of 1998
Decided On : 06/16/2001

Advocates Appeared: A.R.GUPTA, G.M.JOSHI, GIRISH D.BHATT, K.A.PUJ, S.N.Soparkar

Headnote:(a) Bombay Public Trusts Act, 1950 (Bom Act 29 of 1950) - Secs. 50-A, 50, 72(1), 72(1-A), 73 & 74 - Bombay Public Trusts Rules - Rule 7 - Provincial Small Cause Courts Act, 1887 (Central Act 9 of 1887) - Sec. 17 - Ahmedabad City Courts Act, 1961 (Guj Act 19 of 1961) read with Ahmedabad Small Cause Courts Rules - Rule 1 in Part I - Character of Proceedings - Proceedings before Charity Commissioner - Held, to be of quasi judicial character.

       Court found from the provisions of the Act read with the Act of 1887 and the Code of Civil Procedure is that in holding enquiries and taking decisions, the Charity Commissioner has to follow the procedure applicable to a Civil Court in trial of suits. The proceedings, therefore, before him have all the trappings of a regular Court. In framing a scheme, modifying it and in taking a decision in that regard, he has to hear the parties, record their evidence and take a formal decision which is subject to scrutiny by a Civil Court under Sec. 72(1) of the Act. The decision of Civil Court is subject to appeal to the High Court. There is, thus, a hierarchy of Courts created under the Act. Before the Charity Commissioner in the course of framing of a scheme, there is likelihood of raising of disputes on the nature of trust and trust properties and he has to record a formal decision on the basis of evidence and material led before him. It can be held that the proceedings before the Charity Commissioner if not strictly `judicial proceedings are quasi-judicial.

       [Para 11]

       (b) Bombay Public Trusts Act, 1950 (Bom Act 29 of 1950) - Secs. 50-A, 50, 72(1), 72(1-A), 73 and 74 - Civil Procedure Code, 1908 (Central Act 5 of 1908) - Sec. 2(15) - Order III Rules 1 & 2 - Advocates Act, 1961 (Central Act 25 of 1961) - Secs. 30, 32 & 33 - Right of recognised agent - Chartered Accountant - Professional capacity - Claiming to represent clients as `recognised agent and `pleader under power of attorney - Proceeding before Charity Commissioner - Held, recognised agent can appear, file applications and act on behalf of party, but not allowed to plead and practice as pleader or advocate.

       Right of a recognised agent does not extend to encroach upon the exclusive and monopoly right of pleading and practising law of an enrolled advocate. The recognised agent can appear, file applications, or act on behalf of a party, but he cannot be allowed to plead and practice law in a Court.

       [Para 18]

       Charity Commissioner was right in restricting the role of the petitioner in proceedings before him under Sec. 50-A to `recognised agent of the party and refusing to allow him to act as `pleader or an `advocate as contemplated by the provisions of the Advocates Act.

       [Para 19]

D. M. DHARMADHIKARI, J.

( 1 ) ). The petitioner is a Chartered Accountant and in his professional capacity claims a right to represent his clients both as "recognised agent" and a "pleader" under a duly executed power of Attorney in his favour in proceedings before the Charity Commissioner under Sec. 50a of the Bombay Public Trust Act, 1950 (hereinafter referred to as the Act) which admittedly is applicable to the State of Gujarat.

( 2 ) THIS case was to be heard and decided by the learned single Judge, but finding that the question involved is of some general importance, it has been referred for decision by the Division Bench.

( 3 ) IN exercise of powers under Sec. 50a of the Act, the Charity Commissioner is empowered to frame and settle a scheme of management of a public trust after giving opportunity of hearing to the trustees and by public notice to the beneficiaries. Under sub-sec. (4) of Sec. 50a, after hearing the parties and recording evidence, a scheme framed and settled for management of the trust by the Charity Commissioner is said to have effect as a "decree" of a Court passed under Sec. 50, when the Civil Court is approached for preparing such a scheme of management in accordance with the procedure laid down in the said Sec. 50.

( 4 ) SINCE there were some arguments addressed at the Bar on the question of nature of the proceedings under Sec. 50a before the Charity Commissioner and particularly as to whether they can strictly be called judicial proceedings or quasi-judicial proceedings, it is necessary to reproduce the relevant provisions of Sec. 50a of the Act :-"section 50a Power of Charity Commissioner to Frame, Amalgamate or Modify Schemes : (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 trustee of such trust due opportunity to be heard, he is satisfied that it is necessary or expedient so to do, frame a scheme for the management or administration of such public trust. (2) xx xx xx xx (3) xx xx xx xx (4) The scheme framed under sub-sec. (1) or sub-sec. (2) or modified under sub-sec. (3) shall, subject to the decision of the competent Court under Sec 72, have effect as a scheme settled or altered, as the case may be, under a decree of a Court under Sec. 50. "

( 5 ) THE decision of Charity Commissioner under Sec. 50a in the matter of framing of a scheme of management is subject to judicial scrutiny by a civil court on an Application to be made by aggrieved party under Sec. 72 (1) of the Act, although, such grievance by Application against decision of Charity commissioner is available on restricted grounds relating to the existence of the trust or as to whether any property is trust property or not. Sub-section (1a) of Sec. 72 restricts decision of the Application of a Civil Court on the evidence adduced before the Charity Commissioner and permits production of additional evidence only when such evidence was unreasonably not allowed to be led before the Charity Commissioner. Under sub-sec. (4) of Sec. 72, the decision of Civil court on the application against decision of the Charity Commissioner is open to appeal to the High Court as a decree. The Explanation appended below Sec. 72 is also of importance as it states that the expression "decision" shall include a scheme framed or modified under Sec. 50a. Relevant provisions of Sec. 72 also deserve to be reproduced for considering the nature of proceedings before the Charity Commissioner :-"section 72. Application from Charity Commissioners decision under Secs. 40, 41, 50a, 70 or 70a etc. : (1) Any person
























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