The duty of trustees to act in accordance with the law, compliance with statutory provisions, and the need for courts to refrain from interfering with ongoing investigations.

ORDER :

1. The present application is filed for seeking the following main reliefs:

“(A) xxx.

(B) Your Lordships be pleased to quash and set aside the impugned complaint bearing Criminal Inquiry No. 19 of 2016 filed by respondent No.2 herein in the Court of learned Judicial Magistrate First Class, Chikhli, for the offence punishable under Sections 66 for the violation of Section 35 of the Bombay Public Trusts Act, 1950 and the process issued thereon by the Ld JMFC, Chikhli vide order dated 02/12/2016 (Annexure A);

(C) Pending hearing, admission and final hearing of this application, Your Lordships may be pleased to stay the proceedings of impugned complaint bearing Criminal Inquiry No.19 of 2016 filed by respondent No.2 herein in the Court of learned Judicial Magistrate First Class, Chikhli, for the offence punishable under Sections 66 for the violation of Section 35 of the Bombay Public Trusts Act, 1950 (Annexure A;

(D) Your Lordships be pleased to pass any other appropriate and just order/s in favour of the applicants;”

2. Brief facts of the case as per the applicants in this application are as such that the Chikhli Education Society is a Trust registered under the Trust Act. It is imparting the education and one of the oldest Trust in the Navsari District in the field of education. It is registered with the in the Office of the Charity Commissioner being Registration No.F2/Navsari. The Trust is running four education schools. The Trust has a school from Jr. Kg to 7 Standard, another School from 8 to 12, another education institution running the course of I.T.I and other educational institution imparting the education in the field of computer education. There are 3500 students and there are 140 employees. It is further the case of the applicants in this application that the Trust is an owner of a land bearing Block No.878 Paiki situated in Samroli Gram Panchayat on a Bilimora- Vansda State Highway. The Managing Committee of the Chikhli Education Society passed the Resolution dated 15.05.2001 to construct 18 shops upon the said land for the purpose of sale. The resolution itself says that the Trust can have the financial benefit by selling the shops. It was resolved to get the necessary permission from the office of the Charity Commissioner and the authority is entrusted to the Trustee. It is further the case of the applicants in this application that the Chikhli Education Society made the application trough its authorized officer under Section 35 of the Act for the construction of 18 shops upon the land in question. The application states the approximate cost of construction is Rs.13,40,000/- for constructing 18 shops. The permission is sought for making the investment for construction in the office of the Charity Commissioner.

It is further the case of the applicants in this application that the Joint Charity Commissioner, vide order dated 05.10.2001 has granted the permission to make an investment in the construction of 18 shops for Rs.13,14,000/- on the two fold conditions. Firstly, that the necessary permission under Section 36 is to be taken before creating any third party interest upon the said construction and secondly upon the construction, necessary change report is to be filed by the Assistant Charity Commissioner, Navsari. It is further the case of the applicants in this application that Chikhli Education Society passed the Resolution dated 01.12.2001 to get the permission from the Joint Charity Commissioner under Section 36 for the sale of eight shops. It is further the case of the applicants in this application that the Chikhli Education Society through its Trustee made the application to the Joint Charity Commissioner to grant the permission under Section 36 for the sale of eight shops. It is further the case of the applicants in this application that the Joint Charity Commissioner, Surat Division Surat, vide ord