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1996 Supreme(Mad) 849
High Court of Judicature at Madras
THE HONOURABLE MR. JUSTICE ALI MOHAMED
S.RM.M.CT.M. Thiruppani Trust Rep. by its trustee, M.CT. Pethachi, Madras
Versus
State of Tamil Nadu, rep by Secretary to Government Revenue Department, Madras and others
W.P. No. 11438 of 1989
Decided On : 20-08-1996
Mr. C. Ramakrishnan, for Mr. Vishnu Mohan, Advocate for Petitioner. Mr. P. Rajamanickam, Additional Government Pleader for Respondent.
Headnote:
TAMIL NADU URBAN LAND (CEILING AND REGULATION) ACT, 1978 - SECTION 20(1)(IV) - EXEMPTION FROM CEILING - PUBLIC CHARITABLE TRUST - EDUCATIONAL INSTITUTION OF PUBLIC NATURE - URBAN LAND REQUIRED AND USED FOR SCHOOL - WHETHER EXEMPT - INTERPRETATION OF SECTION 20(1)(IV) AND EXPLANATION (1) - MEANING OF 'CHARITABLE PURPOSE' - WHETHER MAKING OF PROFIT RELEVANT - DOCTRINE OF MAL-ADMINISTRATION - APPLICABILITY.
Fact of the Case:
Petitioner, a public charitable trust running an educational institution of a public nature, challenged the impugned order of the 2nd respondent confirming the order of the 3rd respondent, which proposed to acquire excess vacant land from the petitioner under the Tamil Nadu Urban Land (Ceiling and Regulation) Act, 1978 (the Act). The petitioner contended that the land was exempt from the provisions of the Act under Section 20(1)(iv) as it was required and used for a public charitable purpose, namely, running an educational institution.
Finding of the Court:
The Court held that the petitioner's trust was a public charitable trust and the school run by the trust was an educational institution of public nature. The Court interpreted Section 20(1)(iv) of the Act and its Explanation (1) and held that the exemption under Section 20(1)(iv) applied to the petitioner's trust as long as the vacant urban land was required and used by the trust for the purpose of running the educational institution of public nature. The Court further held that the making of profit was not relevant if the predominant object and activity of the trust was to carry out a charitable purpose, which was the case here. The Court also held that the doctrine of mal-administration was applicable in cases of maladministration by administrative authorities and that relief could be granted under this doctrine in appropriate cases.
Issues: 1. Whether the petitioner's trust was a public charitable trust and the school run by the trust was an educational institution of public nature? 2. Whether the vacant urban land required and used by the petitioner-trust for the school was exempt from the purview of the Tamil Nadu Urban Land (Ceiling and Regulation) Act, 1978 by virtue of Section 20(1)(iv) of the Act? 3. Whether the making of profit was relevant in determining whether the petitioner-trust was entitled to exemption under Section 20(1)(iv) of the Act? 4. Whether the doctrine of mal-administration was applicable in cases of maladministration by administrative authorities and whether relief could be granted under this doctrine in appropriate cases?
Ratio Decidendi: 1. The Court interpreted Section 20(1)(iv) of the Act and its Explanation (1) and held that the exemption under Section 20(1)(iv) applied to the petitioner's trust as long as the vacant urban land was required and used by the trust for the purpose of running the educational institution of public nature. 2. The Court held that the making of profit was not relevant if the predominant object and activity of the trust was to carry out a charitable purpose, which was the case here.
Final Decision: The Court allowed the writ petition and quashed the impugned order. The Court directed the concerned authority to consider the petitioner's application for putting up an additional building for the school expeditiously on merits and in accordance with law.
.1. The prayer of the petitioner is to issue a writ, direction or order in the nature of certiorari or other appropriate writ calling for the records of the 2nd respondent in Rc.J2.No.67077 of 1988 on his file and quash the order dated 5.1989 made therein (confirming the order of the 3rd respondent in A2/SRA/4/81, dated 19. 1988.
2. The petitioner herein is S.RM. M.CT.M Thiruppani Trust. In the affidavit filed by one of the trustees of the petitioner trust, it is stated that his grandfather, the late Sir. M. Ct. Muthiah Chettiar, executed a deed of declaration of trust on 20th October, 1930 and registered the same in Rangoon. Since the original trust deed was lost during World War II the trust was reiterated by a deed of declaration of trust executed by him and his elder brother Sir. M. CT. Muthiah on 12. 1969. The main objects of the Trust are renovation of Hindu temples and endowing and maintaining educational institutions in Madras and endowing hospital and granting relief of the needy.
3. It is further stated that in furtherance of the objects of the trust, the property known as Rama Vilas, bearing Door No. 78, Luz Church Road, Mylapore, Madras 4 (Comprised in Rs.No. 1649/2 Mylapore, to an extent of 61 grounds and 1395 sq.ft and the building thereon) was acquired in July, 1970 for running a school therein. The M. CT.M. Chidambaram Chettiar Matriculation Higher Secondary School with L.K.G. U.K.G. classes I to VII was started in the said premises in the year 1980-81. Subsequently, the school was upgraded as a Matriculation School in 1984-85 and the School has, since, been upgraded as a Higher Secondary School in 1989 after obtaining the requisite sanction from the Director of School Education, Madras. As per the orders of the Director, dated 211. 1985, land 3. 1989, the school is required to provide adequate accommodation and sanitary facilities, adequate laboratory and library facilities and adequate play area and offer vocational courses as a precondition for recognition and upgradation.
.4. The petitioner further states that there are about 500 pupils in the School now. The School has an efficient staff and well equipped library and laboratories. By reason of the courses of studies offered and the efficient management and the devoted work of qualified teachers, the School has become very popular in the city. In fact, the large building with plinth area of about 12000 Sq. ft. and play fields in the compound of an extent of over 60 grounds in the heart of the City are and added attraction for the School and add to its utility and service in the curricular and co-curricular pursuits; the open site within the compound is necessary for the additional constructions contemplated for the inevitable expansion of the growing school.
5. It is further stated that in pursuance of the notice dated 210. 1980 received from the 2nd respondent, the petitioner submitted a return under Section 7(1) of Tamil Nadu Urban Land (Ceiling & Regulation) Act 24 of 1978 along with a topo sketch of the property in question and an attested copy of the Trust Deed. It was repeatedly pointed out that their Trust is a public charitable trust and this has been accepted by the Income Tax authorities and that the urban land was purchased by the Trust for establishing and maintaining a school and that the Trust is entitled to exemption under Section 20(1) (iv) of the Tamil Nadu Urban Land (Ceiling and Regulation) Act (hereinafter called the Act) Copy of the accounts of the Trust for the years ended 14. 1978 was also made available to show the charitable acts and the public nature of the Trust.
6. Since the Act has no application to lands held by public charitable or religious trusts like the petitioner trust, it was advised to file a petition to the Secretary to the Government for exemption. Accordingly, a petition dated 12. 1981 stating that the Rama Vilas land was purchased only for educational purposes and hence may be exempted from the pr
