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2020 Supreme(MP) 905

MADHYA PRADESH HIGH COURT (INDORE BENCH)
S.C. Sharma, Shailendra Shukla, JJ.
State Of Madhya Pradesh & Ors. - Appellant
Versus
Khasgi (devi Ahilya Bai Holkar Charities) Trust, Indore & Ors. - Respondent
Writ Appeal No. 92 of 2014, 135 of 2014; Writ Petition No. 11234 of 2020
Decided On : 05-10-2020

Advocates Appeared:
A.K. Chitle, Advocate, Kartik Chitle, Advocate, Kapil Sibal, Advocate, Abhinav Malhotra, Advocate, Shyam Diwan, Advocate, Sugnadha Yadav, Advocate, Manoj Manav, Advocate, Milind Phadke, Advocate, A.S. Garg, Advocate, Poorva Mahajan, Advocate, S.C. Bagadia, Advocate, Vivek Patwa, Advocate, Rohit Saboo, Advocate, Shekhar Bhargava, Advocate, Anika Bajpai, Advocate, V.K. Jain, Advocate, Vaibhav Jain, Advocate, P.K. Saxena, Advocate, Rishi Tiwari, Advocate, Shyam Divan, Advocate, Sugandha Yadav, Advocate, A.K. Chitale, Advocate, Kartik Chitale, Advocate, Sameer Saxena, Advocate, Ashish Joshi, Advocate, Rohit Sharma, Advocate, Shekhar Bhargav, Advocate

Headnote:(A) Madhya Pradesh Public Trust Act, 1951 - Disputes regarding trust properties - Case involves the Khasgi (Devi Ahilyabai Holkar Charities) Trust and claims to properties managed by the Trust, which were alleged to belong to the State of Madhya Pradesh due to historical covenants. The court found that the Khasgi properties lapsed to the State and are not personal properties of the Trust. Court ruled that the Trust does not hold title to the properties and set aside the orders of the learned Single Judge. (Paras 115-116)

(B) Trust Management - Court outlined the limits of authority of trustees and highlighted the need for State involvement in management of public trust properties, prohibiting the sale of religious sites without legal compliance. Appeals allowed. (Paras 162-164)

JUDGMENT

S.C. Sharma, J. - Regard being had to the similitude in the controversy involved in the present case, these cases were analogously heard and by a common order, they are being disposed of by this Court. Facts of Writ Appeal No.92/2014 are narrated hereunder.

    The appellant before this Court has filed this present Writ Appeal being aggrieved by the order dated 28.11.2013 passed by the learned Single Judge in W.P. No.11618/2012 [The Khasgi (Devi Ahilyabai Holkar Charities) Trust, Indore & Another v/s The State of Madhya Pradesh & Others]. The writ petition was preferred before the learned Single Judge against the order (note-sheet) passed by the Collector, Indore, by which, the Collector, Indore has directed the revenue authorities to enter the name of State of Madhya Pradesh in all properties of the Trust to ensure that the properties of the Trust are not sold to other persons.

2. It was stated in the writ petition that the petitioners / Trust therein is a religious and charitable trust constituted on 27.06.1962. It was further stated in writ petition that the Trust and its activities were initiated by the erstwhile Ruler of Holkar State from the year 1761 - 1948, and thereafter, on account of merger, the Holkar State merged into Madhya Bharat.

3. The petitioners / Trust therein came up before the learned Single Judge with a case that on account of covenant executed by the parties, the private property, as per the schedule appended to the covenant, became the exclusive properties of the Maharaja, the other properties became the exclusive properties of Madhya Bharat (State of Madhya Pradesh) and a third species of property, which was not the State's property or the personal property of the Rulers of Holkar State, were the Trust's properties and in those backdrop, a Trust was constituted on 27.06.1962.

4. It has been further contended that in order to provide various checks and balances to ensure the public character of the Trust, the trust deed provided various safeguards including appointment of six trustees out of which three were government / public nominees. It has been contended that various recitals of the trustees also records that in the budget of Holkar State for the year 1947 - 48, a provision was made for Rs.2,91,952/- for maintenance of Khasgi Charities and the State Government has also issued a gazette notification on 27.07.1962 regarding the setting up of the Khasgi Trust and handing over the Khasgi properties to the Trust.

5. It was further contended by the petitioners / Trust in the writ petition that the covenant, which Maharaja Yashwant Rao Holkar had entered into with Government of India and other Rulers of the princely State of Central India to form the United State of Madhya Pradesh, did not deal specifically with the Khasgi properties and there was only a general provision contained in Article VII (2)(c) for dealing with the properties like the Khasgi properties and the same reads as under:-

    "Subject to any directions or instructions that may form time to time be given by the Government of India in this behalf, the authority -

    (a) xxxxxxxxxxx

    (b) xxxxxxxxxxx

    (c) to control the administration of the fund in Gwalior known as the Gangajali Fund and / or any other existing fund of a similar character to any other Covenanting State."

6. The petitioners before the learned Single Judge have further stated that for Gangajali Fund of Gwalior State an act called Gangajali Fund Trust Act, 1954 (Madhya Bharat Act No.11 of 1954) was enacted by the Madhya Bharat Legislature and was repealed later, however, for the Khasgi Charties and religious endowment in the Holkar State, a tripartite instrument was entered into between Government of India, Government of Madhya Pradesh and Maharaja Yashwant Rao Holkar on 07.05.1949. The Trust has categorically stated in the writ petition that petitionerss / Trust do not have a copy of said instrument.

7. It has been further stated that as per the trust deed of Khasgi (Devi Ahilya

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