IN THE HIGH COURT OF TELANGANA
Moushumi Bhattacharya, J.
Gowripaga Albert Lael and others - Petitioners
Versus
Joseph D’Souza and others - Respondents
W.P.No.26298 of 2024
Decided On : 31-12-2024
| Table of Content |
|---|
| 1. writ petition for managing public trusts. (Para 1 , 2 , 3) |
| 2. arguments on maintainability of the writ. (Para 4 , 5 , 6) |
| 3. court's observations on personal vs public law rights. (Para 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17) |
| 4. explanation of statutory provisions relevant to public trust. (Para 18 , 19 , 20 , 21 , 22 , 23 , 24) |
| 5. res judicata principles limiting claims. (Para 26 , 31 , 38) |
| 6. writ petition dismissed for lack of merit. (Para 40) |
ORDER :
Moushumi Bhattacharya, J.
The writ petition has been filed for appointment of an Advocate Commissioner to administer and manage the affairs of the respondent Nos.6-9 and to reinstate the former Trustees/founding Directors of the said respondents to take appropriate action against the respondent No.11 in failing to conduct inspection and Audit of the Directors of the respondent Nos.7 and 9 under the Companies Act, 1956.
2. The petitioners claim to be erstwhile employees of the respondent Nos.6 – 9 which are public trust/charities. All the three petitioners claim to have been terminated from service without enquiry. The respondent No.6 is a Public Trust registered under The Bombay Trusts Act, 1950. The respondent No.7 is a Public Charity (Non-profit) registered under section 25 of The Companies Act, 1956 operating in the name and style of “Operation Mobilisation India” which was later changed to “Operation Mercy India Foundation”. The respondent No.8 is also a Public Charity registered under the Andhra Pradesh Societies Registration Act, 2001 in the name and style of “Good Shepherd Community Society”. The respondent No.9 is a Public Charity registered under section 25 of The Companies Act, 1956 in the name and style of “O.M. Books Foundation” and the respondent No.10 is an International Charity registered under The Companies Act, 1956, of England and Wales with operations in over 110 countries including in India.
3. The petitioners allege that the petitioners were unceremoniously terminated from service due to the whistle- blowing activities of the petitioner No.1. The petitioners allege that the respondent No.1, a Director of the respondent charities, is mismanaging the affairs of the Trust and misappropriating funds brought in by the donors. The petitioners hence pray for appointment of an Advocate Commissioner to act as an Administrator for managing the affairs of the respondent Nos.6-9.
4. Learned counsel for the petitioners submits that there are admitted and established violations of the respondent Trusts and Public Charities carried out at the behest of its Trustees and Directors/private respondents in the writ petition. Counsel submits that the private respondents have abused their position and caused financial misappropriation and irregularities in the management of the Public Trusts. Counsel submits that the respondent Nos.1 to 5 are not qualified to hold positions as Trustees or Directors of the respondent Nos.6-9. Counsel argues in favour of the maintainability of the writ petition despite an alternative remedy being available under The Bombay Public Trusts Act, 1950.
5. Learned Senior Counsel appearing for the respondent Nos.1- 5, 7 and 9 argues against the maintainability of the writ petition as being filed against the respondent Nos.1-5 who are private individuals and are not discharging any public functions. Counsel submits that the writ petition reeks of personal animosity and is also barred by the principles of res judicata and constructive res judicata. Counsel submits that the writ petition is filed beyond the maximum period of limitation provided under The Companies Act, 2013 and the writ petition is also not maintainable against foreign non-juristic entities.
6. Learned counsel appearing for the respondent Nos.6 and 8 reiterates the argument on the non-maintainability of the writ petition also in light of the alternative remedy under The Bombay Trusts Act, 1950. Counsel submits that the respondent No.8, which is registered under The Andhra Pradesh Co-op
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Writ petitions must demonstrate public law elements and not be purely personal; alternative statutory remedies must be exhausted first.
A writ petition is not maintainable against private entities unless they perform public functions or affect public rights, as judicial review under Article 226 is limited to public law matters.
Section 2(13) of the Trusts Act when the petitioner Society is registered under the Societies Registration Act and the same is registered for charitable purposes, it is deemed to be a charitable Trus....
The main legal point established in the judgment is that the Maharashtra Public Trust Act is a complete code in itself and that section 92 of the C.P.C. is not applicable to public trusts as per sect....
A public trust registered as a society under the Tamil Nadu Societies Registration Act can still be managed under Section 92 of the CPC, allowing civil court intervention for breach of trust allegati....
The suit under Section 92 of the CPC is maintainable as the Sabha is deemed a public Trust, enabling remedial actions against mismanagement despite being registered as a Society.
Point of Law : Preliminary object as raised by the respondent required to be upheld inasmuch as the petitions challenging the decision of the Election Officer of the petitioner trust would not be ame....
The remedy of revision under Section 70A of the Act is an equally efficacious remedy available to the petitioners
The inquiry held by Deputy or Charity Commissioner under Section 19 is by no means an administrative or an executive inquiry The rules framed under the Act called the Bombay Public Trusts Rules 1951 ....
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