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2024 Supreme(Telangana) 1081

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

Advocates Appeared:
For the Petitioner: Mr. Mr. J.Sudheer
For the Respondent: Mr. A.Venkatesh, learned Senior Counsel representing Mr. Ch.Siddharth Sharma, Mr.Prathamesh Kamat, learned counsel

Writ petitions must demonstrate public law elements and not be purely personal; alternative statutory remedies must be exhausted first.

Headnote:(A) The Bombay Trusts Act, 1950 - Sections 41B, 41D, 47, and 80 - Writ petition for appointment of an Advocate Commissioner to manage public charities - Maintainability questioned based on personal animosity and absence of public law element. Court underscores public duty requirement for such petitions. (Paras 9-40)

(B) Principle of Res Judicata - Multiple proceedings initiated by the petitioners regarding the same relief; previous dismissal by NCLT renders subsequent claims barred. (Paras 25-31)

Facts of the case:
Petitioners, former employees of public charities, allege wrongful termination without inquiry, seeking court intervention against current trustees for mismanagement.

Issues: Maintainability of writ petition against alleged private parties; applicability of public law elements; res judicata concerning previous petitions.

Findings of Court:
Writ petition not maintainable for lack of public element; alternative statutory remedies available.

Ratio Decidendi: The court ruled that maintainability requires demonstrating a public law element, which was absent, coupled with the existence of adequate alternative remedies under The Bombay Public Trusts Act.

Result: Writ petition dismissed as not maintainable.

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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