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2024 Supreme(Online)(Bom) 7074

HIGH COURT OF BOMBAY
ABHAY AHUJA, J
A. H. WADIA TRUST – Appellant
Versus
THE CHARITY COMMISSIONER – Respondent
ORIGINATING SUMMONS NO. 1 OF 2022



Advocates:
For the Appellants/Petitioners: Mr. Pankaj Sawant, Mr. Chaitanya Chavan, Mr. Manish Acharya, Mr. Amit Joshi
For the Respondents: Mr. Mohit Jadhav

Trustees can conduct development activities on trust property to enhance charitable revenue while complying with relevant laws.

Headnote:(A) Public Trusts Act, 1950 - Section 36 - Trustees seeking directions for management of trust lands - Court explains the powers of trustees in relation to development activities - Trustees can collaborate with competent partners for slum rehabilitation - Interpretation of the trust deed related to development activities and compliance with relevant laws. (Paras 35, 36)

(B) Administration of Public Trust - Powers of trustees include the discretion to generate funds for charitable purposes, which may involve development of encumbered lands. (Paras 34, 35)

Table of Content
1. overview of the public trust's history and its charitable objectives. (Para 1 , 3 , 4 , 5 , 6)
2. trustees seek clarification on authority and process regarding land development and rehabilitation. (Para 2 , 7 , 10 , 12 , 22)
3. court's interpretation of the trustees' powers concerning land management and development. (Para 30 , 31)
4. affirmative ruling on development authority under trust management, aligned with legal frameworks. (Para 35 , 36)
5. final decree allowing trustees to undertake necessary development activities. (Para 37)

JUDGMENT :

1. When the matter is called out, none is present for the parties. However, since this matter has been listed for pronouncement, the order is being pronounced.

2. By this Originating Summons, the Plaintiffs No. 2 to 5 as the trustees of the Plaintiff Trust seek the opinion of this Court on a question regarding management of the Plaintiffs' property and have inter alia raised the following questions:

a) Whether the Defendant can be directed to dispose of expeditiously the Plaintiff Trust’s application under Section 36 of the Trust Act seeking sanction of Defendant for selling/alienating the Plaintiff Trust’s land covered under the said notices and public notice in favour of the Purchaser on an as is where is basis ?

b) Whether the Trustees of the Plaintiff Trust are empowered to undertake any development activities on its land covered under the said notices and the public notice by executing Slum Rehabilitation Scheme in accordance with the Slum Act and the said notices ?

c) If yes, since the Plaintiff Trust lacks requisite experience, skills and competence in developing property by demolishing slums, constructing building and providing infrastructure can it collaborate with a partner/joint venture collaborator possessing necessary competence, skills and experience in the field of development and construction for executing Slum Rehabilitation Scheme on the Plaintiffs’ lands covered under the said notices and the public notice in accordance with the Slum Act?

3. Plaintiff No.1 is a Public Trust (the "Plaintiff Trust") registered, under the provisions of the Maharashtra Public Trusts Act , 1950 (earlier known as the Bombay Public Trusts Act , 1950) (the “ Public Trusts Act ”). Plaintiffs No. 2 to 5 are the Trustees of Plaintiff Trust. It has been submitted that the Plaintiffs are the owners of vast lands (the 'Plaintiffs' lands') situate and lying in different places in Mumbai.

4. Mr. Sawant, learned Senior Counsel appearing for the Plaintiff Trust has submitted that the Plaintiff Trust is constituted pursuant to directions contained in the last Will and Testament (the “said Will”) dated 9th May 1882 of one Ardeseer Hormarjee Wadia (the “said Testator”) by which inter alia an obligation was cast on the Plaintiff Trust to undertake charitable activities as enunciated thereunder for betterment of the weaker and needy strata of the society. That this Court granted probate of the said Will on 23rd February, 1883. It has been submitted that the said Will not only acts as an instrument of incorporation of the Plaintiff Trust but also determines the object and scope of the Plaintiff Trust such that all the policy decisions of the Plaintiff Trust are required to be in consonance with the clauses of the said Will determining the functioning and manner of administration and management thereof.

5. The said Testator through the said Will distributed various immovable assets and properties to his legal heirs in the manner provided therein and directed the Trust to be formed in accordance with the said Will in order to apply the income of the said Testator's residuary estate to charitable purposes and to undertake the following charitable activities:

I. Establishment of dispensaries and sinking and building and repairing of wells

II. Giving aid from time to time to the poor, deserving, needy sections of society by undertaking such works of charitable nature in such parts of town ad island of

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