Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2023 Supreme(Online)(Bom) 24645

IN THE HIGH COURT OF JUDICATURE AT BOMBAY, NAGPUR BENCH, NAGPUR.

SECOND APPEAL NO. 191 OF 2011 WITH SECOND APPEAL NO. 192 OF 2011

SECOND APPEAL NO.191/2011.

1. Smt. Lalita Panjabrao Phalke,

Aged about 60 years,

2. Shri Panjabrao Mohanji Phalke,

Aged about 65 years,

3. Shri Nitin Panjabrao Phalke,

Aged about 43 years,

4. Shri J.N.Chavne,

Aged about 50 years

5. Shri Murlidhar B. Nigot,

Aged about 60 years

6. Smt. Nilima Murlidhar Nigot,

Aged about 50 years

7. Smt. S.M.Phalke,

Aged about 40 years

All 1 to 7 R/o. Telkamptee, Tahsil: Kalmeshwar, Dist. : Nagpur

…. APPELLANTS

// VERSUS //

1. Shri Jeevan Tulshiram Phalke,

Aged about 55 years

2. Shri Dnyaneshwar Manikrao Nigot

Aged about 50 years

3. Smt. Shakuntala Madhukar Phalke,

Aged about 55 years

All 1 to 3 R/o. Telkamptee, Tahsil : Kalmeshwar, Dist. Nagpur

…. RESPONDENTS.

WITH

SECOND APPEAL NO. 192/2011

Shri Panjabrao Mohanji Phalke (Dead)

1. Smt. Lalita Panjabrao Phalke

Aged about 73 years.

2. Shri Nitin Panjabrao Phalke

Aged about 50 years

3. Shri Janrao Nilkanthrao Chavne

Aged about 61 years

4. Murlidhar Bhaiyyaji Nigot

Aged about 57 years

5. Smt. Nilima Murlidhar Nigot,

Aged about 48 years

All Applicant Nos. 1 to 5 Residents of Telkamptee, Tah. Kalmeshwar, Dist. Nagpur.

// VERSUS //

Shri Jeevan Tulshiram Phalke,

Aged about 55 years, R/o. Telkamptee, Tahsil: Kalmeshwar, District: Nagpur.

…. RESPONDENTS.

Shri Sunil V. Manohar, Sr.Advocate a/b. Shri A.A.Naik, Advocate and Shri Y.N.Sambre, Advocate for the appellants.

Shri B.H.Shambharkar, Advocate & Shri S.D.Chande, Advocate for Respondents.

CORAM : ANIL S. KILOR, J.

DATED : MAY 03, 2023.

Advocates:
For the Appellants/Petitioners: Shri Sunil V. Manohar, Shri A.A.Naik, Shri Y.N.Sambre
For the Respondents: Shri B.H.Shambharkar, Shri S.D.Chande

The Charity Commissioner lacks jurisdiction under the Maharashtra Public Trusts Act to direct enrollment of members in a trust, violating rights under Article 19(1)(c) of the Constitution.

Headnote:(A) Maharashtra Public Trusts Act, 1950 - Sections 41A and 41D - Jurisdiction of Charity Commissioner - The Commissioner’s directions to enroll members and hold elections were held beyond jurisdiction and infringing Article 19(1)(c) - Judgments involving trustees must adhere to the powers defined in the Act. (Paras 24, 39, 48, 56).

(B) Jurisdiction of Charity Commissioner - Directions to alter the composition of a trust or impose members violate the fundamental right to form an association - Precedents cited include Smt. Damyanti Naranga and others regarding the right to continue an association with chosen members. (Paras 25, 29).

(C) Change Reports - Change Report No.1176 of 2003 rejected as a consequence of the Joint Charity Commissioner’s null jurisdiction; Change Report No.788 of 2000 upheld due to compliance with proper procedures. (Paras 52, 54).

Facts of the case:
The Second Appeals concern a trust's management, where the Joint Charity Commissioner directed changes in officers and membership that were contested by involved parties.

Findings of Court:
Court affirmed that the jurisdiction under Sections 41A and 41D restricts the Charity Commissioner from enforcing membership changes and shifted the focus onto statutory procedures properly aligned with trust governance.

Issues: The primary issues included the limits of the Charity Commissioner’s jurisdiction under the Public Trusts Act and the legality of directions to enroll new members.

Ratio Decidendi: The court determined that orders without jurisdiction are non-existent and reiterated the importance of adhering to established powers under the Public Trusts Act, emphasizing the right to form associations peacefully.

Result: Appeals allowed; earlier judgments quashed.

ORAL JUDGMENT :

1. Leave to amend the prayer clause of Second Appeal No.191 of 2011 is granted. The amendment be carried out forthwith.

2. Heard.

3. The present appeals arise out of the decision allowing the Change Report No.1176 of 2003 and rejecting the Change Report No.788 of 2000 of a Trust viz. Chandrakant Shikshan Sanstha, Telkamptee, District : Nagpur, which was established in the year 1968.

4. Under Section 41D of the Maharashtra Public Trusts Act, 1950 (hereinafter referred to as the “Act of 1950”) a proceeding came to be initiated for suspension, removal and dismissal of President and Secretary of the above referred trust.

5. In the said proceedings namely Application No.6 of 1995 the Joint Charity Commissioner passed a judgment and order on 30/08/2003 holding that the charges against the trustees namely Punjabrao Phalke and Madhukarrao Phalke, Secretary and President, respectively, have not been proved and therefore, the application under Section 41D of the Act of 1950 was dismissed. However, it was directed to enroll new general body members by calling applications by making paper publication.

6. The above referred directions to enroll members, came to be challenged in Writ Petition No.946 of 2004 and in the meantime the paper publication was made, in response to which 44 applications were received and accordingly membership of 41 members was confirmed.

7. Thereafter, elections were held, in which new managing body was elected. Accordingly, the Change Report No.1176 of 2003 was filed.

8. The another Change Report No.788 of 2003 was filed as Shri M.M.Phalke, Shri M.A. Suke and Sau. S.M.Phalke tendered their resignations which were accepted and as Shri Gawali had expired, the vacancies occurred because of the same, were filled in by passing a resolution in general body meeting dated 24/02/2002.

9. The Change Report No.1176 of 2003 was rejected by the Assistant Charity Commissioner, Nagpur vide judgment and order dated 28/04/2008. The same was carried in the appeal under Section 70 of the Act of 1950 by the respondent. The said appeal No.17 of 2008 came to be decided by the Joint Charity Commissioner, Nagpur vide judgment and order dated 30/11/2010, reversing the judgment and order of the Assistant Charity Commissioner, Nagpur dated 28/04/2008 and thereby accepting the Change Report No.1176 of 2003. The appellant then approached to the learned District Judge, Nagpur by filing Regular Civil Application No. 34 of 2010 under Section 72(1) of the Act of 1950. The learned District Judge, vide impugned judgment and order dated 28/04/2011, dismissed the said application confirming the judgment and order of the Joint Charity Commissioner, Nagpur dated 30/11/2010. Second Appeal No. 192 of 2011 is arising out of the said judgment and order dated 28/04/2011 passed by the District Judge-14, Nagpur in Regular Civil Application No.34 of 2010.

10. Similarly, Change Report No.788 of 2000 was accepted by the Assistant Charity Commissioner, Nagpur vide judgment and order dated 28/04/2008. The same was carried in appeal under Section 70 of the Act of 1950 by the respondent. The said Appeal No.13 of 2008 came to be decided by the Joint Charity Commissioner, Nagpur vide judgment and order dated 30/11/2010, reversing the judgment and order of the Assistant Charity Commissioner, Nagpur dated 28/04/2008 and thereby rejecting the Change Report No.788 of 2000. The appellants then approached the learned District Judge, Nagpur by filing Regular Civil Application No. 32 of 2010 under Section 72(1) of the Act of 1950. The learned District Judge, vide impugned judgment and order dated 28/04/2011, dismissed the said Regular Civil Application No.32 of 2010 confirming the judgment and order of the Joint Charity Commissioner, Nagpur dated 30/11/2010. Second Appeal No. 191 of 2011 is arising out of the said judgment and order dated 28/04/2011 passed by the District Judge-14, Nagpur.

11. After filing of these second appeals the Writ

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