1. Dispute over whether a religious and charitable trust is private or public, determining the applicability of the Bihar Hindu Religious Trusts Act, 1950. (Para 1 , 2 , 4 )
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1959 Supreme(SC) 49
SUPREME COURT OF INDIA
15th April, 1959.
S.R DAS, C.J.I., S.K. DAS, P.B. GAJENDRAGADKAR, K.N. WANCHOO AND M. HIDAYATULLAH, JJ,
State of Bihar and others, Appellants
Versus
Smt. Charusila Dasi, Respondent.
Civil Appeal No. 230 of 1955.
Advocates appeared
Mr. Mahabir Prasad, Advocate-General, for the State of Bihar (Mr. R. C. Prasad, Advocate, with him), for Appellants; Mr. N. C. Chatterjee, Senior Advocate, (Mr. P. K. Chatterjee, Advocate, with him), for Respondent.
Advocates:
MAHABIR PRASAD, N.C.CHATTERJI, P.K.CHATTERJI, R.C.Prasad
MAHABIR PRASAD, N.C.CHATTERJI, P.K.CHATTERJI, R.C.Prasad
A trust is public if the founder's intention is to benefit the general public, evidenced by public worship and charitable objects. A state law applies to a trust situated within the state, including its extra-territorial properties, based on the doctrine of territorial nexus.
Headnote:(A) Bihar Hindu Religious Trusts Act, 1950 - Section 3 - Constitution of India - Articles 245 and 246 - Concurrent List, Item 28 - Public vs. Private Religious Trust - Determination of nature of trust - The cardinal point is whether the intention of the founder was that specified individuals or the general public, or any specified portion thereof, are to have the right of worship - Where a trust deed provides for public offerings to form part of the trust estate, includes strangers as trustees, and mandates the performance of festivals on a scale allowing public participation, the endowment is public - The establishment of a hospital and charitable dispensary for the benefit of a section of the public constitutes a distinct and independent public trust, not merely incidental to the worship of a deity (Paras 8, 10, 11).
(B) Territorial Nexus - Application of State law to trust properties situated outside the State - If a religious trust or institution is situated within a State and any part of its property is also within that State, the State legislature has the power to legislate for its better administration - The doctrine of territorial nexus applies where the connection is real and not illusory - Since the institution is situated in the State and trustees function there, the State can exercise control over trustees in personam, and such legislation extends to trust properties regardless of whether they are situated outside the State (Paras 13, 14).
Facts of the case:
A trust was created via a deed for the construction of temples, the installation of deities, the performance of daily worship and festivals, and the establishment of a hospital for females and a charitable dispensary for the general public. The trust properties were located both within and outside the state. The state board of religious trusts sought to apply the relevant state act to the trust, which the respondent contested, claiming it was a private family endowment. The High Court had previously quashed the proceedings, holding the trust to be private.
Findings of Court:
The trust is a public religious and charitable trust. The inclusion of non-family members as trustees, the provision for public offerings, and the independent objective of providing medical aid to the public indicate a public character. Furthermore, the state act is applicable because the trust is situated within the state, and the territorial nexus allows the act to affect properties located outside the state.
Issues: (1) Whether the trust was a private endowment created for the worship of a family idol or a public religious trust; (2) Whether the state act applies to trust properties situated outside the state if the trust institution itself is situated within the state.
Ratio Decidendi: The nature of a trust is determined by the founder's intention; public access to worship, the acceptance of public offerings, and the creation of charitable institutions for the public signify a public trust. Under the doctrine of territorial nexus, a state legislature can legislate on a trust situated within its borders, as the administration is conducted by trustees within the state, making the connection real and not illusory, thereby extending the law's reach to appertaining properties outside the state.
Result: Appeal allowed.
Legal Category Hierarchy
Table of Contents
2. Whether the trust is a private family endowment or a public trust, and whether the Act applies to trust properties situated outside the State of Bihar. (Para 4 , 13 )
3. The trust's structure, public offerings, large-scale festivals, and public hospital mandate indicate a public nature; territorial nexus justifies the Act's application to associated properties outside the state. (Para 7 , 8 , 9 , 10 , 11 , 12 , 14 )
4. A trust is public if beneficiaries are not limited to family; legislative power extends to trust properties outside a state if a sufficient territorial nexus exists. (Para 11 , 14 )
5. Appeal allowed, High Court judgment set aside, and the petition dismissed. (Para 18 )
6. How is the distinction between a private and public religious endowment determined?
The cardinal point is whether the founder intended for specified individuals, such as family members, or the general public, or a specified portion thereof, to have the right of worship. If the beneficiaries are not members of a family or specified individuals, the endowment is regarded as public. (Para 11 )
7. What factors indicate that a religious trust is public rather than private?
Indicators include the appointment of trustees who are strangers to the family, provisions allowing the public to make offerings, the celebration of large-scale festivals, and the establishment of public charitable institutions, such as hospitals, for the benefit of a section of the public. (Para 8 , 9 , 10 )
8. Can a state law apply to trust properties situated outside that state's territory?
Yes, provided there is a sufficient territorial nexus. If the religious institution is situated in the state and the trustees function there, the state has legislative power over the trust and its trustees in personam, which extends to properties appertaining to the trust as an integrated whole. (Para 14 )
Judgment
S. K. DAS J. : This appeal relates to a trust known as the Srimati Charusila Trust and the properties appertaining thereto. By its judgment and order dated 5-10-1953 the High Court of Patna has held that the trust in question is a private trust created for the worship of a family idol in which the public are not interested and, therefore, the provisions of the Bihar Hindu Religious Trusts Act, 1950 (Bihar I of 1951), hereinafter referred to as the Act, do not apply to it. Accordingly, it allowed an application made to it under Art. 226 of the Constitution and quashed the proceedings taken against the respondent herein under Ss. 59 and 70 of the Act. The State of Bihar, the President of the Bihar State Board of Religious Trusts and the Superintendent of the said Board who were respondents to the petition under Art. 226 are the appellants before us.
2. The trust in question was created by a trust deed executed on 11-3-1938. Srimati Charusila Dasi is the widow of one Akshaya Kumar Chose of No. 3, Jorabagan Street in Calcutta. She resided at the relevant time in a house known as Charu Niwas at Deoghar in the district of Santhal Perganas in the State of Bihar. In the trust deed she described herself as the settlor who was entitled to and in possession of certain properties described in schedules B, C and D. Schedule B property consisted of three bighas and odd of land situate in mohalla Karanibad of Deoghar town together with buildings and structures thereon; schedule C property was Charu Niwas, also situate in Karanibad of Deoghar; and schedule D properties consisted of several houses and some and in Calcutta the aggregate value of which was in the neighbourhood of Rs. 8,50,000. In a subsequent letter to the Superintendent, Bihar State Board of Religious Trusts, it was stated on behalf of Srimati Charusila Dasi that the total annual income from all the properties was about Rs. 87,839. In the trust deed it was recited that the settlor had installed a deity named Iswar Srigopal in her house and had since been regularly worshipping and performing the "puja" of the said deity; that she had been erecting and constructing a twin temple (jugal mandir) and a Nat Mandir (entrance hall) to be named in memory of her deceased son Dwijendra Nath on the plot of land described in schedule B and was further desirous of installing in one of the two temples the deity Srigopal and such other deity or deities as she might wish to establish during her lifetime and also of installing in the other temple a marble image of Sri Sri Balanand Brahmachari, who was her religious preeceptor and who was regarded by his disciplas as a divine person. It was further recited in the trust deed that the settler was also desirous of establishing and founding a hospital at Karanibad for Hindu females to be called Akshaya Kumar Female Hospitol in memory of her deceased husband. By the trust deed the settlor transferred to the trustees the properties described in schedules B, C and D and the trustees were five in number including Srimati Charusila Dasi and her deceased husband s adopted son Debi Prasanna Ghosh; the other three trustees were Amarendra Kumar Bose, Tara Shanker Chatterjee and Surendra Nath Burman, but they were not members of the family of the settlor. Amarendra Kumar Bose resigned from the office of trusteeship and was later replaced by Dr. Shailendra Nath Dutt. The trusts imposed under the trust deed were - (1) to complete the construction of the two temples and the Nat Mandir at a cost not exceeding three lakhs to be met out of the trust estate and donations, if any; (2) after the completion of the two temples, to instal or cause to be installed the deity Iswar Srigopal in one of the temples and the marble image of Sri Balanand Brahmachari in the other and to hold a consecration ceremony and a festival in connection therewith; (3) after the installation ceremonies and festivals mentioned above, to provide for the payment and expenditure of the dai
