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1965 DIGILAW 87 (MP)

RADHESHYAM KASHIRAM v. REGISTRAR OF PUBLIC TRUSTS, NARSIMHAPUR

1965-07-22

K.L.PANDEY, P.V.DIXIT

body1965
ORDER P.V. Dixit, C.J. By this application under Articles 226 and 227 of the Constitution, the Petitioner, who is the Sarvarakar of a temple of Shri Deo Murlidharji, Baldeoji and Radhikaji, situated at Panari village, Gadarwara tehsil, district Narsiaghpur, which has been declared to be a public trusts under the Madhya Pradesh Public Trusts Act, 1951, seeks a writ of certiorari for quashing the proceedings held by the Registrar of Public Trusts, Narsinghpur, for auctioning the lease of certain property belonging to the trust and for quashing an order issued to him to have the accounts of the trust audited from the year 1953 up to date by a Chartered Accountant. The auction for leasing out some land belonging to the trust for a period of one year was held in 1964. The proceedings were, however, held up on account of the pendency of Miscellaneous Petition No. 192 of 1964 filed by the applicant challenging an order of the Registrar asking the Tahsildar to auction the land for one year and because of a stay-order made in that petition. That petition was, however, withdrawn by the applicant realising that as the agricultural year had already commenced there would be difficulty in leasing out the property. Thereafter the Registrar again resumed proceedings for auctioning the property and accepted certain bids. In those proceedings, the Petitioner was asked to deposit Rs. 4,400 if he wished to purchasethe grass at the same price which was offered by the successful bidder of the auction. When the Petitioner refused to do so contending that the auction held by the Registrar was void, the Registrar accepted the bids of other persons. But later on when the auction-purchasers could not get possession of the land, the Registrar made a direction on 5th January 1965 asking the Petitioner-Sarvarakar to deposit Rs. 4,400 in the Bank. On 18th March 1965 the Registrar also made an order for audit of the trust accounts from the year 195b upto-date by a Chartered Accountant. In our opinion, this application must be granted. The M.P. Public Trusts Act, 1951, nowhere authorizes the Registrar to lease out by auction or otherwise any property belonging to a trust. That power vests in the managing trustee. In our opinion, this application must be granted. The M.P. Public Trusts Act, 1951, nowhere authorizes the Registrar to lease out by auction or otherwise any property belonging to a trust. That power vests in the managing trustee. The only restriction that has been put on this power is that contained in Section 14 of the Act which inter alia says that no lease for a period exceeding seven years in the case of agricultural land or for a period exceeding three years in the case of non-agricultural land or building belonging to a public trust shall be valid without the previous sanction of the Registrar. It is thus plain that the Registrar has no power whatsoever to auction the leases of certain lands belonging to the trust for a period of one year. The entire proceedings held by the Registrar in 1964-65 for the auction of lands belonging to the trust were thus wholly without jurisdiction. In regard to the audit of trust accounts, the Registrar has no doubt u/s 16(4) of the Act the power to direct a special audit of the accounts of any public trust whenever, in his opinion, such special audit is necessary. But this power can be exercised only for audit of the accounts from the time the trust is declared to be a public trust and not in regard to the accounts maintained before that point of time. This becomes clear by reading Sections 15 and 16 together. By Section 15(1) the working trustee or manager of a public trust is required to keep regular accounts of all movable and immovable property. This duty of maintaining accounts can arise only after the trust is declared to be a public trust and a working trustee and manager is appointed. Section 16(1) speaks of the balances of accounts kept u/s 15. The second Sub-section of Section 16 deals with the annual audit of the accounts maintained u/s 15. The third Sub-section says that every auditor acting under Sub-section (2) shall have access to the accounts and to all books and other documents as are kept in the possession of the working trustee or manager. The second Sub-section of Section 16 deals with the annual audit of the accounts maintained u/s 15. The third Sub-section says that every auditor acting under Sub-section (2) shall have access to the accounts and to all books and other documents as are kept in the possession of the working trustee or manager. Then follows the provision, contained in Sub-section (4), about special audit, which is as follows- (4) Notwithstanding anything contained in Sub-sections (1) and (2) to the contrary, the Registrar may direct a special audit of the accounts of any public trust whenever in his opinion such special audit is necessary. It is clear from the above provision that special audit is of the accounts of a public trust and is one over and above the annual audit prescribed by Sub-section (2). Having regard to the language of Sub-section (4) and the setting of Section 16, there can be no doubt that special audit can be directed only of accounts maintained by the working trustee or manager of a trust after the trust has been declared to be a public trust. The Registrar was, therefore, not justified in directing that the trust-accounts should be audited from the year 1953. The special audit can only be of the accounts from the time when the trust was declared to be a public trust. It was also urged by the Learned Counsel for the applicant that it was not necessary to appoint a Chartered Accountant for special audit as his fee would be very high and the trust was not in a position to pay any high fee. There cannot be any interference with the discretion exercised by the Registrar in directing that the audit should be by a Chartered Accountant. If the fees of the Chartered Accountant are very high, the Petitioner can move the Registrar to fix a fee reasonable and commensurate with the income of the trust. He can also move the Registrar for the appointment of any other qualified person as auditor if the person appointed is not prepared to accept the reasonable fee that may be fixed by the Registrar. For all these reasons, the proceedings held by the Registrar for auctioning the lease or leases of the land belonging to the trust are quashed. He can also move the Registrar for the appointment of any other qualified person as auditor if the person appointed is not prepared to accept the reasonable fee that may be fixed by the Registrar. For all these reasons, the proceedings held by the Registrar for auctioning the lease or leases of the land belonging to the trust are quashed. The direction given by the Registrar for special audit is also quashed in so far as it requires the Petitioner to have the accounts audited from the year 1953. That direction shall stand for the purpose of audit of the accounts from the time the trust was declared to be a public trust. To the above extent, this petition is allowed. There will be no order as to costs of this application. The outstanding amount of security deposit shall be refunded to the Petitioner. Order accordingly.