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1974 DIGILAW 87 (KAR)

R. R. DIWAKAR v. M. S. PATIL

1974-04-18

K.J.SHETTY

body1974
( 1 ) THIS petition under Art. 226, is concerned with a public trust called 'loka Shikshna Trust'. R. R. Diwakar-the petitioner was its sole trustee. It was founded in the year 1937 and came to be registered under the Bombay public Trusts Act, 1950, hereinafter referred to as 'the Act'. ( 2 ) THE Charity Commissioner has issued an order restraining the petitioner from transferring or making any change in the trust property. The petitioner challenges the validity of the said order. ( 3 ) BRIEFLY stated, the facts are: The, trust is engaged primarily in the publication of the Kannada Daily 'samyukta Karnataka' from its Hubli and bangalore Offices and also the publications of a Kannada Weekly called 'karmaveera' and a monthly journal called 'kasturi'. Upto the year 1969, the petitioner was the sole person in the management of the trust. Thereafter he appointed three either persons as co-trustees put of whom respondent 4 before, me was one it, is said that the appointment of the, co-trustees did not work well and was alleged to have been revoked by the petitioner on 14-6-1972. On 25-12-1973, the petitioner appointed three more persons as successor trustees. In this connection there are proceedings pending before the Asst Charity Cornmr including a miscellaneous complaint against the petitioner on the mis-management of the trust. During the pendency of these proceedings, respondent 4 filed an application for temporrry injunction complaining that the petitioner was trying to alienate the trust properties. He asked the Asst Charity Commr to restrain the petitioner or the successor-trustees from transferring or making any change in the trust properties. That application was opposed by the petitioner, on the contention, among others, that the authorities constituted under the Act have no power to issue a temporary injunction against the trustees of a public trust. The Asst Charity Commr accepted the said contention; but he referred the matter to the Charity Commr with the following observation :" My above stated conclusions would have been enough to reject the application as not tenable in this office But having regard to the scheme of the BPT Act, I am of the opinion that the matter does not end there. . . . . . Under the Act, the Charity Commr exercises a dual function, one as delegate of the Govt's power of superintendence of trusts and. . . . . . Under the Act, the Charity Commr exercises a dual function, one as delegate of the Govt's power of superintendence of trusts and. second as an authority who is vested with quasi-judicial power to decide the questions under the Act. I am referring to the powers of the Chaiity Commr under the bpt Act for a specific purpose;. I may not ba kindly mis-understood as pointing out the functions and duties of the Charity Commr. My reference to his powers under the Act is with a particular object of submitting a report to him for exercising his superintending power as deemed fit. It is seen that various proceedings in respect of this trust are pending in this office. In Inquiry Nos. 291/72, it is stated that shri R. R. Diwakar has removed the co-trustees named therein. In inquiry No. 317/72, it is alleged that Shri R. R. Diwakar has removed three persons named therein from the Managing Committee. These two cases are pending In the meanwhile Sri R R. Diwakar has filed change report in this inquiry No 476/73 stating that he has retired and nominated three successive trustees. Shri H. G. Guttal has filed a change report in inquiry No. 279/74 stating that in view of the retirement of sri R. R. Diwakar, three persons named in the change report including h. G. Guttal have become the successor-trustees, in view of the earlier nomination made by Sri Diwakar. There is a miscellaneous complaint-petition in Inquiry No. GS-MSC. DWR. 21. C. 837/73-74 about the mismanagement and loss of the trust. Thus it is seen that there are four cases pending regarding the changes of the trustees and one case regarding mis-management etc of the trust property. Having regard to these proceedings, it appears tha,1 all is not well with the trust, its affairs and its properties and some orders regarding preservation of the trust property are to be passed. Therefore, I am of the opinion that this is a fit case for submitting the same to the Charity Commr for passing order as deemed fit in exercise of his powers of superintendence and administration of the trust. It is for this purpose that I made reference to the powers of the Charity Cornmr. Therefore, I am of the opinion that this is a fit case for submitting the same to the Charity Commr for passing order as deemed fit in exercise of his powers of superintendence and administration of the trust. It is for this purpose that I made reference to the powers of the Charity Cornmr. In view of my conclusion that temporary injunction application is not tenable before me, I could have straight away rejected it, but having regard to the pending proceedings pertaining to the trust, I think it fit to submit the case to the Charity commr for exercising his powers of superintendence over the administration of the trust. " ( 4 ) ON receipt of the above report, the Charity Commr made a short order d/1st Oct, 1974 in exercise of his powers under S. 69 read with S. 3 of the Act, directing the petitioner not to transfer or make any change in the trust property in any manner. The order was made without any notice to tne petitioner and it reads :" Before the Charity Commr, Belgaum MISC. PRO. No. 66/74 sri R. R. Diwakar-Petr v. Sri H. G. Guttal and Ors-Respts to Sri R. R. Diwakar, Trustee, Sri Loka Shikshana Trust, Hubli. Whereas, on the report of the Asst Charity Commr, Belgaum the following order has been passed by the Charity Commr, Belgaum. ORDER in view of the report made by the Asst Charity Commr and his order d/17-9-74 and having regard to the fact that the entire trust and its properties are being handed over to an illegally constituted body of trustees as alleged in the application d/22-6-1974 made before the asst Charity Commr and observations made by the Asst Charity Commr that there are many enquiries pending and " All is not wall with the trust, its affairs and its properties and some orders regarding preservation of the trust property has to be passed ". In exercise of the power of superintendence vested in me under S. 69 read with S. 8, it is ordered that pending disposal of the enquiry, the trustee shall not transfer or make any change in the trust property in any manner. Sdi- (M. S. Patil; charity Commissioner, Belgaum. In exercise of the power of superintendence vested in me under S. 69 read with S. 8, it is ordered that pending disposal of the enquiry, the trustee shall not transfer or make any change in the trust property in any manner. Sdi- (M. S. Patil; charity Commissioner, Belgaum. Your are hereby directed to appear in person or through your Pleader or by some one by law authorised to act for you in this proceeding, on 8-10-74 at 11 a. m. and file your say if any in the matter. Given under my hand and the seal of this office this the 1st day of october, 1974. Office of the Charity Commr, Court Compound, Belgaum. Sd/- charity Commissioner, Belgaum". The Order was given wide publicity in almost all the , leading news papers, and on coming to know of the same, the petititioner approached this court praying for a writ to quash the said order, on the principal contention that it was beyond the powers of the Charity Commissioner. ( 5 ) THE petition has been resisted by the respondents on the contentions that the petitioner has no locus standi to maintain the writ petition, and that the Charity Commr who is required to supervise the administration of the trust has power to restrain the petitioner frozn alienating the trust property, pending disposal of the enquiry relating to the mis-management of the trust. ( 6 ) IT seems to me that the objection as the competence of the petitioner to maintain the writ petition, has little substance. The Charity commr has directed the petitioner not to alienate the trust property. The petitioner is aggrieved by the said order. He can maintain the writ petition. I therefore reject the preliminary objection. ( 7 ) IN order to examine the validity of the other contention, it is necessary to refer to the relevant provisions of the Act. The Act was enacted, as the preamble puts it, to regulate and to make better provision for the administration of public religious and charitable, trusts. S. 3 confers power on the State Govt to appoint an officer to be, called 'charity Commissioner' who shall exercise such powers and shall perform such duties and functions as are conferred by or under the provisions of the Act. S. 3 confers power on the State Govt to appoint an officer to be, called 'charity Commissioner' who shall exercise such powers and shall perform such duties and functions as are conferred by or under the provisions of the Act. He, has power to supervise the, administration and carry out the provisions of the Act subject to general or special orders from the State Govt. S. 18 provides for registration of public trusts. Ss. 17 and 21 confer power on the Deputy or the Asst Charity Commr to keep and maintain books, any indices and other registers containing the particulars of each trust. If any change is required to be made in the entries relating to the public trust, interested persons could move the Asst Charity Commr under S. 22 who shall after holding an enquiry, make necessary amendments in the entries. S. 36 provides that subject to the directions in the instrument of trust, no sale, mortgage, exchange or gift of any immoveable property belonging to a public trust shall be valid without the previous sanction of the Charity Commr. Chap. VI consisting of Ss. 37 to 41 confers, among others, the power of inspection and supervision of the, public trusts. S. 50 provides for instituting a suit before a Civil Court for the removal of any trustee or manager, the appointment of a new trustee or manager, for direction to take accounts and making certain enquiries, for a declaration as to what proportion of the trust property or the interest therein shall be allocated to any particular object of the trust, for a direction directing the whole or any part of the property to be let, sold, mortgaged or exchanged, and for the settlement of a scheme, or variations or alterations in the scheme already settled. Such a suit can be instituted either by the, Charity Commr himself or by two or more persons having an interest in the trust, but with the written consent of the Charity commr. S. 69 enumerates the duties to be performed and powers to be exercised by the Charity Commr. I will enumerate in detail those duties a little later. S. 70 confers appellate powers on the Charity Commr against the order of the Deputy or Asst Charity Commr, with which we are not concerned here. S. 69 enumerates the duties to be performed and powers to be exercised by the Charity Commr. I will enumerate in detail those duties a little later. S. 70 confers appellate powers on the Charity Commr against the order of the Deputy or Asst Charity Commr, with which we are not concerned here. On examining these provisions, it becomes clear that there is no provision in the Act, conferring power on the Charity Commr to issue an injunction against the trustees. Respondents, however, sought to support the impugned injunction, by relying on the general supervisory power of the Charity Commr. It was said that 'the trustees have no power to alienate the trust property without the previous sanction of the Charity Commr and if any such complaint is brought before the Charity Commr, he should make an enquiry. Pending the enquiry, it was said that the Charity Commr would be within his power to restrain the trustees from alienating the trust property in the exercise of his power of general superintendence of the administration of the trust, and in carrying out purposes of the Act. ( 8 ) IN my view, it is hard to accept the contention. The Charity Commissioner has no unlimited powers. His duties, functions and powers are located in S. 69 read with S. 3 of the Act. S. 69 provides :" 69. Duties, functions and powers of Charity Commissioner. For the purposes of this Act the following shall be the duties to be performed and powers to be exercised by the Charity Commr, namely: (a) the general superintendence of the administration and carrying out the purposes of this Act under Section 3; (b) power to entertain and dispose of appeals from the finding of a Deputy or Asst Charity Commr under Section 20, 22 or 28. (c) power to determine which of the Deputy or Asst Charity commrs shall proceed with an inquiry relating to the registration of any public trust under Section 25 (d) power to direct a special audit of the accounts of a public trust under Section 32. (c) power to determine which of the Deputy or Asst Charity commrs shall proceed with an inquiry relating to the registration of any public trust under Section 25 (d) power to direct a special audit of the accounts of a public trust under Section 32. (e) Power to require an auditor to forward to him a copy of a balance sheet and income and expenditure account under Section 34; (f) power to permit a trustee to invest money of a public trust in any manner other than in public securities under Section 35 (g) power to sanction a sale mortgage. exchange gift or lease of immoveable property belonging to a public trust under Section 36; (h) power to enter on and inspect any trust property to call for and inspect any proceedings of a trustee and to call for any retuern statement account or report from trustees or any person connected with a public trust under Section 37: (i) power to bold an inquiry in regard to any loss caused to a public trust under S. 40. and to order a surcharge under Section 41 (i) power to art as the Treasurer of Charitable Endowments under the Charitable Endowments Act, 1890, under Section 43 (k) power to act as a trusteep of a public trust: (l) power to file a suit under Section 50; (m) power to give or refuse consent to the institution of a suit under Section 51; (n) power to give notice to trustees for the cypreg application of the trust money and to make an application tn the Court under S. 55 ; (o) power to publish the lists of assessors under Section 62 ; and (p) to exercise such other powers and perform such other duties and functions as may be prescribed. " ( 9 ) AMONG the various duties, functions and powers provided under s. 79, I do not find any provision conferring power on the Charity Commr to issue injunction. His power to supervise the administration of the trusts and carrying out purposes of the Act has been further circumscribed by s. 3 of the Act. S. 3 provides that the Charity Commr shall exercise such powers and shall perform such duties and functions as are conferred by or under the provisions of the Act. That means every action of the Charity commr must be supported by the provisions of the Act. S. 3 provides that the Charity Commr shall exercise such powers and shall perform such duties and functions as are conferred by or under the provisions of the Act. That means every action of the Charity commr must be supported by the provisions of the Act. He has no implied power nor any inherent power to supervise the administration of the public trusts. ( 10 ) IN this context, reference may be made to the decision of this court in Shriman Niranjan v. Shankarling Dewasthan, (1965) 2 Myslj. 353, While considering the scope of power of the Charity Commr to appoint a receiver to take over a public trust , this Court observed that the Asst Charity Commr or the Charity Commr have limited functions under the Act, and they do not have power to dispossess any person either permanently or even as an interim measure from the property claimed to be a trust property. ( 11 ) THE reason for the above conclusion is not far to seek. The Charity commissioner is a statutory authority. He has no general jurisdiction of a Civil Court. He cannot therefore issue an injunction or appoint a receiver unless such power is expressly conferred by or under the provisions of the Act. ( 12 ) IT is not out of place to mention that these difficulties were, noticed in our neighbouring State. The State of Maharashtra has brought forward an amendment to the Act by incorporating S. 41e specifically authorising the Charity Commr to grant a temporary injunction or make such other order for the purpose of staying and preventing the wasting, damaging, alienation, sale, removal or dispossession of trust property, whenever it is brought to his notice by the Deputy or Asst Charity Commr or by an application by atleast two persons having interest in the property that any trust property is in danger of being wasted, damaged or improperly alienated, etc. But these amendments have no application in this State, since they were made after the reorganisation of States. A similar provision was proposed by the Guiarat Govt. A Bill providing for such power to the charity Commr was introduced in the Gujarat Assemblv, but due to the dissolution on 15th March, 1974, the Bill was lapsed under Art. 196 (5) of the Constitution. A similar provision was proposed by the Guiarat Govt. A Bill providing for such power to the charity Commr was introduced in the Gujarat Assemblv, but due to the dissolution on 15th March, 1974, the Bill was lapsed under Art. 196 (5) of the Constitution. ( 13 ) THESE circumstances clearly establish that, as it is, in the State of Karnataka, the Charity Commr has no power to issue an injunction. It may be that he may find it difficult to preserve the public trust property from mis-use or misappropriation and abuse of power by trustees. His approach to the Civil Court for an injunction may involve a considerable loss of time and in the meanwhile the defaulting trustees who remain in possession of the trust affairs may cause further damage to the trust. But that is no ground for the Charity Commissioner to arrogate, to himself the power of a Civil Court. Hei cannot perform any function which falls outside the statutory provisions. This Court also cannot enlarge his power of superintendence by invoking the doctrine of necessity. It is for the Legislature to make necessary amendments to the act conferring such power on the Charity Commissioner. ( 14 ) IN the result, the rule is made absolute. A writ of certiorari shall issue quashing the order of the Charity Commissioner. In the circumstances, I make no order as to costs. --- *** --- .