Full Judgment Text
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CASE NO.:
Appeal (civil) 9419 of 2003
PETITIONER:
Church of North of India
RESPONDENT:
Lavajibhai Ratanjibhai & Ors.
DATE OF JUDGMENT: 03/05/2005
BENCH:
B.P. Singh & S.B. Sinha
JUDGMENT:
J U D G M E N T
With
I.A. Nos. 5 to 10 of 2005
(Application for impleading party)
S.B. SINHA, J :
INTRODUCTION
The extent of bar of jurisdiction of Civil Court under Section 80 of the
Bombay Public Trusts Act, 1950 (hereinafter referred to as ’the BPT Act’) is
the question involved in this appeal which arises out of a judgment and order
dated 21.03.2003 passed by the High Court of Gujarat at Ahmedabad in S.A.
No.303 of 1986.
BACKGROUND FACT:
The basic fact of the matter is not much in dispute.
In or about 1895, some American Missionaries established a religious
institution (Church) at Valsad for propagation of protestant faith of Christian
religion and to establish and manage the churches for the people professing
that faith. The object of the ’Brethren Church’ was to propagate the work of
the church of the brethren in western India in order to reveal Christ by
means of evangelistic, educational, medical, literary, industrial school, social
and charitable activities leading to the establishment of the kingdom of God.
A Continuation Committee is said to have been appointed in the year 1930
by the representatives of the Brethren Church and other churches in a
Round Table Conference held in New Delhi with a view to consider the
modalities and other details for amalgamation of churches. The Committee
is said to have worked out a broad basis for the unification of churches
which was accepted by the participant churches whereupon a new committee
came into being in the year 1951. The First District Church of the Brethren
in India (Brethren Church) was registered as a religious society under the
Societies Registration Act, 1860 bearing Registration No.1202/44; the object
whereof was to promote the work of the church of the brethren in Western
India with the same object wherefor the church was established. Another
Round Table Conference is said to have been held in the year 1951 at New
Delhi resulting in appointment of a new committee known as ’Negotiating
Committee’ in order to continue deliberations for the union of churches; five
other associations were included in the Committee, namely, The Council of
the Baptist Churches in North India, The Church of India, Pakistan, Burma
and Ceylon, The Methodist Church (British and Australian Conference),
The Methodist Church in Southern Asia and The United Church o Northern
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India. The Brethren Church (First District Church of the Brethren) was
registered as a public trust in Gujarat bearing No.E-643, Bharuch in terms of
the BPT Act. The Negotiating Committee made its final recommendations
which came to be known as the ’4th Plan of the Union’ which was published
in a book entitled ’Plan of Church Union in North India and Pakistan’; the
principal recommendation of the Committee being that all the six uniting
churches should be dissolved and united to become one church to be known
as "The Church of Northern India" (hereinafter referred to as "the CNI)
which should be the legal continuation and successor of the united churches
and all the properties, assets, obligations etc. thereof would vest in or
devolve on CNI. The booklet of the 4th Plan is said to have been circulated
to the governing bodies of the uniting churches with a view to enable them
to deliberate thereover and to take appropriate decision in that behalf.
On or about 17.02.1970, a Resolution bearing No.70/08 is said to
have been passed by the majority of members for effecting the dissolution as
a society under the Societies Registration Act, 1860. The Negotiating
Committee thereafter on or about 29.11.1970 took a decision to formally
inaugurate the CNI at Nagpur. The Brethren Church allegedly placed the
said Resolution No.70/08 at the altar wherein it was explicitly affirmed that
the CNI shall be deemed to be the legal continuation and successor of the
brethren church and the rights, titles, claims, estates and the interests of the
church together with its privileges and obligations shall vest in the CNI as its
legal heir on or from the date of inauguration. The Church of North India
Trust Association was registered as a company under the Companies Act,
1956, in the year 1976. The original defendant Nos. 1 to 4 who were said to
be initially part of the CNI and were parties to the resolution dated
17.02.1970 raised a contention that the Brethren Church continued to exist.
They started obstructing the functioning of the CNI, and in particular the
worship in churches, and asserted that the First Brethren Church had not
been dissolved and continued and they represented the same.
The original plaintiffs, namely, Ambelal Okarial Patel, Shantilal
Lakshmichand Purani, Bishop T.L. Christachari and Samuel Nagarji Bhagat
(since deceased) said to be the former office bearers of the Brethren Church
filed a suit in the Court of the Civil Judge, Senior Division, Bharuch, marked
as Civil Suit No.72 of 1979.
The CNI was impleaded as defendant No. 5 therein, although no relief
thereagainst was claimed contending that it was a necessary and/or a proper
party. The Brethren Church were not made parties in the said suit. It is
stated at the Bar that the said churches were impleaded at a later stage of the
proceedings but the said applications were later on dismissed. The original
defendant No. 4 in his written statement filed in the said suit took a
categorical stand that there had been no dissolution of the Brethren Church
and their separate entity was not lost. According to the said defendant they
were temporarily suspended till it was revived again and, thus, they were
entitled to work for and on behalf of the Brethren Church. In the said
proceedings, certain interim orders were passed wherewith we are not
concerned. However, with a view to complete the narration of facts, we may
notice that the CNI filed an application for its registration before the Charity
Commissioner in terms of the provisions of the BPT Act, which was granted
by an order dated 12.5.1980 with effect from 19.11.1971. The CNI
thereafter filed a change report before the Charity Commissioner on or about
15.1.1981. Admittedly, the said application has not yet been disposed of.
While things stood thus, the Charity Commissioner was impleaded as
a party in the suit and in its written statement a plea was raised that the
jurisdiction of the Civil Court was barred in terms of Section 80 of the BPT
Act contending :
"4. In view of provisions of Bombay Public Trusts Act,
1950. The question whether or not a trust of particular
property is the property of such trust, is to be decided
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exclusively by the Deputy or Assistant Charity
Commissioner appointed under the Act, the Assistant
Charity of the Brethren "as a public trust at No. E-643
(Bharuch) under the Bombay Public Trusts ct, 1950. The
decision of the Assistant Charity Commissioner, Bharuch
unless set aside as provided under the Act, is final and
conclusive. It is further submitted that the jurisdiction of
the Hon’ble Court is also barred under Section 80 of the
Act. The plaintiffs are, therefore, not entitled to the
reliefs as prayed for by them. The suit, deserves to be
dismissed."
PROCEEDINGS:
The learned Civil Judge by judgment and decree dated 31.3.1984
decreed the suit; findings in support whereof would be noticed a little later.
An appeal was preferred thereagainst on or about 4.5.1984 by the
original defendants in the Court of the District Judge, Bharuch, which was
marked as RCA No.72 of 1984. By judgment and decree dated 11.8.1986,
the said appeal was allowed whereagainst the CNI (Appellant herein)
preferred a Second Appeal before the Gujarat High Court, which was
marked as Second Appeal No.303 of 1986. On or about 29.3.2002, the
Charity Commissioner is said to have filed a detailed affidavit in support of
the Change Report No.665/81. By reason of the impugned judgment and
order dated 21.3.2003, the said Second Appeal was dismissed.
Hence the Appellant is before us.
CONTENTIONS:
Mr. C.A. Sundaram, the learned Senior Counsel appearing on behalf
of the Appellant would submit that the Court of First Appeal as also the
High Court committed a manifest error in passing the impugned judgments
insofar they failed to take into consideration the scope and purport of the
suit. According to the learned counsel, the learned Trial Judge had rightly
decreed the suit having taken into consideration the fact that the matter
relating to formation of churches and their merger in the name of the CNI
was not a matter which could be determined by the Charity Commissioner in
exercise of his powers under the BPT Act. The learned counsel would
contend that the society and the trust are two separate entities. The Society
being not a juristic person although cannot own any property but manage the
affairs of the trust which would be the owner of the property. According to
the learned counsel the Court of First Appeal and the High Court
misdirected themselves in passing the impugned judgments insofar as they
proceeded on the premise that having regard to the fact that properties
belonging to the Brethren Church were registered in the books maintained
by the Charity Commissioner under Section 17 of the Act, any church
affected thereby would fall within his jurisdiction and consequently the
dissolution of the society and managing of the churches and consequently
their merger would also come within the purview of the provisions of the
BPT Act.
Mr. Sundaram would submit that a society registered under the
Societies Registration Act, 1860 and a trust registered under the BPT Act
are two different entities. Whereas the activities and the dealings of the
latter may fall within the exclusive jurisdiction of the authorities specified
under the BPT Act, the activities of the society would be governed by the
Societies Registration Act, 1860. The Civil Court, therefore, according to
Mr. Sundaram, had the requisite jurisdiction to deal with the question as to
whether the resolution adopted in the year 1970 resulting in dissolution and
the merger of the churches was valid. Such a dispute, Mr. Sundaram would
argue, is beyond the jurisdiction of the Charity Commissioner. The learned
counsel would urge that once the dissolution of the Brethren Church and
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consequent merger in the Appellant is held to be valid, in terms of the
Section 26 of the BPT Act, the Charity Commissioner is enjoined with a
duty to make necessary changes in the books maintained under Section 17 of
the BPT Act. Sections 31, 50, 51, 79 and 80 of the BPT Act, according to
Mr. Sundaram, do not clothe the Charity Commissioner or any other
authority thereunder to determine a question as regard the validity of a
resolution of a society and/or its merger.
Mr. K. Ramamoorthy, the learned Senior Counsel appearing on behalf
the Brethren Church supporting the Appellant would contend that
administration of a religious property must be understood in its proper
context. According to the learned counsel, administration of a property
belonging to trust may not have anything to do with the actual possession or
dealing with the administration thereof.
The learned counsel would draw our attention to the judgments in
State of Madras vs. Kunnakudi Melamatam and Another [AIR 1965 SC
1570]; Chiranjilal Shrilal Goenka (deceased) Through L.Rs. vs. Jasjit Singh
and Others [(1993) 2 SCC 507] and Rajasthan State Road Transport
Corporation and Another vs. Krishna Kant and Others [(1995) 5 SCC 75]
and contended that in various situations, the Civil Court and the Probate
Court alone have been held to have exclusive jurisdiction and not the
Charity Commissioner. According to the learned counsel, the Charity
Commissioner being a creature of statute must exercise its jurisdiction
within the four-corners thereof and the matters which do not come within the
purview of the BPT Act must necessarily be left to the jurisdiction of the
Civil Court. According to the learned counsel the provisions of Section 50
of the BPT Act do not show that requirements contained therein must be
carried out even in a case where the Charity Commissioner may not have
any jurisdiction.
As regard interpretation of Section 31 of the BPT Act, the learned
counsel would contend that the provision thereof bars hearing and decision
in the suit and not the institution thereof. Although in the year 1979, the
Appellant herein was not registered but as before hearing of the suit was
taken up, it became registered in the year 1980, the Civil Judge had the
jurisdiction to hear and decide the said suit even it involved dealing with the
trust property.
Mr. Huzefa Ahmadi, the learned counsel appearing on behalf of the
contesting Respondents, on the other hand, would submit that for the
purpose of determining the question as to whether the suit before the Civil
Court was maintainable or not, the averments made in the plaint must be
read as a whole and substratum thereof must be noticed. As adjudication
was sought for in relation to administration and possession of the properties
of a trust; the suit was not maintainable. It was pointed out that the true
identity of the Appellant had not been disclosed, i.e., as to whether it is a
trust registered under the BPT Act, or a company registered under the Indian
Companies Act, 1956.
The learned counsel submitted that although a distinction is sought to
be made between the activities of a society which runs the administration of
a trust and a trust which owns the property, no such distinction was made in
the proceedings before the courts below. Drawing our attention to certain
grounds taken in the Special Leave Petition, Mr. Ahmadi would urge, that in
fact the finding of the High Court to the effect that the society and the trust
are two separate entities had been questioned. Taking us through the plaint,
the learned counsel would contend that plaintiffs as also the learned Trial
Judge proceeded on the basis that the trust had ceased to exist and wherever
the expression "Brethren Church" has been used in the judgment, the learned
Trial Court referred to it as a trust and not as a society.
Mr. Ahmadi would contend that the learned Trial Court proceeded on
the basis that there existed inconsistencies between the provisions of the
Societies Registration Act which is a Parliamentary Act and the BPT Act,
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which is a State Act and relying on or on the basis of clause (2) of Article
254 of the Constitution of India, it came to the decision that the former shall
prevail over the latter. It is in that context, issues were decided and not on
the basis that the society and the trust are two separate entities. We were
taken through the relevant paragraphs of the BPT Act and in particular
Sections 2(10), 2(13), 13(b), 17, 18, 19, 20, 21, 22, 31, 36, 50, 51, 74, 79
and 80 by Mr. Ahmadi to show that the said provisions clearly indicate that
the BPT Act is a self-contained code and deals with all questions governing
a trust and the properties held by it. It was urged that the provisions of
Section 26 thereof must be read in that context. The learned counsel would
submit that the provisions of Section 26 of the BPT Act, in the facts and
circumstances of the case, would have no application where a suit was
expressly barred which regulates management of a trust, as the BPT Act
created a specialized machinery to determine the issues governing the same.
Drawing our attention to the prayer (b) of the plaint, Mr. Ahmadi
would argue that the same would squarely fall within the purview of
Sections 50 and 51 of the BPT Act and, thus, would be barred as no
permission of the Chief Commissioner was sought for and obtained.
The learned counsel would contend that the plea that the suit related to
the affairs of the society is merely a ruse or a camouflage. It was argued that
the society itself is a religious trust and, thus, both stand on the same footing
and in that view of the matter, the suit will not be maintainable.
The learned counsel would further submit that a finding of fact had
been arrived at by the Court of Appeal that the Brethren Church had not
ceased to exist, this Court should not interfere therewith.
Mr. M.N. Shroff, the learned counsel appearing on behalf of the
Charity Commissioner, adopted the submission of Mr. Ahmadi and would
further contend that the substantial issue before the learned Civil Judge was
as to whether the Brethren Church which was registered as trust had ceased
to exist and/or stood dissolved or not.
SOCIETIES REGISTRATION ACT, 1860
The Societies Registration Act was enacted, as it was found expedient
that provisions should be made for improving the legal condition of societies
established for the promotion of literature, science, or the fine arts, or for the
diffusion of useful knowledge, the diffusion of political education and for
charitable purposes.
Section 2 of the Societies Registration Act provides for memorandum
of association which, inter alia, must contain the name of the society and the
objects of the society. A society which is formed for charitable purpose may
also carry on its activities. The words ’charitable purposes’ includes
religious purposes. Section 4 provides for annual list of managing body to
be filed stating names, addresses and occupations of the governors, council,
directors, committee, or other governing body then entrusted with the
management of the affairs of the society.
In terms of Section 5, the property of a society both movable and
immovable, if not vested in the trustees, would be deemed to have vested,
for the time being, in the governing body of such society. A suit by or
against the society is to be filed in the name of the President, Chairman or
Principal Secretary or trustees of such society as may be determined by the
rules and regulations thereof.
Section 13 of Societies Registration Act provides for dissolution of
societies and adjustment of their affairs. It reads as under:
"13. Provision for dissolution of societies and
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adjustment of their affairs \026 Any number not less
than three-fifths of the members of any society
may determine that it shall be dissolved, and
thereupon it shall be dissolved forthwith, or at the
time then agreed upon, and all necessary steps
shall be taken for the disposal and settlement of the
property of the society, its claims and liabilities
according to the rules of the said society applicable
thereto, if any, and if not, then as the governing
body shall find expedient, provided that, in the
event of any dispute arising among the said
governing body or the members of the society, the
adjustment of its affairs shall be referred to the
principal Court of original civil jurisdiction of the
district in which the chief building of the society is
situate; and the Court shall make such order in the
matter as it shall deem requisite:
Assent required \026 Provided that no society shall be
dissolved unless three-fifths of the members shall
have expressed a wish for such dissolution by their
votes delivered in person or by proxy, at a general
meeting convened for the purpose:
Government consent \026 Provided that whenever any
Government is a member of, or a contributor to, or
otherwise interested in any society registered under
this Act, such society shall not be dissolved
without the consent of the Government of the State
of registration."
BOMBAY PUBLIC TRUSTS ACT
The BPT Act, on the other hand, was enacted to regulate and to make
better provision for the administration of public religious and charitable
trusts in the State of Bombay.
Section 2 is the interpretation clause. Section 2 (10) defines "person
having interest" to include in the case of a society registered under the
Societies Registration Act, 1860 any member of such society. Section 2(13)
defines "public trust" to mean "an express or constructive trust for either a
public religious or charitable purpose or both and includes a temple, a math,
a wakf, a dharmada or any other religious or charitable endowment and a
society formed either for a religious or charitable purpose or for both and
registered under the Societies Registration Act, 1860. A "trustee" has been
defined to mean a person in whom either alone or in association with other
persons, the trust property is vested and includes a manager.
Section 3 provides for establishment of the office of the Charity
Commissioner for the purpose of superintending the administration as also
carrying out the provisions of the Act subject to such general or special
orders as the State Government may impose. Section 3A provides for the
appointment of Joint Charity Commissioners. Section 5 provides for the
appointment of Deputy and Assistant Charity Commissioners.
Section 9 occurring in Chapter III of the Act defines charitable
purposes inter alia to include relief of poverty or distress, education, medical
relief and the advancement of any other object of general public utility but
would not include a purpose which relates exclusively to sports, or
exclusively to religious teaching or worship. Section 10 contains a non-
obstante clause in terms whereof a public trust shall not be void only on the
ground that the persons or objects for the benefit of whom or which it is
created are unascertained or unascertainable. Section 11 provides that the
public trust created for purposes some of which are charitable or religious
and some of which are not shall be void in respect to the charitable or
religious purpose only on the ground that it is void with respect to the non-
charitable or non-religious purpose.
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Section 13 reads as under:
"13. If any public trust is created for a specific
object of a charitable or religious nature or for the
benefit of a society or institution constituted for a
charitable or religious purpose, such trust shall not
be deemed to be void only on the ground \026
(a) that the performance of the specific object
for which the trust was created has become
impossible or impracticable, or
(b) that the society or institution does not exist
or has ceased to exist, notwithstanding the fact that
there was no intent for the appropriation of the
trust property for a general charitable or religious
purpose."
Chapter IV of the Act provides for registration of public trusts. The
said Chapter makes the registration of public trust compulsory. Section 17
ordains keeping and maintenance of such books, indices and other registers
as may be prescribed in every Public Trusts Registration Office or Joint
Public Trusts Registration Office. Such books, indices and registers would
contain such particulars as may be prescribed. Section 18 imposes a duty
upon the trustee of a public trust to make an application for the registration
of the public trust in writing and would contain such particulars as
mentioned in Sub-section (5) of Section 18. Clause (iii) of Sub-section (5)
of Section 18 provides that the list of the movable and immovable trust
property and such descriptions and particulars as may be sufficient for the
identification thereof shall be stated as and when such application for
registration of the trust is filed. Section 19 provides for an Inquiry for
registration for the purpose of ascertaining:
"(i) whether a trust exists and whether such
trust is a public trust,
(ii) whether any property is the property of
such trust,
(iii) whether the whole or any substantial
portion of the subject-matter of the trust is situate
within his jurisdiction,
(iv) the names and addresses of the trustees and
manager of such trust,
(v) the mode of succession to the office of the
trustee of such trust,
(vi) the origin, nature and object of such trust,
(vii) the amount of gross average annual
income and expenditure of such trust, and
(viii) any other particulars as may be prescribed
under sub-section (5) of section 18."
Section 20 provides for recording of the findings by the Deputy or
Assistant Charity Commissioner on completion of an inquiry provided for
under Section 19. On completion of such an inquiry in accordance with the
findings, the Deputy or Assistant Charity Commissioner is enjoined with the
duty to make entry in such register in terms of Section 21 of the Act; Sub-
section (2) whereof provides that such entries shall be final and conclusive.
Section 22 provides for the change which may occur in any of the entries
recorded in the register kept under Section 17 to make an appropriate
application within 90 days from the date of the occurrence of such change.
Sub-section (1A) of Section 22 reads thus:
"(1A) Where the change to be reported under sub-
section (1) relates to any immovable property, the
trustee shall, alongwith the report, furnish a
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memorandum in the prescribed form containing
the particulars (including the name and description
of the public trust) relating to any change in the
immovable property of such public trust, for
forwarding it to the sub-registrar referred to in sub-
section (7) of section 18."
Sub-section (2) of Section 22 empowers a Deputy or Assistant Charity
Commissioner to hold an inquiry for the purpose of verifying the correctness
of the entries in the register kept under Section 17 or ascertaining whether
any change has occurred in any of the particulars recorded therein. In the
event, a change is found to have occurred in any of the entries recorded in
the register kept under Section 17, the Deputy or Assistant Charity
Commissioner is required to record a finding with the reasons therefor to
that effect. Such an order is appealable to the Charity Commissioner. By
reason of changes which have been found to have occurred, the entries in the
register are required to be amended. Such amendment on the occurrence of
change is final and conclusive. Section 22A empowers the Deputy or
Assistant Charity Commissioner to hold further inquiry. Section 30 creates
a legal fiction as regard notice on the part of a person acquiring immovable
property of the relevant particulars relating to such trust entered in the
register in relation to any property belonging to a public trust. Section 31
creates a bar to hear or decide suits in the following terms:
"31(1) No suit to enforce a right on behalf of a
public trust which has not been registered under
this Act shall be heard or decided in any Court.
(2) The provisions of sub-section (1) shall apply to
a claim of set off or other proceeding to enforce a
right on behalf of such public trust."
Chapter V provides for the Accounts and Audit. Section 36 bars
alienation of immovable property of public trust without the previous
sanction of the Charity Commissioner. In the event, such previous sanction
is not granted, an appeal thereagainst is maintainable before the Gujarat
Revenue Tribunal.
Chapter VI provides for the control of the charitable or religious trusts
and for the said purpose in terms of Section 37 the Charity Commissioner is
empowered to:
"(a) to enter on and inspect or cause to be entered
on and inspected any property belonging to a
public trust;
(b) to call for or inspect any extract from any
proceedings of the trustees of any public trust and
any books of accounts or documents in the
possession, or under the control, of the trustees or
any person on behalf of the trustees;
(c) to call for any return, statement, account or
report which he may think fit from the trustees or
any person connected with a public trust;"
Sub-section (2) of Section 37 enjoins a duty upon every trustee to
afford all reasonable facilities to any officer exercising any of the powers
under sub-section (1). Section 41A empowers the Charity Commissioner to
issue directions to the trustee and other persons to ensure that trust is
properly administered and the income thereof is properly accounted for or
duly appropriated and applied to the objects and for the purposes of the trust.
Chapter VII provides for the functions and powers of Charity
Commissioner other than those referred to in the other Chapters. Section 47
provides for the appointment of a new trustee when one or the other
conditions specified therein is satisfied. Section 50 provides for suits
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relating to public trusts which reads as under:
"50. In any case \026
(i) where it is alleged that there is a breach of a
public trust,
(ii) where a direction is required to recover
possession of a property belonging to a public trust
or the proceeds thereof or for an account of such
property or proceeds from any person including a
person holding adversely to the public trust, or
(iii) where the direction of the court is deemed
necessary for the administration of any public
trust,
the Charity Commissioner after making such
enquiry as he thinks necessary or two or more
persons having an interest in the trust and having
obtained the consent in writing of the Charity
Commissioner as provided in section 51 may
institute a suit whether contentions or not in the
Court within the local limits of whose jurisdiction
the whole or part of the subject-matter of the trust
is situate, to obtain a decree for any of the
following reliefs \026
(a) an order for the recovery of the possession
of such property or proceeds thereof,
(b) the removal of any trustee or manager,
(c) the appointment of a new trustee or
manager,
(cc) vesting any property in a trustee,
(d) a direction for taking accounts and making
certain inquiries,
(e) a declaration as to what proportion of the
trust property or of the interest therein shall be
allocated to any particular object of the trust,
(f) a direction authorizing the whole or any part
of the trust property to be let, sold, mortgaged or
exchanged,
(g) the settlement of a scheme or variations or
alterations in a scheme already settled, or
(h) granting such further or other relief as the
nature of the case may require;
Provided that no suit claiming any of the reliefs
specified in this section shall be instituted in
respect of any public trust except in conformity
with the provisions thereof:
Provided further that the Charity Commissioner
may, instead of instituting a suit, make an
application to the Court for a variation or alteration
in a scheme already settled."
Sections 51, 79 and 80 read as under:
"51(1) If the persons having an interest in any
public trust intend to file a suit of the nature
specified in section 50, they shall apply to the
Charity Commissioner in writing for his consent.
The Charity Commissioner, after hearing the
parties and after making such inquiry as he thinks
fit, may within a period of six months from the
date on which the application is made, grant or
refuse his consent to the institution of such suit.
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The order of the Charity Commissioner refusing
his consent shall be in writing and shall state the
reasons for the refusal.
(2) If the Charity Commissioner refuses his
consent to the institution of the suit under sub-
section (1) the persons applying for such consent
may file an appeal to the Bombay Revenue
Tribunal constituted under the Bombay Revenue
Tribunal act, 1939, in the manner provided by this
Act.
(3) In every suit filed by persons having interest
in any trust under section 50, the Charity
Commissioner shall be a necessary party.
(4) Subject to the decision of the Bombay
Revenue Tribunal in appeal under section 71, the
decision of the Charity Commissioner under sub-
section (1) shall be final and conclusive."
"79. (1) Any question whether or not a trust exists
and such trust is a public trust or particular
property is the property of such trust, shall be
decided by the Deputy or Assistant Charity
Commissioner or the Charity Commissioner in
appeal as provided by this Act.
(2) The decision of the Deputy or Assistant Charity
Commissioner or the Charity Commissioner in
appeal, as the case may be, shall, unless set aside
by the decision of the court on application or of the
High Court in appeal, be final and conclusive."
"80. Save as expressly provided in this Act, no
civil court shall have jurisdiction to decide or deal
with any question which is by or under this Act to
be decided or dealt with by any officer or authority
under this Act, or in respect of which the decision
or order of such officer or authority has been made
final and conclusive."
Having noticed the statutory scheme of the said Act, we may consider
the provisions of Section 26 thereof which is relevant for the purpose of this
case, which is as under:
"26. Any Court of competent jurisdiction deciding
any question relating to any public trust which by
or under the provisions of this Act is not expressly
or impliedly barred from deciding shall cause copy
of such decision to be sent to the Charity
Commissioner and the Charity Commissioner shall
cause the entries in the register kept under section
17 to be made or amended in regard to such public
trust in accordance with such decision. The
amendments so made shall not be altered except in
cases where such decision has been varied in
appeal or revision by a court of competent
jurisdiction. Subject to such alterations, the
amendments made shall be final and conclusive."
JURISDICTION OF CIVIL COURT \026 Principles for determination:
The question as regard ouster of a jurisdiction of a Civil Court must
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be construed having regard to the Scheme of the Act as also the object and
purport it seeks to achieve. The law in this regard is no longer res integra.
A plea of bar to jurisdiction of a civil court must be considered having
regard to the contentions raised in the plaint. For the said purpose,
averments disclosing cause of action and the reliefs sought for therein must
be considered in their entirety. The Court may not be justified in
determining the question, one way or the other, only having regard to the
reliefs claimed de’hors the factual averments made in the plaint. The rules
of pleadings postulate that a plaint must contain material facts. When the
plaint read as a whole does not disclose material facts giving rise to a cause
of action which can be entertained by a civil court, it may be rejected in
terms of Order 7, Rule 11 of the Code of Civil Procedure.
In Dhulabhai and Others vs. The State of Madhya Pradesh and
Another [(1968) 3 SCR662], Hidayatullah, CJ summarized the following
principles relating to the exclusion of jurisdiction of civil courts :
(a) Where the statute gives a finality to the orders of the special tribunals,
the civil court’s jurisdiction must be held to be excluded if there is
adequate remedy to do what the civil courts would normally do in a
suit. Such provision, however, does not exclude those cases where the
provisions of the particular Act have not been complied with or the
statutory tribunals has not acted in conformity with the fundamental
principles of judicial procedure.
(b) Where there is an express bar of the jurisdiction of the court, an
examination of the scheme of the particular Act to find the adequacy
or the sufficiency of the remedies provided may be relevant but is not
decisive to sustain the jurisdiction of the Civil Court.
Where there is no express exclusion, the examination of the
remedies and the scheme of the particular Act to find out the
intendment becomes necessary and the result of the inquiry may be
decisive. In the latter case, it is necessary to see if the statute creates a
special right or a liability and provides for the determination of the
right or liability and further lays down that all questions about the said
right and liability shall be determined by the tribunals so constituted,
and whether remedies normally associated with actions in Civil
Courts are prescribed by the said statute or not.
(c) Challenge to the provisions of the particular Act as ultra vires cannot
be brought before tribunals constituted under that Act. Even the High
Court cannot go into that question on a revision or reference from the
decision of the tribunals.
(d) When the provision is already declared unconstitutional or the
constitutionality of any provision is to be challenged, a suit is open. A
writ of certiorari may include a direction for refund if the claim is
clearly within the time prescribed by the Limitation Act but it is not a
compulsory remedy to replace a suit.
(e) Where the particular Act contains no machinery for refund of tax
collected in excess of constitutional limits or illegally collected, a suit
lies.
(f) Questions of the correctness of the assessment, apart from its
constitutionality, are for the decision of the authorities and a civil suit
does not lie if the orders of the authorities are declared to be final or
there is an express prohibition in the particular Act. In either case, the
scheme of the particular Act must be examined because it is a relevant
enquiry.
(g) An exclusion of the jurisdiction of the civil court is not readily to be
inferred unless the conditions above set down apply.
[See also Rajasthan State Road Transport Corporation and Another vs.
Krishna Kant and Others \026 (1995) 5 SCC 75, Dwarka Prasad Agarwal vs.
Ramesh Chand Agarwal - (2003) 6 SCC 220, Sahebgouda vs. Ogeppa
(2003) 6 SCC 151, Dhruv Green Field Ltd. vs. Hukam Singh (2002) 6 SCC
416 and Swamy Atmananda & Ors. Vs. Sri Ramakrishna Tapovanam & Ors,
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[2005 (4) SCALE 116].
The same, however, would not mean that in a given case if the court
has the jurisdiction to determine a part of the relief claimed, it will not
confine itself thereto and reject the plaint in its entirety. For the purpose of
determination of question as to whether the suit is barred, the averments
made in the plaint are germane. [See Sopan Sukhdeo Sable and Others Vs.
Assistant Charity Commissioner and Others, (2004) 3 SCC 137]
ANALYSIS OF BPT ACT:
The BPT Act is a special law. It confers jurisdiction upon the Charity
Commissioner and other authorities named therein. The statute has been
enacted by the Parliament in public interest to safeguard the properties
vested in the trusts as also control and management thereof so that the trust
property may not be squandered or the object or purport for which a public
trust is created may not be defeated by the persons having control thereover.
A society may be created either for charitable or religious purposes as also
for other purposes. A society registered under the Societies Registration Act
is not a juristic person. It cannot own any property. The properties
belonging to a society admittedly vest in the trustees. In terms of Section
2(13) of the BPT Act, a society is also a charitable trust. Both the Acts are
regulatory in nature. The object and purport of both the Acts are clear and
the provisions thereof do not contain any obscurity. It has not been argued
before us, as was done before the learned Trial Judge, that there exists any
inconsistency between the provisions of the Societies Registration Act which
is a Parliamentary Act, on the one hand, and the BPT Act, which is a State
Act, on the other. The core question which had been raised before us is as to
whether the Society managing or governing the trust having a separate
entity; in relation to its affairs the jurisdiction of the civil court is barred.
ANALYSIS OF THE AVERMENTS MADE IN THE PLAINT
With a view to determine the said question it is necessary to consider
the averments made in the plaint.
The Brethren Church has its history which has been traced in
paragraph 1 of the plaint. Paragraph 2 speaks of registration of the church
under the Societies Registration Act in the year 1944 and registered under
BPT Act after the same came into force.
It has been averred that the resolution of the Brethren Church affirmed
that C.N.I. would be deemed to be legal continuation and successor of the
Brethren Church and rights, title, claims, estates and interest of this Church
together with its privileges and obligations shall, as from the date of
inauguration, vest in C.N.I. as its legal heir. The Church, thus, ceased to
exist as separate entity both as a society and as a trust. Although it is
contended that, as provided in the constitution of C.N.I., the Church of North
India Trust Association came to be registered as a company under the
provisions of the Companies Act in the year 1976 but if the vesting had
already taken place in C.N.I. as far back as in the year 1970, the question of
trust property vesting in a company would not arise.
The records do not show that the said company had ever taken any
decision as regard control and management of the Trust and/ or had dealt
with the properties belonging to the Brethren Church.
It is also not in dispute that local churches or congregations which
desired to function on the basis of the old constitution were at liberty to do
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so till the 3rd Ordinary Synod of C.N.I. which was to be held in 1977.
According to the plaintiffs, most of the churches or congregations
under the Gujarat Diocesan Council implemented the said chapter. The
church or congregation at Valsad although decided to adopt the said
constitution, but it is contended that in the intervening period the property
Committee (Property Trust Board) of the former Brethren Church continued
to manage the properties, estate, etc. of Valsad Church as an agent of and on
behalf of the Gujarat Diocesan Council.
The defendant Nos. 1 to 4 who were residents of Valsad and Navsari;
took exceptions to the decision of the Synod to terminate the interim period
with effect from 7th October, 1977 and held a meeting on 12th November,
1978.
A resolution had been adopted by the said defendants along with
others asserting that their independent unit would hold all the movable and
immovable properties, deposit in a bank and cash in hand of the church in its
properties wherefor a special committee was constituted.
The defendant Nos. 2 to 4 are said to the members of the said
committee and defendant No. 1 claims to be the Pastor of the Brethren
Church. Admittedly, a decision of the executive committee of the Gujarat
Diocesan Council taken by it at its meeting held on 11th November, 1978
was stated to be illegal by the defendant Nos. 1 to 4. It is averred:
"The defendants Nos. 1 and 2 also claim to be the
Treasurer and Secretary respectively of the said
"Valsad Brethren Church". These dissidents are
acting in the name of the former Brethren Church
and have been writing letters as office bearers of
former Brethren Church to the Valsad District
Co-operative Bank, the Ankleshwar Branch of
the Broach District Central Co-operative Bank
etc., asking them not to deal with the members of
the legally constituted Pastorate committee of
Ankleshwar and Valsad and asserting that they
are the only persons legally entitled to deal with
the financial affairs of the Ankleshwar and
Valsad Pastorates. Besides, defendant No. 2,
styling as a secretary of Brethren Church has
complained to the authorities that the 20 local
Pastorates under the Gujarat Diocesan Council
do not function in the name of Brethren Church
and do not collect funds in the name of the
Brethren Church. A similar complaint was made
by him to the Assistant Charity Commissioner
Broach who had the matter inquired into. The
defendant No. 2, again, purporting to act as a
Secretary of the Valsad Brethren Church, wrote a
letter on 20th June, 1979 to the legally elected
Treasurer of the Ankleshwar church challenging
the latter’s authority to act as such Treasurer.
The defendant No. 3 and some of his associates
residing at Jalapore, Taluka Navsari, District
Valsad, have issued a statement dated 8th July,
1979 declaring their intention to sever all their
connections with C.N.I. and to function as an
independent unit with effect from 15th July, 1979
in the name of Brethren Church, Jalalpore. By
the said statement, the members of the C.N.I. at
Jalalpore have been directed not to use or occupy
the church."
The aforementioned action on the part of the defendant Nos. 1 to 4
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and their associates was the subject matter of the suit.
In the aforementioned context, the plaintiffs had questioned the
actions and/ or activities of the defendant Nos. 1 to 4 and other dissidents
insofar as they tend to prevent or hinder the plaintiffs and other members of
the Pastorate from acting under and in accordance with the said decisions
and resolutions of the Gujarat Diocesan Council and the constitution of
Synod violate and infringe the legal rights of these persons to do so and are
illegal.
The Appellant herein was joined as defendant No. 5 in the said suit,
although no relief had been claimed against the original defendant No. 5
who is the Appellant before us. The status of the defendant No. 5 has not
been disclosed in the plaint. The legal status of Church of North India has
not been disclosed in the plaint.
It is accepted that the defendant No. 5 \026 Appellant has got itself
registered as a trust only in the year 1980. It also stands admitted that a
change report has been filed by the Appellant before the Commissioner of
Charity in the year 1981.
We have noticed hereinbefore that as regard the correctness or
otherwise of functioning of the congregation of Ankleshwar and Valsad had
been the subject matter of complaints before the authorities under the BPT
Act.
One of the causes of action for instituting the suit is said to be
constitution of a special committee by the defendant Nos. 1 to 4; resolution
dated 12th November, 1978 was passed and the obstructions created by them
to the plaintiffs and other members of the Pastorates through the actions of
the Plaintiffs and other members of the Pastorates in the name of the former
Brethren Church.
The plaintiffs made their position clear when they categorically stated
in paragraph 21 that the suit inter alia involved questions as to the rights of
property of the former Brethren Church.
In the aforementioned premise, plaintiffs had prayed for the following
reliefs:
"(a) It may please be declared that the former First
District Church of Brethren has ceased to exist.
(b) It may please be declared that the Church of
North India is the legal continuation and successor
of the said First District Church of Brethren
together with the right, title, claim, interest in or
over its properties and the constitution, decisions
and resolutions of the Church of North India, its
Synod and Gujarat Diocesan Council are binding
on all the Pastorates on Gujarat which were
functioning as local Churches or congregations
under the First District Church of Brethren.
(c) The defendants No. 1 to 4 and their associates
may be restrained by a perpetual injunction from
acting in any manner contrary to the constitution,
decisions and resolutions of the church of North
India its Synod and Gujarat Diocesan Council and
from obstructing in any manner the plaintiffs and
other members/ office bearers of these pastorates
under the Church of North India in acting in
accordance with the said constitution, decisions
and resolutions and in their use, enjoyment and
possession of the Churches and their properties.
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(d) The defendants No. 1 to 4 and their associates
may be restrained from acting in the name of the
First District Church of Brethren and from
collecting funds, donations, etc. in that name.
(e) The defendants Nos. 1 to 4 may be directed to
pay to the plaintiffs the costs of this suit."
DETERMINATION:
The plaint nowhere suggests that the society and the trust had ever
been treated as two different entities. No case has been made in the plaint to
the effect that the society as registered under the Societies Registration Act
plays any role or discharges any function which is not done by the trustees
of the trust. It also does not appear from a perusal of the plaint that the
society and the trust comprises of different persons or for different functions
to perform. In fact in paragraph 2 of the plaint it is accepted that the Church
which was registered as a society under the Societies Registration Act was a
public trust as defined under Section 2(13) of the BPT Act. The ownership
of movable and immovable properties at the places mentioned in the plaint is
referable to the congregations under the Brethren Church. It is not alleged
that whereas the properties belong to the trust it was managed by the society.
The plaint furthermore does not disclose that the decision as regard
dissolution of the churches and congregation of Brethren Church had been
taken by anybody other than the trustees. The committees constituted for the
aforementioned purpose, viz., Continuation Committee and Negotiating
Committee, evidently were represented by the authorities of the
congregations and not of any society. A decision, as would appear from the
averments made in paragraph 6 of the plaint, to dissolve six uniting
Churches and merge the same into one, viz., the Church of Northern India
(C.N.I.) so as to make the latter a legal continuation and successor of the
United Churches and all the properties, assets, obligations, etc. of these
uniting churches would vest in or dissolve on C.N.I. The very fact that a
decision having been taken as regard the properties, assets, obligations of the
United Churches, the same would mean that they would vest in the trust to
be created for the said purpose and not for the benefit of any society.
We are not oblivious of the fact that the Resolution adopted in the
meeting held on 17th February, 1968 allegedly fulfilled all the requirements
for such resolution as provided in the Societies Registration Act but it is now
beyond any controversy that the society having not owned any property,
their transfer in favour of a new society was impermissible in law. In terms
of Section 5 of the Societies Registration act, all properties would vest in the
trustees and only in case in absence of vesting of such properties in trustees
the same would be deemed to have been vested for the time being in the
governing body of such property. In this case, it is clear that the properties
have vested in the trustees and not in the governing body of the society.
There is nothing on record to show that the concerned churches were
being managed by the societies registered under the Societies Registration
Act. In any event, it stands accepted that the dispute as regard dissolution of
societies and adjustment of their affairs should have been referred to the
principal court of original civil jurisdiction.
The suit in question also does not conform to the provisions of Section
13 of the Societies Registration Act.
Section 20 of the Act provides that the societies enumerated therein
can only be registered under the said Act.
Unless a suit is filed in terms of Section 13 of the Act, the Society is
not dissolved. Even assuming that the society stands dissolved in terms of
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its Memorandum of Association and Articles of Association, the same would
not ipso facto mean that the properties could be adjusted amongst the
members of the society in terms of the provisions of the said Act.
Concededly, the properties of the trust being properties of the religious trust
had vested in such trust. Such a provision, we have noticed hereinbefore,
also exist in the BPT Act. Thus, only because the society has been
dissolved, ipso facto the properties belonging to the trust cannot be said to
have been adjusted. The Appellants, thus, we have noticed hereinbefore,
have averred in the plaint that the suit relates to the property of the trust and
their administration. If the properties of the churches did not belong to the
society, the Appellant herein cannot claim the same as their successor. The
plaint has to be read meaningfully. So done, it leads to the only conclusion
that the dispute was in relation to the management of the churches as
religious trust and not as a society. Even if it is contended that the
administration of the property would mean the properties of the Brethren
Church both as a trust and as a society, still then having regard to the legal
position, as discussed supra, the property belonging exclusively to the trust,
the suit will not be maintainable.
It is interesting to note that the Appellants themselves in grounds 1, 2,
4, 5 and 6 have categorically stated that both the society registered under the
Societies Registration Act and the trust registered under the BPT Act is only
one entity and that upon dissolution of a society the trust automatically
ceases and all that remains is to carry out the registration under the BPT Act
wherefor applications have been made before the Charity Commissioner.
The stand taken by the Appellants herein is unequivocal in nature. The Trial
Court also appears to have proceeded on that basis, as would appear from
Issue No. 4 framed by it which is as under:
"(4) Whether it is proved that the Brethren Church
was also dissolved and ceased to exist as a separate
entity as alleged?
The learned Trial Judge observed:
"Now, whether the First district Church of
Brethren has been legally dissolved in accordance
with the provisions of the Societies Registration
Act (Section 13) or whether it exists till today, can
only be decided by the Civil Court and such a
dispute cannot be decided by the Charity
Commissioner and as such, on this court also the
present Civil Court is the only competent Court to
decide the suit of the present nature. Apart from
this, the strange consequence would follow if it
were to be held that the question of dissolution of
the First District Church of Brethren as a society
can be decided by the Civil Court but the question
of dissolution of it as a trust cannot be decided by
the Civil Court because the First District Church of
Brethren is only the on institution and in its dual
capacity viz. the society as well as the trust. Apart
from this, even if it is assumed for the sake of an
argument that the jurisdiction of the dispute is to
be divided in two parts, then in that case, there is
every possibility of conflicting decisions by the
Civil Court and the Charity Commissioner and this
would lead to anomaly."
The Trial Court, however, proceeded to determine the issue on the
premise that there exists an apparent conflict between the Societies
Registration Act and the BPT Act holding that as regard question of
jurisdiction of the civil court, the provisions of the BPT Act to the extent of
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repugnancy would be inoperative.
The finding of the learned Trial Judge on that count is apparently
wrong. The learned counsel for the Appellants also did not raise any
contention before us that having regard to the provisions contained in Article
254 of the Constitution of India, the provisions of the Societies Registration
Act shall prevail over the BPT Act.
In fact the Appellants have categorically admitted that the
Memorandum of Association of the Society itself became the deed of trust.
It also stands admitted that only with a view to have one body to administer
and manage the properties, the trust so created by the society was also
registered. It is not a case where the trust was created for the benefit of the
society. Furthermore, there is nothing on record to show the mode and
manner of the management and control of the trust property. [See Board of
Trustees, Ayurvedic and Unani Tibia College, Delhi Vs. State of Delhi
(Now Delhi Administration) and another, AIR 1962 SC 458, Dharam Dutt
and Others Vs. Union of India and Others, (2004) 1 SCC 712, para 52 and
Illachi Devi (Dead) By LRs. and Others Vs. Jain Society, Protection of
Orphans India and Others, (2003) 8 SCC 413, paras 21 and 22]
In Athmanathaswami Devasthanam Vs. K. Gopalaswami Ayyangar
[AIR 1965 SC 338], this Court did not permit a new question to be raised.
In this case also, a new contention has been raised contrary to the pleadings
that the society and the trust are different entities.
We have noticed hereinbefore that the BPT Act provides for finality
and conclusiveness of the order passed by the Charity Commissioner in
Sections 21(2), 22(3), 26, 36, 41(2), 51(4) and 79(2).
In view of the decision of this Court in Dhulabhai (supra) such finality
clause would lead to a conclusion that civil court’s jurisdiction is excluded if
there is adequate remedy to do what the civil courts would normally do in a
civil suit. In this case, we are not concerned with a dispute as regard
absolute title of the trust property. We are also not concerned with the
question as regard creation of any right by the trust in a third party which
would be otherwise beyond the jurisdiction of the Charity Commissioner. It
is also not a case where the plaintiffs made a complaint that the provisions of
the BPT Act were not complied with or the statutory tribunal had not acted
in conformity with the fundamental principles of judicial procedure. In fact
no order has been passed on the Appellant’s application for changes in the
entries made in the registers maintained under Section 17 of the Act. The
BPT Act provides for express exclusion of the jurisdiction of the Civil
Court. It in various provisions contained in Chapter IV a power of inquiry
and consequently a power of adjudication as regard the list of movable and
immovable trust property, the description and particulars thereof for the
purpose of its identification have been conferred. In fact, the trustee of a
public trust is enjoined with a statutory duty to make an application for
registration wherein all necessary descriptions of movable and immovable
property belonging to the trust including their description and particulars for
the purpose of identification are required to be furnished. Section 19
provides for an inquiry for registration with a view to ascertaining inter alia
the mode of succession to the office of the trustee as also whether any
property is the property of such trust. It is only when the statutory authority
satisfies itself as regard the genuineness of the trust and the properties held
by it, an entry is made in the registers and books, etc. maintained in terms of
Section 17 of the Act in consonance with the provisions of Section 21
thereof. Such an entry, it will bear repetition to state, is final and conclusive.
Changes can be brought about only in terms of Section 22 thereof.
A change notice having been given, it would now be for the
appropriate authority to consider the matter and if a change has occurred, a
finding is required to be arrived which must contain the reasons therefor.
The defendants are disputing that any such change in accordance with law
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was effected. An order passed by Deputy or Assistant Charity
Commissioner is appealable. Yet again, when an amendment is made in the
entry in the register, the same would be final and conclusive. Even a power
exists for holding a further inquiry.
Section 31 bars a suit to enforce a right on behalf of a public trust.
C.N.I. got itself registered as a public trust in the year 1981. A suit evidently
was filed by the plaintiffs in the year 1980 because C.N.I. was not then
entitled to file a suit. It may be true that the suit was filed under Order 1,
Rule 8 of the Code of Civil Procedure but therein the question as to whether
the Appellant herein, being a registered trust became entitled to the
properties of Brethren Church could not have been gone into. What is
prohibited is to enforce a right on behalf of a public trust. When the
plaintiffs intended to enforce a right on behalf of the Appellant, the suit was
evidently not maintainable.
Furthermore, the purported resolutions of the churches affiliated to the
Brethren Church and merger thereof with the Appellant, having regard to the
provisions of the Act was required to be done in consonance with the
provisions thereof. It is not necessary for us to consider as to whether such
dissolution of the churches and merger thereof in the Appellant would
amount to alienation of immovable property but we only intend to point out
that even such alienation is prohibited in law. The control and management
of the religious trusts vests in the Charity Commissioner. The trustees of the
Trust are statutorily enjoined with a duty to render all cooperation to the
Charity Commissioner. The directions issued by the Charity Commissioner
to the trustees are binding. Dissolution of a trust, it is not disputed, is a
matter which falls within the exclusive jurisdiction of the Charity
Commissioner.
Prayer (a) in the plaint is for a declaration. Such declaration cannot be
granted by a civil court as regard succession of the District Church of
Brethren as the same was a religious trust registered under the BPT Act.
Prayer (b) of the plaint also could not have been granted, as the
question as to whether the applicant is the legal continuation and successor
of the First District Church of Brethren is a matter which would fall for
exclusive determination of Charity Commissioner keeping in view the
provisions of the deed of trust as regard its succession. It would necessarily
follow that whether the First Appellant became a legal successor of the
properties held by the First District Church of Brethren could not also have
been granted. The decision and resolution purported to have been adopted
by the Synod and Gujarat Diocesan Council are binding on all churches or
not would again be a question which could have been gone into by the
Charity Commissioner as the same had direct bearing not only with the
administration and management of the Church registered with it but also
related to the properties held by it. Such a decision of the Charity
Commissioner is again final and conclusive subject to the decision of the
appellate authority, viz., Bombay Revenue Tribunal.
Grant of prayer (c) for perpetual injunction would also give rise to
adjudication on the question as to whether the Appellant herein had the legal
right to own the properties of the First District Church of Brethren and
administer or manage the same although at the relevant time it was not
registered trust and although no amendment had been effected in the
registers and books maintained by the Charity Commissioner in terms of
Section 17 read with Sections 21 and 22 of the Act. The plaintiffs with a
view to obtain an order of injunction furthermore were required to establish
that they could file a suit for enforcement of right of the Appellant as a
religious trust and such a legal right vests either in the plaintiff or in the
Appellant herein indirectly. Such a prayer, related to the possession of the
property, comes squarely within the purview of the BPT Act. If the question
as regard recovery of possession of the property belonging to a public trust
squarely falls within the purview of Section 50 of the Act, had such
application been filed before the Charity Commissioner he was required to
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go into the question as to whether the plaintiffs are persons having interest in
the trust and whether a consent should be given to them to maintain a suit.
Only when, inter alia, such consent is granted, a suit could have been filed in
terms of Section 51 of the Act. In the event of refusal to give consent, the
persons interested could have preferred an appeal.
Yet again the question as regard existence of a trust is a matter which
squarely falls within the purview of Section 79 of the Act.
We have no doubt in our mind that the Charity Commissioner was
impleaded as a party at a later stage of the suit only with a view to fulfill the
requirements of Sub-section (3) of Section 50 of the Act.
In Virupakshayya Shankarayya Vs. Neelakanta Shivacharya
Pattadadevaru [1995 Supp (2) SCC 531], this Court categorically held that
the suit for recovery of possession of property as validly appointed
Mathadhipati is hit by Sections 50 and 51 of the Act. The matter might have
been different if the suit was not for declaration or injunction in favour or
against the public trust or where the plaintiffs are not beneficiaries either.
Narmadabai and Another Vs. Trust Shri Panchvati Balaji Mandir and
Others [1995 Supp (3) SCC 676] was a case where a suit for injunction was
filed for restraining the defendants from interfering with the implementation
of the scheme for better management and administration of the public trust
settled by the Charity Commissioner. In that view of the matter, it was held
that a suit was not required to be filed in conformity with the provisions of
Sections 50 and 51 of the Act.
In Shree Gollaleshwar Dev and Others vs. Gangawwa Kom Shantayya
Math and Others [(1985) 4 SCC 393], it was held:
"14. It is clear from these provisions that Section
50 of the Act created and regulated a right to
institute a suit by the Charity Commissioner or by
two or more persons interested in the trust, in the
form of supplementary statutory provisions
without defeasance of the right of the manager or a
trustee or a shebait of an idol to bring a suit in the
name of idol to recover the property of the trust in
the usual way. There is therefore no reason why
the two or more persons interested in the trust
should be deprived of the right to bring a suit as
contemplated by Section 50(ii)(a) of the Act.
Although sub-section (1) of Section 52 makes
Sections 92 and 93 of the Code inapplicable to
public trusts registered under the Act, it has made
provision by Section 50 for institution of such suits
by the Charity Commissioner or by two or more
persons interested in the trust and having obtained
the consent in writing of the Charity
Commissioner under Section 51 of the Act."
The provisions of the Act and the Scheme thereof leave no manner of
doubt that the Act is a complete code in itself. It provides for a complete
machinery for a person interested in the trust to put forward his claim before
the Charity Commissioner who is competent to go into the question and to
prefer appeal if he feels aggrieved by any decision. The bar of jurisdiction
created under Section 80 of the Act clearly points out that a third party
cannot maintain a suit so as to avoid the rigours of the provisions of the Act.
The matter, however, would be different if the property is not a trust
property in the eye of law. The civil court’s jurisdiction may not be barred
as it gives rise to a jurisdictional question. If a property did not validly vest
in a trust or if a trust itself is not valid in law, the authorities under the Act
will have no jurisdiction to determine the said question.
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With a view to determine the question as regard exclusion of
jurisdiction of civil court in terms of the provisions of the Act, the court has
to consider what, in substance, and not merely in form, is the nature of the
claim made in the suit and the underlying object in seeking the real relief
therein. If for the purpose of grant of an appeal, the court comes to the
conclusion that the question is required to be determined or dealt with by an
authority under the Act, the jurisdiction of the civil court must be held to
have been ousted. The questions which are required to be determined are
within the sole and exclusive jurisdiction of the authorities whether simple
or complicated. Section 26 of the Act must be read in that context as it
specifically refers to those questions wherewith a court of competent
jurisdiction can deal with and if the same is not expressly or impliedly
barred. Once a decision is arrived at, having regard to the nature of the
claim as also the reliefs sought for, that civil court has no jurisdiction,
Section 26 per force will have no application whatsoever.
We may at this stage notice the decisions relied upon by the learned
counsel for the parties.
In State of Madras Vs. Kunnakudi Melamatam and another [AIR 1965
SC 1570] a composite suit for injunction was filed claiming two different
reliefs, viz. (1) an injunction restraining the levy of contributions and audit
fees under Act II of 1927; and (2) an injunction restraining the levy of
contributions and audit fees under Act XIX of 1951. It was, in that context,
held that although the decision under Section 84(2) of Madras Hindu
Religious Endowments Act that an institution is outside the purview of the
Act, the demand of contribution as being not enforceable under the 1951 Act
was maintainable.
In Sri Vedagiri Lakshmi Narasimha Swami Temple Vs. Induru
Pattabhirami Reddi [AIR 1967 SC 781], this Court was concerned with a
question as to what constitutes an administration of religious property. In
that case, the provisions of the Act did not impose a total bar on the
maintainability of a suit in a civil court and having regard to that aspect of
the matter vis-‘-vis Section 92 of the Code of Civil Procedure it was held
that Section 93 of Madras Hindu Religious and Charitable Endowments Act
would apply in the matter for which provision has been made in the Act and
would not bar the suit under the general law which do not fall within the
scope of any section of the Act. This decision instead of helping the
Appellant runs counter to their claim.
In Chiranjilal Shrilal Goenka (Deceased) Through LRs. Vs. Jasjit
Singh and Others [(1993) 2 SCC 507] it was held that in matters relating to
will the Probate Court has exclusive jurisdiction. The said decision was
rendered having regard to the fact that the decision of a probate court is a
judgment in rem and conclusive and binds not only the parties but also the
entire world.
In Rajasthan State Road Transport Corporation and Another Vs.
Krishna Kant and Others [(1995) 5 SCC 75], this Court following Dhulabhai
(supra) held that having regard to the provisions contained in the Industrial
Disputes Act and Industrial Employment (Standing Orders) Act, 1946, the
civil court will have no jurisdiction as enumerated in paragraph 35.
In Sahebgouda (Dead) By LRs. and Others Vs. Ogeppa and Others
[(2003) 6 SCC 151] the allegations made in the plaint showed that the only
right claimed by the Appellants was that of being ancestral pujaris of the
temple. They did not claim to be the trustees of any trust. No declaration
regarding the existence or otherwise of the trust or any particular property is
the property of such trust had been claimed and in that view of the matter, it
was held that the reliefs so claimed do not come within the purview of
Section 19 or Section 79 of the Act wherefor the Deputy or Assistant Charity
Commissioner will have the exclusive jurisdiction to hold an inquiry and
give a decision.
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Ramesh Chand Ardawatiwa Vs. Anil Panjwani [(2003) 7 SCC 350]
has no application in the present case as therein the Charity Commissioner
took a specific objection that the civil court’s jurisdiction is barred
whereupon several additional issues were framed and determined.
In NDMC Vs. Satish Chand (Deceased) By LR. Ram Chand [(2003)
10 SCC 38], this Court clearly held that Sections 84 and 86 of the Punjab
Municipal Act, 1911 bar the jurisdiction of the civil court as the Act
provided a complete remedy to the party at plea as also a remedy by way of
an appeal.
In K. Shamrao and Others Vs. Assistant Charity Commissioner
[(2003) 3 SCC 563], this Court held:
"17\005Functions of the Assistant Charity
Commissioner are predominantly adjudicatory.
The Assistant Charity Commissioner has almost all
the powers which an ordinary civil court has
including power of summoning witnesses,
compelling production of documents, examining
witnesses on oath and coming to a definite
conclusion on the evidence induced and arguments
submitted."
In Yeshwantrao Laxmanrao Ghatge and Another Vs. Baburao Bala
Yadav (Dead) By LRs. [(1978) 1 SCC 669], this Court observed:
"8. Mr Datar placed reliance upon the decision of
the Bombay High Court in Dev Chavata v. Ganesh
Mahadeo Deshpande in order to take advantage of
Section 52-A of the Act. The ratio of the case has
to be appreciated in the background of the facts
found therein. The principles of law as enunciated
cannot be fully and squarely applied. But yet the
decision, if we may say so with respect, is correct.
This would be on the footing that the decision
given by the Assistant Charity Commissioner
under Section 79 read with Section 80 of the Act
was conclusive and final. He had exclusive
jurisdiction to decide the question as to whether
the suit land belonged to the trust. He had so
decided it on November 5, 1954. The suit was filed
on July 21, 1955. In that view, the High Court was
right in holding that a suit filed under Section 50 of
the Act was not barred under Section 52-A because
the decision of the Assistant Charity
Commissioner given in 1954 had declared the
property to be a trust property and which decision
was final."
In Suresh Ramniwas Mantri and another Vs. Mohd. Iftequaroddin s/o
Mohd. Badroddin [1999(2) Mh.L.J. 131] it was observed that a society
although formed either for religious or charitable purposes or for both cannot
be held to a public trust ipso facto although registered under the Societies
Registration Act unless it is registered also under the BPT Act as the
question whether such a trust was validly formed or not would come within
the purview of Sections 18, 19 and 20 of the BPT Act. In that case the
plaintiff was not registered as a public trust and in that situation it was held
that Section 80 would operate.
In Mahibubi Abdul Aziz and others Vs. Sayed Abdul Majid and
others [2001(2) Mh.L.J. 512], a learned Single Judge of the Bombay High
Court held that a civil suit cannot be entertained only because a complicated
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questions of title has been raised.
In Keki Pestronji Jamadar and Another vs. Khodadad Merwan Irani
and Others [AIR 1973 (Bom) 130] the question was as to whether the
author of a trust was the lawful owner of the property of which he has
created the trust. The Full Bench of Bombay High Court held that the author
of the trust has no title over the property and Section 80 would not operate as
a bar.
In Nagar Wachan Mandir, Pandharpur vs. Akbaralli Abdulhusen and
Sons and Others [(1994) 1 MhLJ 280] a question arose as regard power of a
co-trustee to delegate a matter relating to grant or determination of lease to
another co-trustee keeping in view of Section 47 of the Act which deprives
the trustee from delegating his office or any of his duties to a co-trustee or a
stranger unless conditions mentioned therein are complied with.
The principle enunciated in each of the decision laid down relate to
the fact situation obtaining therein. In each case indisputably the lis arose
for determination of a question relating to interpretation of one or the other
clause enumerated in different provisions of the BPT Act which come either
within the exclusive jurisdiction of the statutory authorities or otherwise.
The Civil Court will have no jurisdiction in relation to a matter whereover
the statutory authorities have the requisite jurisdiction. On the other hand, if
a question arises, which is outside the purview of the Act or in relation to a
matter, unconnected with the administration or possession of the trust
property, the Civil Court may have jurisdiction. In this case, having regard
to the nature of the lis, the jurisdiction of the Civil Court was clearly barred.
CONCLUSION:
Having given our anxious thought in the matter, we are of the opinion
that the suit has rightly been held to be not maintainable by the High Court
and, thus, the impugned judgments must be affirmed.
The applications for impleadment filed by various persons, in view of
the aforementioned findings, need not to be dealt with separately.
For the reasons aforementioned, we do not find any merit in this
appeal which is dismissed accordingly. No costs.