Indian Kanoon - Search engine for Indian Law

"This empowers the Charity Commissioner to frame, amalgamate or modify a scheme for the proper management of a public rust. Under sub-section (1) he could initiate proceedings for the proper management or administration of a public trust and to frame and settle a scheme. He has two options - either to initiate proceedings suo motu or when two or more persons having interest in the public trust make an application before him, in writing, lpa226.11.odt in the prescribed manner. We find, the object of the aforesaid Bombay Public Trusts Act, 1950 as revealed through its preamble is to regulate and make better provisions of the administration of public, religious and charitable trusts within the State of Maharashtra. The Charity Commissioner is appointed through a notification under Section 3 having very wide powers and duties conferred primarily under Section 69 Chapter VII and other provisions of the Act. It has been the concern of legislatures to provide with such laws and entrust officers with such power to regulate, supervise the management and functioning of a public trust and endowment in a manner so as to give optimum benefit to the public at large. It was primarily this lack of proper machinery the Bombay Trust Act, 1935 was replaced by the present aforesaid Act of 1950. It is for this reason the Charity Commissioner and other set of officers are created as watchdogs for effective control and supervision of public trusts of all kind. Section 35 confers power on the Charity Commissioner in a given circumstance to issue general or special order to permit the trustees of any public trust to invest money in any manner. Before alienating any immovable property of a public trust, a previous sanction of the Charity Commissioner is required under Section 36, lpa226.11.odt maintain a register of movable and immovable properties to be in a manner as prescribed by the Charity Commissioner under Section 36-B, power of inspection and supervision under Section 37. Under Section 39, a report is to be submitted to him regarding findings on the question, whether or not a trust or the person connected with the trust has been guilty of gross negligence, breach of trust, misappropriation or misconduct which resulted in loss to the trust. He can issue orders on such reports under Section 40 and can direct the resultant loss to be charged from such defaulting person, payable to the public trust under Section 41. Section 41-A empowers him to issue directions for proper administration of the trust and institute inquiries on receipt of complaints under Section 41-B. He can suspend, remove or dismiss any trustee of a public trust on receipt of report under Section 41-B. Any person interested in a public trust may apply to the Charity Commissioner under Section 47- A for the appointment of a new trustee etc. In cases of breach of public trust including negligence, misconduct etc., he can file suit against such public trust or trustee under Section 50 and notwithstanding this in cases he has reason to believe that for proper management or administration of a public trust he may frame and settle a scheme under lpa226.11.odt Section 50-A. Section 69 gives duties, functions and powers of the Charity Commissioner. It is in this background Section 50-A, for the questions raised, has to be screened. Thus, we find that the Charity Commissioner is crowned with very wide powers to check and control the irregularities, malpractices and misconduct in the functionings of any public trust. Also to supervise, regulate, settle a scheme for public the proper management or administration of a trust, in fact involved in almost every step of the functioning of a public trust."

In the case of Murlidhar Janrao Kale and others...Versus...State of Maharashtra and others, reported in 2011 (1) AIR (Bombay) 750 a Division Bench of this Court, one of us A.B. Chaudhari, J. speaking for the Bench held that the Director of Education did not have any authority or power to recognize a particular Board of Trustees or Trustees and such the power vested with the Charity Commissioner under Section 41A of the B.P.T. Act, 1950 for issuing directions to recognize a Trustee/Trustees, Board of lpa226.11.odt Trustees or the persons connected with the Trust for ensuring proper administration of the Trust. This Court disagreed with both the propositions stated in the judgment dated 28.8.1999 in First Appeal No.345/1998 by a Single Judge of this Court that 'somebody' other than whose name is found in Public Trust register can be empowered under Section 41A of the B.P.T. Act, 1950, but the Division Bench held that only Trustees or persons connected with the Trust and not 'somebody' could be empowered. This Court also disagreed with the second proposition that in the absence of any order under Section 41A of the B.P.T. Act, 1950 recognizing or empowering any Trustee(s), only those persons whose names are entered in the Public Trust register can continue to manage the affairs of the Trust. Thus, the Division Bench laid down the ratio in the said judgment that Director of Education does not have any authority or power to decide which Board of Trustees or Trustees shall run the management of the Trust or the institutions and such a power could be exercised by the Charity Commissioner under Section 41A of the B.P.T. Act, 1950.

Commissioner as a guardian. Section 50-A powers may be resorted to only to have proper "Constitution" or Scheme to guide Trustees in fulfilling the obligations accepted by them. Section 41-A does not prejudice any other provision of BPT Act or affect its operation. It can not be construed as modifying scheme of BPT Act.

It has been brought on statute book to supplement the powers of Charity Commissioner and to enable him to be a more effective instrument of protection or preservation of Charity. Hence, remedies available either to Charity Commissioner or to Trustees or to those interested or getting connected with Trust before prescribed authorities under BPT Act or Court lpa226.11.odt are not curtailed. Respective jurisdiction of such authorities or Court is also not abridged. The basic structure of enactment continues to be same only with an extra power. Section 41-A therefore calls for interpretation consistent with its purpose and in harmony with other Sections.