T ravancCJre Ruibtr v. Stal1 of Andhra
Case at a glance
Outcome
Allowed
writ petition is allowed with costs and orders dated
Provisions considered
- Madhya Pradesh Public Trusts Act, 1951
- Madhya Pradesh Act ss. 2(4), 7
- Constitution of India arts. 14, 19, 19(5), 32
- Madhya Pradesh Public Trusts Act
- Charitable Endowments Act, 1890
- Charitable and Religious Trusts Act, 1920
- States Reorganisation Act, 1956
- Code of Civil Procedure, 1908 s. 92
- Madhva Pradesh Act
- States (Laws) Act
- Charitable Endowments Act
- Charitable. and Religious Trusts Act
- States Re-organisation Act, 1956
- States Reorganisation Act s. 119
Key paragraphs
- Para 19621962. Novembr.r 2. The Judgment of the Court was delivered by WANCHOO, J.-Thc appeal is by special leave from the order of the Andhra Pradesh High Court. The appellant has also filed a writ petition and as the two matters are connected, they will be…
Judgment
On December 31, 1957, the appellant was served with a notice by the Director of Endowments, Hyderabad, to have the temple the Hyderabad Endowments Regulations, registered under 1940. He objected that the temple having already registered under the Madhya Pradesh Act, was not liable to be Registered under the Regulations and the State of Andhra Pradesh had no jurisdiction over the endowment and its pro perty. He moved the High Court under Art. 226 challenging the notice on various grounds. The High Court rejected the petition, and upheld the validity of the notice. He appealed. After the High Court had dismissed the writ petition, Director of Endowments passed two orders directing that the temple be taken over under r. 1 79 of the supervision of the Endowment Rules and that the management of the temple do the Director of Endowments, Hyderabad. The appellant then filed the writ petition in this Court against these two orders challenging the validity of the Regulations and the various rules framed thereunder as being repugnant to Arts. 14 and 19 of the Constitution. His further contention was that the orders could not be made even under the Regulations. Held, that the trust being situate in tlyderabad, Hyderabad f,ndowment Regulations applied not only to the temple situated at .Hyderabad but also to its property situated outside the State of Andhra Pradesh, that the trust had already been registered under the Madhya Pradesh Public Trusts Act could make no difference. Sections 2 (4) and 3 of this Act clearly showed that a public trust contemplated by it must be situated in the State of Madhya Pradesh. State of Bihar v. Smt. Gharusi/,a Dasi, [1959] Supp. 2 S.C.R. 601, applied. State of Bihar v. Bhab<Jpritananda Ojlta, [1959] Supp. 2 S.C.R. 624, referred to. It was not correct to say that because of the application of the Charitable Endowments Act, 1890, and the Charitable and Religious Trusts Act, 1920, to Hyderabad, then a Part B State the Hyderabad Endowment Regulationi, 1940, must be deem~d to have been repealed by operation of s.6 of the Part B States (Laws) Act, 1951. The former defil\ilely excluded public religious trusts such as the present one and the latter, bys. 3, was confined to a very limited purpose. Nor could the difference in tl>e two laws y•lating to public lie two parts of religious arid charitable trusts ! •vailing in 1962 Anant Prasad Lakthminiua~· Generiwal v. Slate of Andhra Pradesh 846 SUPREME COURT REPORTS[1963] SUPP the Andhra State, one formerly part of the A State of Madras and the other of the B State Hyderabad, be said to be discrimi natory. J)ifference such as this occ-1sioned as it wa5 by histori cal reasons could be no ground la\vs u11der Art. 14 of the Constitution. for striking down the Hhaiyalal Shu/;la v. State of Jfai.l!tya i'rcule.>h, [1%2] Supp. 2 S.C.R. 297, applied. State of Rajasthan v. Rao Mmwlutr 8inghji, f!Y54J !\.C.R. 996, held inapplicable. The provisions contained in ss.3 to 11 of the Hyderabad Regulations, excepting those of s. 4(b) which had no applica tion, provided for the rcgir; tration of cndow1nents and were \Vere as such clearly reason conceived in public intere'lt and able restrictions within the meaning- of Art. 19 (5) of the Constitution and did not, therefore, contravene Art. I Y (I) (f) of the Constitution. The validity of these provisions and the rules fran1ed thereunder, except r.25 \vhich ha" uo relevance to the subject matter of the appeal and such rules a5 arc consequential thereon, must therefore be upheld valid. Further, the two orders, \vhich harl the effect of rc1nuving the applicant fron1 tr11steeship must be h:~ld to Gr. ultra vires. Neither che Regulations nor the Rule::. pcrn1ittcd the re1noval of a trustee for failure to appear in an-;'>ver to a notice for registration of an endowment, nor coul.d the orders be justified under rr. 67 and 68 since there was no enq11iry, they were not mac.le by the Govcr111neut and the re111oval was for a reason 'fhc t\Vo orders must, therefore, not perrnissibJe thereunder. be set aside. CrvIL APPELLATE Jutu8vH;'l'loN: Civil Appeal No.140/62. Appeal by special leave from the judgment and order dated March 18, 1960, of the Andhra Pradesh High Court in Writ Petition No. 358 of 1958. WITH Petition No. 86 of 1960. Petition under Art. 32 of the Constitution of India for enforcement of Fundamental Rights. 1962 Anant PrasrJd Lnkshminivris Generiwal v. State of Andhra Prad•sh Wanchoo, J. 1 S.C.R. SUPREME COURT REPORTS 847 'l'. N. C. Chatterjee, AUadi Kuppuswami, Rama Chandra Rao and Ganpat Rai, for the appe llant in C. A. No. 140 of 62 and the Petition No. 86 of 1960. P. Ramachandra Heddy, D. V. Snstry, 'l'. V.R. the respondents 'I'atachari and P. D. Menon, for 1 to 2.
#1962. Novembr.r 2. The Judgment of the Court was delivered by WANCHOO, J.-Thc appeal is by special leave from the order of the Andhra Pradesh High Court. The appellant has also filed a writ petition and as the two matters are connected, they will be dealt with together. The appellant is Anant Prasad Lakshminivas Generiwa I. He is also the petitioner in the writ petition and will hereafter be referred to as the appel lant. The main respondents, who are also opposite parties in the writ petition, are the State of Andhra Pradesh and the Director of Endowments, Hyderabad. They will be referred to hereinafter as the respondents. The appellant claims to be the sole hereditary trustee and Mutwalli of the temple of Shri Sitaram Maharaj Sansthan and the subsidiary deity Shri Varadaraja In swami, situate at Sitaram Bagh, in Hyderabad. the eauier part of the nineteenth century, an ancestor of the appellant migrated to Hyderabad and carried on business there. He obviously prospered and in or about 1833 he built a temple at a cost of two lakhs of rupees and installed in it the idols of Shri Rama and other ancillary or subsidiary deities and consec In rated the temple for public benefit and worship. 1841, one Maharaja Chandulal, a minister to the then Nizam, granted a jagir consisting of the villages of Akolee and Bordee in Berar for the upkeep and maintenance of the temple. Later, however, these 1962 .Ananl Pro.tad Lakshminivas Gentriwal v. Stale of Andlua Prorksh 848 SUPREME COURT REPORTS [!Do3] SUPP· transferred In 1853, Berar was villages were resumed by the Nizam and two other villages were granted ins(cad to the temple. It appears that these two other villages were also resumed, and the village of Bulgaon was granted to the temple in 1850. It also appears that though village Akolee was resumed, the resumption order was not carried out and that village continued in the possession of the temple, so that since 1850 the temple has been in possession of the two villages for its upkeep and main tenance. British Government of India by the Nizam and these two villages therefore came under the administration of the Government of India. In 1859, some doubts arose about the title of the temple to the villages and there were enquiries under the Berar Inam Rules. Eventually, it was decided that the title of the temple was goqd and the villages had been assigned with. the rest of Berar to the Government of India for adminis tration and that they had been granted in jagir for a religious object and their devolution was governed by Rule IV of the Berar lnam Rule>. Thereafter inam certificates were issued with rcopcct to these two villages in the name of Ramlal, sun of Hargopal, who was described as the Manager of the j agirdar, Shri Sitaramj i Maharaj of Akolec and Bulgaon. The purpose of the jagir was mentioned as "for charitable expenses of the temple of Shri Sitaram Maharaj situated in the Sitaram Bagh, at Hyderabad". In the twentieth century there was considerable litigation between the members of the family of the foundo' as to the right of management of the temple. Even tually, it was decided in 1932 that Lakshrninivas Generiwal, father of the appellant, was to be the manager of the jagirdar, and this decision was finally confirmed in J 93:l by the Governor of the Central Provinces. The Governml'nt of Hyderabad was try ing all along to find out how the iv come of this j agir was being spent. But it was decided that it was the Government of the Central Provinces alone which had the right to call for aocounts 0f tbe villages and was 19~2 Anant Pr4So.d La~shminioas Gmniwal v. Stau of Aodhra PratluA Wanehoo, J. 1 S.C.R. SUPREME COURT REPORTS 84!! responsible to see that the conditions of the grant were fulfilled, and in 1941 this position seems to have been accepted by the Government of Hyderabad. After the Constitution came into force from January 26, 1950, the State of Madhya Pradesh took of the old Central Provinces and Berar. The State of Madhya Pradesh enacted a law known as the Madhya Pradesh Abolition of Pro prietary Rights (Estates, Mahals, Alienated Lands) Act, No. 1 of 1951. In consequence of this. law, the two villages were taken over by the State .and In addition, statutory compensation was awarded. an annual cash grant of Rs. 8,470/- was sanctioned by the State for the upkeep of the temple. Besides this grant, there was a large area of home farm land in the two villages, which was in the possession of the trustee for the benefit of the trust, and it is said that an income of Rs. 1,30,000/- was being realised by the trustee from this home farm land. It further there are hereditary pujaris and appears mahants of the temple, and these persons had been complaining to various authorities in Hyderabad that Lakshminivas Generiwal was misappropriating tem ple funds on a large scale and neglecting his duties as a trustee and otherwise committing breaches of trust. In 1951, three of the hereditary pujaris filed a complain\ before the Government of Hyderabad alleging various acts of mismanagement on the part of !h.e trustee. This was inquired into by the Home M1mster of the State of Hyderabad and he directed that the temple should be managed by the a commi ttee of five persons and this was said to have been done with the consent of Lakshminivas Generiwal. Later, however, Lakshminivas contended that he had never consented to the appointment of ~e c~mmittee, which would curtail his rights as here ditary the Home Minister directed the Director of Endowments to make a In the meantime, thorough inquiry into the matter. trustee. Thereupon, 1!162 Arw11t Prasad l a~·~hminivas G'cncriwal v. State of Andhr1J Prade!h Wanc/100, J. 850 SUPREME COtJRT REPORTS [ 1 !ili:JJ sUPl'. l 95G, In March, a petH10n one of the hereditary puj aris s. 3 of the Charitable and Religious Trusts Act (No. 14 of 1920) alleging various acts of mismanagement and paying for an order directing rendition of accounts, before the City Civil Court, Hyderabad. the court directed rendition of accounts and appointed an auditor to scrutinise them. The auditor went into the accounts and made a report showing several gross irregulari In therein. the meantime Lakshminivas for the registration of the tem Generiwal applied ple under the provisions of the Madhya Pradesh Public Trusts Act (No. :io of 1951) aml in June, J !J55, the Rq~istrar of Public Trusts directed the rrgistration of Shri Sitaram Maharaj Sansthan Sitaram Bagh, Hyderabaci, as a public trust under the Madhya ·Pradesh Act No. 30 of s. 7 (1) of 1951. Hyderabad State also had a law for the pur pose of providing for the proper administration of religious and public charities and for the due application of the income for the purpose of the trust. This law was known as the Hyderabad Endowments Regulations (hereinafter referred to as the Regulations) and it came into force in 1940. Section 2 thereof gives the definition of "endow ment" as including "every transfer of property which any person may have made for religious purposes or for purposes of charity or public utility". lt also provides for a "Book of Endowment" in which "all the estates or properties endowed" would be entered. Section 2 also defines a "tnistee" as meaning a person appointed by the maker of the endowment purposes of management of the property and fulfil ment of the objects thereof. Sections 3 to 11 provide for the compilation of the Book of Endowment; s.12 for the management of the endowed property; s. 13 for the duties of the trustee; s. 14 for possession over endowed property ; s. 15 for expenditure from the 1962 Ananl Prasad Lakshminiuos Generiwal .. State o j Andhra Pradesh IVanehoa, J. 1 s.c.R. SUPREME COtJRT REPORTS 851 replied income of endowed property ; s. 16 for framing of rules ; s. 17 for appeals an<l s. 18 for revision. It may be added that a large body of ruks as many as the rule 478 in number have been framed under making power conferred by the Act ; and Director of Endowments Hyderabad is given power to enforce the Regulations and the Rules. In exercise of his power under the Regulations and the Rules, the Director of Endowment~ issued notice to Lakshminivas Gencriwal on September 12, 1957, to show cause within a fortnight from the date of the receipt of the notice, why he should not be removed from the office of trustee of the temple and why the unauthorised trusteeship of the appellant should not be terminated, and six charges were kvdled in this notice. Lakshminivas Generiwal notice on September 17, 1957, and pointed out that he was no longer the trustee and that his son, the appellant, had been appointed the trustee under the Madhya Pradesh Act, No. 30 of 1951 by order of the Deputy Commissioner Amravati in November 195u. He also denied the various charges levelled against him. On this reply, a notice was issued on December 31, 1957, to the appellant to the effect that the temple had to be registered under the Regula tions, and he was also warned that if he failed to take steps registered, the property would be taken over under the supervision of the Government an<l no more objection would be heard from him. The appellant objected to this notice on February 1, 1958, and his main contention was that as the trust had been registered under the Madhya Pradesh Act No. 30 of 1951, the endow· ment was not liable to be registered under Regulations and the Rules framed thereunder, and the State of Andhra Pradesh had no jurisdiction over the endowment and its property. to get the endowment Soon after, the appellant filed a writ petition in the Andhra Pradesh High Court on February 3, 1958, 1962 A11ant PraJad IAkshminWas Genetiwal v. State of Andhra Pradesh WanchooJ J. 852 SUPREME COURT REPORTS [1963] SUPP. challenging the notice dated December 31, 1957, and the following contentions were raised on his behalf:- (1) That by reason of the registration of the the M:adhya Pradesh Act trust under s. 7(1) of No. 30 of 1951, including the temple, the opera tion of the Regulations was excluded, as the registra tion under the Madhya Pradesh Act had become final ; (2) That in any event, in applying the Regula tions to the trust in question, the courts should bear in mind the principle of comity of nations and refuse to interfere with the jurisdiction lawfully exercised by another State, namely, the State of Madhya Pradesh (now Bombay after the States Reorganisation Act, 1956); (3) That the Hyderabad Government had acquiesced in the control of the trust by the authori ties in Berar and it was not open to it to repudiate that jurisdiction and claim to exercise the powers under the Regulations ; ( 4) That the Regulations were invalid inas much as they infringed the fundamental rights of the appellant under Arts. 14 and 19 of the Constitu tion. The High Court repelled these contentions and by its order dated March 18, 1960, rejected the writ petition, thus upholding the validity of the notice dated December 31, 1957. The appeal is from this order of the High Court by special leave. After the High Court dismissed the writ peti tion, the Director of Endowments passed two orders. The first is dated June 13, J.960, and it says that as the trustee had not cared to appear before him, even though the judgment of the High Court had been 1962 A.n•rll ProsaJ IAkJ/unir. iua.t GtntrUvil v. Stalt of .4ndhr. p,ad1sh l S.C.R. SUPREME COURT REPORTS 853 given about three months before, the Dirr~tor con· sider~d in the interests of the institution, that the supervision should be taken over under r. I iH of the Endowment Rules. The serrmd order was passed on June 14, 1960, and it stated that the temple with its buildings etc. situate at Hyderabad, had been taken under the supervision of the Government of Andhra Pradesh and the ma11agemcnt of the temple would vest in the Director of Endowments, Hyderabad, from the date of 1he order, namely, Jtme 14, l!J60. The writ petition in this Court is directed against these two orders, and by it the appellant challenge~ the validity of the Regulations and thf" va1 ious rules frnmrd there· repugnant to under on the ground th;1t they are In addition, it Arts. l 4 and 19 of the Constitution. has been contended on behalf of the appellant that these order~ arc not justified even under the Regula· tions. ]!)[ii, so that The State of Andhra Pradesh has opposed th~ petition, and it submits that the Director of Endow· ments waited till June 13, 1960, after the dismissal of the writ petition in the High Court, for the appellant to appear in compliance with the notice dated Decem· her 31, the endowment might be registered under the Regulations. As. however, the appellant did not appear in reply to the notice, and in view of the previous conduct of the trustees of this temple and the several complaints received against them and the cvaii1m of the trustees even to disclose what the properties of the temple were, immediate action had to be t~ken under the Regulations and the Rules framed thereunder. Therefore, with a view to immediate secure and pre~crve the trust property, action was taken so that the property might not be It has also been cnntended that the Regula secreted. tiom and the Rules framed thereunder gave power to the State to take posscssio:i of the endowment and that the two orders were issued under the powers conferred under s. 4(b) ands. 12 of the Regulations. 854 SUPRE:ME COURT REPORTS [1963} SUPP. It is also submitted that the Regulations and the Rule5 framed thereunder are not ultra vires in view of Arti cles 14 and 19 of the Constitution. Learned counsel for the appellant has submitted the following points for our consideration :- 1962 .fnanl PratrJd LaJ;s luninivas Gmeriwal •• State of Andhro Pradesh Wanchoo, J. (1) By reason of the registration of this trust, including the temple, under s. 7 of the Madhya Pradesh Act No. 30 of 1951, the operation of the Regulations is excluded; (2) The Regulations and the Rules framed thereunder are no longer in force as they must be deemed to have been repealed by the Part B States (Laws) Act, No. III of 1951; (:l) The Regulations and the Rules framed thereunder are repugnant to Art. 14; (4) The Regulations and the Rules framed thereunder are repugnant to Art. 19; ( 5) In any case, the orders passed on June 13 and 14, 1960, cannot be supported under the RP,gulations. It will be seen that the appeal is concerned only with the notice dated December 31, 1957, while the writ petition attacks the two orders passed on June 13 and 14, 1960. Though the attack on the notice as well as on the two orders is to a large extent common, we shall first <lea! with the attack on the notice dated December 31, 1957, which is contained in the first four points raised ·on behalf of the appellant before us. The fifth point concerns only the two orders of June, 1960, and will be dealt with later. Re. (l). The contention of the appellant in this connec tion is that as the trust has been registered under the I ' 1962 An<J:.t Prasad Lalohminiuas Ge'ffniw.11 v. Stale t1f Andhra Prildesh TYnnchoo, J. 1 S.C.R. SUPREME COURT REPORTS 855 Madhya Pradesh Act 30 of 1951, the Regulations cannot now be applied to it, and in any case the Regu lations cannot affect property of the temple situate out5ide the State of Andhra Prade5h. We arc of opinion that there is no force in this contention. It is true that the two villages (namely, Bulgaon and Akolee) are not situate within the State of Andhra Pradesh; but it is not in dispute that the temple is situate within the State of Andhra Pradesh, and some property of the temple in the shape of shops etc., besides the temple building itself, is situate in the State of Andhra Pradesh. Besides, it is common ground that offerings made by pilgrims to the temple also constitute a part of its income, and that is receiv ed in Hyderabad. As such, we cannot see how the Regulations and the Rules framed thereunder would not apply to this temple, which is admittedly situate in an area to which the Regulations apply. A similar question came to be considered by this Court in The In that State of Bihar v. Smt. Charu.~ila Dasi('). case the templr was situate in Deoghar in the State of B1.har, though the major part of income yielding property endowed Calcutta. The que•tion that arose for decision in that case was whether the Bihar law would apply to the temple and its properties. Section 3 of the Bihar Act made that Act applicable to all public religious and charitable ins.titutions within the meaning of the definition clause in s. 2 (I) of the Bihar Act, and tl1e definition clause provided that the Act would apply to all religious trusts, whether created before or after the commencement of the Bihar Act, any part of the property of which was situate in the State of Bihar. It was held that- temple was situate "where the trust is situate in Bihar the State has legislative power over it and also over its trus tees or their servants and agents who must be in Bihar to administer. the trust, and as the object (1) [1959] Supp. 2 S.C.R. 601. 856 SUPRE.ME COURT REPORTS [1963] SUPP. 1!162 Ar.ant Prafad LakJhminivas Gtneriwal v. State of Andhra Pradesh H'•nchoo, J. of the Act is to provide for the better adminis tration of Hindu Religious Trusts in the State of Bihar and for the protection of properties appertaining thereto, in re, pect of the property belonging to the trust outside the State the aim is sought lo be achieved by exercising control over the trustees in personain, and there is really no question of the Act having extra-territorial operation.'' It was further held that- "the circumstance that the temples where the deities were installed are situate in Bihar and that the hospital and charitable dispensary are to be cstablishect in Rihar for the benefit of the Hin<lu public in Bihar, gives enough territorial connection to enable the legislature of Bihar to make a law with respect to such trust. This d~ci~ion in our opinion makes it abundantly clear that, where the trust is situate in a particular State, the law of that state, will apply to the trust, even though any part of the trust property, whether large or small, is situate outside the state where the trust i~ situate. We mav also refer to the State of Bihru v. Bhabapritana~.da Ojha('), where a qu~tion was raised with respect to the application of the' same Bihar Act to a tru3t situate in Bihar, but in the case of which a scheme had been framed by thd District Judge of Burdwan and confirmed by the Calcutta High Court, at a time when the State of Bihar was part of Bengal before the partition of 191 L In that case, it was urged that the Bihar Act did not applv to the temple by reason of the fact that the temple and its properties were administered under a s..:heme made by the court of the District Judge Burdwan and approved by the Calcutt.a High Co~rt (I) [1959] Supp. 2 S.C.R. 6~f. 1962 Anant Prasad lakslimi'lfJ·vas Gtntriwal v. State of Andhr.1 P1adesh l S.C.K. SUPREME COURT REPORTS 857 both of which were situate outside territorial limits of Bihar, nn the ground that the Bihar Act would otherwise by some of its provisions seek to interfere with 1he jurisdiction of courts which were outside Bihar and thereby get extra-territorial opera It was held iu that case that it was competent t ion. to the Bihar legislature to legislate in respect of religious trusts situate in Bihar though some of the properties belonging to the trust might be outside Bihar. And it was further held that s. 92 of the Code of Civil Procedure would no longer apply in view of s. 4 (5) of the Bihar Act and consequently there was no question of extra-territorial operation, of the Bihar Act. though In the present ca~e, the temple is situate in Hyderabad in the State of Andhra Pradesh. There is some property of the temple there, major part of the income yielding endowed property is situate outside in the State of Madhya Pradesh. In view therefore of the decision in Srnt. Charusiln. Dasi's case(1) the Regulations will apply to this trust as the trust is situate in the State of Andhra Pradesh and the fact that some of the endowed properties are not in Andhra Pradesh would make no difference. Further the fact that the trust has been regi>tcred under the Madhva Pradesh Act XXX of l!l51 cannot exclude the ope; al iou of the Regul~tions in the case of this trust, for the trust is undoubtedlv situate within the area where the Regulations are in force. A "public trust" has been defined in s.2 ( 4) of the Madhya Pradesh Act as meaning "an express or constructive trust for a public, religious or charitable purpose and includes a temple, a math, a mosque, a church, a wakf or any other religious or charitable endowment and a society formed for a religious or charitable purpose". Section 3 of the said Act provides that "the Deputy Commissioner shall be the ~egistrar of pu.bli~ tr.usts in respect of every pubhc trust the µrinc1pal office or the principal 11> p959J Sqpp. 2.a.o.a. sot. 1962 Ananl Prasarl LakshminiuaJ Gtntriwal v. State of Andhr• J radesh l'Vanchoo, J. SiiS SUPREJvlE COURT REPORTS [1963] SUPP. though place of business of which as declared in the appli· cation made under sub·s. (3) of s. 4 is situate in his district", and he shall maintain a register of public trusts. Section 4 provides for the registration of public trusts. It is obvious that public trust as defined in s. 2 (4) of the Madhya Pradesh Act XXX of l!llil situate in the State of must be a public trust Madhya Pradesh. Even s. 2 (4) does not say so in terms, the definition must be confined to public trusts situate in Madhya Pradesh for the Madhya Pradesh legislature could not. ancl obviously did not intend to, legislate with respect to public trusts situate outside Madhya Pradesh. Therefore, s. 2 (4) must be interpreted to apply onlv to public trusts situate in Madhya Pradesh. This conclusion is supported by s. 3, which clearly shows that the in respect of a Registrar would have jurisdiction public trust within his district. As to where a public trust is situate has to be determined in accordance with the decision of this Court in 8mt. ('hnrusilrt. Dasi's case ('), and on that view the public trust in in Andhra Pradesh and not this case must be situate in Madhya Pradesh where only some of the endow ed trust properties are. the circumstances the registration of the trust under the Madhya Pradesh Act cannot be a bar against the enforcement of the relevant provisions of the Hyderabad Regulations because even if it may be necessary for the purpose of management of the property in Madhya Pradesh to register this trust also in Madhya Pradesh, that would not exclude the jurisdiction of the State of Andhra Pradesh to legislate with respect to this trust which is undoubtedly situate in Arnlhra Pradesh, though some property of the trust is in Madhya Pradesh. vVe therefore agree with the High Court that the trust in this case being situate in Andhra Pradesh, the Regulations will apply to it. In Re. (2). The contention in this regard is that the Part B (I) [1939] Supp. 2 s.c.R. 601. 1962 An.gnt Pra:Jad Lakshminivas Gen~riwo! v, State (If Andhru Pradeth H'anchoo, ], 1 S.C.R. SUPREME COURT REPORTS 85!l States (Laws) Act, l!l51, applied certain Central Arts to the Part B State of Hyderabad, as it then was, from April 1, l\J51, and s. 6 of this Act lays down that "if immediately before the appointed day, ihere is in force in any Part B State any Jaw corn~sponding to any of the Acts or OrdinaDces now extended to that State, that law shall, save as otherwise expressly provided in this Act stand repealed." A number of Central Acts, were applied to the Part B States, and reliance on behalf of the appellant is placed on two Acts in this connection to show that the Regulations have been repeal~d in consequence of the extension of those Acts, to the then Part B State of Hyderabad. These two Acts are, (i) The Charitable Endowments Act, No. VI of 1890, and (ii) The Charitable. and Religious Trusts Act, No. XIV of l!l20. It is urged that because of the appli cation of these two Acts to the then Part B State of Hyderabad, the Regulation must he deemed to have been repealed in view of s. 6 of this Act. W c are of opinion that there is no force in this contention. Ac.t No. VI of 1890 definitely excludes religious public trusts from it. The Regulations deal with two kinds of trusts, namely, public religious trusts and trusts In the for purposes of charity and public utility. present case we are concerned with a public religious trust, which is specifically cxcluckrl from the purview of Act VI 0f l8!Jll. Therefore, whatever mav be the effect of Act VI uf l 8\Jtl, on that part of th~· Regu lations which deals with public trusts other than religious trusts (on which wc express no opinion, for we are here concerned with only reli.gi011s trusts), there is no doubt that the Regnlations insofar as they apply to religious trusts, cannot be held to have been repealed by the application of Act No. VI r,f 18\lO, the then Part B State of Hyderabad, for the Regulations when they deal with religious trusts, would not be a law corresponding to Act No. VI of . 1890. . . 1961 A,,..I 1'r1Jad /Aktlurtiniruu G11niw•I v. Slot• of Alldhta "'"'"h w"""""' J. 860 SUPREME COURT REPORTS [1963] SUPP. As to Act XIV of 1920, it certainly applies to religious trusts as well as other trusts of a charitable nature created for public purposes, but a perusal of s. 3 of this Act would show that it is ~onfined to a very limited purpose and that purpose is to give power to any person having an interest in any express or constructive trust created or existing for a public purpo~e of a charitable or religious nature to apply to the Court within the local limits of whose jurisdic tion any substantial part of the subject -matter of the trust is situate to obtain an order directing the trustee to furnish the petitioner through the court with particulars as to the nature and objects of the trust, and of the value, condition, management and application of the subject-matter of the trust, and of the income belonging thereto and also directing that the accounts of the trust shall bP. examined and audited. This is all that Act XIV of 1920 is con cerned with. The rest of the provisions of the Act are ancillary to the main provision contained in s. 3. The Regulations on the other hand are a mur.h wider enactment and provide, as we have already indicated, for the compilation of a book of endowment, for the management of the endowed property, for the duties of trust('es, for possession over endowed property, and for the control of expenses from the income of the property. None of these matters is cr, mprised in Act XIV of 1920. Therefore, the application of Act XIV of I 920 to the then Part B State of Hyderabad cannot be said to have repealed the Regulations by virtue of s. G of the Part B States (Lr,ws) Act, 1951. Re. (3). The contention under this head is that there are two laws in force in two parts of the State of Andhra Pradesh with respect to religious"endowments, and these two Jaws are different in many matters, and therefore there is discrimination, which is hit by Art. 14. The State of Andhra Pradesh. as it camr. 1962 Anat Pr•s•J Lakshmiriiv1s G1n1riwal •• St•le of AndhH Pradesh W11U"hoo, J. i S.C.R. SUPREME COURT REPORTS 861 into existence after the States Re-organisation Act, 1956, consists of two areas one of which came to that State from the former Part A State of Madras in 1953 and the other from the former Part B State of Hyderabad in 1956. These two areas naturally had different laws. We are told that steps are being taken to assimilate the laws in the two parts of the State and bring them under one common pattern. But that naturally takes time and complete assimila· tion of all laws has not yet taken place. We are fur ther told that the question of having one law for public trusts of religious or charitable nature, is under the active consideration of the State Gevernment. In these circumstances it would not be right to strike down all laws prevailing in the two parts of the State, because of certain difference in them arising out of historical reasons because the two areas in the State were formerly in two different States, namely, the former Part A State of Madras and the former Part B State of Hyderabad. Our attention in this connection has been drawn to the State of Rajasthan v. Rao Manohar Singhji('). In that case a law re lating to management of jagir estates which applied to only a part of Rajasthan was struck down on the ground that there was nothing corresponding to that law in other parts of Rajasthan, and the basis of the decision was that "there was no real and substantial distinction why the J agirdars of a particular area should continue to be treated with inequality a5 compared with the J agirdars in another area of Rajasthar •. " As against this, the respondents rely on Bhaiyal.al Shukl.a v. State of :Madhya Pradesh('). In that case, the sales-tax laws in different parts of the·new State of Madhya Pradesh, which came into existence after the States Reorganisation Act, I fJ56, were different in some respects, because they were enacted by different legislatures. Under s. 119 of the States Reorganisation Act, all laws in force arc to continue till r\!pealed or altered by the appropri It was therefore held that different ate legislature. (I) [195*.) S.C.R. 996. (2) [1962] Supp. 2 s.c.R. 257, 1962 An•nl Prasad l.11kshmi11 iv as Gtneriw.it v. Slalt nf Andhrn Pradesh 11"ont:hr10, J. 862 SUPREME COURT REPORtS [1963) SUPP. though parallel laws in different parts of Madhya Pradesh could be sustained on the ground that the differentiation arose from historical reasons, and a geographical classification based on historical reasons could be upheld as being not contrary to the equal protection clause in Art. 14. vV c think the ratio of IJ!U!'l:yr1lal 8hitklit'8 wse(') applies in the present case and not the ratio of Rao Jla'!Whar Singhji's case('). In the latter case, the Jagirdars of a particular area became singled out after the creation of the State of Rajasthan and management of their properties was taken away from them while the jagirdars of the rest of Rajasthan retained the management of their pro perties. It was in those circumstances when there was a pre-existing law in one part of Rajasthan to which there was nothing corresponding in the rest of Raj ast han that this Court held that the patent dis crimination arising in that case was violative of Art. In Bhaiyalal Shukla's nase(') both parts had the 14. same kind of law relating to sales-tax, though there were some differences in their provisions. It was in these circumstances that parallel, though somewhat different, laws in two parts of the same State were upheld on the ground of "geographical classification based on historical reasons." The present case is similar to Bhaiyalal Shulda' s case('), for in both parts of Andhra Pradesh there are laws with respect to public trusts of religious nature, though tlirre may be some differences in detail in their· provisions. There for", the attack on the basis of vfolation of Art. 14 must be repelled in the present case on the authority of Bhaiyaml Shulcfo's case('). Re. ( ef). This brings us to the question whether the Regulations arc violative of Art: rn(l)(f) of the Cons titution. We do no~propose m the present case to examine the numerous Rules that have' been framed under the Regulations and shall confine ourselves to (I) [1962] Supp. 2 s.a.R. 257, (2) (J95fj S.C.R,996. 962 Ana11' Prasad f,,,.kshmi11iva:, Gerieriwal v. Slate of A.ntiluu PraUsh ~Va11choo, J. l S.C.R. SUPRE:ME COURT REPORTS 86:l that it will be the ·vires of that part of the Regulations which is con cerned with registration of endowments, and some of the Rules in that behalf as the appeal is onlv concern ed with registration. We have been told tbat some of the rules have been the target of attack in the former High Court of Hyderabad, and some ()I them have been struck down by that High Coun (sec Narayan Pershad v. State of llydembwl (')). The sections with respect to registration are s. :~ to s. I I. Section 3 lays down that a book of endowments will be prepared containing all the endowments which are in force on the date of the Regulations or which will be brought into force in future. Section ±(a) lays the duty of every trustee or endower of an endowment to inform in writing with regard to an endowment the Director of Endowments concerned with respect to movable and immovable property of the endowment, and if there is a deed of endowment, submit the same or a certified copy there of. Section 4(b) that if anv trustee lays <lown neglects to discharge his duties referred to in ·s. -i (a), he can be deprived of the benefit or consideration of the endowment wholly or partly which he possesses under the endowment. Section 5 lays down that anv person may inform the Director of Endowments with regard to an endowment which has not been entered ll gives power in the book of endowments. Section to the Director of Eudowments to give notice for the registration of endowed property, howsoever he comes to know of it. Section 7 provides that if no objection is made within the time fixed in the notice, endowed property shall be registered in case the endowment is found tu be legal. Sections 8 an<l D provide for procedure for rh:cision of objections where objections are filed. Section !ti provides that every person whose objections have been disallowed can file a suit for declaration in the civil conrt within one year of the dismissal of l1is objection' whereby his rights might be decided and entries in the book ol endowments will then be govcrue<l by the decision of (!) A-LR. [1955] Hy. 82. 1962 Anant Prasad la{sbminiDos GfltlriwaJ '" Stai. of A•dhra Protllsh Wane/Jot, J. 864 SUPREME COURT REPORTS [1963j St11>P. the civil court. Section 10 further provides that no person who has not filed objections can file a civil suit. Section ·ll provides for a presumption t4at entries made in the book of endowments are correct unless otherwise he!d by the civil court. It will be seen therefore that provisions as to the compilation of book of endowments contained in ss. 3 to 11 (except s. 4 ( b)) provide for registration of endowed property and for carrying out the objects of the Act, namely, that the intention of endower may be carried out and the duties of the trustee may be discharged conveniently and efficiently for the benefit of humanity. These Regulations arc clearly reasona· ble restrictions in the interests of the general public within the meaning of Art. 19(5) of the Constitution and are conceived with the purpose of havi; ig correct information as to the endowments existing in the State so that their management may be carried out effici· ently and for the benefit of humanity according to the terms of the endowments. These provisions therefore (except s. 4 (b )) as to the registration of endowments are not in any way 'Ultra vires the fundamental right enshrined in Art. 19 (l)(f). As to s. 4(b), we do not think it necessary to express any opinion in this case. Section 4(b) i1 a kind of penalty on the trustee for neglecting to carry out the provisions of s. 4(a), and lays down that the trustee can be deprived of the In the benefit arising to him under the endowment. present case it is not the c0ntention of the appellant that there is any benefit arising to him under the endowment and therefore s, 4. (b) would have no application. In this connection we may aho refer to r. 25, which lays down that "if any trustee does not derive any benefit or return from the endowment in accor· dance with r. :l4, then in the event of non-discharg!" of duties he may be suspended from the post of trustee for a suitable period and the management will be 1962 Anant Pra, aJ· Lakshminiuas Generiwal v. State ef A•dhra Praiesh l S.C.R. SUPREME COURT REPORTS 865 carried on during this period by Government." This rule is being attacked as going beyond the rule-mak ing power conferred on the Government. We do not think it necessary in the present case to decide the ·vires of this rule, as the impugned action is not under this rule. We should not however be taken to have upheld the vires of this rule when we uphold the validity of the provisions relating to registration in the Regulations and the Rules. We therefore uphold the validity of the provisions relating to registration of endowments (except s. 4(b) on which we express no opinion) and the Rules framed thereunder (except r. 25 and rules consequential thereon which we express these provisions under no opinion) to carry out which notice was given the appellant on December 31, 1957. In view of our conclusions on these four points, the appeal must fail. Re. 5. This brings us to the consideration of the vire& of the orders dated June 13 and 14, 1960. The attack In the first place, it on these two orders is two-fold. is urged that if these orders fall within the powers conferred by the Regulations and the Rules made thereunder, they should be struck down, as the Regu lations and the Rules framed thereunder by which the trustee is deprived of his right of management are ultra vires Art. 19(1)(f). In the second place it is urged that these orders which purport to have been passed under r. 179 are bad as r. 179 itself goes be yond the powers conferred on the rule-making autho rity under the Regulations and in any case are con trary to the Rules. We do not think it necessary in the present case to consider whether the Regulations and the Rules framed thereunder with respect to removing a trustee from the management of the trust are unconstitutional. We shall confine ourselves to the second part of the argument in this behalf and consider whether the Regulations give power for the 1962 dnant I'raud !.alc.1hminiv"s GtMriwal v • .)!ale of Andhra Pradesh Wanehoo, J, 866 SUPREME COURT REPORTS [1963] SUPP. removal of the trustee under any circumstances and if so whether the removal in this case has taken place as provided under the Regulations and the Rules framed It cannot be doubted that the two orders thereunder. taken together amount to removal of the appellant from trusteeship. The only provision.which deals with the manage· ment of endowed property is to be found in s. 12, which is as follows :- "With regard to the management of the endow ed property, the trustee will be generally compe tent to exercise the powers which have been conferred on him by the endower. But if any trustee is not found to be competent, then the Minister for Endowments may frame rules and regulations for the realisation of the objects of the endowment and for the better manage ment of the same by which the trustee will be duly bound or he may appoint a Superintendent under the rules." Analysis of this section shows that it con sis ts of three parts. Under the first part, the trustee is com petent to exercise the powers which have been con ferred on him by the endowcr, thereby recognising the right of the trustee to manage the trust property according to the terms of the endowment. The second part lays down that "if any trustee is not found to be competent, then the Minister for Endow ments may frame rules and regulations for the reali sation of the objects of the endowment and for the better management of the same by which the trustee will be duly bound." Here again the management clearly remains with the tmstec and he is only subjected to control by means of rules and regulations framed for the better management of the particular trust under the orders of the Minister for Endow ments. Then comes the third part of the section which gives power in the alternative to tthe Minister 1962 Anant Prosad Lalcshmi,,foas Generiwal •• Stalt of Anrlhra Pradt!.h fVanchoo, J. 1 S.C.R. SUPREME COURT REPORTS 867 for Endowments in case of incompetence of the trustee to appoint a Superintendent under the Rules. A Superintend~nt is defined in s. 2 as meaning a person appointed by Government for purposes of manage ment. Thus the last part of s. 12 gives power to Government to appoint a Superintendent for pur poses of management. This necessarily implies that on the appointment of a Superintendent to manage the endowed property under s. 12, the trustee is de prived of the management of the property, and in effect is removed from trusteeship. This interpretation of the last part of s. 12 is supported by rules found under Chaps. XLIII, XLIV and XLV. Chapter XLIII deals with "Superintendence by Government", Chap. XLIV with "direct superintendence of Government" and Chap. XLV "with munthazim (manager)." It may be added that in the definition in s. 2, the word "munthazim" has been translated as "Superinten dent" while in Chap. XL V that word has been translated as "manager". It is obvious that the Superintendent and the manager are the same thing. Rule 177 provides that if the Government takes over the endowed buildings under its superintendence, it shall have power to arrange for direct superinten dence, or appoint any munthazim (Superintendent) or manage through any committee. Chapter XLlV then provides for direct superintendence by Govern ment. Rule 182 in that Chapter shows that where direct superintendence is taken by Government the power of _spending the . recurring amounts as per the b~dget will be vested m the trustee in accordance with the powers possessed by him under these Rules and there is n? removal. of the. trustee. It is only when a Supermtendent is appomted under Chapter x~ v that he has all the powers of a trustee mention ed m Chap. XXXI (see r. 187). The two orders of June la and 14, HHiO, read together cll'arlv show that eve? though they p11rpurl lo IJc passed 11n~lcr r. 17!J "d~rect superinte11dcnce b; Government , the Governmeu t has gone further than re\~rs to_, 1962 Ananl Prasad l•lcshminivi.s Generiwal v. State uf Andhta Praduh lfanchoa, J. s6s SUPREME COURT REPORTS [1963] SUPP. provided in the rule when it decided to take over· the management of the temple and vest the same in the l!l60, with Director of Endowments from June 1.J-, the result that the appellant has been deprived of the management and in effect removed from trusteeship. We presume that consequent on this a Superintendent would be appointed. The last part of s. 12 which provides for the appointment of a Superintendent under the rules in effect provides also for the depriva tion of the trustee of his right of management and thus results in his removal. Now r. (i7 deals with the rem ova 1 of trustee and has laid down :;ix conditions which would justify the removal of a trustee. The last of these conditions lays down that if any trustee is not fit for trusteeship due to some reason other than those contained in the first five conditions he would be removed from the post of trustee. But this removal can only take place if the matter is inquired into by a competent officer. Thus r. 67 mntemplates that no trustee shall be removed from t•· .steeship unless an inquiry is held by a competent ofh.:er. This obviously means that the trustee will be given an opportunity to show cause whv he should not be removed from trustee ship and it is only after a proper inquiry that a trustee can be removed from trusteeship. This provision is in consonance with the language of s. 12, where the words used are "if a trustee is not found to be compe tent". The use of the word "found" clearly shows tliat the legislature intended that action under the second and third part of the section would only be taken after a proper inquiry. Further, r. 68 provides that the power of removal of a trustee will l:le vested in the Minister for Endowments. Thus after an inquiry has been made by a competent officer, it is only the Minister for Endowments, which in the present set-up means the Government, which can remove the trustee. We have already pointed out that we do not think it necessary in the present case to consider the question whether these provisions as to the removal of the trustee by Government can be 1962 Anonl Prowl lab lmtillil!llS Gmmwal .. Stat. of A•dhr• Pradesh Wanclioo, J. 1 S.C.R. SUPREME COURT REPORTS 86!.l orders passed upheld as constitutional. But assuming that these provisions are constitutional, the question that arises is whether June 13 and 14, 1960, which must be read together and in effect amount to removal of the appellant from trusteeship can be justified under the Kegula tions and the Rules. Clearly these two orders have been passed hy the Member, Board of Revenue while r. 68 contemplates that the trustee would be removed only by the Minister for Endowments, which in the present set-up, can only mean the Government. Further, r. 67 provides that a trustee cannot be removed from t-n1steeship unless an inquiry has been made by a competent officer. That means that notice has to be issued to the trustee to show cause why he should not be removed for reasons shown therein and it is only after an inquiry has been made and one of the six conditions provided in r. 67 is established that the trustee can be removed. In the present case no notice was ever issued to the appellant to show cause why he should not be removed from the trusteeship. It is true that in the notice dated December :n. 1957, it was stated that in case the appellant failed to respond to the notice (which was with respect to registration oft.he endowed property) the case would be completed takmg the property under the Government's supervi sion and no more objection would be heard thereafter. The consequenrn of non-appearance to such a notice i~ to _be found in s. 7 which provides that if no objec tion 1s filed the endowment would be n·gistered and in s. lO(b) which deprives a person wl;o does not appear to object in response to the notice of any right to file a suit as provided in s. IO(a). But there is nothing in r. 67 which gives power to the Government ~o remove a trustee simply ?ecause he fails to appear m reply to a not1c~ askmg htm to register the endowed property. The six conditions mentioned in r. 67 a;e : (i) insanit)'., (ii) co_i;i_tractio? _of a contageous disease ?fa ce:tam type, (m) r.onv1ct10n by a criminal c:ourt, (1v) gomg out of Hyderabad Stat"' without 1962 Ananl Prasad Lakshminiuas Gtn4Tiwal v. State ()f Andhra p,.,1desh Wnnchoo, J. 870 SUPREME COURT REPORTS [1963] SUPP. intimation for more than a month, ( v) forsaking the religion with which the endowment is concerned, and (vi} unfitness for trusteeship due to some other reason. There is no provision therefore for removal of a trustee, merely because he has not appeared in answer to a notice under s. 6 of the Regulations for registra, tion of the endowment. The orders therefore that were passed on June 13 and 14, 1960, which must be read together, cannot be justified under rr. 67 and 68, for the reasons that (i) no inquiry was held, (ii) the orders were not passed by the Minister of Endow· ments, i. e. the Government, and (iii) the removal in this case i~ for a reason which is not permissible there in. All that the Director of Endowments was entitled to do on the basis of the notice dated Decem· ber 31, 1957, was to proceed to register the endow· ment, even if the appellant failed to appear in reply that notice after making such inquiries as he thought proper and take such further action as may be justified by the other provisions of the Regulations. But on the basis of that notice it was not open to him to pass the orders which he did on June 13 and 14, 1960, which amounted to removal of the appellant from trusteeship and taking over of the management of the trust by the Government. These orders must therefore be set aside as ultra vires the Regulations and the Rules, assuming in the present case that the Regulations and the Rules providing for the removal of the trustee, are constitutional. We therefore dismiss the appeal with costs. The writ petition is allowed with costs and orders dated June 13 and 14, 1960, are hereby set aside. Appeal dismissed.
Questions this judgment answers
What did the Court decide in this case?
The Court recorded the following disposition: writ petition is allowed with costs and orders dated
Which statutory provisions did this judgment involve?
Madhya Pradesh Public Trusts Act, 1951; Madhya Pradesh Act — ss. 2(4), 7; Constitution of India — arts. 14, 19, 19(5), 32; Madhya Pradesh Public Trusts Act; Charitable Endowments Act, 1890; Charitable and Religious Trusts Act, 1920.
Precedent status how later indexed judgments have treated this case
No treatment data yet for this judgment in the Courts & Cases corpus.
Absence of data is not a statement about the judgment’s standing — the corpus covers only judgments we index and link with cited evidence.