2005 (5) TMI 636 - SC - Indian Laws

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?

Issues Involved:
1. Jurisdiction of Civil Court under Section 80 of the Bombay Public Trusts Act, 1950 (BPT Act).
2. Validity of the dissolution of the Brethren Church and its merger into the Church of North India (CNI).
3. Distinction between a society registered under the Societies Registration Act, 1860, and a trust registered under the BPT Act.
4. Maintainability of the suit filed by the plaintiffs.

Issue-wise Detailed Analysis:

1. Jurisdiction of Civil Court under Section 80 of the BPT Act:
The primary question was whether the jurisdiction of the Civil Court was barred under Section 80 of the BPT Act. The Court emphasized that the BPT Act is a special law conferring jurisdiction upon the Charity Commissioner and other authorities. The Act aims to safeguard the properties vested in trusts and ensure proper administration. The Court held that the jurisdiction of the Civil Court is barred if the matter falls within the purview of the BPT Act. The Court referenced the principles laid down in Dhulabhai and Others vs. The State of Madhya Pradesh and Another, emphasizing that the exclusion of Civil Court jurisdiction must be construed in the context of the statutory scheme and the object of the Act.

2. Validity of the dissolution of the Brethren Church and its merger into the CNI:
The plaintiffs contended that the Brethren Church had ceased to exist and merged into the CNI. The Court noted that the resolution for the dissolution and merger was allegedly passed in 1970, and the CNI was registered as a company under the Companies Act in 1976. However, the original defendants argued that the Brethren Church continued to exist and had not been dissolved. The Court held that the validity of the dissolution and merger was a matter that fell within the jurisdiction of the Charity Commissioner under the BPT Act, and the Civil Court could not adjudicate on this issue.

3. Distinction between a society and a trust:
The Court examined whether the society registered under the Societies Registration Act and the trust registered under the BPT Act were separate entities. The plaintiffs argued that the society and the trust were distinct, with the society managing the affairs of the trust. However, the Court found that the plaint did not suggest that the society and the trust were treated as separate entities. The Court held that the society, being a charitable trust under Section 2(13) of the BPT Act, could not own property, and the properties vested in the trustees. The Court concluded that the dispute related to the management of the trust properties and fell within the exclusive jurisdiction of the Charity Commissioner.

4. Maintainability of the suit:
The Court analyzed the averments in the plaint and the reliefs sought by the plaintiffs. The plaintiffs sought declarations that the Brethren Church had ceased to exist, that the CNI was its legal successor, and an injunction against the defendants from acting contrary to the CNI's constitution. The Court held that these reliefs pertained to the administration and management of the trust properties, which fell within the jurisdiction of the Charity Commissioner. The Court concluded that the suit was not maintainable as it sought to enforce rights on behalf of a public trust, which was barred under Section 31 of the BPT Act.

Conclusion:
The Supreme Court affirmed the High Court's decision, holding that the suit was not maintainable and the jurisdiction of the Civil Court was barred under the BPT Act. The Court emphasized that the issues raised pertained to the administration and management of the trust properties, which fell within the exclusive jurisdiction of the Charity Commissioner. The appeal was dismissed, and the impugned judgments were upheld.

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