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TMI Blog1958 (3) TMI 105X X X X Extracts X X X X X X X X Extracts X X X X ..... the Society provide for the composition of the Committee, for a Governing Body which is to consist of the President, Vice-President Secretary of the College Committee and members, including two representatives of Andhra University and the Principal of the College. It has been provided that the Governing shall have full responsibility for the day to day ministration of the College. Among the person made donations to the Society are the petitioner, his brother-in-law and several others. 3. On 4-12-1956 one Prasada Rao, the President of the College Committee, and Seshagir Rao, one of the members of the Governing Body, petition before the Government of Andhra Pradesh alleging serious defects in the management of the allege. It was therein stated that they had obarned the sanction of the Advocate-General of Madras to file a suit under S. 92 of the Code of Civil Procedure. They prayed that the Government might take on under S. 4 of the Charitable Endowments of 1890 and under S. 3 of the Madras Hindu Religious and Charitable Endowments Act, 1951, appoint a Treasurer. The Government forward the petition to the Commissioner for Hindu Religious and Charitable Endowments, who directe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... registration under the Societies Registration Act and there can be no revesting of the same property in a Treasurer under the Charitable Endowments Act; and that assuming, however, that the Charitable Endowments Act can be made applicable, there having been no valid application as contemplated by S. 4 or 5 of the Act, the proposed action of the Government is illegal besides being capricious and unreasonable. 7. In a counter-affidavit filed by the Deputy Secretary to the Government, the material averments made by the petitioner have been denied. It is asserted by him that the proposed action is Valid. 8. Seshagiri Rao (who was one of the petitioners before the Government for the appointment of a Treasurer) and Prasada Rao have filed an application in this Court to implead them as respondents. They have filed an affidavit controverting the material allegations made by the petitioner. The petitioner has filed a reply affidavit reiterating the allegations made by him in his original affidavit. 9. The contentions of Mr. T. Lakshmiah, learned counsel for the petitioner may be summarised as follows: The provisions of the Charitable Endowments Act cannot be applied to the society. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f, the College having vested in the Society, the Charitable Endowments Act cannot be invoked. 13. The Charitable Endowments Act (VI of 1890) was enacted with a view to provide for the vesting and administration of property held in trust for charitable purposes. Section 2 of the Act defined 'charitable purpose' as including relief of the poor, education, medical relief and the advancement of any other object of general public utility.' Under S. 3 of the Act, the Central Government may appoint an Officer of the Government by the name of his office to be treasurer of charitable endowments for India, and the Government of any State may appoint an officer of the Govt. by the name of his office to be treasurer of charitable endowments for the State. Section 4 is an important provision and it reads: Where any property is held or is to be applied in trust fur a charitable purpose, the appropriate Government, if it thinks fit, may, on application made as hereinafter mentioned, and subject to the other provisions of this section, order, by notification in the Official Gazette, that the property be vested in the Treasure of Charitable Endowments an such terms as to the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atter of vesting it treasurer, provided the other conditions prescribe by the Act are complied with. Where in a given case those prescribed conditions are satisfied, it is open to the State Government, if it thinks fit, to direct that the property the endowment be vested in a treasurer. The use of the expression if it thinks fit' shows that matter is left to the subjective satisfaction of appropriate Government to appoint a Treasure. Assuming that the Government is satisfied the conditions for the exercise of their discretion under the Charitable Endowments Act exist, is there, as contended by the learned counsel for petitioner, any prohibition in the Act from applying its provisions to a society registered under Societies Registration Act? The Charitable Endowments Act itself does not contain any reserved nor does it make any exception with regard to registered societies. 17. Mr. Lakshmayya has contended that property is vested in a registered society, cannot be a second vesting in a treasurer applied under the provisions of the Charitable Endowments Act. In support of this contention he principally relied upon an American decision in Trustees of Dartmouth College v. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner in which they are formed, and the objects for which they are created. 18. The learned counsel for the petitioner has equated the registration of a society under the Act of 1860 to a charter granted by the Crown in favour of a corporation. He has further argued that the registration constitutes a contract between the society and the Government which is an irrevocable one and the super imposition of the provided of the Charitable Endowments Act which has result of curtailing the powers of the College committee, would tantamount to a violation of the called charter granted to the Committee in the shape of its registration under the Act. The decision proceeded on the particular facts the case, namely; the granting of a charter by Crown in favour of the trustees and it was held that the rights granted by the charter could be curtailed by the Legislature of New Hampshire. 19. The basic assumption made by the learned counsel for the petitioner that the registration society can be equated to the granting of a Royal Charter, does not rest on a solid foundation, society registered under the Societies Registration Act is an association of individuals which comes into existence wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts Act, 1890, provided that the conditions specified therein are satisfied, makes provision for the appointment of a treasurer, in whom certain powers are vested. Sub-section (4) of S. 4 contains a clear enunciation of the nature of that vesting. The said provision makes it clear that an order, vesting property in a treasurer shall not require or be deemed to require him to administer the property, or impose or be deemed to impose upon him the duty of a trustee with respect to the administration thereof. Section 10 of the Charitable Endowments, Act contains a specific limitation of the functions and powers of a treasurer. It says that a Treasurer of Charitable Endowments shall always be a sole trustee, and shall not, as such treasurer, take or hold any property otherwise than under the provisions of the Act, or, subject to those provisions, transfer any property vested in him except in obedience to a decree divesting him of the property, or in compliance with a direction in that behalf issuing from the authority by whose order the property became vested in him. Having regard to the specific limitation of the functions and powers of treasurer under S. 10 the treasurer shall n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roved that the Government, in taking the decision or in being satisfied that the conditions necessary for the exercise of their power under S. 4 exist, have been swayed by extraneous considerations or that their action has been mala fide. No such allegations have been made in this case and it is not therefore within the competence of this court to pronounce upon the question as to whether the Government should or should not have been satisfied about the necessity for the appointment of a treasurer. 22. The averments made by the respondent, however, show that the Vice-Chancellor of the Andhra University addressed a communication as early as 1957 to the Minister for law and Religious Endowments, bringing to his notice certain alleged acts of mismanagement on the part of the persons responsible for the administration of the College. On this the Government moved the Commissioner for Hindu Religious and Charitable Endowments who sent the Special Officer to make an enquiry and investigate into the affairs of the institution. That Special Officer, it is not denied, had examined, as witnesses, the members of the governing body and other persons and eventually submitted a report givin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r as early as 21-4-1957 resulted in an inquiry being conducted into the allegations of mismanagement and I do not find anything wrong the Government asking the members of the Governing body to make an application under the relevant provisions of the Charitable Endowments for action being taken. It was, of course, often open to the members of the governing body to say that they did want the appointment of a Treasurer. According to the allegations made by the President and member 6 out of the 11 members forming the governing body passed a resolution supporting appointment of a Treasurer. It is no doubt that this resolution was repudiated by the Committee but under what circumstances this reputation came to be made is not a matter pertinent to the present enquiry. What should be emphasised however, is there is nothing illegal or improper in the Government asking the governing body to pass a resection and to make an application. The fact this was coupled with an intimation to the governing body that failure to take action on the suggested by the Government might result in disaffiliation of the college, can be indicative of apprehension of the Government that absence of timely act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re remains the contention of the learned Counsel for the petitioner that if a treasurer is the appointed, the society would cease to hold property and that this is violative of the petitioner's rights guaranteed under Art. 19(1) (g) and 31 of the Constitution. This contention really overlaps the first of the contentions which has been already dealt with . If what is vested in the College Committee or governing body is a right of management similar, there is no question of the members of the society or the members of the governing body beneficially interested in its property. It necessary follows that by the fact of appointment of treasurer, there can be no deprivation of the society of its rights in property. The consequence, which would flow on the appointment of a treasurer by the Government the provisions of the Charitable Endowments Act would be that he will take charge of the management of the properties held by the society. There is no divesting of the rights of the society properties. As already stated, what all the society is deprived of would be right of manage which cannot be equated to any right in the property. In the Commissioner of Hindu Religious Endowme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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