Shree Datta Deosthan Trust Vedant Nagar Savedi v. Shri Murlidhar Eknath Rishipathak
Removal of Trustee - High Court clarifies procedure under Maharashtra Public Trusts Act, emphasizing Charity Commissioner's role and adherence to Section 41D for valid removal.
Court: Bombay High Court
Citation: 2025:BHC-AUG:37561
Decision Date: 24-12-2025
List of Laws
Maharashtra Public Trusts Act; Section 22 of the Maharashtra Public Trusts Act; Section 41D of the Maharashtra Public Trusts Act; Section 50A of the Maharashtra Public Trusts Act
- Facts: A series of writ petitions were filed challenging orders of the Deputy Charity Commissioner and the Joint Charity Commissioner regarding change reports filed by Shree Datta Deosthan Trust under Section 22 of the Maharashtra Public Trusts Act. These change reports pertained to the removal and appointment of trustees, specifically concerning Milind Govind Kshirsagar, who was allegedly a permanent trustee. The removal was based on complaints and an inspector's report alleging mismanagement.
- Procedural Posture: The High Court of Bombay, Aurangabad Bench, heard these writ petitions together as they were interconnected. The lower authorities had rejected the change reports, leading to the petitions before the High Court.
- Issue: 1. Does the trust document provide for a permanent/hereditary trustee, or is the term of all trustees limited? 2. Could the Assistant Charity Commissioner direct the trust to take action based on the inspector's report, and could the remaining trustees remove Milind Kshirsagar? 3. Could the Assistant Charity Commissioner direct the report to be placed before the trustees, or should it have been placed before the Charity Commissioner under Section 41(D)? 4. Was the removal of Milind Kshirsagar in accordance with the law, including proper notice and opportunity to defend?
- Holding: The High Court dismissed the writ petitions, holding that the removal of Milind Kshirsagar was not valid. The remaining trustees did not have the power to remove a trustee without following the procedure prescribed under the Maharashtra Public Trusts Act, specifically Section 41D.
- Reasoning: The Court reasoned that while the trust document provided for a permanent trustee from the Kshirsagar family, it did not explicitly grant the remaining trustees the power to remove such a trustee. The proper procedure for removal, as outlined in Section 41D of the Maharashtra Public Trusts Act, involves the Charity Commissioner initiating an inquiry, issuing a notice, and providing an opportunity to be heard. The Court also noted procedural irregularities in the meeting where Milind Kshirsagar was removed, including a lack of specific agenda and proper notice. The Court directed the Assistant Charity Commissioner to amend the trust's constitution to incorporate devotees as members and establish fixed terms for trustees, except for permanent ones.
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