2001 (10) TMI 1146 - HC - Indian Laws

Significance of Statutory Interpretation in Charitable Institutions Case

Commissioner of Endowments Versus All India Sai Seva Samaj

Commissioner of Endowments Versus All India Sai Seva Samaj - TMI Issues Involved:1. Applicability of the Andhra Pradesh Charitable and Hindu Religious Institutions & Endowments Act, 1987 to Sai Mandirs.2. Jurisdiction of the Joint Commissioner to appoint a Board of Trustees.3. Interpretation of statutory provisions and definitions under the 1987 Act.4. Validity of the reference to a Larger Bench.5. Issuance of a writ of prohibition.Detailed Analysis:1. Applicability of the Andhra Pradesh Charitable and Hindu Religious Institutions & Endowments Act, 1987 to Sai Mandirs:The core issue was whether the Sai Mandirs fall under the purview of the 1987 Act. The court noted that the Act applies to all public charitable institutions and endowments, as well as Hindu public religious institutions and endowments. The definition of 'charitable endowments' includes properties given for any charitable purpose, and 'charitable purpose' excludes objects of an exclusively religious nature. The court emphasized that even if a society professes to follow Sai's preachings, it doesn't automatically exempt it from the Act. The court held that the 1987 Act applies to all charitable institutions regardless of religion and to Hindu religious institutions and endowments. The previous decision in DY COMMISSIONER OF ENDOWMENTS v SAIBABA SAMSTHANAM was found to be incorrect as it did not consider the explanation appended to Section 1(3)(a) of the Act.2. Jurisdiction of the Joint Commissioner to Appoint a Board of Trustees:The court examined whether the Joint Commissioner had the jurisdiction to appoint a Board of Trustees for the respondent-temple without following the principles of natural justice. It was held that the Joint Commissioner could not appoint the Board of Trustees without giving the temple an opportunity to be heard. This failure to provide a hearing was a violation of natural justice principles, and thus, the portion of the notice appointing the Board of Trustees was set aside.3. Interpretation of Statutory Provisions and Definitions under the 1987 Act:The court discussed the interpretation of various statutory provisions and definitions under the 1987 Act. It emphasized the importance of reading the Act as a whole, considering the context and purpose of the legislation. The court cited several precedents, including RESERVE BANK OF INDIA v PEERLESS CO., to illustrate the principles of statutory interpretation. The court concluded that the 1987 Act's provisions must be construed to give effect to its purpose and object, which includes the administration and governance of charitable and Hindu religious institutions and endowments.4. Validity of the Reference to a Larger Bench:The court addressed the validity of referring the matter to a Larger Bench. It was argued that the entire appeal was referred, and the court had the power to consider all aspects of the matter, particularly when conflicting division bench decisions were present. The court cited precedents, including GOJER BROTHERS PVT. LTD. v RATANLAL, to support its authority to hear the case and resolve the conflicting decisions.5. Issuance of a Writ of Prohibition:The court examined whether a writ of prohibition could be issued against the Joint Commissioner's notice. It was held that a writ of prohibition is an extraordinary remedy and can only be issued when the authority is about to exercise judicial or quasi-judicial power unauthorized by law, resulting in injury without any other adequate remedy. The court found that the writ petitioner-respondent was not entitled to a declaration that Sai Mandirs are not Hindu Religious Institutions or temples under Section 2(27) of the 1987 Act. The court also referred to STATE OF U.P. v. SHRI BRAHM DATT SHARMA AND ANR, which held that courts should be reluctant to interfere with show cause notices unless issued without any authority of law.Conclusion:The court concluded that the learned single Judge erred in holding that the provisions of the Endowment Act are not applicable to Sai Mandirs. The court set aside the portion of the notice appointing the Board of Trustees without a hearing and directed that the Board of Trustees could only be appointed after giving the petitioner-respondent an opportunity to be heard. The writ appeal was disposed of with these directions, and no order as to costs was made.