1960 (11) TMI 138 - HC - Indian Laws

Judgment: Society Under Societies Act Deemed Public Charitable Trust, Liable for Registration

Servants Of India Society Versus Charity Commissioner Of Bombay

Servants Of India Society Versus Charity Commissioner Of Bombay - AIR 1962 Bom 12 Issues Involved:1. Whether the Bombay Public Trusts Act, 1950, applies to a society registered under the Societies Registration Act, 1860.2. Whether the society is a public charitable trust.3. Whether the State Legislature was competent to legislate about such a society with objects not confined to one state.Issue-wise Detailed Analysis:1. Applicability of the Bombay Public Trusts Act, 1950:The primary issue was whether the Bombay Public Trusts Act, 1950 (referred to as the Act), applies to a society registered under the Societies Registration Act, 1860, with objects not confined to the State of Bombay (now Maharashtra). The appellant, a society registered under the Societies Registration Act, contended that the provisions of the Act could not apply to it as it was a corporation and the State Legislature had no power to pass legislation governing such a society. This contention was rejected by the Assistant Charity Commissioner, upheld by the Charity Commissioner, and further dismissed by the District Judge of Poona. The judgment held that the society is an unincorporated body and the State Legislature was competent to pass the Act under entry 32 of List II - State List of the Constitution.2. Whether the Society is a Public Charitable Trust:Both the learned judges, Mudholkar and Patel, agreed that the society constitutes a public charitable trust. The definition of 'public trust' under Section 2(13) of the Act includes a society formed for a religious or charitable purpose and registered under the Societies Registration Act. The judgment affirmed that the society falls within this definition, making it liable to be registered under the Act.3. Competency of the State Legislature:The main contention was whether the State Legislature was competent to legislate about a society with objects not confined to one state. The appellant argued that only Parliament could legislate about such societies under entry 44 of the Union List. However, the judgment concluded that once a society is held to be a public charitable trust, the State Legislature can govern it by virtue of entries 10 and 28 in the Concurrent List, which refer to trusts, trustees, and charitable institutions, without reference to their objects being confined to one state or not. The judgment emphasized that there was no conflicting legislation by Parliament on the subject, making the Act valid.Interpretation of Legislative Entries:The judgment discussed the principles of interpreting entries in the Seventh Schedule of the Constitution. It highlighted that a liberal construction should be applied to legislative powers, and an attempt must be made to reconcile different legislative powers to avoid conflict. The judgment referred to several authorities and cases to support this approach.Corporation vs. Unincorporated Society:The appellant argued that the society, being registered under the Societies Registration Act, was a corporation or quasi-corporation. The judgment, however, concluded that societies registered under the Societies Registration Act are neither corporations nor quasi-corporations but unincorporated societies. It referred to legislative practices and provisions of the Societies Registration Act to support this conclusion.Conclusion:The judgment held that the Bombay Public Trusts Act, 1950, applies to the appellant society, and the State Legislature was competent to legislate on the subject. The appeal was dismissed, with no order as to costs. Additionally, it was noted that the society's application for exemption from the Act could be considered by the State Government on merits, unaffected by this judgment.