Misra, J. - (1.) Leave granted.
(2.) This appeal raises the following question : "Whether Section 6 of the Nagpur Improvement Trust Act, 1936 (hereinafter referred to as the 'Act') confers power on the State Government independent of the power of State Government under Section 10, to remove the Trustees appointed under Section 4(1)(e) at the pleasure of the Government even before the Trustee concerned completes a period of five years." This appeal is directed against the judgment and order of the High Court which dismissed the appellant's writ petition challenging the order dated 9-2-2000 passed by the State Government (respondent No. 1), removing the appellant from the trust (respondent No. 2) created under the aforesaid Act. The Preamble of the Act suggests, the Act was brought on the statute book to provide for the improvement and expansion of the town of Nagpur. The second respondent-trust was created under Section 3 of the said Act. Section 4 provides that the trust shall consist of nine Trustees of which one shall be the Chairman. Out of nine such Trustees four persons are appointed including the Chairman by the State Government under sub-section (2) of Section 4 and out of the said four persons not less than two shall have to be non-officials residing within the limits of the area to which this Act applies. In the present case we are concerned with Clause (e) of sub-section (1) of Section 4 to which the appellant belongs. Section 6 specifies about the term of the Chairman and the Trustees appointed under Clause (e) of sub-section (1) of Section 4. It provides that term of the office under it of the Chairman and of any Trustee shall be five years and both the Chairman and such Trustee may be removed from the office by the State Government at any time before completion of such term. Section 10 provides for the removal of Trustees, a provision which would fall for consideration along with Section 6 of the Act. For the purpose of appreciating the controversy we are hereunder reproducing Sections 4(1)(e), 4(2), 6 and 10 :- "Section 4(1)(e) : four persons appointed under sub-section (2) of whom not less than two shall be non-officials residing within the limits of the area to which this Act applies. Section 4(2) : The Chairman and the four persons referred to in clause (e) of sub-section (1) shall be appointed by the State Government by notification. Section 6 : The term of office of Chairman or of any Trustee appointed under clause (e) of sub-section (1) of Section 4 shall be five years, provided that the Chairman or any Trusetee may be removed from office by the State Government at any time before the completion of such term : Section 10 : The State Government may remove from the Trust any Trustees other than an ex-officio Trustee who - (a) refuses to act, or becomes incapable of acting as a Trustee, or absents himself without the permission of the trust for more than three consecutive months from the meeting of the Trust or of any Committee of which he is a member and is unable to explain such absence to the satisfaction of the Trust, or (b) is an undischarged insolvent or has compounded with his creditors; or (c) has been sentenced by a Criminal Court to imprisonment for a term exceeding six months or to transportation, or has been ordered to find security for good behaviour under the Code of Criminal Procedure, such sentence or order not having subsequently being reversed or remitted or the offender pardoned, or (d) has acquired or continued to hold without the permission in writing of the State Government directly or indirectly or by a partner, any share or interest in any contract or employment with, by or on behalf of the Trust or the Municipal Committee, or (e) has acted as a trustee in a matter other than a matter referred to in clause (iv) or clause (v) of the proviso to this sub-section in which he had either directly or indirectly, a personal interest, as a partner, employer, agent or counsel, or (f) has added in contravention of Section 20 or (g) being a legal practitioner, in any suit or other proceedings, acts or appears on behalf of any other person against the Trust, or acts or appears on behalf of any other person in any criminal proceedings instituted by or on behalf of the Trust : Provided that a person shall not be deemed for the purpose of this sub-section to acquire, or continue to have, any share or interest in a contract or employment by reasons only of his (i) having a share or interest in any lease, sale or purchase of land or buildings, or in any agreement for the same provided that such share or interest was acquired before he became a Trustee, or (ii) having a share in a joint stock company which shall contract with, or be employed by or on behalf of, the Trust, or (iii) having a share or interest in a newspaper in which an advertisement relating to the affairs of the trust is inserted, or (iv) holding a debenture or otherwise being interested in a loan raised by on behalf of the trust, or (v) having a share or interest in the occasional sale of an article in which he regularly trades to the Trust to a value not exceeding, in any one year, such amount as the Trust, with the sanction of the State Government, may fix in this behalf. (2) The State Government may remove from the Trust a trustee who in its opinion has so flagrantly abused in any manner his position as a Trustee as to render his continuance as a Trustee detrimental to the public interest. (3) Wherever the State Government proposes to take action under the foregoing provisions of this section, an opportunity of explanation shall be given to the Trustee concerned, and, when such action is taken the reasons therefor shall be placed on record. (4) A Trustee, who remains absent without the permission of the Trust for more than three consecutive months from the area to which this Act extends, shall be deemed to have resigned his office."
(3.) On 4-10-1996 the appellant was appointed as Trustee of the second respondent by the first respondent under sub-section (2) of Section 4 of the Act and his term was to expire on 3-10-2001. The submission for the appellant, incorporated in this appeal is, that after election of State Legislative Assembly, new national democratic Government came into power in the State of Maharashtra and started undoing what was done by the previous Government under pressure of various political parties. On 9-2-2000 respondent No. 1 passed an order removing the appellant from the office of Trustee. The order reads hereunder : "In exercise of powers conferred on the Government by Section 6 of the Nagpur Improvement Trust Act, 1936 (C. P. and Berar Act No. XXXVI of 1936) the Government of Maharashtra from the date of this Notification cancel the appointment of S/Shri Pravin Barde and Krishna Bulaji Borate, Nagpur as the Trustee of the Nagpur Improvement Trust. By the order and in the name of the Governor of the Maharashtra State." ;