JUDGEMENT
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(1.) Leave granted.
(2.) These appeals are directed against the common judgment and order dated
April 23, 2012 (in First Appeal Nos. 1535 and 1536 of 2009) passed by the
High Court of Gujarat, affirming the order dated February 3, 2009 passed
by the City Civil Court (in Civil Misc. Application Nos. 470 of 2008 and
630 of 2008). The City Civil Court set aside the order dated May 23,
2008, passed by the Charity Commissioner. The said adjudication was made
by the Charity Commissioner pursuant to the order passed by this Court in
Vinod Kumar Mathurseva Malvia & Anr. v. Maganlal Mangaldas Gameti and Ors., 2006 9 SCC 282 (being Civil Appeal No. 1260 of 2006, arising out
of SLP (Civil) No. 24198 of 2005, decided on February 24, 2006) in an
earlier ancillary dispute wherein this Court directed the Charity
Commissioner to adjudicate on all questions pertaining to the merger of
trust and other pending disputes as expeditiously as possible. Thus, the
Charity Commissioner adjudicated on the objections against Change Report
Nos. 44 of 1981 and 665 of 1981.
(3.) The facts of the case briefly are as follows :
1. The facts of the present case are not much in dispute and the
background of the same lies with the facts in the matter adjudicated
by this Court in Church of North India v. Lavajibhai Ratanjibhai & Ors., 2005 10 SCC 760 (being Civil Appeal No. 9419 of 2003 as
decided on May 3, 2005), therefore, the detailed background of the
parties and the organizations involved has not been mentioned and
only the facts pertinent to the dispute in question are stated.
2. The abovementioned Change Reports were filed by First District Church
of the Brethren (hereinafter referred to as 'the FDCB') a registered
religious society under the Societies Registration Act, 1860
(hereinafter referred to as 'the SR Act') bearing Registration No.
1202/44 and later registered as public trust in Gujarat bearing No.E-
643/Bharuch, after the enactment of the Bombay Public Trusts Act,
1950 (hereinafter referred to as 'the BPTA') property of which is
vested with its 'Property Committee' and the Church of North India
(hereinafter referred to as 'the CNI'), Gujarat Diocese. The CNI is a
public trust registered by an application accepted on May 12, 1970
with effect of registration being given from 1971 and the trust being
formed on November 29, 1970 with Registration No. D-17/Ahmedabad.
3. These Change Reports were filed to give effect to the unification of
six churches which included the FDCB, an offshoot of the 'Brethren
Church' of USA (other Churches being The Council of the Baptist
Churches in North India, The Church of India, Pakistan, Burma and
Ceylon, The Methodist Church (British and Australian Conference), The
Methodist Church in Southern Asia and The United Church of Northern
India) into a single entity, 'The Church of North India' (with the
Gujarat Chapter being managed by the Church of North India, Gujarat,
Diocese).
4. This unification is the result of a process which commenced from
1929. The negotiation meetings commenced from 1955 onwards which had
representatives from the uniting churches who discussed every aspect
of the emerging entity. A result of which was the Plan of Church
Union in 1965 called the 4th Revised Edition in the form of a printed
booklet published by the Negotiating Committee and widely circulated
and deliberated by the uniting Churches which adopted the same. The
plan traced the historic background leading to the creation of the
CNI and dealt with all aspects of the same. Part-II of the same
pertained to procedural details of the unification. The plan is a
result of the negotiations through various meetings convened in the
years 1955, 1956, 1957, 1961, 1964 and 1970. The Managing Committee
of the FDCB being the 'District Committee' initially participated in
these meetings as an observer, however, from 1956, it joined the
negotiation process. It is alleged that Resolution No. 70/08 was
passed on February, 17, 1970 pursuant to which the CNI was formed by
merging the six churches. FDCB being one of the six churches,
discussed the unification internally within its 21 Societies and put
the same to vote at different junctions and in the final decision,
the resolution was approved by 3/5th majority of the representatives
of the Governing Body. Allegedly, on November 29, 1970, the FDCB
merged with the other six churches to form CNI and accepted the same
as its legal continuation and successor and vested with the CNI its
rights, titles, claims and FDCB's interests together with its
privileges and obligations.
5. In 1976, the Church of North India Trust Association (hereinafter
referred to as 'the CNITA') was formed under the Indian Companies
Act, 1956 and appointed as the trustee of CNI. It has been alleged
that the annual meetings of the FDCB were discontinued post 1971.
That certain members which had earlier given consent to Resolution
70/08 began to raise objections that FDCB continued to exist.
Subsequently, the original plaintiff (Shri A.O. Patel) filed Civil
Suit No. 72 of 1979 in the Court of the Civil Judge, Senior Division,
Bharuch for a declaration that FDCB has come to an end and that CNI
is the legal successor and continuation of the same. During the
pendency of the suit, CNI got itself registered retrospectively and
Change Report Nos. 44/81 and 665/81 were filed before the Charity
Commissioner to give effect to the changes resulting the unification.
The aforementioned suit, after an appeal before the District Judge,
Bharuch went before the Gujarat High Court as Second Appeal No. 303
of 1986, the same was dismissed and the matter came up before this
Court as Church of North India v. Lavajibhai Ratanjibhai & Ors.
(In Civil Appeal No. 9419 of 2003, decided on May 3, 2005).
Therein, the question which arose before this Court was: whether
Section 80 of the BPTA imposes a bar on the jurisdiction of the Civil
Court.
6. The present dispute, however, arises from objections arising out of
the adjudication by the Charity Commissioner dated May 23, 2008
regarding Change Report Nos. 44/81 and 665/81. The same proceeding
commenced post the direction of this Court in Vinod Kumar Mathurseva
Malvia & Anr. v. Maganlal Mangaldas Gameti & Ors. (Being
Civil Appeal No. 1260 of 2006, decided on February 24, 2006). The
same arose out of orders dated October 6, 2005 and October 10, 2005,
passed in First Appeal No. 988 of 2005 by the High Court of Gujarat
with regard to a trust application appointing a new trustee. The
matter before this Court was regarding the interpretation and
application of Clause 9 of the scheme of Church of Brethren General
Board. This Court referred to the earlier Church of North India v.
Lavajibhai Ratanjibhai & Ors. decision of this Court
applicable to the same set of facts and thereby directed the
concerned Charity Commissioner to adjudicate on all pending disputes.
7. The Charity Commissioner adjudicated on the disputes arising out of
the Change Report Nos. 44/81 and 665/81. The former was filed by Shri
A.O. Patel being the Reporting Trustee of the Brethren Trust
concerned with the dissolution of the constitution of the Brethren
Trust with its "Memorandum of Association" becoming "obsolete" and
ineffective (It should be noted that Shri A.O. Patel had died during
the pendency of the proceedings and appellant Nos. 1 and 2 were
joined in his place). The latter report was filed by CNI, Gujarat
Diocese Trust which requests for the change, that as the CNI Trust
has become the legal continuation and successor of the Brethren
Trust, its concerned movable and immovable property must be added to
CNI's properties. The Change Reports were objected by Shri Nityanand
Thakore and other objectors filed similar objection applications.
These persons along with the respondents in this dispute being Shri
Shantilal Thakore and Shri Maganlal M. Gameti had earlier given
consent to the unification proceeding. The Charity Commissioner thus
adjudicated on the following questions:-
i) Whether the change is legal
ii) Whether the said Change Reports or any of the Change Reports
are liable to be allowed
The Charity Commissioner answered both in affirmative and dismissed the
objections raised against the Change Reports, allowing the properties
vested in FDCB to be vested in CNI.
8. Against the abovementioned order of the Charity Commissioner,
the objectors to the Change Reports preferred Civil Miscellaneous
Application Nos. 470 of 2008 and 630 of 2008 before the City Civil
Court, Ahmedabad under Section 72 of the BPTA. The applications were
filed, alleging that there was no lawful merger of the Trust and the
property vested with the Property Committee continued to exist with
it. The questions which arose before the learned City Civil Judge are
as under:-
i) Whether the Society is dissolved and secondly, whether the
Trust, i.e., FDCB is also dissolved
ii) Whether CNI is successor of the Trust, i.e., FDCB
iii) Whether by mere merger of FDCB into various other Churches,
the properties are by rules and regulations of the Society
ipso facto vested in CNI, without having to perform any other
legal obligation or formality
9. The learned Civil Court Judge, after analyzing the various aspects of
the BPTA and the SR Act, was of the opinion that the FDCB had not been
dissolved as there was no proper proof of the same. Furthermore, as a
trust and society are creations of statutes, they must be dissolved
accordingly and the question of merger is a factual one, wherein the
merging trust continues to exist unless specifically dissolved under the
statute. Furthermore, without following Section 50A of the BPTA which
deals with the dissolution of trust, the FDCB property cannot be vested
with CNI. Thus, the learned Civil Court Judge quashed and set aside the
order of the Charity Commissioner.
10. The appellants (wherein appellant No.1 was one of the respondents in
the above suit) preferred First Appeal Nos. 1535 of 2009 and 1536 of
2009 before the High Court of Gujarat. The basic issue before the
learned Single Judge was to determine whether the CNI is the successor
and legal continuation of FDCB or not. The learned Single Judge while
adjudicating the same, referred to the earlier decisions of this Court
in the same factual matrix and based on the earlier findings, dismissed
the appeals and confirmed the order of the Civil Court.
11. It is from this order of the High Court the matter rests before us.;