CHARITY COMMISSIONER THE Vs. HARIDAS NARANDAS

JUDGEMENT

(1.) This appeal is preferred by the Charity Commissioner Gujarat State against the order passed by the Assistant Judge Jamnagar in Civil Misc. Application No. 2/62 of his file dismissing his application under sec. 55(2) of the Bombay Public Trusts Act 1950

(2.) Short facts of the case are that the respondents are the trustees of the public trust known as Shri Dwarka Gaushala Dwarka Trust (hereinafter referred to as the Trust). The main object of the trust is to maintain Gaushala for blind maimed old crippled and such other types of cattle including cows and bullocks as well as to maintain animals which could not be maintained by their owners.

(3.) From the statement of accounts maintained by the said trust for S. Y. 2012 the concerned Deputy Charity Commissioner found that there was an accumulation of liquid assets and felt that the said accumulated surplus should be utilised by applying the principle of cy pres. Thereafter correspondence between the Deputy Charity Commissioner and the trustees of the trust started in this regard. It is not necessary for the purpose of this appeal to refer to this correspondence in details. It would however be necessary to state that as a result of this correspondence the matter remained unsettled. Ultimately the Charity Commissioner by his order dated 19th September 1959 decided that a notice under sec. 55 of the Bombay Public Trusts Act 1950 should be issued to the trustees of the trust requiring them to seek directions of the court in the matter for the utilisation of the accumulated surplus to the extent of liquid and readily available funds amounting to Rs. 22897/plus securities of face value of Rs. 3 0 The trustees did not care to reply to this notice with the result that on 4th June 1960 the Charity Commissioner addressed a reminder. In reply to that the trustees addressed a letter dated 7th June 1960 giving details of accumulated surplus and stating that the actual cash on hand and in bank was to the extent of Rs. 10 459.73 only and that if the said amount were to be utilised by applying the doctrine of cy press then nothing would remain on hand to meet the expenses of Gaushala. Thereafter some negotiations took place between the parties during the course of which the trustees are said to have agreed to utilise the amount of Rs. 9 0 out of the accumulated surplus for the advancement of education. However this alleged settlement did not come into effect and ultimately the trustees by their letter Ex. 40 dated 10th September 1960 stated that the original object of the trust had not failed and that there was no settlement for the utilisation of the amount of Rs. 9 0 for the advancement of education. They however admitted that at the relevant time the accumulated surplus was to the tune of Rs. 20 0 but contended that the same was absolutely necessary for their institution to meet the contingencies in famine years for purchasing fodder for cattle.