Abid Hatim
Merchant . Vs. Janab Salebhai Saheb Shaifuddin & Ors [2000] INSC 39 (3 February 2000)
U.C.Banerjee,
A.P.Misra
BANERJEE,J.
L.I.T.J
The issue before the Court in this Civil Appeal against the judgment of the
Bombay High Court is rather short, to wit, whether the avowed object with which
Sir Adamji Peerbhoy the great Philanthropist founded the trust for Dawoodi Bohra
Community in 1883 A.D. needs a change of object under Cypres doctrine having regard
to consititutional parameters so as to make the Trust truly secular in nature
since the situation of the early 19th century may not suit the purpose in the
21st century. The respondent Trust contended that the preamble to the
Constitution itself declares India to be secular and as such what was possible
in 1883 may not be proper and in line with lofty ideas of our Constitution
since the constitutional mandate is to be obeyed in its observance rather than
in its breach and it is this concept which is said to have prompted the
Trustees of Sir Adamji Peerbhoy Sanatorium Trust to move the City Civil Court
for variation and amendment to the scheme of the Trust as sanctioned by the
Court in 1931.
Incidentally,
be it noted that the expression Cy-pres in common English acceptation means and
implies as near as possible (to testators or donors intentions when these
cannot be precisely followed).
In Halsburys
Laws of England (4th Ed. Vol.5B) cy pres doctrine has been referred to as
below: The cy-pres doctrine: Where a clear charitable intention is expressed,
it will not be permitted to fail because the mode, if specified, cannot be
executed, but the law will substitute another mode cy-pres, that is, as near as
possible to the mode specified by the donor.
An
application cy-pres results from the exercise of the courts ordinary
jurisdiction to administer a charitable trust of which the particular mode of
application has not been defined by the donor. Where he has in fact prescribed
a particular mode of application and that mode is incapable of being performed,
but he had a charitable intention which transcended the particular mode of
application prescribed, the court, in the exercise of this jurisdiction, can
carry out the charitable intention as though the particular direction had not
been expressed at all.
The
primary rule to be observed in the application of the cy-pres doctrine is that
the donors intention must be observed as far as possible. Thus, if the donor
names a particular object which is capable of taking effect, any application
cy-pres that becomes necessary must be restricted within the limits of that
object, and the mode of application must as far as possible coincide with his
wishes.
A
charity may by cy-pres to the original object even though it seems to have no
trace of resemblance to it, if no other can be found which has a nearer
connection, but objects nearer the donors intention will always be selected in
preference to those more remote.
The
doctrine of Cy-pres as noticed by this Court in Ratilal vs. State of Bombay
(AIR 1954 SC 388) and as developed by the Equity Courts in England stands adopted by our Indian Courts
since a long time past. B.K.
Mukherjea,J.
(As His Lordship then was) speaking on behalf of Bench stated:- When the
particular purpose for which a charitable trust is created fails or by reason
of certain circumstances the trust cannot be carried into effect either in
whole or in part, or where there is a surplus left after exhausting the
purposes specified by the settler the court would not when there is a general
charitable intention expressed by the settler, allow the trust to fail but
would execute it cy pres, that is to say, in some way as nearly as possible to
that which the author of the trust intended.
In
such cases, it cannot be disputed that the court can frame a scheme and give
suitable directions regarding the objects upon which the trust money can be
spent.
Subsequently,
this Court in N.S. Rajabathar Mudaliar vs. M.S. Vadivelu Mudaliar and Ors.
(1970 (1) SCC 12) observed:
The
cy-pres doctrine applies where a charitable trust is initially impossible or
impracticable and the Court applies the property cy-pres, viz., to some other
charities as nearly as possible, resembling the original trust.
Having
dealt with the situation for the applicability of the doctrine cy- pres and
before adverting further in the matter, however, certain factual details ought
to be noticed at this juncture. The records depict that the Collector of Bombay
on 8th May, 1886 as per the request of Sir Adamji Peerbhoy
granted lease of a plot of land at Queens Road, Bombay for a period of 99 years commencing
from July, 1884.
The
lease deed itself contained an option to the lessees to renew the lease for a
further period of 99 years. A social benefactor, as Sir Adamji was, however,
used the land for the purpose of a mosque and also constructed a building
having three wings for charitable purposes. Incidentally, Sir Adamji after his
death was buried within the compound of leasehold land whereupon a tomb was
erected. Records further depict that on September 22, 1927, a suit was filed
(Suit No.960 of 1927) in the High Court at Bombay, for declaration that the
entire property cannot but be dealt with as a trust property and the High Court
in June, 1931 passed a decree by way of a sanctioned scheme and the Trust since
then came to be known as Sir Adamji Peerbhoy Sanatorium Trust. It appears that
in 1944, the third wing or wing C of the property was requisitioned under the Defence
of India Rules, 1935 for Polish Red Cross Hospital and after the departure of
the Polish Red Cross Hospital, a Society called Saifee Hospital Society came to
be registered with an object to give medical help to the members of the Dawoodi
Bohra Community and started running a hospital in wing C with however, the
infra structural facility, available through purchase, as was existing with the
Polish Red Cross Hospital. It is since then the hospital is being run till this
day by the Saifee Hospital Society and later registered as Saifee Hospital
Trust on and since Ist January, 1973. On records therefore we do find at this
juncture the existence of Sir Adamji Peerbhoy Sanatorium Trust as also the Saifee
Hospital Trust. Needless to record here that all proper authorisations from the
appropriate statutory agencies were obtained to run the hospital by the Saifee
Hospital Trust. The establishment of Saifee Hospital Trust, however begins the
era of litigation: Application before the court wherein change of objects and
also sanctions were sought on the ground that what was possible a century ago
cannot possibly be restricted in the manner as it was and Saifee Hospital Trust
is rather firm in its conviction that in 21st century question of restricting a
super speciality hospital to a particular community of a particular religion
may not sub-serve the need of the hour and call of the day for the country. The
Saifee Hospital Trust has been contending that the constitutional parameters
cannot but be adopted so as to make it a true secular State, as professed in
the Constitution. Cypres doctrine for the change of objects was sought and such
a change was granted.
The
matter went from court to court without however any variation in favour of the
change of objects. The High Court in no uncertain terms recorded that the
judgment of the learned Judge of the City Civil Court does not warrant any interference on any of the findings
and as such dismissed the appeal. Before coming to the findings of the City
Civil Court be it noted that during the course of the hearing of the appeal before
the High Court several civil miscellaneous applications came up for hearing and
in one such application the High Court observed as below:- It is quite obvious
from the character of this litigation that the appellants do not desire to
allow it to be concluded and this is just one more ploy at a hopelessly late
stage to have the entire proceedings reopened before the Trial Court were
asking for an additional issue which inevitably means additional evidence etc.
This is one of the litigations where every conceivable aspect of the matter has
not only been agitated by the parties but has already been decided by the Trial
Court. After hearing this appeal on merits for a considerable period of time,
we are of the view that it is impermissible to grant this application.
The
Civil application accordingly fails and stands dismissed.
Coming
back to the findings of the Court on the Cypres issue, records depict that by a
judgment and order dated 5th
August, 1991 the Bombay City Civil Court granted the application filed for
variation and amendment to the scheme of Adamji Peerbhoy Sanatorium Trust
framed in terms of the order of the High Court in 1931 as noticed above. The
appellant herein however, by reason of being aggrieved moved the High Court in
First Appeal bearing No.1078 of 1991 but the same was summarily rejected and
subsequently Letters Patent Appeal came to be filed before the High Court and
the same was also rejected as noticed above and hence this Special Leave
Petition against the order of rejection of the Letters Patent appeal, before
this Court. After considerable hearing of the matter we also had a feeling that
the appellant is not very keen to have the proceedings concluded at this
juncture. But our apprehensions were allayed by the learned Advocate appearing
in support of the appeal when certain proposals were considered to be otherwise
reasonable and as a matter of fact this Court records its appreciation for all
round efforts of the learned Advocates appearing for the parties including that
of the added respondent, namely, the Jamat in coming to a very reasonable
amicable solution as detailed hereinbelow and in this subsequent factual
backdrop, we are thus not called upon to embark upon an enquiry as to
applicability of the Cypres doctrine in the contextual facts.
Incidentally,
the State Government being a primary party in the matter of resolution of
disputes by reason of the lease spoken of earlier, this Court thought it fit to
issue notice to the State Government and the State Government as per the directive
of this court did make certain submissions which we will immediately refer to hereinbelow,
but before so doing the agreed minutes of the Order are placed below:-
1. The
Orders of the City Civil Court at Bombay in Charity Application No.18 of 1976 dated
5.8.1991 and 22.10.1991 as modified by the Order of the Bombay High Court dated
15.7.93 in Letters Patent Appeal No.103 of 1991 are confirmed save and except
as modified by the following directions: 2. 30 (Thirty) beds in the proposed Saifee
Hospital shall be reserved for treatment of members of the Dawoodi Bohra
Community free of charge (inclusive of 20 beds as provided in the Order of the
City Civil Court, Bombay mentioned above). Such beds and treatment to be
provided to economically needy Dawoodi Bohras regardless of whether they have
taken the Oath of Allegiance (Misaq) or not, and regardless of whether they
have been excommunicated or not.
The
criterion of economic need shall be as determined by the Maharashtra Government
for other charitable hospitals from time to time. 3. Wings A and B of the Adamji
Peerbhoy Sanatorium Trust property shall not be demolished unless and until a
sum of Rs.1 crore (inclusive of Rs.50 lakhs ordered by the City Civil Court at
Bombay) is deposited by the Trustees of Saifee Hospital Trust in a separate
Bank Account to be opened for this purpose. The utilisation of the said sum of
Rs.1 crore shall be in accordance with the Orders referred to in Clause 1
above. It is placed on record that a sum of Rs. 1 crore has already been
deposited by the Saifee Hospital Trust on 23rd November, 1999.
4. The
Trustees of Saifee Hospital Trust undertake to this Court and are accordingly
directed to complete the construction of the Sanatorium Wing of the proposed
building of minimum built-up area of 16,000 square feet within five years from
the date of commencement of demolition of Wings A and B of the Adamji Peerbhoy
Sanatorium Trust property. The plans annexed to the Affidavit of Mudrekabhai Saheb
T.
Zakiuddin
dated 8.10.1997 at Volume XIV pages 2237 to 2262 filed in this Court shall be
amended to bring the entrance of the Sanatorium Wing to the front of the
building facing Maharishi Karve Marg. The cost of the construction of the
Sanatorium Wing of the proposed building with the minimum built up area of
16,000 square feet and within the time frame as indicated above shall be borne
by the Saifee Hospital Trust. The Trust would also furnish the Sanatorium fully
so as to make it a comfortable living and resting place for the Musafirs. It is
further clarified that the entire maintenance of the Sanatorium as also Dargah
and the open space shall be effected by the Saifee Hospital Trust in the same
way and manner as of the Hospital. 5. The open area adjacent to the Mosque and Dargah
in the Adamji Peerbhoy Sanatorium Trust property which is shown in green colour
in the plan annexed to the Affidavit of Respondent No.11 dated 8.10.1997 at
page 2253 of Volume XIV filed herein shall be used exclusively for the purposes
of the Mosque and shall always be available to the Mosque for the use of
devotees. 6. Upon completion of the project, an openable gate shall be placed
on the East and West sides of the newly constructed property for the purpose of
distinguishing separately the areas of the Sanatorium, Mosque and Dargah from
the area of the Hospital. These gates which shall ordinarily be kept locked
shall be designed and placed in a manner so as to facilitate without any
obstruction the entry, exit, passage and movement during emergencies of fire
brigade vehicles, ambulances and hearses around the property. The gates however
shall be under the care and custody of the Saifee Hospital Trust but a set of
duplicate keys would be kept with the Caretaker of the Sanitorium for use
during any emergency. It is made clear that in the normal course of events,
locking arrangement and opening and closure of the gates shall be with the Saifee
Hospital Trust excepting however in emergencies as noted above. 7. The gates
and entrances to the Sanatorium and Mosque portions of the building shall bear
only the name of Sir Adamji Peerbhoy Sanatorium and/or Sir Adamji Peerbhoy
Sanatorium Trust. The gates and entrances to the Hospital portion of the
building will bear the name of Saifee Hospital and/or Saifee Hospital Trust on the
gate posts, and the name of Sir Adamji Peerbhoy Sanatorium and/or Sir Adamji Peerbhoy
Sanatorium Trust on the opposite gate posts in letters of equal size and
prominence. If the name of Saifee Hospital or Saifee Hospital Trust is put up
on any exterior surface of the Hospital Wing then the name of Sir Adamji Peerbhoy
Sanatorium Trust shall be placed alongside the same or one after the other with
due regard to the Aesthetics of the Building with equal size and prominence. 8.
It is placed on record that the State Government is otherwise prepared to renew
the lease but by reason of the fact that the State Government is not a party to
these agreed minutes.
The
details and particulars in regard thereto would appear herein below under the
head directions. 9. The Trustees of Saifee Hospital Trust undertake that the
entire ground rent for the Adamji Peerbhoy Sanatorium Trust property will be
paid by the Saifee Hospital Trust for and on behalf of Sir Adamji Peerbhoy
Sanatorium Trust. However, in the event of non-payment of such a rent for a
period of three months the State Government being the lessor will intimate Sir Adamji
Peerbhoy Sanatorium Trust and called the latter to pay the arrears within
further period of three months together with the current rate of rents and in
the event, however, there is any failure to pay on the part of Sir Adamji Peerbhoy
Sanatorium Trust, however, within the period, as aforesaid, the property lease
deed shall stand automatically terminated and the land and constructions
thereon shall stand vested on to the State Government excepting however, the
area for the Dargah and Mosque and the open land adjacent thereto as earmarked
in the plan. In the event, however, on payment by Sir Adamji Peerbhoy
Sanatorium Trust by reason of the default of the Hospital Trust, the property
shall stand vested on to Sir Adamji Peerbhoy Sanatorium Trust. The forfeiture
as above, on both counts however shall be subject to the existing law as
regards the relief against forfeiture. 10. Save and except the modifications in
the Scheme of the Adamji Peerboy Sanatorium Trust as granted by the City Civil
Court at Bombay in its order dated 5.8.1991, the original Scheme of the Trust
as settled by the Bombay High Court in 1931 stands confirmed and thus shall
remain operative and in force in all other respects. 11. The confirmation of
Orders as above of the City
Civil Court at Bombay and the High Court of Judicature at
Bombay by this Court are however without
prejudice to the right of the parties to adopt such remedies as are available
in law against the concerned Trustees for any malfeasance or misfeasance. 12.
All contentions other than those expressly decided by the City Civil Court and High Court and as dealt with
hereinbefore in this order by this Court are kept open.
As noticed
above the State Government not being a party in regard to amicable resolution
of disputes between the two trusts, but since the presence of the State
Government being otherwise necessary due notice was issued to the State
Government and upon hearing Mr. Mohta, learned Senior Advocate appearing for
the State of Maharashtra and regard being had to the affidavit filed in support
thereof, we do feel it expedient to issue the following directives to the State
Government. These directions are however in addition to the agreed terms as
noticed and not in derogation therewith. Incidentally, be it noted that the
directives are however in conformity with the Affidavit filed by Shri Jagdish Kashinath
Gharat, Under Secretary to Government of Maharashtra, Revenue and Forest
Department and affirmed on 10th January, 2000. The directives are as below:- (i) The orders given under the
Government Memorandum No.S- 30/91/211923 CR No.46/J-2, dated 28.2.94 for
renewal of lease of the said land in favour of the Trust stands cancelled by
this Order. (ii) The Policy laid down under Government Resolution No.LND
1085/134222 CR No.184/J-2, dated 5.10.99 for renewal of the expired Government
lease from Greater Bombay is made applicable in this matter as a Special Case
and the lease is being renewed from the date 1.7.83 to 31.12.98 in favour of
Sir Adamji Peerbhoy Trust.
The
ground rent at the rate of 1% on the 50% concessional value of the value
calculated as per the market value prevailing at the time of expiry of the
lease i.e. on the date 1.7.83 shall be charged at the time of the renewal.
(iii)
The lease of the said land shall be renewed for the further period of 30 years
from the date 1.1.1999 and for that purpose, the ground rent at the rate of 1%
on the amount arrived at after calculating 50% concessional value of the land
at the market rate prevailing on the date 1.1.99 shall be charged as the said
land would be used for hospital/religious purpose. (iv) The ground rent rate
shall be hiked by 10% after every 10 years. (v) On the expiry of 30 years
period of the lease, the period thereof shall be extended and the lease be
renewed at the option of the lessee and in the event of failure to exercise the
option above on the part of the concerned Trust (Sir Adamji Peerbhoy Sanatorium
Trust) the Sub- lessee (as is spoken of hereinbelow) would have the right to
renew the lease and be treated for all intents and purposes the lessee of the
land though however, upon receipt of information pertaining to failure to renew
the lease sofar as Sir Adamji Peerbhoy Sanatorium Trust is concerned. Further
renewal also shall be on the same terms and conditions as regards the quantum
of rent to be fixed in the light of the market rate then prevailing on the
respective dates of future renewal. (vi) The State Government is hereby
directed to accord permission to use the land for Saifee Hospital and also for
the Sanatorium in terms of wishes and desires of Sir Adamji in the building of
the Trust as well as to sub-lease the land under the said building to Saifee
Hospital Trust. (vii) The documentation of the said lease shall be prepared by
the Government Solicitor and Joint Secretary, Law and Judiciary Department and
the cost incurred therefor shall be borne by the Lessee or the Sub-lessee.
(viii) 25 beds shall be reserved for Government employees in the Hospital of Saifee Hospital Trust. (ix) Sir Adamji Peerbhoy Trust and Saifee Hospital
shall take precaution, while carrying out new construction for the Hospital, to
see that no, let or hindrance is caused to the religious place as well as the
graveyard located there. (x) While renewing the lease of Sir Adamji Peerbhoy
Sanatorium Trust due regard be had to the covenant, provisions and stipulations
as are available in the lease deed of 1888 excepting, however, the rate of rent
as mentioned hereinbefore. The appeal and other miscellaneous applications
stands disposed of on the basis of the Agreed Minutes and the directions on to
the State of Maharashtra as above with due reservation of right as noticed
hereinabove. We once again do record our appreciation for the efforts made by
the learned Advocates appearing for the parties herein including Shri V.A. Mohta,
learned Senior Advocate appearing for the State of Maharashtra, for the
assistance rendered in resolution of disputes between the parties in the manner
as above. We do feel it fit and proper to record that needful should be done to
see that the solemn objects with which Sir Adamji Peerbhoy Sanatorium Trust was
created are respected and in the same way the requirements of the Hospital also
be met on essential terms, on the expectation of which this order is passed as
above. Parties are directed to bear their own costs.
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