DAGDU KHOMANE AND ANOTHER versus EKNATH BHIKU YADAV & ORS.

Citation: [2019] 13 S.C.R. 390 · Decided: 18-09-2019 · Supreme Court of India · Bench: R. BANUMATHI · Disposal: Dismissed

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Judgment (excerpt)

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SUPREME COURT REPORTS
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JANARDAN DAGDU KHOMANE AND ANOTHER
v.
EKNATH BHIKU YADAV & ORS.
(Civil Appeal No. 2607 of 2013)
SEPTEMBER 18, 2019
[R. BANUMATHI AND INDIRA BANERJEE, JJ.]
Bombay Tenancy and Agricultural Lands Act, 1948: ss. 88B
and 32 – Exemption from certain provisions to land of local
authorities, universities and trusts – On facts, land belonging to
the temple let out to respondents – On 1.04.1957, Tillers’ Day the
respondents-tenants in possession of the land became deemed
purchasers – On 08.08.1984, the temple trust was registered after
necessary inquiry – Thereafter, issuance of Exemption Certificate
by the Collector in terms of s. 88B in favour of the Trust,
notwithstanding the fact that the property belonged to “an institution
of public religious worship” – Writ petition challenging the
Exemption Certificate – Quashed by the High Court – On appeal,
held: Section 88 B exempts the land being the property of a Trust,
for inter alia public religious worship and/or educational and/or
social purpose from the vesting provisions – Trust, being a public
trust, was rightly registered on 8.8.1984, after due enquiry –
Registration is prospective, w.e.f. 8.8.1984 – Respondents became
deemed purchasers on Tillers’ Day-1.4.1957 – Right u/s. 32 accrued
to the respondents on that day and it cannot be divested of such
right upon subsequent registration of the Trust – Judgment passed
by the High Court upheld.
Dismissing the appeal, the Court
HELD : 1.1 Section 88B of the Bombay Tenancy and
Agricultural Lands Act, 1948 provides for exemption of land being
the property of a Trust, for inter alia public religious worship and/
or educational and/or social purpose from the vesting provisions.
[Para 23] [399-F]
1.2 The Bombay Public Trusts Act is intended to regulate
the administration of public religious and charitable trusts in the
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erstwhile State of Bombay, now the States of Maharashtra and
Gujarat, creates for the first time a unified special organization to
deal with charity matters. Trusts, long in existence, came to be
regulated by the Public Trusts Act. The Mahants, pujaris etc.
who administer properties of the deity as trustees, were brought
within the ambit of the Public Trusts Act. [Para 28–30] [400-E-H;
401-A]
1.3 In view of the definition of ‘Public Trust’ in the Public
Trusts Act, which also includes constructive trust either for a
public religious or charitable purpose, the absence of a deed of
trust would not make any difference to the position of the Trust
as a “public trust”. [Para 32] [401-C-D]
1.4 A constructive trust arises by operation of law, without
regard to the intention of the parties to create a trust. It does not
require a deed signifying the institution of trust. Under a
constructive trust, the trust arises by operation of law as from
the date of the circumstances which give rise to it. The function
of the court is only to declare that such a trust has arisen in the
past. Constructive trust can arise over a wide range of situations.
[Para 33–34] [401-E-F]
1.5 Section 90 of the Trusts Act states that if there is a
person in a fiduciary relation to another, he cannot take advantage
of that position so as to gain something exclusively for himself,
which he otherwise would not have obtained, but for the position
which he held. Section 94 of the Trusts Act, 1882 has allowed the
creation of a constructive trust when situations went beyond the
confines of the Act. Section 94 has later been repealed by the
Benami Transactions Prohibitions Act, 1988. The repeal of
Section 94 of the Act does not put any fetter in declaring a trust,
even if the situation falls outside the purview of the Act. Its
jurisdiction can be derived from Section 151 of CPC and Section
88 of the Indian Trusts Act. [Para 36, 37, 39] [402-E-F; 403-B]
1.6 There can be no doubt that the Trust was all along a
public trust within the meaning of Section 2(13) of the Bombay
Public Trusts Act. The Trust has rightly been registered under
the Public Trusts Act, after due enquiry. However, all public trusts
are not entitled, as of right, to the exemption under Section 88B
JANARDAN DAGDU KHOMANE v. EKNATH BHIKU YADAV
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of the 1948 Act. The said section only applies to lands which are
property of a trust inter alia for educational purpose or for public
religious purpose provided such trust is deemed to be regis

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