Rajasthan Public Trust Act | If Registration Of Public Trust Is Challenged In Appeal, It Becomes Necessary And Proper Party To Proceedings: HC

Rajasthan High Court has set aside the order of the Commissioner, Devasthan Department, Udaipur (“Commissioner”) that rejected the application for impleadment of a public trust in an appeal filed for quashing the order vide which the registration of the trust was allowed, ruling that the trust was a necessary and property party for adjudication of the appeal.

“…when the respondents no. 3 and 4 have themselves filed the appeal for quashing of the order dated 29.12.2023 (Annex.3) passed by the Assistant Commissioner whereby the application filed by the petitioner for registration of the Public Trust was allowed, the Public Trust indeed is a necessary and proper party for the adjudication of the appeal.”

Furthermore, the bench of Justice Nupur Bhati rejected the argument to the effect that since the Assistance Commissioner had merely allowed the application vide a finding under Section 19 of the Rajasthan Public Trust Act, 1950 (“the Act”) for registration of the Public Trust without actually making the entries as per Section 21 of the Act, the Public Trust could not be considered to be registered and thus could not be impleaded as a party.

The Petitioner had submitted an application for registration of a Public trust which was allowed by the Assistant Commissioner. Against this order of the Assistant Commissioner, the respondents had filed an appeal in which the Public Trust was not made a party. Hence, the Petitioner had filed an application under Order 1, Rule 10 of CPC for impleadment of the Public Trust which was rejected. Against this rejection, the writ petition was moved before the Court.

It was the case of the Petitioner that since the Assistant Commissioner had allowed the application filed by the petitioner for registration, the Public Trust had become a distinct juristic entity which was necessary to the dispute. It was argued that stipulation under Section 21 was merely a procedural aspect while the substantial law was provided in Section 19.

On the contrary, the respondents submitted that the Assistant Commissioner had merely allowed the application under Section 19 of the Act without making entries as per Section 21 of the Act, which made the registration ineffective. Hence, the Public Trust could not be impleaded as a party in light of Section 29 of the Act which barred an unregistered Public Trust from filing a suit to enforce its rights.

After hearing the contentions, the Court rejected the arguments put forth by the respondents and held that,

“upon perusal of Section 21, this Court finds that the assistant commissioner is required to make entry in the register in accordance with the findings recorded by him under Section 19 of the Act of 1950 or in case an appeal is filed before the Commissioner while invoking Section 20 of the Act of 1950, then in accordance with the decision of the commissioner in such appeal.”

It observed that in the present case, since the appeal was still pending, there was no occasion to record entries in the register.

Furthermore, the Court opined that the bar envisaged under Section 29 was in relation to a suit, however, the present application for impleadment was for an appeal filed against the order that allowed the application for registration of the Public Trust. Hence, it was observed that when the respondents had challenged the registration itself by filing the appeal, the Public Trust was a necessary and proper party as per Order 1, Rule 10 of CPC, for adjudication of the same.

The court also highlighted that the petitioner was also made a party in his personal capacity and not as a Management Trustee of the Public Trust, hence, if the Trust was not impleaded as a party, it would go unrepresented before the appellate authority which might seriously prejudice its right if the appeal was allowed.

In this background, the writ petition was allowed.

Title: Ambalal Dhakad v Assistant Commissioner, Devasthan Department & Ors.

Citation: 2024 LiveLaw (Raj) 415

Click Here To Read/Download Order