A.P. Charitable and Hindu Religious Institutions and Endowments Act, 1987 — Section 17 — Founder family — Status and locus standi
Where the petitioner was already recognised as a member of the founder family and was holding office as Chairman/Trustee under subsisting Government Orders which were neither cancelled nor superseded, he continues to have locus standi to challenge subsequent Government Orders affecting such status.
(Paras 46–55, 58–59, 69–71, 92–95)
Endowments Register — Section 38 of Act 17 of 1966 / Section 43 of Act 30 of 1987 — Binding effect
Entries in the Endowments Register recognising the founder and the line of succession continue to operate by virtue of Section 155(2)(a) of Act 30 of 1987 until modified, cancelled or superseded in accordance with law.
(Paras 57–59, 65–69)
Abolition of hereditary trusteeship — Section 16 — Effect
Abolition of hereditary trusteeship under Section 16 does not obliterate the statutory concept of founder or member of the founder family under Section 17, nor does it nullify observance of established usage, custom and wishes of the founder recognised earlier by competent authority.
(Paras 72–76, 80–83)
Section 17 — Explanation II — Agnatic line of succession — Order of preference
Explanation II to Section 17(1) mandates recognition of members of the founder family in agnatic line of succession, giving preference to children over grandchildren; recognition arises only when vacancy occurs and plurality of founder family members is not contemplated when a recognised member is already in office.
(Paras 77–79, 105–109)
Appointment of trustees — Mandatory procedure — Section 17(3) and Rules, 1987
Recognition of founder family members and appointment as trustees must follow the mandatory procedure of calling for applications, verification of antecedents and scrutiny under Section 17(3) and the A.P. Charitable and Hindu Religious Institutions and Endowments Appointment of Trustees Rules, 1987; deviation vitiates the appointment.
(Paras 110–114)
Chairman of Trust Board — Rotation — No statutory sanction
Appointment or replacement of Chairman on a “rotation basis” is not contemplated under Act 30 of 1987; invocation of a concept omitted from the present Act amounts to impermissible exercise of power.
(Paras 118–123)
Removal / replacement of Chairman — Natural justice
Where a serving Chairman/Trustee from the founder family is replaced without notice and opportunity of hearing, such action violates principles of natural justice and causes prejudice.
(Paras 126–131)
Hindu Succession Act — Inapplicability
Reference to Section 6 of the Hindu Succession Act, 1956 for recognising founder family members or appointing trustees under Act 30 of 1987 is misconceived; trusteeship is not coparcenary property.
(Paras 98–104)
Judicial review — Colourable exercise of power
Government Orders issued to accommodate a particular individual, ignoring statutory provisions, procedure, usage and without valid reasons, constitute colourable exercise of power, arbitrariness and abuse of authority, warranting interference under Article 226.
(Paras 143–144)
Alternative remedy — Section 87 — No bar
Availability of remedy before Endowments Tribunal under Section 87 does not bar writ jurisdiction where impugned Government Orders suffer from patent illegality, arbitrariness and violation of natural justice.
(Paras 145–149)
Relief — Restoration of prior status
Setting aside illegal Government Orders revives and restores earlier valid Government Orders recognising and appointing the petitioner as Chairman/Trustee of the Temple Trust and Chairman of MANSAS Trust.
(Paras 152–154)
ANALYSIS (PARA-WISE SYNTHESIS)
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Status and locus of petitioner (Paras 46–55, 92–95)
The Court found that the petitioner was continuously recognised as a founder family member and Chairman under valid, subsisting G.Os., conferring unquestionable locus standi. -
Effect of abolition of hereditary trusteeship (Paras 72–83)
Section 16 abolishes hereditary trusteeship prospectively but does not extinguish the statutory recognition of founder family members under Section 17. -
Statutory scheme of Sections 15, 17 and 22 (Paras 77–79, 105–109)
Appointment arises only upon vacancy; Explanation II mandates order of preference in agnatic line; plurality of founder family members is impermissible. -
Procedural illegality (Paras 110–114)
Mandatory procedure for appointment and recognition was wholly bypassed, rendering the impugned G.Os. void. -
Rotation without statutory backing (Paras 118–123)
Rotation, omitted from Act 30 of 1987, cannot be reintroduced by executive action. -
Violation of natural justice (Paras 126–131)
Removal of the petitioner without notice or hearing was illegal and prejudicial. -
Misplaced reliance on Hindu Succession Act (Paras 98–104)
Trusteeship was erroneously equated with coparcenary property. -
Colourable exercise and arbitrariness (Paras 143–144)
The Court concluded that the impugned G.Os. were issued only to accommodate respondent No.4. -
Maintainability of writ petitions (Paras 145–149)
Given the patent illegality, writ jurisdiction was rightly invoked. -
Final relief (Paras 152–154)
All impugned G.Os. were set aside; petitioner’s prior appointments were restored; W.P. No.6857 of 2020 was dismissed.
RATIO DECIDENDI
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Recognition as a founder family member under Section 17 of Act 30 of 1987, once validly granted and not superseded, continues to confer locus and statutory protection.
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Abolition of hereditary trusteeship does not nullify observance of founder’s wishes, usage and custom recognised under the Endowments law.
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Recognition of founder family members and appointment of trustees must strictly follow the procedure prescribed under Section 17(3) and the Rules; deviation renders the action void.
-
Appointment or replacement of Chairman/Trustee on a “rotation basis” has no sanction under Act 30 of 1987.
-
Replacement of a serving Chairman/Trustee without notice and hearing violates principles of natural justice.
-
Trusteeship under the Endowments Act is not governed by the Hindu Succession Act; reliance on Section 6 thereof is legally untenable.
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Government Orders issued to favour a particular individual, ignoring statutory mandates, amount to colourable exercise of power and are liable to be quashed under Article 226.
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