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  • S. 53 Cl. 4 of Act I of 1925, the first Hindu Religions Endowments Act
  • S. 8 (f) of the Madras General Clauses Act
  • Act of 1925 is S. 7 (2).
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Citation Codes
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citation codes
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  • S. 53 Cl. 4 of Act I of 1925, the first Hindu Religions Endowments Act
  • S. 8 (f) of the Madras General Clauses Act
  • Act of 1925 is S. 7 (2).
Smart Summary

Factual and Procedural Background

These proceedings arise from three applications by the Hindu Religious Endowments Board under S. 53 Cl. 4 of the Hindu Religious Endowments Act, 1925 (Act I of 1925), for modification of schemes of administration settled by Civil Courts in respect of three temples. The applications were filed on 3 January 1927 while Act I of 1925 remained in force. The counter-petitioners opposed those applications. The learned District Judge dismissed the applications on a preliminary legal point: that S. 53(4) would not apply to schemes settled by Courts before the Act and would apply only to schemes settled after the Act. In support of that conclusion the District Judge relied on an observation in Chinnan v. Sundaresa (1). The Board appealed to this Court; the appellate court examined the scope of S. 53 Cl. 4 and S. 71 of the 1925 Act, the effect of the subsequent Act II of 1927 (which repealed Act I of 1925), and whether pending applications filed under the earlier Act could be continued after the new Act came into force. The lower Court's order was ultimately set aside and the petitions were remitted to the District Court for disposal according to law; costs were awarded to the petitioner in the three petitions.

Legal Issues Presented

  1. Whether S. 53 Cl. 4 of the Hindu Religious Endowments Act, 1925 (read with S. 71 of that Act) permits the Court to modify or cancel schemes of administration which were settled by Civil Courts prior to the Act (i.e., whether applications under S.53(4) lie in respect of pre-Act schemes).
  2. Whether proceedings (applications) validly begun under Act I of 1925 before its repeal may be continued after the coming into force of Act II of 1927, notwithstanding that the corresponding provision in the 1927 Act (S. 57 (4) corresponding to S. 53(4)) requires modification or cancellation of certain schemes to be obtained by suit rather than by application.
  3. Whether S. 71 of the 1925 Act or the 1927 Act operates to validate or cure potentially ultra vires provisions in schemes previously settled by Civil Courts.

Arguments of the Parties

Appellant's Arguments (as reflected in the opinion)

  • The applications were legally competent when presented on 3 January 1927 under S. 53 Cl. 4 of the 1925 Act and should be heard and decided on that basis.
  • S. 71 of the 1925 Act deems schemes settled under S. 92 of the Civil Procedure Code to be schemes settled under the Act and therefore capable of modification or cancellation by the procedure in the Act (S. 53), which includes applications.
  • The subsequent Act (Act II of 1927) and its provisions requiring proceedings to be begun by suit do not make it illegal to continue applications already validly instituted under the earlier Act; S. 7(2) of the 1927 Act permits continuation of proceedings taken under the earlier Act insofar as they are not inconsistent with the new Act.
  • It is unnecessary to convert the pending applications into suits or to pay additional court-fees; the applications should be adjudicated on the footing that they were validly presented and were improperly dismissed by the lower court.

Respondents' Arguments

  • The District Judge relied upon an observation in Chinnan v. Sundaresa to hold that S. 53(4) does not apply to schemes settled by Courts before the Act and therefore the applications should not lie in respect of pre-Act schemes.
  • Even if the applications were competent when filed (3 January 1927), their continuance became incompetent upon the coming into force of Act II of 1927 (19 January 1927) because the corresponding provision in the new Act (S. 57 (4)) mandates that schemes deemed under S. 75 be modified or cancelled only by suit and not by application.
  • The respondents invoked S. 8(f) of the Madras General Clauses Act and S. 4 (contrary intention) to argue that the repealing Act expresses a contrary intention, so the ordinary rule allowing continuation of pending proceedings should not apply; accordingly, continuing the old applications would be contrary to S. 57 (4) of the 1927 Act.
  • Respondents also sought to raise a point that one of the reliefs claimed in the petition might not be available in the present proceedings (the opinion notes this issue was not pursued before this Court and may be raised below).

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Chinnan v. Sundaresa (1) Contains an observation to the effect that the scheme under consideration was of an earlier date than the Act of 1927 and therefore S. 75 of the 1927 Act (corresponding to S. 71 of the 1925 Act) does not apply to that scheme. The Court held that Chinnan v. Sundaresa was not a decision on the precise point relied on; the observation identified was not a binding decision and the Court disagreed with the District Judge's reliance on it. The Court explained that S. 53 Cl. 4 and S. 71 of the 1925 Act do permit modification of schemes settled earlier by Civil Courts.

Court's Reasoning and Analysis

The Court analyzed two central clusters of questions: (1) whether S. 53 Cl. 4 of the 1925 Act applies to schemes settled by Civil Courts before the Act, and (2) whether applications filed under the 1925 Act could be continued after Act II of 1927 changed the procedure for modification from application to suit.

On the first question the Court found that the District Judge's preliminary objection — that S. 53(4) will not lie in respect of schemes settled by Courts before the Act — was not sustainable. The Court observed that S. 53 Cl. 4 explicitly refers to "any scheme of administration which under S. 71 is deemed to be a scheme settled under the Act" and authorizes the Court to modify or cancel "all such schemes" on the application of the Board. S. 71 provides that schemes settled under S. 92 of the Civil Procedure Code shall be deemed to be schemes settled under the Act and may be modified or cancelled in the manner provided by the Act (i.e., by the procedure in S. 53). The Court explained that the reference in S. 71 to schemes settled under S. 92 can only apply to schemes settled before the Act because S. 69(2) of the Act prohibits future suits under S. 92 for matters relating to management of religious endowments. Construing S. 71 otherwise would defeat the object of the Act by permitting continued litigation under S. 92, which the Act sought to prevent. Consequently, the objection relied on by the District Judge (and his reliance on the observation in Chinnan) did not stand.

On the second question (continuance after repeal and enactment of Act II of 1927), the Court addressed the respondents' contention that S. 57(4) of the 1927 Act (corresponding to S. 53(4) of the earlier Act) requires modification of schemes deemed under S. 75 to be obtained only by suit and so pending applications became incompetent after the new Act. The respondents invoked the Madras General Clauses Act (S. 8(f) and S. 4) to argue that a contrary intention in the repealing Act prevented continuation. The Court rejected this submission as a misapprehension: S. 75 of the 1927 Act was not intended to operate retrospectively and applies only to proceedings taken after it came into force. The Court emphasized that S. 7(2) of the 1927 Act expressly allows continuance of proceedings taken under the earlier Act insofar as they are not inconsistent with the new Act. There was nothing in S. 57(4) inconsistent with continuation of applications already presented, because S. 75 only prescribes the mode of beginning proceedings after the new Act. Therefore, ordinary rules governing repealing legislation and the express saving in S. 7(2) support continuation of the pending applications. The Court concluded it was unnecessary to convert the pending applications into suits or to impose further court-fees; the applications should be heard on the footing that they were validly presented and were improperly dismissed by the lower Court.

Holding and Implications

Holding: The order of the lower Court was set aside and the petitions were remitted to the District Court for disposal according to law. The petitioner (Hindu Religious Endowments Board) was awarded costs in the three petitions.

Implications:

  • The Court held that S. 53 Cl. 4 of the 1925 Act, read with S. 71, permits modification or cancellation by application of schemes of administration that were settled by Civil Courts before the Act, notwithstanding the observation in Chinnan v. Sundaresa relied upon by the District Judge.
  • Proceedings (applications) validly instituted under the 1925 Act before the coming into force of Act II of 1927 may be continued after the new Act, insofar as continuation is not inconsistent with the 1927 Act; it is unnecessary to convert such pending applications into suits solely because the new Act prescribes starting new proceedings by suit.
  • The direct effect is to restore the three applications for modification to the District Court for adjudication; no conversion into suits or additional court-fees were directed by this Court.
  • The opinion does not purport to lay down a broader novel precedent beyond the application of the cited statutory provisions to the facts before the Court; its outcome addresses the immediate parties and the disposition of the three petitions.

Order: N. R. R. — Order set aside.

    M. Chengayya Pantulu, Commissioner Representing The Board Of Commissioners For Hindu Religious Endowments, Madras Petitioner In All (Petitioner). v. Medarametla Kotayya And Others S (S).

    These petitions by the Hindu Religious Endowments Board arise from applications under S. 53 Cl. 4 of Act I of 1925, the first Hindu Religions Endowments Act which was afterwards repealed by Act II of 1927. The applications were severally for the modification of schemes which had been settled in respect of three temples by the Civil Courts and were made on the 3rd January, 1927 when the first Act was still in force. They were opposed by the counter petitioners concerned and were dismissed by the learned District Judge on a preliminary point. That point is that applications under S. 53 (4) will not lie in respect of schemes settled by Courts before the Act and will lie only in respect of schemes settled subsequently. For this opinion the learned Judge relied on a decision of Sreenivasa Ayyangar, J., in Chinnan v. Sundaresa (1). That was not a decision on this point, although there is an observation to the effect that the scheme under consideration in that case was an earlier date than the Act of 1927 and therefore S. 75 of that Act corresponding to S. 71 of the Act of 1925 does not apply to the schema. The matter before the learned judge arose out of an application before the Subordinate Judge of Cuddalore made under ‘the liberty to apply’ clause in a scheme which had been framed and the Subordinate Judge in that application removed the petitioner, trustee. The trustee brought up the matter to this Court and submitted that the ‘liberty to apply’ clause in pursuance of which proceedings had originated against him was itself ultra vires and his dismissal was therefore illegal. With this argument the learned judge concurred. It was then argued for the other side that under the Religious Endowments Act, which had been enacted while the proceedings against the petitioner were pending, whatever may have been the inherent fault of schemes passed before the Act they had all been cured and validated by S. 71 of the Act of 1925, corresponding to S. 75 of the Act of 1927. The true answer to this, I venture to think, was that the Religious Endowments Act did not purport to do anything of the kind. All that the above section meant was that schemes passed by the Civil Court before the Act must be deemed to have been passed under the Act. Mark why. In order that they may be dealt with under the Act—inter alia under S. 53 of the Act of 1925 (S. 57 of the Act of 1927). There was no question of validation or invalidation of any clause or provision in any scheme which was ultra vires of the Court. But the answer given by the learned Judge was that S. 75 of the Act of 1927 applied only to schemes settled after that Act. I cannot convince myself that the above observation was the result of a deliberate opinion. In any case I am not able to agree with it. Ss. 53 Cl. 4 and 71 of the Act of 1925 are clear and explicit. S. 53 Cl. 4 refers inter alia to any scheme of administration which under S. 71 is deemed to be a scheme settled under the Act; and it says that all such schemes may be modified or cancelled by the Court on the application of the Board. S. 71 says that “where the administration of a religious endowment is governed by any scheme settled under S. 92 of the Code of Civil Procedure such scheme shall be deemed to be a scheme settled under this Act, and such scheme may be modified or cancelled in the manner provided by this Act”; in other words may be modified or cancelled by the procedure laid down in S. 53. The reference in S. 71 to schemes settled under S. 92 can apply only to schemes settled before the Act for the reason that under S. 69 (2) of the Act future suits under S. 92, Civil Procedure Code, axe prohibited and that section is to have no application to any suit claiming any relief in respect of the administration or management of a religious endowment and no such suits can be brought except under the Act. Therefore the schemes settled by Courts under S. 92 referred to in the section must be only those which had been already settled. To construe the section otherwise would be to stultify the beneficent effect of the scheme of the Act, by making it possible for the very thing to be done which the Act was intended to prevent, viz., unending litigation about the management of religious endowments. I have no hesitation in thinking that the objection by which the learned District Judge thought himself bound does not exist.

    Another point raised in this Court for the respondents is that although these applications may have been competent at the time when they were presented, i. e., on the 3rd January 1927, yet as soon as the Act II of 1927 was passed, i. e., on the 19th January 1927, their continuance became incompetent because in the corresponding section in the new Act, viz., S. 57 (4) it is provided that schemes of administration which under S. 75 are deemed to be schemes settled under the Act, i. e., schemes settled by a Court under S. 92, must be modified or cancelled only by suit and not otherwise, instead of by application as was provided in S. 53 (4) of the earlier Act. The learned Judge himself was not inclined to accede to this objection, because he thought that there was nothing under the Act of 1927 to prevent the old applications being continued if necessary by payment of additional court-fees.

    The respondents' learned advocate canvassed this opinion of the learned Judge and says that after the new Act it would be illegal to continue the old applications. The argument is as follows:—No doubt S. 8 (f) of the Madras General Clauses Act says that a repealing Act shall not affect any legal proceeding in respect of any rights etc. acquired beforehand and that such legal proceeding may be continued as if the repealing Act had not been passed. But this is subject, according to S. 4, to there being nothing in the repealing Act to express a contrary intention. There is a contrary intention expressed in the Religious Endowments Act of 1927 to the effect that modifications and cancellation of schemes of administration can only take place by suit and not otherwise. Therefore to allow the old applications to continue is contrary to S. 57 (4). The whole of this argument is based upon a misapprehension because S. 75 of the Act of 1927 was certainly not intended to be retrospective and can apply only to proceedings taken after it came into force. It is one thing to say that under the Act of 1927 the modification of a scheme can be obtained only by a suit. It is another thing to say that by reason of “that section it is illegal to continue applications which had already been legally filed. The only provision in the Act of 1927 about continuation of proceedings begun under the Act of 1925 is S. 7 (2). It says that all proceedings taken under the earlier Act may be continued after that Act in so far as they are not inconsistent with the provisions of this Act. There is nothing in S. 57 (4) which is inconsistent with continuing the application presented already because as already said all that S. 75 says is that after the new Act the proceedings for modification must be begun by way of suit. There being nothing in the Act which expresses any contrary intention, the ordinary rule of interpreting repealing legislation holds especially in view of S. 7 (2). The learned Judge's view on this point was right. But it is necessary to point out that it is not necessary to convert these applications into suits; nor as far as I can see is there any question of Court-fees. The applications must be heard and decided on the footing that they were validly presented and that they have been improperly dismissed.

    The respondents' advocate wanted to raise a question that one of the reliefs claimed in the petition was not available in these proceedings. That does not now arise and may be raised before the lower Court.

    The order of the lower Court is set aside and the petitions sent back to the District Court for disposal according to law. The petitioner will have his costs in the three petitions.

    N. R. R.Order set aside.

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    Comments

    M. Chengayya Pantulu... v. Medarametla Kotayya ...
    (Aug 18, 1932)