TMI Blog1980 (7) TMI 13X X X X Extracts X X X X X X X X Extracts X X X X ..... e expiry of that period, the petitioner sought for a renewal by an application dated April 17, 1974. There was a new incumbent as Commissioner and he refused the renewal by an order dated May 25, 1974. That order was not a speaking one and was challenged before this court in W. P. No. 2684 of 1974. The order of the Commissioner was set aside by this court with a direction to decide the question afresh in accordance with law. Thereafter the Commissioner issued a notice formulating the grounds on which he considered that the petitioner was not entitled to a certificate and the petitioner was asked to show cause why the recognition should not be refused. The notice issued by the Commissioner was dated November 4, 1974, and an exhaustive reply was filed on behalf the petitioner and arguments were also advanced before him in support of the contentions put forth. But the Commissioner refused to grant a certificate by his order dated March 15, 1975, which is marked as Ex. G to the writ petition. It is contended by Sri Santhosh Hegde, learned counsel for the petitioner, that the order of the Commissioner is vitiated as it is based on a wrong approach and untenable construction of the re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (vii) To take over as going institution, the Ecumenical Christian Centre, Bangalore, presently functioning as an unregistered society along with its functions, activities, responsibilities, commitments, assets and liabilities and any other matter incidental thereof. (viii) To purchase, take on lease or in exchange, hire or otherwise acquire, any real or personal property or any rights or privileges, which the company may think necessary or convenient for the purpose of its business and in particular any lands, buildings or easements. (ix) To invest and deal with the moneys of the company not immediately required upon such real properties, preference shares and debentures and in such manner as may from time to time be determined. (x) To carry on any other business which may seem to the company capable of being conveniently carried on in connection with the above or calculated directly or indirectly to enhance the value of or render profitable any of the properties or rights of the company." He also referred to the provision in cl. 4 of the memorandum of association. The petitioner, as stated earlier, sent an exhaustive reply. The licence that was granted under s. 25( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ustified. Reference had been made by the petitioner, in particular, to the licence that had been granted under s. 25 of the Companies Act. The Commissioner ignored that circumstance altogether, observing that merely because a permission had been granted under s. 25 of the Companies Act, it did not ipso facto mean that the objects of the company were of a charitable nature. This observation cannot be accepted as quite accurate or correct. The licence would be granted under s. 25 of the Companies Act only if the company was promoted with the objects of the nature specified in s. 25 and it intended to apply its profit or other income in promoting those objects and payment of any dividend to its members was prohibited. This is a relevant circumstance to be taken into consideration as another branch of the Government would have applied its mind in regard to the objects of the company and the purpose for which it was being promoted. It appears to me, therefore, that the initial approach made by the Commissioner to the problem was defective. The contention on behalf the petitioner was that cl. 3A(i) of the memorandum of association defined its main object and the other provisions we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... " had been used. One of the judges, justice Beg, was of the opinion that the use of that expression was only a camouflage and the only object was of a commercial nature. Mr. Justice Khanna and Justice Gupta delivered a separate judgment. They were also unable to uphold the contention on behalf of the trust that its main object was education. After discussing what education would comprise, the learned judges stated thus (p. 241): " What education connotes in that clause is the process of training and developing the knowledge, skill, mind and character of students by normal schooling." Justice Beg stated as follows (p. 258): " Although the term 'education', as used in section 2(15) of the Act, seems wider and more comprehensive than education through educational institutions, such as universities, whose income is given an exemption from income-tax separately under section 10(22) provided the educational institution concerned does not exist for purposes of profit, yet it seems to me that the educational effects of a newspaper or publishing business are only indirect, problematical, and quite incidental so that, without imposing any condition or qualification upon the nature of i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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