ivil Appeal No 13 of 1958
Appeal by special leave from the judgment and order dated June 29 1954 of the former Nagpur High Court in Misc
Civil Case No 219 of 1952
R Ganapathy Iyer and D Gupta for the appellant
M C Setalvad Attorney General for India K G Chondke J B Dadachanji and K K Raizada for the respondents
I N Shroff for the Intervener State of Madhya Pradesh
April 21
The Judgment of the Court was delivered by DAS C J
This is an appeal by special leave against the order of the High Court of Judicature at Nagpur dated June 29 1954 answering against the 704 appellant certain questions referred to it by the Board of Revenue under section 231 of the Central Provinces  Berar Sales Tax Act 1947 hereinafter referred to as the Act
The reference arose out of an order of assessment made on the respondent for  payment of sales tax for the period June 1 1947 to November 12 1947 on a taxable turnover of Rs 30067 9 0
The facts leading up to the present appeal may shortly be stated as follows
The respondent deals in matchwood called  sawar  Bombay Malabaricum
His place of business is situate at Chanda in the erstwhile Central Provinces
In January 1948 the respondent entered into an agreement with the Western India Match Co Ltd which is popularly known and will hereinafter be referred to as  WIMCO  for the supply of a minimum quantity of 2500 tons of sawar logs during the season 1947 48
This agreement is evidenced by WIMCO s letter dated January 7 1948 accepting and confirming it
Unfortunately that letter although a part of the record has not been printed in the Paper Book
It is common ground however that the agreement of sale was subject to the conditions appearing in a formal contract in writing dated March 2 1945 which is said to have been renewed from year to year
It appears that prior to the execution of the last mentioned contract there was another contract between the respondent and WIMCO which was dated October 18 1940
Evidently that contract was superseded by the later one of March 2 1945 the terms and conditions whereof were renewed year after year
It is therefore not easily intelligible why both the contracts were filed before the Sales Tax authorities and actually mentioned in the first question that was referred to the Hight Court
Both the contracts have been printed in the Paper Book and reference has been made to some of the terms of both of them in the course of the arguments before us
The reason for referring to the terms of the earlier contract is presumably to emphasise the variation in the language used in the corresponding provisions of the later contract as indicative of a definite change in the intention of the parties
It is therefore 705 as well that the relevant clauses of both the contracts should be set out here for properly following the arguments advanced on both sides
Reference may first be made to the earlier contract dated October 18 1940
Clause I sets out the specifications that is to say the dimensions and quality of the logs to be delivered under the contract which need not be reproduced here
The other material clauses omitting the unnecessary portions thereof may now be set out  2
The Contractor agrees that any logs supplied by him which do not conform with the specification herein shall not be accepted or paid for by the company and he the contractor undertakes to remove all logs so rejected at his own expense from the Company s premises within fifteen days after date of notice to him or his representative from the Company so to remove such logs
Should the Contractor fail to ie move such logs from the Company s premises within the period stipulated it is hereby mutually agreed that such failure shall be construed as being the Contractor s consent to relinquish all claims whatsoever to such rejected logs and the Contractor agrees to such logs thereupon becoming the property of the company and that the contractor shall have no claim whatsoever upon the company for payment either in respect of the supply by him of such rejected logs or arising out of the disposal by the Company of such logs  3
The said goods shall be delivered at Ambernath in the quantities and at the times hereinafter mentioned ie  4
The goods to be supplied under this Contract shall be despatched by the Contractor from Railway Stations on the BNR and GIPR Sections between the following Stations   5
Measurements The goods under this contract shall be measured under the supervision of the 89 706 Company s Factory Manager at Ambernath on arrival of the goods at the Factory in accordance with the following stipulations The Contractor agrees to accept the decision of the Company s Factory Manager at Ambernath as final and binding
 The prices of the logs to be supplied are set out in cl 6 of the contract as FOR Ambernath 
We now pass on to the later contract of March 2 1945
Clause 1 sets out the specifications of the logs to be supplied under the contract in exactly the same language as in el
I of the earlier contract
The other material clauses again omitting the unnecessary portions are as follows  2
The contractor agrees that any logs supplied by him which on arrival at Ambernath are found in the opinion of the Company s Factory Manager not to conform with the specifications herein shall not be accepted or paid for by the Company notwithstanding the fact that such logs may have been accepted by the Company s representatives before being railed to Ambernath
 It may be mentioned here that Ambernath is a place situate in the erstwhile province of Bombay and outside the Central Provinces
The goods to be supplied under this contract shall be despatched by the Contractor from railway stations on the B N Railway N section Railway and G 1
P Railway sections between the following stations
It is unnecessary to set out the names of the stations which it may however be stated are all in the erstwhile Central Provinces
Clause 6 provides 6
Measurements The goods under this contract shall be measured under the supervision of the Company s representative in accordance with the following stipulations 707 The contractor agrees to accept the decision of the Company s Factory Manager at Ambernath as final and binding
 The prices of the logs to be supplied under the contract are specified as  FOR Ambernath  in cl 7 which concludes with the following sentence  The money so due and payable shall be paid by the Company to the Contractor when the measurements of the goods have been completed under the supervision of the Company s representative Pursuant to the agreement between the respondent and WIMCO the former loaded diverse quantities of Sawar logs on railway wagons and despatched the same by railway from Chanda or other railway stations in the Central Provinces to Ambernath in the erstwhile province of Bombay and outside the Central Provinces
It is not disputed that on many occasions the representative of WIMCO was present at the railway station when the logs were sorted out and loaded into the wagons
The statement of the case submitted along with the reference under section 231 of the Act is silent on the point as to whether the railway receipts were made out with WIMCO as the consignee but it is abundantly clear from the order of the Assistant Commissioner Sales Tax which is part of the record and it has not been disputed before us that  the railway receipt which is a document of title according to section 24 of the Indian is taken in the name of the consignee
 The course of dealings between the parties also appears to be that on arrival of the logs at Ambernath the consignee buyer WIMCO paid the railway freight and the logs were inspected and measured by WIMCO s Factory Manager and the prices calculated at the agreed rates were paid to the respondent s agent at Bombay
There is no doubt that the price of the logs supplied by the respondent to WIMCO under the agreement and accepted by the latter during the period in question amounted to Rs 30067 9 0
The question for our 708 decision is whether the respondent is liable to pay any sales tax under the Act
It will be convenient at this stage to refer to the relevant provisions of law applicable to the facts of this case
Section 4 of that Act is the charging section
According to this section safes tax is payable  on all sales effected after the commencement of the Act  Sale  is defined by section 2g of the Act
At the relevant period that section omitting Explanation 1 which is not material for our purpose ran as follows  Sale  with all its grammatical variations and cognate expressions means any transfer of property in goods for cash or deferred payment or other valuable consideration including a transfer of property in goods made in course of the execution of a contract but does not include a mortgage hypothecation charge or pledge
          Explanation II Notwithstanding anything to the contrary in the Indian  the sale of any goods which are actually in the Central Provinces and Berar at the time when the contract of sale as defined in that Act in respect thereof is made shall wherever the said contract of sale is made be deemed for the purpose of this Act to have taken place in the Central Provinces and Berar
 The Act being a piece of legislation enacted by the legislature of the erstwhile Province of Central Provinces and Berar its operation is limited to the territories of that province
Therefore the question arises Does the sum of Rs 30067 9 0 represent the prices of logs sold by the respondent within the Central Provinces  Sale being the transfer of property in the goods agreed to be sold we have to enquire if the property in the goods which fetched the sale proceeds on which the sales tax is sought to be levied was transferred in the Central Provinces as contemplated in the main definition or if those goods were actually in the Central Provinces at the time when the contract for sale as defined in the in respect thereof was made as required by Explanation II set 709 out above
This takes us to the 
Section 4 of the is expressed in the words following 4
Sale and agreement to sell I A contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a price
There may be a contract of sale between one part owner and another
2 A contract of sale may be absolute or conditional
3 Where under a contract of sale the property in the goods is transferred from the seller to the buyer the contract is called a sale but where the transfer of the property in the goods is to take place at a future time or subject to some condition thereafter to be fulfilled the contract is called an agreement to sell
4 An agreement to sell becomes a sale when the time elapses or the conditions are fulfilled subject to which the property in the goods is to be transferred
 There can be no doubt that the agreement pursuant to which the logs were supplied by the respondent to WIMCO was an agreement to sell within the meaning of the above section
There is also no controversy between the parties that at the date when this agreement was entered into the logs were unascertained goods
The question is When did that agreement to sell unascertained goods become a sale and where did such sale take place  In other words when and where did the property in those goods pass from the respondent to WIMCO  The transfer of property in the goods as between the seller and buyer is dealt with in Ch
III of the 
Section 18 of the runs thus   18
Goods must be ascertained Where there is a contract for the sale of unascertained goods no property in the goods is transferred to the buyer unless and until the goods are ascertained
 Passing over sections 19 to 22 which except as to sub section
3 of section 19 apparently apply to contracts for the sale of 710 specific or ascertained goods we come to section 23 which provides   23
Sale of unascertained goods and appropriation  I Where there is a contract for the sale of unascertained or future goods by description and goods of that description and in a deliverable state are unconditionally appropriated to the contract either by the seller with the assent of the buyer or by the buyer with the assent of the seller the property in the goods thereupon passes to the buyer
Such assent may be expressed or implied and may be given either before or after the appropriation is made
2 Delivery to carrier Where in pursuance of the contract the seller delivers the goods to the buyer or to a carrier or other bailee whether named by the buyer or not for the purpose of transmission to the buyer and does not reserve the right of disposal he is deemed to have unconditionally appropriated the goods to the contract
 Reference may next be made to section 33 and section 391
Section 33 says  33
Delivery  Delivery of goods sold may be made by doing anything which the parties agreed shall be treated as delivery or which has the effect of putting the goods in the possession of the buyer or of any person authorised to hold them on his behalf Section 391 runs as follows  39
Delivery to carrier or wharfinger 1 Where in pursuance of a contract of sale the seller is authorised or required to send the goods to the buyer delivery of the goods to a carrier whether named by the buyer or not for the purpose of transmission to the buyer or delivery of the goods to wharfinger for safe custody is prima facie deemed to be delivery of the goods to the buyer
 Keeping the provisions of the above quoted sections of the two Acts in view we have to decide when and where the property in the logs passed from the respondent to WIMCO
The Assistant Commissioner of Sales Tax assessed the respondent to a tax of Rs 939 10 0 and imposed on the respondent a penalty of Rs 100 under section 25 of 711 the Act for not having submitted its return in contravention of r 19 of the Central Provinces and Berar Sales Tax Rules
The Assistant Commissioner took the view that the loading of the logs into the wagons at railway stations within the Central Provinces and the taking out of the railway receipts in the name of the consignee WIMCO and the delivery of the same to WIMCO had the effect of putting the latter in pos session of the goods as laid down in section 391 of the Indian and he accordingly held that the sale of the goods took place at Chanda and other railway stations in the Central Provinces and that the assessee was consequently liable to pay the sales tax under the Act
The respondent preferred an appeal to the Sales Tax Commissioner who upheld the Assistant Commissioner s order of assessment as well as of the penalty
He laid greater emphasis on Explanation II to section 2g of the Act as over riding the provisions of the Indian in respect of the transfer of property in the logs and held that as the  logs were in the Central Provinces at the date when the contract for sale was made the transfer in them must be deemed to have taken place there under that Explanation
He also agreed with the Assistant Commissioner that the delivery of the logs to the railway company and the sending of the documents of title to WIMCO had under section 391 of the  the effect of putting WIMCO in possession of the logs
The respondent preferred what in form appeared to be a second appeal to the Board of Revenue
As however there could be no second appeal under section 224 of the Act the Board treated the memorandum of appeal as an application for revision under sub section
5 of section 22 of the Act read with r 57
Both the members of the Board of Revenue came to the same conclusion namely that the sales were liable to assessment under the Act but the reasonings adopted by them were somewhat different
Shri Shrivastava a member of the Board of Revenue took the view that as soon as logs answering the description agreed upon were brought to the railhead at Chanda and sorted out and 712 loaded in the wagons in the presence of WIMCO s re presentatives there was an implied contract of sale of specific and ascertained goods as evidenced by the conduct of parties and the property in each consignment passed immediately from the respondent to WIMCO at the railway station in the Central Provinces where such implied contracts were made
The Chairman of the Board of Revenue however took the view that the contract of sale was made outside the Central Provinces namely in Bombay and that under the  the property in the logs passed to WIMCO in Ambernath outside the province but that as the logs were in the Central Provinces either in the form of logs or in the form immediately preceding namely trees standing on the land which had been impliedly agreed to be severed from the land before actual sale Explanation II to section 2g of the Act applied and the sale must accordingly be deemed to have taken place within the Central Provinces and must therefore be liable to sales tax under the Act
The Board rejected the application but remitted the penalty
On the application of the respondent under section 231 of the Act the Board of Revenue submitted to the High Court a statement of case raising the following questions  1 Did the agreements of the kind on record the one dated 18 10 40 and the other dated 2 3 45constitute contracts of sale either express or implied in respect of sawar wood supplied by the assessee to WIMCO 2 If the answer to question No I be in the affirmative did the contracts relate to specific or ascertained goods or to unascertained or future goods 3 Did the property in the goods pass to WIMCO by consignment simpliciter at different railway stations within this province or did it pass at Ambernath when the goods were approved as provided in the contract  4 Was reliance on the definition of I goods  contained in section 27 of the in order in applying Explanation II to section 2g of the Sales Tax 713 Act in cases where the goods sold were in the form of trees standing on the land in this province at the time of the contract of sale In its judgment dated June 29 1954 the High Court took the view that the sales in question did not take place in the Central Provinces and Berar and consequently were not  sales  within the meaning of the Act and therefore not liable to tax
It gave the following answers to the above questions  Our answers to the questions referred for decision are  1 The agreement in question was an express agreement to sell sawar logs to WIMCO
There was neither an express nor an implied contract each time goods were railed
2 The contract was not for delivery of specific goods but of unascertained or future goods by description
3 The property in the goods did not pass to the buyer by the delivery to the railway for carriage
It passed at Ambernath where the goods were appropriated by the buyer to the contract with the assent of the seller
4 The word  goods  in the definition of I sale in the Sales Tax Act must be interpreted according to its definition in section 2d of the Act and not according to the definition in section 27 of the 
The standing sawar trees are not goods within the meaning of the former Act
 The effect of the answers being to nullify the assessment order the Commissioner of Sales Tax has come up on appeal before us after obtaining special leave of this Court
The answers to the first two questions have not been questioned before us
The main arguments have centred round the answers to questions 3 and 4
The answer to question 3 turned on the construction placed by the High Court on section 23 of the 
After quoting section 23 the High Court observed as follows  After sorting the logs with the assent of the buyer s representative the applicant appropriated the 90 714 logs to the contract by railing them to the buyer s destination at Ambernath
The statement of the case is silent on the point whether the railway receipts were made out with the Company as the consignee
The assent of the representative was provisional and was not binding on the Company
Under the agreement it did not agree to unconditionally appropriate the logs to the contract as soon as they were delivered to the railway with the assent of its representative for carriage to Ambernath
It had expressly reserved its right to reject the goods on examination at Ambernath
The agreement therefore was that the buyer should with the assent of the seller appropriate the goods to the contract at Ambernath
The appropriation under section 23 was not complete till the goods reached Ambernath and were appropriated by the Company to the contract
The appropriation of the goods by the applicant at the railheads was conditional on their acceptance by the buyer at Ambernath
There is nothing in the statement of the case to show that the logs were not so appropriated
Therefore the property in the logs passed to the buyer at Amber nath The learned counsel for the department appearing in support of this appeal contends that property in the logs passed from the respondents to WIMCO under section 23 when sawar logs were brought to the railway station and loaded in the wagon and the railway receipts taken in the name of WIMCO were forwarded to the latter
There was an unconditional appropriation of the goods to the contract by the respondent
There was according to learned counsel assent on the part of WIMCO to this appropriation in two ways namely a expressly given by its representative who was present at the railway station and b impliedly given by WIMCO by having agreed in advance that the goods should be despatched by rail from the stations mentioned in cl 4 of the agreement all of which were situate in the Central Provinces
There is no doubt and indeed it has been categorically conceded by learned counsel for the department that the contract was for sale of unascertained goods and consequently the property in them could 715 not under section 18 pass unless and until the goods were ascertained
His contention is that logs of the contract quality and description having been unconditionally appropriated by the respondent to the contract without reserving to itself any right of disposal and WIMCO having expressly through its representative or impliedly by the very terms of the contract assented to such appropriation property in them passed under section 23 from the respondent to WIMCO at the railway stations within the Central Provinces as soon as the sawar logs were loaded on the wagons and the railway receipts were taken out in the name of WIMCO
It is said that so far as the respondent is concerned it unconditionally appropriated the logs to the contract
Seeing that they were actually accepted by WIMCO on their arrival at Ambernath it is quite clear that the logs were of the contract quality and description
The only question according to learned counsel for the department therefore is whether there was assent of WIMCO to such appropriation
It has been found as a fact that WIMCO s representative was not present on all occasions when sawar logs used to be loaded on the railway wagons
There is no evidence that he was actually present when these particular sawar logs with the sale proceeds of which we are concerned were put into the wagons
Nor is there an iota of evidence that the representative of WIMCO had any authority to
bind WIMCO by any assent
In view of these difficulties learned counsel for the department did not press the case of express assent of the representative of WIMCO and concentrated on the case of implied assent
It is quite clear from the language of section 23 itself that the appropriation may be by the seller with the assent of the buyer or by the buyer with the assent of the seller that assent to representation may be express or implied and that it may be given after the appropriation or in advance before such appropriation
Learned counsel for the department lays strong emphasis on the provision of cl 4 in the contract that the sawar logs should be despatched by rail from certain stations within the Central Provinces and contends that delivery by the seller of sawar logs of the contract quality and 716 description to the railways in terms of the contract without the reservation of any right of disposal has the effect of passing the property therein to WIMCO at the railway stations in the Central Provinces under section 23 as well as of constituting delivery of them at the railway stations under sections 33 and 391
The argument is prima facie sound unless there be some other provision in the contract to negative this conclusion e g that the logs must be carried to Ambernath and delivered there See The Badische Anilin and Soda Fabrik vs The Basle Chemical Works Bindschedler 1
Learned counsel for the department does not urge that if the matter had to be decided on the terms of the earlier contract dated October 18 1940 he could properly say that there was nothing in the contract negativing the idea of the passing of property in the logs within the Central Provinces
The cumulative effect of the provisions of el 2 that the property in the rejected logs would  pass to WIMCO upon the failure of the respondent to remove the same after rejection of el 3 that the goods shall be delivered at Ambernath in the presence of WIMCO s Factory Manager and of el 6 providing that the prices will be  FOR Ambernath  clearly militate against the theory of passing of property immediately on the goods being loaded into the wagons
While not contesting this learned counsel for the department urges that there is no such contrary intention indicated in the later contract of March 2 1945 which really governs the case
We are unable to accept this distinction as of any substance
It is true that in this later contract cl 2 is differently worded and there is no express provision that the goods should be delivered at Ambernath
There are nevertheless several other provisions in the later contract indicating that property in the logs loaded in the wagon will not pass to WIMCO until after the goods arrive at Ambernath and are inspected measured and accepted by WIMCO s Factory Manager
Clause 2 of the later contract quite clearly reserves the right of WIMCO to examine the goods on arrival and to reject the same if they are found in the opinion of its Factory Manager not to 1  717 conform with the specifications
This reservation which is made notwithstanding the fact that the logs may have been accepted by its representative before they were railed to Ambernath clearly indicates that the so called acceptance by the representative was not final but was entirely tentative and subject to approval of the logs by WIMCO s Factory Manager at Ambernath after their arrival
This circumstance certainly militates against the property in them having already passed to WIMCO at the railway stations in the Central Provinces
The provisions of cl 6 that the goods shall be measured under the supervision of WIMCO s representative the decision of its Factory Manager at Ambernath being binding on the respondent and of el 7 that the prices shall be  FOR Ambernath  and shall be payable after such measurement of the logs by WIMCO s representative further reinforce the conclusion that the intention of the parties was that property in the goods shall not pass until the logs arrive at Ambernath and are there inspected measured and accepted by WIMCO
In our judgment the prima facie case of what might have been the appropriation of the logs by the respondent by loading on the wagons logs of the contract quality and description with the assent of WIMCO given in advance by the terms of el 4 is effectively displaced by the provisions of cls 2 6 and 7 of the later contract which clearly indicate a contrary intention
On a proper construction of the contract as a whole the intention of the parties clearly was that the respondent would send the logs by rail from the different stations in the Central Provinces to Ambernath where WIMCO s Factory Manager would inspect measure and accept the same if in his opinion they were of the description and quality agreed upon
In other words the respondent sent the logs and left it to WIMCO to appropriate to the contract such of them as they accepted as of contract quality and description
The respondent therefore gave in advance its assent to WIMCO s appropriation of the goods at Ambernath
Therefore the decision of the High Court cannot be assailed but must be accepted as well founded in fact and in law
Learned counsel for the department then falls back 718 upon the Argument founded on Explanation II to section 2g and argues somewhat halfheartedly that notwithstanding the provisions of the regarding the passing of property in the goods the sale under consideration must be deemed in the light of that Explanation to have taken place within the Central Provinces
The question of the constitutional validity of that Explanation was not raised in the High Court and indeed in view of the decision of this Court in Poppatlal Shah vs State of Madras 1 and other  cases cannot now be raised and we must proceed on the footing that Explanation 11 did not transgress the legislative competency of the Legislature which enacted the same
It will be noticed that Explanation II can apply only if the goods  in respect of  which the contract of sale is entered into are at the date of such contract actually in the Central Provinces
Learned counsel for the department urges that the logs delivered must have been in existence in the Central Provinces either in the shape of logs or in the shape of standing timber
There is no evidence that at the date when the agreement for sale was made the particular logs delivered thereunder were in the Central Provinces in the shape of logs at all
Learned counsel says that at any rate they must have been in existence there in the shape of standing timber
Apart from anything else the agreement here was riot  in respect of  any standing timber and there was no provision in the agreement as between the respondent and WIMCO for severance of the standing timber before sale under that agreement
In order to attract Explanation II the goods in respect of which the contract of sale is made must at the date of the contract be in existence in the Central Provinces that is to say that the goods must at the date of the contract be there in the form in which they are agreed to be sold
There is not an iota of evidence on that point
In our judgment there is no force in this alternative argument
The result therefore is that this appeal is dismissed with costs
Appeal dismissed


Summary:
A deed of trust was executed by the respondent on March II 1938 when she was residing at D in the State of Bihar in respect of the properties described in the Schedules referred to in the deed some of which were situate outside the State of Bihar
In the trust deed she described herself as the settlor and it was recited therein that the settlor had installed a deity named Iswar Srigopal in her house and had since been regularly worshiping and performing the puja of the said deity and that she had been erecting a Nat Mandir to be named in memory of her deceased son
The recitals also showed that the settlor had provided for the construction of two temples jugal Mandir in one of which was to be installed the deity Srigopal and other deities and in the other the marble image of her preceptor and that the temple committee shall consist of the Jugal
Mandir shebait for the time being and six pious Hindus who must be residents
of D and of whom at least four shall be Begalis
One 76 602 of the clauses of the trust deed recited  The  pronamis  and perquisites to be offered to the deities and image in the jugal Mandir shall form part of the Srimati Charusila Trust Estate and neither the shebait nor any one else shall have interest or claim in or over same
 The provisions of the trust deed in regard to the ceremonials relating to free distribution of food and water and the festivals to be performed for the deity and the image which were well known festivals in which members of the Hindu Community usually take part contemplated that they were to be done on a large scale so as to enable a large number of persons to take part in them
There was also a provision in the trust deed for the establishment of a hospital for Hindu females and a charitable dispensary for patients of any religion or creed
After the coming into force of the Bihar Hindu Religious Trusts Act 1950 the President of Bihar State Board of Religious Trusts started proceedings under sections 59 and 70 Of the Act against the respondent in respect of the trust on the footing that it was a public trust to which the Act applied
The respondent made an application to the Patna High Court under article 226 of the Constitution in which she prayed that a writ or order be issued quashing the proceedings taken against her by the Bihar State Board of Religious Trusts on the grounds I that the trust deed dated March II 1938 was a private endowment created for the worship of a family idol in which the public were not interested 2 that the Act did not apply to private trusts 3 that the Act was ultra vires the Constitution by reason of the circumstance that its several provisions interfered with her rights as a citizen guaranteed under Part III of the Constitution and 4 that in any case the Act was not applicable to the trust deed in question as some of the properties were situate outside the State of Bihar
Held 1 that on its true construction the deed of trust dated March 11 1938 created a religious and charitable trust of a public nature
Deoki Nandan vs Murlidar   considered
In re Charusila Dasi ILR 1946 I Cal 473 explained
One of the relevant considerations as to whether the trust was a public trust will be if by the trust deed any right of worship has been given to the public or any section of the public answering a particular description
2 that the Act does not apply to private endowments
Mahant Ram Saroop Dasji vs section P Sahi 1959 SUPP
2 SCR 583 followed
3 that the provisions of the Act do not take away or abridge any of the rights conferred by Part III of the Constitution
Mahant Moti Das vs section P Sahi 1959 Supp 2 SCR 563 followed
603 4 that section 3 of the Act makes the Act applicable to all public religious and charitable institutions within the meaning of the definition clause in section 21 Of the Act which are situate in the State of Bihar and any part of the property of which is in that State
5 that where the trust is situate in Bihar the State has legislative power over it and also over its trustees or their servants and agents who must be in Bihar to administer the trust and as the object of the Act is to provide for the better administration of Hindu Religious Trusts in the State of Bihar and for the protection of properties appertaining thereto in respect of the property belonging to the trust outside the State the aim is sought to be achieved by exercising control over the trustees in Personam and there is really no question of the Act having extra territorial operation
6 that in the present case the circumstance that the temples where the deities were installed are situate in Bihar and that the hospital and charitable dispensary are to be established in Bihar for the benefit of the Hindu Public in Bihar gives enough territorial connection to enable the legislature of Bihar to make a law with respect to such
trust
Tata Iron  Steel Co Ltd vs State of Bihar 1958 SCR 1355 and The State of Bombay vs RMD Chamaybaugwala 1957 SCR 874 relied on
Saydar Gurdyal Singh vs The Rajah of Faridkote 1894 LR 21 IA I71 distinguished