A Waqf is created for the purpose of providing medical education to poor Muslim children. But the Mutawalli used the funds for constructing a new Mosque. What is the legal validity of the act done by Mutawalli?

Facts of the Case

A Waqf (endowment under Muslim Law) was created with the specific object of providing medical education to poor Muslim children. The donor (Waqif) clearly laid down this purpose in the deed of Waqf. However, the Mutawalli (manager or trustee of the Waqf property) diverted the funds meant for education to construct a new mosque instead. The dispute arises when beneficiaries challenge the action of the Mutawalli, claiming that he has acted beyond his powers and contrary to the intent of the Waqif. The question before the court is whether such diversion of Waqf funds for another religious purpose (construction of mosque) is legally valid under Muslim law.

Issues in the Case

1. Whether the Mutawalli has the legal authority to divert the income or funds of a Waqf to a purpose different from that specified by the Waqif (creator of Waqf)?
2. Can the construction of a mosque be treated as equivalent or alternative to the educational purpose stated in the Waqf deed?
3. What are the powers and limitations of a Mutawalli under the Waqf Act, 1995 and Muslim law principles?
4. Whether the act of the Mutawalli amounts to misappropriation or breach of trust under Islamic jurisprudence?

Legal Principles Covered to Support Case Proceedings and Judgements

1. Definition and Nature of Waqf:
   Under Section 3(r) of the Waqf Act, 1995, a Waqf is a permanent dedication of movable or immovable property for purposes recognized by Muslim law as pious, religious, or charitable. Once created, the property vests in God, and the Mutawalli acts merely as a manager, not as an owner.
2. Powers of Mutawalli:
   A Mutawalli is a manager or superintendent, not a trustee in the English sense. He has the duty to administer the Waqf strictly according to the object laid down by the Waqif.
   • He cannot change the purpose of the Waqf or divert its income without legal sanction.
   • Case law: Abdul Rahim v. Narayan Das Aurora (1914) 41 IA 124 – the Privy Council held that a Mutawalli cannot alter the object of Waqf; doing so would be ultra vires (beyond his authority).
3. Doctrine of Cy-pres (as nearly as possible):
   Under this doctrine, if the original object of the Waqf fails or becomes impossible to achieve, the property may be applied to a similar charitable purpose, but only under the sanction of the court.
   • Hence, the Mutawalli cannot unilaterally apply funds to a new purpose like building a mosque.
   • The Waqf Board or a civil court must approve any alteration under Section 32(2)(h) of the Waqf Act, 1995.
4. Misuse of Waqf Property:
   Under Section 64(1)(g) of the Waqf Act, 1995, a Mutawalli can be removed for misapplication of Waqf funds or property for purposes other than those sanctioned by the Waqf deed.
   His act of diverting funds for the construction of a mosque, without authority, amounts to breach of trust and misfeasance.
5. Relevant Case Laws:
   • Abdul Rahim v. Narayan Das Aurora (1914) 41 IA 124
   • Ali Ahmad v. Mst. Akhtar Begum, AIR 1954 All 145
   • Board of Muslim Wakfs v. Radha Kishan, AIR 1979 SC 289 – reiterated that the Mutawalli’s function is managerial and he cannot act contrary to the object of Waqf.

Possible Judgement

The act of the Mutawalli in diverting Waqf funds from the purpose of medical education for poor Muslim children to the construction of a mosque is illegal and invalid under Muslim law and the Waqf Act, 1995.

The court would likely hold that:

1. The Mutawalli exceeded his authority, as he has no power to alter or substitute the purpose of the Waqf.
2. The object of Waqf must be strictly followed as per the intention of the Waqif.
3. The act amounts to misapplication of Waqf property, attracting action under Section 64 of the Waqf Act, 1995.
4. The court may order the removal of the Mutawalli, direct recovery of misused funds, and appoint a new Mutawalli or supervision by the Waqf Board to ensure proper use of the endowment.

Judicial Outcome:

• The Mutawalli’s act is void and contrary to law.
• The funds must be restored and applied for the original educational purpose.
• The Mutawalli may be removed from office for misfeasance and breach of trust.

Mnemonic to Remember — “MUTAWALLI RULE: FEDS”

• F – Follow the Waqif’s intention strictly.
• E – Education fund cannot be diverted.
• D – Doctrine of Cy-pres applies only with court sanction.
• S – Misuse = Suspension or removal under Section 64 of Waqf Act.

Summary:
A Mutawalli acts merely as a manager and cannot alter or divert Waqf funds for purposes other than what the Waqif intended. Using money meant for educational aid to construct a mosque is unauthorized and void, and the Mutawalli is liable for removal and restitution under the Waqf Act, 1995.

About lawgnan:

Understand the legal duties and powers of a Mutawalli under the Waqf Act, 1995 at Lawgnan.in. Explore how the law safeguards the intent of the Waqif and prohibits misuse or diversion of Waqf funds for unauthorized purposes. Learn about key case laws like Abdul Rahim v. Narayan Das Aurora (1914) and Board of Muslim Wakfs v. Radha Kishan (1979) that define the scope and accountability of Mutawallis. Lawgnan provides expert insights into Muslim endowment law, ensuring transparency, compliance, and justice in the management of charitable Waqf properties across India.