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 valldity of the act done by Mutawalli?

Facts of the Case

A Waqf was created by a Muslim donor (Waqif) with the specific objective of providing medical education to poor Muslim children. The Waqf deed clearly outlined this purpose and dedicated movable and immovable property for it. However, the Mutawalli (trustee or manager of the Waqf) used the funds and income of the Waqf for the construction of a new mosque instead of the intended educational purpose. The beneficiaries of the Waqf filed a complaint, challenging the action of the Mutawalli and claiming that he acted contrary to the purpose of the Waqf. The question arises whether the Mutawalli’s act is legally valid under Muslim law and the Waqf Act, 1995.

Issues in the Case

1. Whether the Mutawalli has the legal authority to divert Waqf funds from the designated purpose specified by the Waqif.
2. Can the construction of a mosque be considered a lawful alternative to the educational purpose of the Waqf?
3. What are the legal duties and limitations of a Mutawalli under Muslim law and the Waqf Act, 1995?
4. Whether such diversion of Waqf funds amounts to misappropriation or breach of trust.

Legal Principles Covered to Support Case Proceedings and Judgements

1. Nature of Waqf and Role of Mutawalli:
   • A Waqf is a permanent dedication of property for pious, religious, or charitable purposes under Muslim law (Section 3(r), Waqf Act, 1995).
   • The Mutawalli acts as a manager or administrator of the Waqf and is bound to act according to the intentions of the Waqif. He does not have ownership over the Waqf property.
2. Powers and Limitations of Mutawalli:
   • The Mutawalli cannot alter or divert the purpose of the Waqf unilaterally.
   • Under Section 64(1)(g) of the Waqf Act, 1995, a Mutawalli can be removed for misapplication of Waqf property.
3. Doctrine of Cy-près (As Near As Possible):
   • If the original purpose of the Waqf fails or becomes impossible, the property may be applied to a similar charitable purpose only with court or Waqf Board sanction (Section 32(2)(h), Waqf Act, 1995).
   • In this case, the construction of a mosque does not match the original educational purpose, and no sanction has been obtained.
4. Judicial Precedents:
   • Abdul Rahim v. Narayan Das Aurora (1914) 41 IA 124 – The Privy Council held that a Mutawalli cannot alter the object of the Waqf; any such act is ultra vires.
   • Board of Muslim Wakfs v. Radha Kishan, AIR 1979 SC 289 – The Court emphasized that a Mutawalli’s function is managerial and restricted to the intention of the Waqif.

Thus, diverting funds from medical education to mosque construction is contrary to law and the intention of the donor.

Possible Judgement

The act of the Mutawalli in diverting Waqf funds to construct a mosque is illegal and void. The court is likely to hold:

1. The Mutawalli acted beyond his authority (ultra vires) as he diverted funds contrary to the object of the Waqf.
2. The original purpose of the Waqf (medical education) must be strictly followed.
3. The Mutawalli is liable for removal under Section 64 of the Waqf Act, 1995 and for restoring misapplied funds.
4. The Waqf Board or civil court may appoint a new Mutawalli to ensure the funds are applied according to the Waqf deed.

Judicial Outcome:

• The diversion of funds is void and unenforceable.
• The Mutawalli cannot unilaterally change the purpose of a Waqf.
• Funds must be applied for the original educational purpose specified by the Waqif.

Mnemonic to Remember — “MUTAWALLI FEDS”

• F – Follow the intention of Waqif strictly.
• E – Education fund cannot be diverted.
• D – Doctrine of Cy-près applies only with court sanction.
• S – Suspension or removal for misapplication under Section 64.

Summary:
A Mutawalli cannot divert Waqf funds from the purpose stated by the donor. Using money intended for medical education to build a mosque is illegal and void, and the Mutawalli may be removed and required to restore misused funds under Muslim law and the Waqf Act, 1995.

About lawgnan:

Explore detailed insights into Waqf law, Mutawalli duties, and misuse of funds at Lawgnan.in. Understand how the Waqf Act, 1995 governs the administration of religious endowments and restricts a Mutawalli from diverting funds for purposes other than those specified by the Waqif. Learn from landmark judgments like Abdul Rahim v. Narayan Das Aurora and Board of Muslim Wakfs v. Radha Kishan about the consequences of breaching trust. Lawgnan provides clear explanations of legal principles, powers, and liabilities under Waqf law to help you navigate religious property governance effectively.