Singh & Ors v Teeng & Ors

Where proceedings concern the administration or operation of an apparent charity, the court must first determine whether the entity is a charity and whether the claim constitutes charity proceedings. If so, section 115(2) of the Charities Act 2011 restricts the court from entertaining or proceeding with the matter without the required permission. The court may stay further proceedings while the statutory position and any application for permission are addressed.

The claim concerned the validity of an election for a committee managing a Gurdwara, together with alleged interference with charitable property and requests for injunctive and other relief. The defendants argued that the Gurdwara was a charity and that the claim was therefore charity proceedings requiring permission under section 115(2) of the Charities Act 2011. The claimants disputed that characterisation and sought interim relief. The preliminary issue was whether the Gurdwara was a charity and whether the proceedings fell within the statutory restriction.

After a short adjournment, the claimants conceded that the Gurdwara was a charity, and the judge decided the preliminary issue accordingly.

1. The court treated the question whether the Gurdwara was a charity as a necessary preliminary issue. The election dispute and the requested relief could not properly be addressed before that issue was resolved.
2. The court observed that, if the Gurdwara was a charity, the proceedings constituted charity proceedings and the court was precluded from entertaining or proceeding with them under section 115(2) of the Charities Act 2011, unless the statutory permission requirement was satisfied.
3. The suggested distinction between the charitable trust affecting the property and the constitution governing the Gurdwara’s activities did not justify postponing determination of the charity issue. Members could not alter charitable trusts so that they ceased to be charitable.
4. Following the claimants’ concession, the court decided that the Gurdwara was a charity. All further proceedings were stayed.