Axis Mutual Fund Vs The State of Maharashtra (Bombay High Court)
1. By this petition under Article 226 of the Constitution of India, the petitioner seeks a writ of certiorari or any other appropriate writ, order or direction in the nature thereof calling for the records pertaining to the impugned orders dated 26thSeptember, 2017, 7th November, 2017 and 11th April, 2018 and after scrutinising the legality and validity thereof, to quash and set aside the same. The petitioner is also challenging another order dated 29th March, 2017 as well.
2. The facts and circumstances in which these orders are challenged, are briefly set out hereinbelow:-
3. By the Deed of Trust dated 27.06.2009 made by and between Axis Bank Limited, a settlor, and Axis Mutual Fund Trustee Company Limited, trustee, an irrevocable trust/trusts called Axis Mutual Fund was created.
4. Axis Mutual Fund Trustee Company Limited (“Trustee Company”), incorporated under the provisions of the Companies Act, 1956, was approved by Securities and Exchange Board of India (“SEBI”) to act as a Trustee of the various scheme(s) of the Axis Mutual Fund.
5. Axis Asset Management Company Limited (“Axis AMC”), incorporated under the provisions of the Companies Act, 1956, was approved by SEBI to act as the Asset Management Company for the scheme(s) of the Axis Mutual Fund.
6. By the Deed of Trust dated 27th June, 2009, the settlor, inter-alia, declared and agreed that the Trustee Company shall manage the mutual fund in accordance with the applicable Further, as per para 6.1.1 of the Deed of Trust dated 27th June, 2009, the Trustee Company is allowed to float one or more schemes for the issue of units to be subscribed by the public.
7. The responsibility for the daily operations of the scheme(s) of Axis Mutual Fund has been delegated to the Axis AMC through an investment Management Agreement dated 27th June, 2009 executed between the Trustee Company and Axis AMC. As enumerated in Clause 3 of this Agreement dated 27th June, 2009, the delegated responsibilities, inter alia, include the maintenance of accounts and records, evaluation of investment operations, carrying out credit assessments in relation to proposes investments.
8. It is the contention of the Petitioner that by the Deed of Trust dated 27thJune, 2009, multiple trust(s), i.e. scheme(s),
were created as and when floated. The various clauses of the Deed of Trust indicating independent existence of each scheme is provided in the table below:-
