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2004 Supreme(SC) 1135

SUPREME COURT OF INDIA
ASHOK BHAN, S.H. KAPADIA, JJ.
ALL INDIA WOMENS CONFERENCE AND OTHERS - APPELLANTS
VERSUS
SARLA SHAH AND OTHERS - RESPONDENTS
CIVIL APPEAL NO. 1548 OF 1997,
DECIDED ON SEPTEMBER 22, 2004

Headnote:

strust income- The land was given to the appellant by the Central Government for setting up a memorial - Huge construction now standing on this property, part of which was rented out to Banks- The respondents filed an application in the High Court, seeking leave of the Court to institute a suit under Section 92 against the defendant-appellants alleging, mismanagement of the income of the trust - Application allowed ex parte - Appellants sought recalling of the order granting leave to file suit and dismissal of suit - Single judge allowed application on the ground that relief sought in suit did not fall under Section 92 - Division Bench considering averments made in plaint and documents placed on record, held, all ingredients of Section 92 are satisfied and that suit under Section 92 was maintainable- Order of Division Bench upheld.[Paras 6 to 13]

ORDER

1. AGGRIEVED AGAINST THE JUDGMENT AND ORDER PASSED BY THE DIVISION BENCH OF THE HIGH COURT OF DELHI WHEREIN THE DIVISION BENCH, WHILE REVERSING THE JUDGMENT OF THE SINGLE TUDGE, HAS GRANTED LEAVE TO THE RESPONDENT-PLAINTIFFS TO INSTITUTE A SUIT UNDER SECTION 92 OF THE CODE OF CIVIL PROCEDURE (CPC), AGAINST THE APPELLANTS, THE DEFENDANT-APPELLANTS HAVE COME UP IN APPEAL.

2. DEFENDANT-APPELLANT I, NAMELY, "ALL INDIA WOMENS CONFERENCE" (FOR SHORT "AIWC") IS A SOCIETY REGISTERED UNDER THE SOCIETIES REGISTRATION ACT, 1860. AIWC WAS FOUNDED IN THE YEAR 1930 TO ACTIVELY WORK IN THE GENERAL PROGRESS, UPLIFTMENT AND WELFARE OF WOMEN AND CHILDREN. A PIECE OF LAND AT BHAGWAN DAS ROAD, NEW DELHI MEASURING A LITTLE MORE THAN THREE ACRES WAS ACQUIRED BY THE SOCIETY FROM THE CENTRAL GOVERNMENT THROUGH A PERPETUAL LEASE DEED DATED 22-10-1962 AT A NOMINAL PRICE. THE LAND WAS GIVEN TO THE SOCIETY BY THE CENTRAL GOVERNMENT FOR SETTING UP A MEMORIAL TO SAROJINI NAIDU AND MARGRET COUSINS. HUGE CONSTRUCTION NOW STANDS ON THIS PROPERTY, PART OF WHICH HAS BEEN RENTED OUT TO AGHA KHAN FOUNDATION, SYNDICATE BANK, CANARA BANK AND M/S DALAL CONSULTANTS AND ENGINEERS PVT. LTD. IT IS NOT IN DISPUTE THAT AIWC HAS ABOUT 500 BRANCHES WITH MORE THAN 1 LAKH MEMBERS SPREAD OVER THROUGHOUT THE COUNTRY. ITS HEADQUARTERS IS LOCATED AT 6, BHAGWAN DAS ROAD, NEW DELHI.

3. AIWC CONSTITUTED A TRUST IN THE YEAR 1975 WITH THE OBJECT TO CARRY OUT THE CONSTRUCTION OF A MULTI-STOREYED BUILDING ON THE PLOT OF LAND ALLOTTED TO AIWC; TO ESTABLISH A MEMORIAL, AN AUDITORIUM TO HOLD WOMENS MEETINGS, INTERNATIONAL HOSTEL FOR YOUNG PEOPLE AND LIBRARY FOR WOMEN AND CHILDREN, OR ANY REQUISITE FACILITIES/AMENITIES AND CONVENIENCES IN CONNECTION THEREWITH. UNDER CLAUSE 5, THE TRUSTEES WERE TO GET AND COLLECT THE INCOME AND RENT OF THE SAID BUILDING AND THE INCOME, RENT, INTEREST AND DIVIDEND OF THE TRUST FUND FROM TIME TO TIME AND TO PAY THEREFROM ALL COSTS, CHARGES AND EXPENSES RELATING TO MANAGEMENT, PRESERVATION, UPKEEP AND MAINTENANCE OF THE BUILDING AND FACILITIES MENTIONED ABOVE.

4. DEFENDANT-APPELLANTS 2 AND 3, NAMELY, SHOBHANA RANADE, DR. APARNA BASU ARE THE FORMER HONORARY PRESIDENT, FORMER HONORARY VICE-PRESIDENT RESPECTIVELY AND RESPONDENT 4 DR. KALAVATI TRIPATHI IS THE FORMER HONORARY TREASURER OF AIWC, WHEREAS RESPONDENT 5 DR. LAKSHMI RAGHURAMIAH (DECEASED), WAS THE MANAGING TRUSTEE OF AIWC TRUST.

5. PLAINTIFF-RESPONDENTS 1 AND 2, NAMELY, SARLA SHAH AND USHA BHOWMIK RESPECTIVELY, ARE THE TWO MEMBERS OF THE SOCIETY FROM MAHARASHTRA BRANCH. PLAINTIFF-RESPONDENT 3 (KRISHNA GUPTA) CLAIMS HERSELF TO BE A MEMBER FROM THE DELHI BRANCH.

6. THE RESPONDENTS FILED AN APPLICATION IN THE HIGH COURT OF DELHI, SEEKING LEAVE OF THE COURT TO INSTITUTE A SUIT UNDER SECTION 92 CPC AGAINST THE DEFENDANT-APPELLANTS ALLEGING, INTER ALIA, THAT THERE WAS MISMANAGEMENT OF THE INCOME OF THE TRUST AND THE RENT REALISED WAS NOT BEING CREDITED TO THE TRUST ACCOUNT, CLAIMING THE FOLLOWING RELIEFS:

"(I) TO DECLARE THAT BY VIRTUE OF SECTION 5 OF THE SOCIETIES REGISTRATION ACT, 1860, INCOME ARISING FROM THE AIWC ESTATE AND DONATION RECEIVED SHALL VEST IN THE TRUSTEES AS PROVIDED IN THE TRUST DEED OF 1975 READ WITH ARTICLE 18 OF THE AIWC CONSTITUTION; AND THEY ALONE ARE COMPETENT TO EXECUTE THE LEASE AND OTHER DEEDS FOR THE USE AND OCCUPATION OF THE AIWC ESTATE;

(II) TO DECLARE THAT THE TRUSTEES ALONE ARE ENTITLED (TO) RECEIVE THE RENTS, ARREARS, PAYMENT AND INCOME ARISING FROM AIWC ESTATE;

(III) TO PASS SUCH OTHER AND FURTHER ORDERS AS THIS HONBLE COURT MAY DEEM FIT AND PROPER."

7. THE AFORESAID APPLICATION CAME UP FOR HEARING BEFORE THE COURT ON 8-5- 1994, WHICH WAS ALLOWED EX PARTE.

8. AFTER THE SERVICE ON THE DEFENDANT-APPELLANTS, AN APPLICATION WAS MOVED BY THEM FOR RECALL OF THE GRANT OF LEAVE TO FILE THE SUIT UNDER SECTION 92 CPC AND FOR DISMISSAL OF THE SUIT. THE SAID APPLICATION CAME UP FOR HEARING BEFORE THE SINGLE JUDGE TRYING THE SUIT.

9. THE LEARNED SINGLE JUDGE CAME TO THE CONCLUSION TH









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