Supreme Court Of India
S. RAJENDRA BABU AND K.G. BALAKRISHNAN, JJ
MULLA GULAM ALl & SAFIABAI D. TRUST Appellant;
Versus
DEELIP KUMAR & CO. Respondent.
Civil Appeal No. 538 of 1998
Decided on February 7,2001
Charitable Trust - Property Possession - Tamil Nadu Buildings (Lease and Rent Control) Act - [Section 92 of the Civil Procedure Code, Tamil Nadu Buildings (Lease and Rent Control) Act] - The court discussed the appellant's status as a charitable trust, the control and management of the trust, and the waiver of notice issued by the appellant. The court emphasized the control exercised by the trustees in relation to the trust and the proper administration of the trust for the benefit of the public. The finding that the appellant is a public charitable institution and engaged in charitable activities was restored by the court. The court also ruled on the question of waiver, affirming the lower courts' decisions.
Fact of the Case:
The appellant filed a suit for possession of a property leased to the respondent, alleging wilful default in rent payment and termination of the rental agreement. The respondent contested the appellant's status as a charitable trust and claimed waiver of the termination notice.
Finding of the Court:
The court found that the appellant is a public charitable trust and that there was no waiver of the termination notice. The respondent was directed to vacate the premises and pay rent until the specified date.
Issues: Appellant's charitable trust status, waiver of termination notice, possession of leased property, and rental arrears.
Ratio Decidendi: The control and management of the trust, proper administration for the benefit of the public, and the absence of waiver of the termination notice were key factors in the court's decision.
Final Decision: The appeal was allowed, and the respondent was directed to vacate the premises and pay rent until the specified date.
ORDER
1. The appellant before us filed a suit in the Court of II1rd Assistant Judge, Madras in as No. 7187 of 1982 for delivery of possession of the suit property to the appellant. The brief facts leading to the case are as follows:
The appellant let out the ground floor of the suit property to the respondent on a monthly rent of Rs 225 to locate a shop. On the basis that the respondent had committed wilful default in the payment of rent for the period from 1-1-1979 to August 1982, a notice was issued on 26-7-1982 demanding the arrears of rent and, thereafter, on 7-9-1982 notice was issued to the effect the rental agreement between the appellant and the respondent had come to an end as of 30-9-1982 and demanded the delivery of possession of the
said property on 1-10-1982.
2. Inasmuch as the respondent did not deliver the possession of the property, a suit was filed on behalf of the appellant. In the plaint it was also alleged that the appellant is a public charitable trust and the suit property belongs to it and hence is exempted from the application of the Tamil Nadu Buildings (Lease and Rent Control) Act. The respondent contested that the appellant is a public charitable trust. It is also pleaded that even after putting an end to the rental agreement and demand for the delivery of possession of
the property rent having been received by the appellant, the appellant had waived the notice issued by him terminating the rental agreement. On these pleadings two important issues were raised as to whether the appellant is a charitable trust or not and whether the notice issued by the appellant had been waived. The trial court examined Exhibit 2 which is a certified copy of the memorandum of association of the appellant Trust and Exhibit which is a deed of settlement executed by Ibrahim Kulamali Dhanaliwala and others
in favour of the plaintiff, other documents produced by it to show its conduct in having made certain donations to various institutions, came to the conclusion that it is a public charitable trust. The trial court also held that after receipt of the notice by the respondent, rental arrears prior to 30-9-1982 - the date on which the rental agreement came to an end - were sent by the demand draft and that was accepted and, therefore, there was no waiver at all. These findings stood affirmed by the appellate court on appeal. Thereafter,
the matter was carried in second appeal to the High Court. The High Court found that the courts below were wrong in holding that the appellant is a public charitable trust solely on the ground that the public are the beneficiaries without considering the vital question of control and management of the Trust which in the present case is entirely vested in a group of persons belonging to the same family. To reach this conclusion the High Court adverted to various texts set out in decisions of this Court in relation to findings whether the temple is a private or public trust.
3. The question whether the Temple has a public character or a private character cannot be determined except by reference to the control exercised by the trustees in relation to the Temple i.e. if the trustees have total control over the institution and do not permit the public as a matter of right to perform pooja, entry to the Temple or other sevas, the inference is obvious that it is not a public temple. That principle could not have been adopted in the case of the present kind. It is clear from the trust deed that objects of the Trust are to give donations to educational and charitable institutions; to open and maintain schools and colleges for imparting general or technical education; to give scholarship to the poor and deserving students studying in schools and colleges to enable them to prosecute further or higher studies; to donate to hospitals, maternity and medical homes, or centres established for the benefit of the public; to give medical aid or assistance to poor people, especially to the deaf and dumb, widow
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