1928 Supreme(SC) 72
Privy Council
Sir John Wallis, Blanesburgh, Shaw, Justice Viscount Dunedin, JJ.
Acharyashri Sripati Prasadji Bihari Lalji Maharaj -Appellant
Versus
Barot Laxmidas Dungerbai and others -Resopndent
Privy Council Appeal No. 44 of 1926
Decided On : 23-11-1928
Hallowes and Carter, T.L. Wilson and Co., J.V. Desai, E.B. Raikes, G.R. Lowndes, J.M. Parikh, W.H. Upjohn
The head of a public religious trust is a trustee, not an absolute owner, of the institution's property. Courts may settle administrative schemes under Section 92 of the Civil Procedure Code to prevent maladministration, provided such schemes do not interfere with the institution's spiritual or ritual practices.
Headnote:(A) Civil Procedure Code, 1908 - Section 92 - Public religious and charitable trusts - Management of trust property - Power of Court to settle a scheme for administration - Where an institution is recognized as a public religious trust, the head of the institution does not hold the properties as an absolute owner but as a trustee for the maintenance of the temple and the benefit of the worshippers - The Court is empowered to settle a scheme for the administration of the trust to prevent maladministration, abuse, or waste of trust funds, provided such scheme does not interfere with the spiritual, ceremonial, or ethical code of the institution. (Paras 5, 11, 16)
(B) Trust Property - Nature of ownership - The representative of the deity in a public religious trust is accountable for the management and expenditure of income, ensuring it is used in furtherance of the objects of the institution. (Para 7)
Facts of the case:
A suit was brought by members of a religious sect against the spiritual head regarding the management of the institution's properties. The spiritual head claimed absolute and unrestricted ownership of the properties. The lower courts had previously determined that the institution was a public religious trust and had settled a scheme for its administration, requiring the head to manage the property with the assistance of a committee consisting of laymen and ascetics elected by the worshippers.
Findings of Court:
The court found that the institution falls within the scope of a public religious trust under the relevant procedural law. The settled scheme for management is regulative of the conduct of the institution as owners of money and property and does not encroach upon the spiritual, ceremonial, or ritual duties of the sect.
Issues: Whether the spiritual head of a religious institution is the absolute owner of its properties or a trustee, and whether the court can settle a scheme for the administration of such a trust under Section 92 of the Civil Procedure Code.
Ratio Decidendi: In a public religious trust, the property is held for the benefit of the worshippers and the maintenance of the temple; therefore, the court has the jurisdiction to intervene and settle a scheme of administration to protect the trust from maladministration, provided the spiritual and ritual autonomy of the institution is preserved.
Result: Appeals refused.
Legal Category Hierarchy
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practice and procedure
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civil procedure
- section 92 civil procedure code
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civil procedure
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trust law
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public trusts
- religious trusts
- trust administration
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public trusts
Lord Shaw.:-
These are consolidated appeals from a decree of the High Court of Judicature at Bombay, dated 22nd December 1922, and made in appeals Nos. 164 and 199 of 1919 varying a decree of the Court of the District Judge of Ahmedabad, dated 14th August 1919.
The suit arises in this way. In 1804 a Hindu religious reformer, an ascetic coming from Northern India, named Swaminarayan, formed in the Bombay Presidency a new religious sect named after his own name. It consisted of men who had renounced the world, secondly of widows of men who had renounced the world, and thirdly of lay followers. He built two main temples one in the city of Ahmedabad and the other at Vadtal in the Kaira District, with the latter of which this suit is concerned. Amongst the buildings were a temple, a monastery, a theological and Sanskrit school and other accommodation for dwelling and residence.
The head of the establishment was the Acharya. The founder was worshipped as an incarnation of the God Krishna. It is undoubtedly true that according to the foundation the successors of the founder are similarly worshipped and are preceptors of the sect and heads of its spiritual and temporal affairs.
Abuses arose with regard to this institution, which has now become possessed of considerable wealth. A variety of disputes have arisen with regard to the management of the property of this institution. So far back as 1882 a suit was brought in the time of Viharilal the then Acharya, under S. 539 of the then Civil P. C. That section corresponds with S. 92 of the present Civil P. C., of 1908 which will be presently referred to.
"The position of the Acharya of the southern diocese," says Mr. Justice Marten in the present case, was considered "by this Court in 1885 by Sir Charles Sargent and Mr. Justice Birdwood. There the Court decided that the Acharya held the suit property upon trust for the maintenance of the temple. The judgments there describe him as a trustee or manager of it. The Court there rejected the argument that the temple was not a temple of the god because it was dedicated to the Acharya as spiritual head. It also held that the trust for the temple was a public religious trust."
During the regime of Laxminarayan, the successor of Viharilal as Acharya, serious disputes again broke out, and as the appellant's case briefly puts it,
"having had differences with his followers, he abdicated by a deed dated 16th April 1909."
Then Shripatiprasadji, defendant 1, became Acharya.
Fresh differences again arose, and on 31st October 1914, about 40 lay members of the sect brought the present suit.
The central point of all these disputes, was - put in a word - Whether the Acharya was, as representative of the god, the owner of the properties of the institution, "not accountable" for the
"management nor for the expenditure of the income, provided he does not apply it to any purpose other than what may fairly be regarded as in furtherance of the objects of the institution."
It is in this guarded manner that both in his case and argument the appellant asserts absolute and unrestricted ownership.
Further, in the course of the 1885 suit, the defence was raised that the temples were maintained for the sole use of the Swaminarayan sect and it was submitted that the sect was not a public body. The High Court overruled that contention. The same thing took place in the present case, and it is admitted that there is no appeal, and no appeal is made, against the decision that the institution and its property fall within the scope of charitable and religious trust property to which S. 92, Civil P. C. of 1908 applies.
S. 92 is as follows :
"In the case of any alleged breach of any express or constructive trust created for public purposes of a charitable or religious nature, or where the direction of the Court is deemed necessary for the administration of any such trust, the Advocate General, or two or more parsons having an interest in the trust and having obtained the consent in writing of th