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2020 Supreme(SC) 220

UDAY UMESH LALIT, VINEET SARAN
ASHOK KUMAR GUPTA – Appellant
Versus
SITALAXMI SAHUWALA MEDICAL TRUST – Respondent


Advocate Appeared:
Lal Pratap Singh, Umesh Pratap Singh, Vivya Nagpal, Yash Raj, Advocate, Ruchi Kohli, B. Ragunath, N.C. Kavitha, Vijay Kumar, Advocates

Judgement Key Points

The legal document discusses the conditions under which a suit can be instituted under Section 92 of the Civil Procedure Code concerning public charitable trusts. The key points are as follows:

  1. Applicability of Section 92:
  2. The suit must involve a breach of trust or require court directions for the administration of a trust created for public charitable or religious purposes (!) (!) .
  3. The trust must be created for public purposes of a charitable or religious nature, and the suit should be brought in a representative capacity to protect the interests of the beneficiaries (!) (!) .

  4. Conditions for invoking Section 92:

  5. The trust must be of a public charitable or religious nature (!) .
  6. There must be a breach of trust or a need for court directions in trust administration (!) (!) .
  7. The relief sought must fall within the enumerated reliefs such as removing or appointing trustees, vesting property, settling schemes, or directing accounts and inquiries (!) (!) (!) .

  8. Suit's purpose and character:

  9. Suits primarily aimed at vindicating private rights or personal interests do not fall within Section 92, even if the trust is charitable (!) (!) .
  10. The suit should be of a representative nature, acting in the interests of the beneficiaries rather than for individual or private rights (!) (!) .

  11. The importance of the suit's character:

  12. The court examines whether the suit is brought to protect public rights or to address private grievances. If the latter, Section 92 does not apply.
  13. The reliefs requested should be consistent with protecting the trust's public purpose rather than resolving personal disputes (!) (!) .

  14. Application to the case:

  15. The suit in question involved allegations that the trust was being mismanaged, funds siphoned off, and the administration was not in accordance with the trust’s public charitable purpose (!) (!) (!) .
  16. The primary relief sought was to frame a proper scheme of administration and to appoint trustees from the medical profession and the public, which aligns with protecting the public purpose of the trust (!) (!) .

  17. Court's decision:

  18. The trial court's decision to grant leave under Section 92 was upheld, as the suit was found to be in the interest of the public trust and not merely for private rights.
  19. The high court's reversal, which viewed the suit as primarily vindicating private rights, was set aside, reaffirming that the suit was within the scope of Section 92 (!) (!) (!) .

In summary, a suit under Section 92 is permissible when it involves a public charitable trust, there is a breach or need for court intervention in trust administration, and the reliefs sought are aimed at protecting or improving the public purpose of the trust. Private interests or personal rights, unless they are inextricably linked to the public trust's management, generally do not qualify for such suits.


JUDGMENT :

Uday Umesh Lalit. J.

Leave granted.

2. This appeal challenges the final judgment and order dated 30.04.2019 passed by the High Court of Judicature at Madras in C.R.P. (PD) No.2708 of 2013.

3. Original Suit No.566 of 2012 was filed by the present appellants in the Court of the District Judge, Coimbatore stating basic facts as under:-

    "III. The 2nd plaintiff is the wife of the 1st plaintiff. The 1st plaintiff is the elder son of defendants 2 & 3. The 4th defendant is the younger son of defendants 2 & 3 and the 5th defendant is his wife. The 6th defendant is the daughter of defendants 4 & 5. The 7th defendant is son in law of the family and he has married the sister of 1st plaintiff and the 4th defendant. The plaintiffs are Trustees of the 1st defendant Trust and are persons having interest in the affairs of the Trust and are filing the present suit for framing a scheme for the administration of the 1st defendant Trust, which is a Public Charitable Trust.

    (IV) The 2nd defendant settled down in Coimbatore in 1959 and he was managing the firm called M/s India Roller Flour Mills. The 1st plaintiff was academically a good student and he secured admission on merit in medical college


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