IN THE HIGH COURT OF KARNATAKA AT BENGALURU
RAVI V. HOSMANI, J.
G.S. SUDHARSHAN S/O LATE G.N. SRIRAMU – Appellant
Versus
GRAMA SEVA SANGHA TRUST – Respondent
Miscellaneous First Appeal No. 8514 of 2023
Decided On : 02-09-2024
Trust - Public Trust - CPC Section 92 - The court interpreted Section 92 of the CPC, emphasizing the necessity of establishing a public charitable trust, breach of trust, and the appropriateness of the relief sought, ultimately allowing the appeal for leave to file a suit.
Fact of the Case:
The petitioners sought leave to file a suit under Section 92 of the CPC for the removal of trustees and appointment of new trustees for a public trust managing a temple, alleging misuse of funds by the current trustees.
Finding of the Court:
The court found that the trial court's refusal to grant leave was based on incorrect interpretations of the law and insufficient consideration of the allegations made by the petitioners, which warranted a reevaluation.
Issues: Whether the trial court's refusal to grant leave to file a suit under Section 92 of the CPC was justified based on the allegations of breach of trust and the nature of the trust.
Ratio Decidendi: The court held that the trial court failed to properly assess the allegations in the plaint and the requirements of Section 92, which necessitate a broader interpretation to protect public interests in trust management.
Result: The appeal is allowed, and the trial court's order is set aside, granting leave to file the suit.
JUDGMENT :
RAVI V. HOSMANI, J.
1. Challenging order dated 03.11.2023 passed by Principal City Civil and Sessions Judge, Bengaluru, in Misc. No. 346/2022 under Section 92 of Code of Civil Procedure, 1908 (‘CPC’ for short), this appeal is filed.
2. Sri M.R.Rajagopal, learned Senior Counsel appearing for Sri Raghu Prasad B.S., advocate for appellants submitted appeal was by petitioners in Misc. No. 346/2022 filed under Section 92 of CPC praying for grant of leave to institute a suit for removal of trustees, appointment of new trustees, administrator and for setting a scheme in respect of respondent no. 1, namely Grama Seva Sangha Trust (“Trust” for short), a public trust managing Dodda Mavalli Bilsilu Maramma Temple (‘temple’ for short) situated at no. 12, Mavalli main road, Mavalli, Bengaluru.
3. It was submitted, petitioners were residents of Mavalli village and devotees of deity ‘Maramma’ and had concern for temple and its properties. It was submitted most of respondents no. 2 to 11 were leading luxurious life even without any avocation, job or business, which clearly signified that they were misusing funds of temple for their own benefits. Hence, with intention to protect temple and its properties, petitioners had sought leave under Section 92 of CPC to file a representative suit. It was submitted, though petitioners had alleged misuse of funds and properties of trust, Trial Court refused to grant leave merely on ground that petitioners had bald allegations without production of documents.
4. It was submitted when allegations made in plaint were with sufficient particulars and plaint was appended with documents, refusal to grant leave would be uncharitable and indicate non application of mind. It was submitted other reason assigned that petitioners were espousing personal cause was without any basis or justification. Nowhere in plaint or petition, petitioners had expressed any personal grievances and had not sought any personal reliefs. It was submitted, reason assigned by Trial Court was by reference to averments in written statement/affidavit and therefore contrary to law.
5. It was submitted examination of merits of suit was not contemplated at stage of grant of leave for filing suit under Section 92 of CPC. Therefore, refusal to grant leave would be contrary to law. To support said submissions, reliance was placed on decision of Hon’ble Supreme Court in case of Swami Paramatamanand Saraswati v. Ramji Tripathi, (1974) 2 SCC 695 held as follows:
6. In so far as conditions required to be satisfied while seeking leave to institute suit under Section 92 of CPC, reliance was placed on ratio in Ashok Kumar Gupta v. Sitalaxmi Sahuwala Medical Trust, (2020) 4 SCC 321, wherein after referring to various earlier decisions, it was held as follows:
(i) the Trust in question is created for public purposes of a charitable or religious nature.
(ii) there is a breach of trust o
Ashok Kumar Gupta v. Sitalaxmi Sahuwala Medical Trust
Devendra Kumar Mishra Vs. Ramendra Kumar and others
Harendra Nath Bhattacharya v. Kaliram Das
R.D.B. Bagga Singh v. Gurnam Singh
The court established that for a suit under Section 92 of the CPC, it is essential to demonstrate a public charitable trust, a breach of trust, and appropriate relief sought, emphasizing the protecti....
A Trust can seek relief under Section 92 CPC when it is a party to the proceedings alongside interested individuals, especially in cases of alleged mismanagement.
A suit under Section 92 of CPC must serve public interest and establish breach of trust; claims of personal grievances cannot sustain such suits.
The main legal point established in the judgment is the requirement to file an application under Section 92 C.P.C. for managing public trusts involving public charity, and the necessity to implead th....
A suit under Section 92 of the CPC can only be filed against a trust and not by a trust itself; claims that are personal in nature do not qualify for relief under this section.
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