SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

1980 Supreme(Bom) 41

IN THE HIGH COURT OF BOMBAY
(Sharad Manohar J.)
LALJI DHARAMSEY and others Petitioners.
vs.
BHAGWANDAS RANCHCHODDAS Respondent.
Writ Petition No. 1323 of 1979
Decided on 5-2-1980. (Bombay)
Advocate Appeared
For petitioners-D. M. Vora and R. W. Purandare.
For respondent-Madhukar Soochak.

A de-facto trustee or a person in de-facto management of a trust has sufficient locus to file a suit or institute proceedings against a trespasser or against a person claiming interest adverse to the trust for the purpose of claiming relief which will enure to the benefit of the trust.

Headnote:

TRUST - EJECTMENT - DE-FACTO TRUSTEES - MAINTAINABILITY OF APPLICATION - JURISDICTION OF COURT - INHERENT POWER - SECTION 151 OF CPC - SUBSEQUENT EVENTS - COURT FEES - SECTION 71 OF PRESIDENCY SMALL CAUSE COURTS ACT - SECTION 43 OF PRESIDENCY SMALL CAUSE COURTS ACT - POWER OF SUPERINTENDENCE - ARTICLE 227 OF THE CONSTITUTION - MIS-STATEMENTS IN PETITION - MAINTAINABILITY OF EJECTMENT APPLICATION - POSSESSION OF SUIT PREMISES.

Fact of the Case:

The petitioners, trustees of a trust, filed an ejectment application against the respondent, who was occupying the trust premises without payment of rent. The respondent contended that the petitioners were not legally appointed trustees and that the application was not maintainable. The trial court dismissed the application on the ground that the petitioners were not duly and legally appointed trustees as per the Deed of Trust.

Finding of the Court:

The High Court held that the petitioners were de-facto trustees or were in de-facto management of the trust and, as such, they had sufficient locus to file the ejectment application. The court also held that the trial court erred in not taking into account the effect of the scheme prepared by the Charity Commissioner, which vested the property in all the petitioners, and in not exercising its inherent jurisdiction under section 151 of the Code of Civil Procedure to cure the initial defect in the application.

Issues: 1. Whether the petitioners were de-facto trustees or were in de-facto management of the trust and, as such, had sufficient locus to file the ejectment application? 2. Whether the trial court erred in not taking into account the effect of the scheme prepared by the Charity Commissioner, which vested the property in all the petitioners? 3. Whether the trial court erred in not exercising its inherent jurisdiction under section 151 of the Code of Civil Procedure to cure the initial defect in the application?

Ratio Decidendi: 1. A person who has been in de-facto possession and management of the trust property for a long time claiming to be its trustee under a decree of a court, valid or invalid, has sufficient interest to maintain proceedings for the warding off of a cloud cast by the defendant's action against the interests of the trust. 2. The court has inherent jurisdiction under section 151 of the Code of Civil Procedure to take cognizance of subsequent events, which have a direct bearing upon matters which are in litigation, in order to do justice between the parties. 3. The court can and in many cases must, take cautious cognizance of events and developments subsequent to the institution of the proceeding provided the rules of fairness to both sides are scrupulously obeyed.

Final Decision: The High Court allowed the writ petition, set aside the order of the trial court, and ordered that the ejectment application be allowed as prayed for. The respondent was directed to hand over possession of the suit premises to the petitioners forthwith, failing which the petitioners were at liberty to recover the decree through the court. The respondent was also directed to pay special costs of Rs. 500 to the petitioners.

JUDGMENT-The present case is a shining illustration of the stupefying manner in which a dishonest defendant, who now admits himself to be a rank trespasser on the premises initially allowed to be occupied by him as a matter of charity has persuaded the Courts to get enmeshed in procedural wrangles and to defeat just right of the plaintiffs.

2. The petitioners before me are the trustees of the Seth Khattau Morarji and others trust. This trust is the owner of building Narayan Niwas situate at Dadyseth Agiary Lane, Bombay. Two rooms on the 3rd floor of the said building are in the occupation of the present respondent. The said premises were given for occupation to the respondent by the 6 trustees of the trust in the year 1957. It is common ground before me that initially a rent of 50 p. per room was charged by the trustees to the respondent for occupation of the rooms but the trustees stopped charging even this negligible, nominal rent from the year 1960. Mr. Soochak appearing for the respondent has informed me that till the year 1960 the respondent was in the part time employment of the trust and that his grievance is that he was receiving only Rs. 15 as salary. However, he himself admitted on behalf of his client that he left the employment in the year 1960 in which year he also stopped paying the negligible amount of rent of Re. 1 in connection with the two rooms. For the sake of convenience the premises occupied by the respondent shall be referred to hereinafter as 'the suit premises.

3. It may be mentioned here that under the Trust Deed executed by the original settlor Shri Purshottam Shamji the four sons of the settlor were the original trustees of the said trust. Under the Trust Deed, it is provided that the Trust should have minimum three trustees. There is another provision in the trust Deed for the appointment of the trustees after the death, retirement or refusal to function by the trustees in question. It is not in dispute that in the year 1966 two of the original trustees ceased to be trustees because of the death of one and because of the retirement of the other. The number of continuing trustees was thus reduced to two. Petitioners Nos. 1 and 4 were the continuing trustees. Under the Trust Deed the power of appointment of trustees is given to the trust and in the exercise of that power, the trustees appointed petitioners Nos. 2, 3, 5 and 6 as additional trustees. The Deed of Appointment in that behalf was executed on 15th February 1966 and it was lodged for registration with the Registrar of' Assurances in the year 1967. For some reason or the other the registration was not complete till the year 1979. All the six trustees, however, managed the trust property. It is to be noted that this Trust is registered under the Public Trusts Act. Really speaking, the change in the constitution of the board of trustees should have been intimated to the Charity Commissioner by the Trustees immediately and the requisite approval of the Charity Commissioner should have been obtained. This legal requirement was presumably not complied with by the petitioners for some time although they were acting as trustees from the date of their appointment.

4. In the year 1972 petitioners trustees got information that the respondent who was occupying the suit premises without payment of a single farthing had already acquired alternate accommodation at Kandivli and that having regard to the object of the Trust, be had no justification to continue in the suit premises. Hence a notice dated 8-2-1972 was given by the trustees through their advocate revoking the respondent's license to continue with the occupation of the premises. No reply was given by the respondent to this notice. In the notice it was specifically stated that the respondent had acquired alternate accommodation at Kandivli and he was, in fact, living there. This fact was nowhere denied by the respondent. In these circumstances, the petitioners trustees filed an ejectment applicati















































Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top