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IN THE HIGH COURT OF CALCUTTA
SOUMEN SEN, J.
SETH SOORAJMUL JALAN TRUST – Appellant
VS.
TOLARAM JALAN & ORS. – Respondent
ACR No.4 of 2014
Decided On : 01-09-2015
TRUST - SCHEME - MODIFICATION - CHARITABLE TRUST - AMENDMENT OF TRUST DEED - CHARITABLE PURPOSES - INTERPRETATION OF TRUST DEED - APPOINTMENT OF TRUSTEES - EXCLUSION OF FEMALES - GENDER BIAS - REMOVAL - INDIAN TRUST ACT, 1882 - HINDU LAW - SHEBAIT - RIGHT OF FEMALE TO BE SHEBAIT - HINDU WOMEN'S RIGHTS TO PROPERTY ACT, 1937 - HINDU MARRIAGE ACT, 1955 - HINDU SUCCESSION ACT, 1956 - HINDU ADOPTION AND MAINTENANCE ACT, 1956 - PRINCIPLE OF HARMONY WITH ENVIRONMENT AND CHANGING IDEAS.
Fact of the Case:
The trustees of Seth Soorajmull Jalan Trust filed an originating summons seeking advice on whether they could add additional objects to the trust, modify the appointment of trustees, and amend the trust deed to allow for the appointment of female trustees. The trust was created in 1938 with the objective of using the trust fund for charitable purposes, including the worship of the deity Sree Sree Ramchandra Ji, the establishment of a Sanskrit, Hindi, and Bengali public library and reading room, the establishment of a Mahajani School, a night school, and a day school for Hindu girls, and the construction of a five or six-storied building to be used for various trust purposes. The trust deed provided for the appointment of six trustees, with the senior most male member of the Jalan family, two nominees from the Hardeodas Jalan family, the senior most male member of the Nagarmull Bajoria family, a nominee of the Ratangarh Charity Trust, and the sixth to be appointed by the remaining five trustees. The deed also stated that no person who does not belong to the Marwari Agarwalla community professing Hindu religion shall be eligible to be appointed as a trustee.
Finding of the Court:
The court held that the trustees could add additional objects to the trust, modify the appointment of trustees, and amend the trust deed to allow for the appointment of female trustees. The court found that the proposed amendments were in accordance with the existing clauses of the trust deed and conformed to the principles of charitable purposes as laid down by the House of Lords in Pemsel's case. The court also held that the exclusion of females from becoming trustees was no longer acceptable in light of the progressive legislation recognizing the rights of Hindu women and the principle of gender equality. The court relied on the Indian Trust Act, 1882, which provides for the appointment of new trustees in case of death, discharge, or other disqualification of the original trustees, and the Hindu Women's Rights to Property Act, 1937, which introduced important changes in the law of succession to confer new rights on certain categories of females.
Issues: 1. Whether the trustees could add additional objects to the trust. 2. Whether the trustees could modify the appointment of trustees. 3. Whether the trustees could amend the trust deed to allow for the appointment of female trustees.
Ratio Decidendi: 1. The court held that the proposed amendments to the trust deed were in accordance with the existing clauses of the trust deed and conformed to the principles of charitable purposes as laid down by the House of Lords in Pemsel's case. 2. The court held that the exclusion of females from becoming trustees was no longer acceptable in light of the progressive legislation recognizing the rights of Hindu women and the principle of gender equality. 3. The court relied on the Indian Trust Act, 1882, which provides for the appointment of new trustees in case of death, discharge, or other disqualification of the original trustees, and the Hindu Women's Rights to Property Act, 1937, which introduced important changes in the law of succession to confer new rights on certain categories of females.
Final Decision: The court answered the questions raised in the originating summons in the affirmative, allowing the trustees to add additional objects to the trust, modify the appointment of trustees, and amend the trust deed to allow for the appointment of female trustees.
Soumen Sen, J.
1. One Soorajmull Jalan prior to his death on 15th August, 1938, transferred a sum of Rs.5 Lac to Mohanlal Jalan, Banshidhar Jalan, Baijnath Jalan, Chiranjilal Bajoria, Nandlal Bhuwalka and Onkarmal Shroff with the direction to hold the said sum in trust. All the aforesaid persons executed a deed of trust in the name of “SETH SOORAJMULL JALAN TRUST” in respect of the said sum.
2. The maximum and the minimum number of trustees are six and five respectively.
3. The trust shall be known as “Seth Soorajmull Jalan Trust”. There shall be not less than five and not more than six trustees appointed in the manner stated in clause 3 of the Deed. The first trustees were named in clause 4 of the Deed. Under Clause 5 of the said deed the said Trustees were to hold the sum of Rs.5 lacs together with all accretions and accumulated income thereof for the objects mentioned in Clause 6. In Clause 7 it was declared that the building to be constructed out of the trust fund shall be used for the purpose mentioned in the said clause. In Clause 8 it was declared that the Trustees would invest a sum of Rs.2 lacs for maintenance of the institutions mentioned in the said deed. However, in Clause 8 it was also declared that after spending Rs.2 lacs for purchasing and constructing of building as stated therein and investing a sum of Rs.2 lacs for maintenance of the institutions to be established in the said building, the trustees shall spend the balance sum of Rs.1 lac for such other charitable object or objects as the trustees may in their discretion consider suitable and proper.
4. The objects have been mentioned in Clause 6 and the implementation of the objects by utilizing the building to be constructed have been set out in Clause 7. The trustees were empowered to spend the income of the trust fund to carry out the object of the trust and Clause 14 specifically states that on the death, retirement, disability or unwillingness of any of the Trustees to act as Trustee, a new Trustee will be appointed in the manner stated in the said Clause 14. Clause 17 further provides that a Trustee shall cease to be a Trustee if he absents himself from meetings for more than twelve months without sufficient reasons and in such case another Trustee may be appointed in his place by the persons entitled to select a Trustee in his place.
The procedure for appointment of the six trustees has been indicated in Clause 3 of the said deed which states:-
i) One shall be the senior most male member let the time being of the family of the said Soorajmull Jalan;
ii) Two to be appointed from amongst the family of the Hardeodas Jalan, deceased, in addition to the said senior most male member hereinbefore referred to;
iii) One shall be the senior most male member of the family of Nagarmull Bajoria, deceased;
iv) One to be appointed by the Trustees of the Ratangarh Charity Trust either from amongst themselves or an outsider;
v) And the sixth shall be appointed by the remaining five Trustees.
5. However, no person shall be eligible to be appointed as a trustee who does not belong to the Marwari Agarwalla community professing Hindu religion.
The first trust consists of the following trustees:-
i) Mohanlal Jalan, the senior most male member of the family of the said Seth Soorajmull Jalan, deceased;
ii) Bansidhar Jalan
iii) Baijnath Jalan
As the nominees of the adult male members of the family of Hardeodas Jalan, deceased;
iv) Chiranjilal Bajoria, the senior most male member of the family of Nagarmull Bajoria, deceased;
v) Nandlall Bhuwalka, the nominee of the Ratangarh Charity Trust;
vi) Onkarmull Shroff appointed by the other five Trustees.
6. In view of substantial accumulation of surplus funds in the hands of the trustees, the trustees are desirous of utilizing the said funds for poor and backward section of the society.
7. Mr. Pradip Kr. Ghose, the learned Senior Advocate appearing on behalf of the plaintiff submitted that with the change in social environm
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