High Court Of Delhi
ANJALI SAWHNEY - Appellant
Versus
ANJALI TRUST - Respondent
Interim Application 646 of 1999
Decided On : 07/31/2001
Trust - Indian Trust Act, 1882 - Section 56
Fact of the Case:
The plaintiff filed suits for rendition of accounts, mandatory and permanent injunction against the trustees of a trust fund created for her benefit. The trustees failed to hand over the assets and income of the trust to the plaintiff after the death of the settler.
Finding of the Court:
The court found that the trust was created for the benefit of the plaintiff, who was the sole beneficiary during her lifetime. The court held that the plaintiff had the right to seek transfer of the trust property under Section 56 of the Indian Trust Act, 1882.
Issues: The main issue was whether the plaintiff, as the sole beneficiary, had the right to seek transfer of the trust property under Section 56 of the Indian Trust Act, 1882.
Ratio Decidendi: The court interpreted the trust deeds and supplemental deed to establish that the plaintiff was the sole beneficiary during her lifetime, entitling her to seek transfer of the trust property under Section 56. The court emphasized the beneficiary's right to the income and the trustee's obligation to transfer the trust fund upon demand.
Final Decision: The court allowed the plaintiff's applications and directed the trustees to transfer all trust properties to the plaintiff, while clarifying that she would hold the properties in trust as per the deed, to be transferred to her living children after her death.
( 1 ) BOTH the suits are filed by Smt. Anjali Sawhney as plaintiff. Suit. No. 1797/92 is for rendition of accounts, mandatory and permanent injunction. Defendant No. 1 is Anjali Trust and defendants 2 and 3 are its trustees. Shri Madhav Prasad Birla as a settler had created a Trust Fund vide Deed of settlement dated 8/3/1978 In the name of Anjali Trust i. e. Defendant No. 1. The plaintiff was made beneficiary of this Trust. Shri Madhav prasad Birla was the Uncle of the plaintiff. Me appointed himself as one of the Trustees along with other co-trustees viz. his wife, Defendant No. 1, his brother s wife smt. Sumitra Devi Birla, Shri puran Chand Sawhney and shri Babu Lal Niwar.
( 2 ) THEREAFTER vide Deed of Settlement dated 2/9/1986 he created another Trust Fund in the name of Anjali Trust (1986) for the benefit of the plaintiff in which he appointed himself and his wife as well as Defendant No. 3 as co-trustees. Shri puran Chand Sawhney, Smt. Sumitra Devi Birla and Shri babu Lal Niwar resigned as Trustees on different dates from the Trust Fund which was created in the name of defendant No. 1 in the year 1978. Vide Supplemental deed dated 3/3/1988, in place of Trustees who resigned, defendant No. 3 was appointed as co-trustee. This way trustees in both 1978 Trust as well ass 1986 Trust became the same, namely, Sh. Madhav Prasad Biria as well as Defendants 2 and 3. After the death of Shri Madhav prasad Birla Defendants 2 and 3 are the only Trustees managing these Trusts. It is the case of the plaintiff that the Trust created by Deed of Settlement dated 8/3/1978 was for a period of 10 years i. e. till 13/3/1988.
( 3 ) IT owns movable and immovable properties including commercial flat admeasuring 920 sq. ft situated at first floor in the main building known as e. C. E. House, kasturba Gandhi Marg, New Delhi. After 13/3/1988 defendants 2 and 3 were required to handover all the assets, properties, balance income and true and correct account of income and expenditure of defendant no. 1 to the plaintiff. They failed to do so in spite of repeated demands made by the plaintiff in this behalf. It is also stated that the plaintiff was getting some minor amounts from defendant. No. 1 but after the death of Shri Madhav Prassad Birla intentions of defendants 2 and 3 became dishonest and they have not paid any amount to the plaintiff. Defendants 2 and 3 are illegally and unauthorisedly retaining the funds and assets of defendant No. 1 for their own personal benefits. On these averments; the plaintiff has prayed for decree of rendition of accounts directing defendants 2 and 3 to render true and correct accounts of income and expenditure of the Trust i. e. Defendant no. 1 to the plaintiff. Decree for mandatory injunction is also sought directing defendants 2 and 3 to handover all assets, properties of defendant No. 1 to the plaintiff. Prayer for decree of permanent injunction is to the effect that defendants be restrained from acting and/or representing Trustees of Defendant No. 1 and from managing and or dealing with assets and properties of the Trust in any manner.
( 4 ) WRITTEN statement is filed on behalf of defendants wherein various objections are taken to the maintainability of the suit. Relying upon Supplemental deed dated 3/3/1988 between Settler of the Trust, trustees and the plaintiff it is submitted that as per that Deed the Trustees i. e. Defendants 2 and 3 have to manage the Trust for the benefit of the beneficiary, namely, the plaintiff and upon her death to divide, handover and transfer the same to the children of the beneficiary at the time of her death in equal proportion. Therefore, the plaintiff has only life interest and during entire period of her life it is the defendants 2 and 3 who are to manage the trust and then divide, handover and transfer the Trust Fund to the children of the plaintiff in equal proportion. It is also stated that the defendants are managing the Trust in accordance with terms of the Trust. O
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.