The central legal point established is that the jurisdiction for suits related to immovable properties is determined by the location of the properties, as governed by Section 16 of CPC.

SHIV NARAYAN DHINGRA J.

IA Nos.14813/2007

1. This application under Order 7 Rule 10 and 11 read with Sections 16(a) and (d) and 151 of CPC has been made by the defendants for return of the plaint on account of lack of territorial jurisdiction of this Court to entertain the instant suit.

2. It is settled law that in order to consider whether a plaint is liable to be returned or not, the Court has to consider the pleadings in the plaint and see if on the basis of pleadings in the plaint, the suit is barred by any law or the Court had territorial jurisdiction to try the suit. However, the Court has to read the plaint meaningfully as a whole and cannot go by the clever drafting of the plaint. (2007) 4 SCC 343 Begum Sabiha Sultan vs. Nawab Mohd. Mansur Ali Khan and Ors.).

3. The present suit has been filed by the trustees of a public trust namely Dashmesh Education Charitable Trust and against two of its erstwhile trustees/members seeking that a money decree for a sum of Rs.12 crore be passed by the Court against the two defendants along with 24% interest and the Court should declare that the properties as detailed in paragraph 26 of the plaint belonged to the Trust. Further prayer is made that all sale deeds in favour of defendants in respect of the properties mentioned in paragraph 26 be cancelled and defendants be directed to deliver the possession of the properties to the plaintiffs. The defendants and their agents be permanently restrained from creating any third party right or sale or mortgage or create any lien in respect of any of the properties mentioned in paragraph 26 of the plaint.

4. A perusal of paragraph 26 of the plaint would show that all the 7 properties mentioned in this paragraph are situated in District Gurgaon, Haryana. These properties are registered in the names of defendants vide registered sale deeds.

5. The contention of the plaintiffs in the suit is that the defendants No.1 and 2 were the trustees of Dashmesh Education and Charitable Trust and they,with the help of one Mr. Rajneesh Aggarwal, siphoned off several crore of rupees by playing fraud, embezzlement and diversion of funds of the Trust. They acted contrary to law and violated the provisions of Trust Act. Defendants No.1 and 2, taking benefit of the trust reposed in them, also amended the trust deed at Gurgaon on 7th December 2002 and subsequently got registered the same at Gurgaon on 16th December 2002. The sole purpose behind this amendment was to bring their own persons through back door entry in the Trust and to play fraud.

6. The plaintiffs on coming to know of evil deeds of defendants, instituted a complaint with the police and an FIR No.337 of 2004 under Section 406/467/409/468/420 and 120B of IPC was registered because of misappropriation of amount belonging to the trust and utilization of the same by the defendants for their own purpose. It is alleged that by misappropriation of these funds the defendants have deprived the trust of approximately Rs.12 crore and defendants with the help of this money purchased several properties as given in paragraph 26 of the plaint.

7. In the plaint, the plaintiffs gave details as to what was the modus operandi adopted by defendants and how defendants embezzled the funds of the Trust and how the plaintiffs learnt about the same and took action. Plaintiffs also filed a suit being No. 28 of 2005 against the defendants with leave of the Court under Section 92 of CPC for declaration and removal of defendants as trustees and this Court vide order dated 23rd March 2005 restrained the defendants from interfering with the management and functioning of the trust as well as the college and hospital being run by the trust in Gurgaon. It is submitted that the cause of action for filing the present suit arose within the local limits and jurisdiction of this Court since the bank accounts of the trust were with the Bank of Baroda, Pahar Ganj, Delhi branch. The offence of defalcation and misappropriation of fund