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

2016 Supreme(Del) 1257

IN THE HIGH COURT OF DELHI AT NEW DELHI
BADAR DURREZ AHMED, SANJEEV SACHDEVA, JJ.
Tirathram Shah Charitable Trust & Ors. - Appellants
Versus
M/s Anjali Birla Sawhney & Ors. - Respondents
FAO(OS) 471/2013 and CM No. 16557/2013
FAO(OS) 487/2013 and CM No. 17012/2013
Decided On : 09-03-2016

Advocates:
Advocate Appeared:
For the Appellants : Mr. Ajay Kumar Tandon and Ms. Manika Goswamy
For the Respondents: Mr. Rajshekhar Rao and Mr. Rahul Chaudhary

Headnote:

Civil Procedure Code, 1908 - Order 7 Rule 11 - Trust - Appointment of trustee - Oral agreement - No cause of action - Oral agreement is set up only against the defendant 2 & 3 - There is no averment with regard to the other remaining trustees ever agreed to appoint either of the Plaintiffs as a trustee - No such promise is made by the Trust or the remaining trustees - Plaint does not disclose any cause of action as against the Trust - Appointment of the Defendant No. 4 as a Trustee on 07.07.2006 remained unchallenged for nearly four years - Plaint also does not disclose any cause of action against Defendant No. 4 - Dismissal of the application under order 7 rule 11 CPC is erroneous - Application under order 7 rule 11 CPC filed by the Defendant 2 & 3 has also been incorrectly dismissed - Suit is barred by limitation.

Limitation Act, 1963 - Article 58 - Trust Deed - Appointment of trustee - Limitation - Trust Deed does not indicate that the family of T.R.Shah have to be represented on the Trust as Trustees - Family did not have any extra say in the management of the trust or its affairs - Out of 8 trustees only 3 represented the family and the majority were outsiders - There is no such understanding with the other defendants that family member would appoint one of the plaintiffs as the trustee in place of Mr. P.C.M.Sawhney - Single Judge has committed an error in taking the date of the alleged promise for reckoning the period of limitation - Suit filed on 02.06.2010 - Sawhney died on 13.01.2002 - Cause of action would accrue on his demise - Defendant no. 4 was appointed as a trustee in his place, on 07.07.2006 - Reckoned from either of the two dates, the suit is clearly barred by limitation - Suit is within limitation.

JUDGMENT :

Sanjeev Sachdeva, J.

1. These appeals arise out of common order dated 23.09.2013 in CS (OS) 1291 of 2010, whereby the learned single judge has dismissed the applications {IA 16634/2010 (filed by appellants in FAO(OS) 471/2015) & IA 16958/2010 (filed by appellants in FAO(OS) 487/2015)} under order 7 rule 11 of the Code of Civil Procedure, 1908 (hereinafter referred to as the CPC).

2. Mrs. Anjali Birla Sawhney wife of Late Mr. Pavan Chander Mohan Sawhney and her daughter Ms. Shreya Sawhney have filed the suit for declaration and permanent injunction. They seek a declaration that either of them are entitled to be appointed as trustees of the Tirathram Shah Charitable Trust (hereinafter referred to as the Trust) and the appointment of any other person as a trustee in place of Mr. Pavan Chander Mohan Sawhney is void ab initio and the appointment of Geeta Rajpal is against the Trust Deed, intention of the settler and the family settlement. Further consequential injunctive reliefs are also sought.

3. Mr. Pavan Chander Mohan Sawhney was the elder brother of Mr. Dhruv Mohan Sawhney (Defendant No. 2). Mrs. Rati Sawhney (Defendant No.3) is the wife of Mr. Dhruv Mohan Sawhney.

4. The Trust was established in the year 1953 by the four sons of late Rai Bahadur Lala Tirath Ram Shah as the settlors. Mr. Pavan Chander Mohan Sawhney and Mr. Dhruv Mohan Sawhney are the sons of late Mr. Puran Chand Sawhney, grandson of Rai Bahadur Lala Tirath Ram Shah.

5. Mr. Pavan Chander Mohan Sawhney was one of the trustees of the Trust besides Mr. Dhruv Mohan Sawhney and Mrs. Rati Sawhney (defendants No. 2 & 3) besides other five trustees. Mr. Pavan Chander Mohan Sawhney passed away on 13th January 2002.

6. On 07th July 2006 Mrs. Geeta Rajpal (defendant No.4) who is not one of the family members of late Rai Bahadur Lala Tirath Ram Sawhney was made a trustee in place of Mr. Pavan Chander Mohan Sawhney.

7. It is alleged in the plaint that on 13th February 2009 a compromise was entered into between the plaintiffs and defendant No. 2 with regard to appointment of either of the plaintiffs as trustee of the Trust in place of late Mr. Pavan Chander Mohan Sawhney. The case set up by the plaintiffs is that the cause of action for filing the suit arose on 13th February, 2009 when the oral agreement was arrived at among the plaintiffs and defendant Nos. 2 & 3 in the midst of the ongoing litigation and defendant No.2 promised that he would take appropriate steps for appointment of either of the plaintiffs as trustees of defendant No.1 in place of Mr. Pavan Chander Mohan Sawhney. It is contended that on 17.04.2010, the plaintiffs came to know from Dr. Anand Prakash that the Defendant No. 4 had been recently appointed as a trustee in place of Mr. Pavan Chander Mohan Sawhney and as such the plaintiffs filed the Suit.

8. The defendants in the suit, i.e., the appellants in the respective appeals filed the applications as mentioned above under order 7 rule 11 CPC. Three broad grounds are raised in the application. First of all, it is contended that the suit is barred by limitation. Article 58 of the Limitation Act, 1963 lays down a period of limitation of three years from the date the right to sue accrues. It is contended that the right to sue accrued, if at all, on the death of Mr. Pavan Chander Mohan Sawhney on 13.01.2002. Mr. Geeta Rajpal was appointed as a trustee in place of Mr. Pavan Chander Mohan Sawhney on 07.07.2006 and the suit has been filed on 02.06.2010 much after the expiry of period of limitation computed from either of the two dates.

9. Secondly, it is contended that the trust deed does not stipulate that only a family member has to be appointed as a trustee or that there has to be representation from the family of Rai Bahadur Lala Tirath Ram Shah. The appointment of trustee, in case of a vacancy, is by a majority vote and Mrs. Geeta Rajpal was appointed by the remaining trustees. It is further contended that insofar as the Trust, Mrs. Geeta Rajpal and the rem



































Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
Judicial Analysis

SupremeToday

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