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IN THE HIGH COURT OF DELHI AT NEW DELHI
PRATHIBA M. SINGH, J.
Sujan Mohinder Charitable Trust and Another - Petitioners
Versus
Mohinder Kaur and Others - Respondents
CS (OS) 3121 of 2011 & I.A. 8178 of 2017, 558 of 2014
Decided On : 01-02-2019
Key Points: - The Sujan Mohinder Charitable Trust, created in 1978, has purely charitable objects like medical relief, education aid, and support for the poor, with no power to sell immovable property in the original deed (!) (!) (!) (!) . - After Sujan Singh's death in 2009, trustees were restructured; Shri Ajit Singh Maker became managing trustee, and the trust property at NH-1, New Friends Colony was sold to his wife Smt. Jupinder Kaur Maker for Rs.19.2 crores in 2011 (!) (!) (!) (!) . - The court granted leave under Section 92 CPC for the suit, finding prima facie no authority in the trust deed to sell property, and issued interim restraints on alienation and directions to secure the sale proceeds (!) (!) (!) . - Amended trust rules in 2010 granting sale powers were held repugnant to the original deed and void, as they exceeded powers limited to conduct and management not contrary to trust objects (!) (!) (!) . - Local Commissioner's report revealed no functioning hospital, trust records incomplete, Rs.19.2 crores received but withdrawn soon after, leaving minimal balance, with control by Ajit Singh Maker and family (!) (!) . - The trust is public/charitable, not private, benefiting the general public; suits under Section 92 CPC are maintainable to protect trust interests, not just private rights (!) (!) (!) . - Court appointed interim board of 7 trustees, including Shri Inderbir Singh Alag as interim managing trustee, to manage the trust for one year, govern by original deed (with modifications), audit accounts, and trace funds (!) (!) (!) . - Defendants failed to deposit Rs.19.2 crores despite orders and undertakings; sale deed declared illegal preliminarily, with ongoing restraints and proceedings (!) (!) (!) . - Various I.As. disposed: no decree on admissions yet, suits to proceed to trial; applications to dismiss or recall leave rejected (!) (!) (!) .
PRATHIBA M. SINGH, J.
1. I.A.3268/2018 (u/O XII Rule 6 CPC), I.A.7332/2018, I.A.10999/2018, I.A.4962/2015, I.A.6069/2018, & I.A.6862/2018 in CS(OS) 558/2014 1. The disputes in the present proceedings filed under Section 92 CPC relate to the Sujan Mohinder Charitable Trust which is a registered charitable trust created by Trust Deed dated 6th March, 1978. It was founded by late Shri Sardar Sujan Singh. The purpose of this Trust as per the Trust deed are as under:-
“3. The objects of the Trust shall be :
(a) To render financial help to any educational, medical, religious or charitable organization.
(b) To render financial help to institution for poor and disabled persons.
(c) To provide for payment of scholarships to students.
(d) To provide for payment of school or college fees, Boarding and/or lodging charges and purchase of educational books or stationery for poor students.
(e) to provide general medical relief by subscribing to or establishing if funds so permit, charitable dispensaries hospitals, clinics or to give medical relief to poor.
(f) to give monetary aid or otherwise provide relief for floor or famine or by any other natural calamities like earthquake and cyclones;
(g) to provide for education and/or maintenance of poor widows.
(h) to open orphanage homes or assist in the conduct of any institutions for protection of orphanage.
(i) to provide for construction of buildings for the accommodation of and conduct schools, colleges, research institutions, Medical clinics and Dispensaries.
(j) to feed poor and disabled persons or for maintenance of bagger homes or institutions for baggers and disabled persons.
(k) For removal of doubts, it is hereby declared that the funds of the Trust should not be utilized for any purpose other than objects of the Trust or for the benefit of author of the Trust or any persons who has made a substantial contribution to the Trust.”
2. The initial trustees of the Trust were:-
(i) Sujan Singh S/o S. Bhagwan Singh,
8-Eastern Avenue, Maharani Bagh, New Delhi.
(ii) Smt. Mohinder Kaur wife of S. Sujan Singh,
8-Eastern Avenue, Maharani Bagh, New Delhi.
(iii) S. Joginder Singh Maker son of S. Sujan Singh,
51/2, D.B. Gupta Road, Karol Bagh, New Delhi.
(iv) Shri Prithipaul Singh son of S. Sujan Singh,
51/2, D.B. Gupta Road, Karol Bagh, New Delhi
(v) Shri Amarjit Singh son of S. Sujan Singh,
51/2, D.B. Gupta Road, Karol Bagh, New Delhi
(vi) S. Raghbir Singh, son of Shri Gopianand, Managing Director Tara Hotel, Kashmiri Gate, Delhi.
(vii) Sh. Harbans Singh, son of S. Dayal Singh, 29-Rohtak Road, New Delhi.
3. Out of the above trustees, Shri Sujan Singh passed away on 1st July, 2009. Shri Harbans Singh and Shri Raghbir Singh also expired. Upon the demise of Shri Sujan Singh on 1st July, 2009, resignations were submitted by all the three sons, who were trustees in the trust.
4. The manner in which, the constitution of the trust changed, after the demise of Shri Sujan Singh, will be set out later. The trust deed had a specific clause to the following effect:-
“5. (a) The trustees shall hold office during their life unless they vacate the office earlier. S. Sujan singh shall be the Managing Trustee during his life time and not liable to be removed from such office except for breach of trust or misconduct;
(b) In the event of any vacancy arising in the office of the Managing Trustees by the death, resignation or otherwise the next senior most Trustees shall act as the Managing Trustee, the seniority in respect of the Trustees herein being reckoned in the order in which the name of the Trustees are mentioned in the deed.
6. In the case of any vacancy in the Trust Board arising by death or resignation or otherwise, the remaining Trustees will have full powers to represent the Trust Board. The Managing Trustees shall have, in such an event, power to accept a Trustee to fill up the vacancy.”
5. As per clause 9, the managing tr
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