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IN THE HIGH COURT OF DELHI
Yashwant Varma, J.
Ram Sarup Lugani - Appellant
Versus
Nirmal Lugani - Respondent
CS(OS) 182 of 2019 & I.A. 22105 of 2022 (Interim Direction)
Decided On : 04-01-2023




The requirement under Section 92 of the CPC for at least two persons to file for leave to sue against a public charitable trust is mandatory and non-compliance affects the jurisdiction of the court.

Headnote:(A) Code of Civil Procedure, 1908 - Section 92 - Impleadment of parties - Application for leave to institute suit against public charitable trust - Requirement of at least two parties to maintain application under Section 92 is mandatory - Proposed suit could not be instituted without complying with conditions of Section 92 - Court allowed impleadment of individuals as applicants to restore interests of justice. (Paras 3, 8, 13, 21)

(B) Jurisdiction - Non-compliance with fundamental prerequisites for institution of suit affects jurisdiction of court to hear matter - Mere procedural defects cannot be relied upon to overcome statutory requirements. (Paras 10, 12)

(C) Inherent Powers of Court - Court possesses authority under Section 151 to allow necessary adjustments in pursuit of justice, despite strict statutory confines. (Paras 22, 23)

Facts of the case:
Application to implead additional co-plaintiffs in a proposed suit regarding the Raghuvanshi Charitable Trust after the demise of an original applicant. The proposed suit addresses misconduct by defendants in managing the Trust's affairs and the requirement of leave under Section 92 of the CPC.

Findings of Court:
Court allows the application for impleadment, affirming that statutory requirements for number of applicants must be met for leave to sue, yet permits the new parties to join prior to institutional approval for equitable continuum of justice.

Issues: Whether non-compliance with Section 92's requirement for at least two applicants is fatal to the application for leave and its implications on jurisdiction.

Ratio Decidendi: The court held that the requirement under Section 92 is non-negotiable; however, it also emphasized the importance of inherent powers to ameliorate procedural rigidity when necessary for the interests of justice.

Result: Application for impleadment allowed; new applicants permitted to join.

Table of Content
1. application for impleadment of parties. (Para 1 , 6)
2. facts regarding the raghuvanshi charitable trust. (Para 3 , 5)
3. requirements for leave under section 92. (Para 7 , 8 , 12 , 18)
4. mandatory requirements and judicial precedents for leave application. (Para 9 , 10 , 14 , 19)
5. invocation of inherent powers under section 151. (Para 22)
6. conclusion: application allowed. (Para 23)

ORDER

I.A. No. 8273/2021 (Appropriate Direction)

1. This application has been preferred for the impleadment of Major Atul Dev and Dr. Neerja Lugani Sethi as co-plaintiffs or to be impleaded as parties in light of subsequent developments which are set forth in the said application. A further prayer is made for leave being granted to the proposed co-plaintiffs to institute the accompanying suit under Section 92 of the Code of Civil Procedure, 19081 .

2. It becomes pertinent to note that the present matter is still to be registered, in stricto sensu, as a suit under Section 92 of the Code since leave to institute is yet to be granted. The prayer made in the instant application in essence appears to be to permit the individuals noted above to join as applicants in I.A No. 4760/2019 which is pending consideration.

3. The suit proposed to be instituted under Section 92 of the Code relates to the affairs of a public charitable trust named Raghuvanshi Charitable Trust2 . The application for leave was originally preferred by Shri Ram Sarup Lugani and Shri Bahushrut Lugani. On 04 April 2019, this Court while noticing the issues which arise in some detail, proceeded to pass an order restraining the defendants from withdrawing any money directly or indirectly for themselves from the funds of the defendant No.7 or the schools falling under the management and control of the Trust.

4. The Trust itself is stated to have been constituted as a not-for profit entity dedicated to the objective of establishing schools, colleges and other social institutions. The allegation in the proposed suit was that the defendant Nos. 1 to 6 are jointly and severely misconducting themselves and acting contrary to the aims and objectives of the Trust. While this Court proceeded to pass the interlocutory order of restraint on 01 April 2019, the record would reflect that the application for leave to institute the suit remains pending on the board of the Court.

5. The applicants disclose that during the pendency of the instant proceedings, the applicant no. 1, the erstwhile Managing Trustee of the Trust succumbed to Covid-19 on 22 May 2021. It is in that backdrop that it is proposed that the two individuals named above be permitted to join the pending application for grant of leave. Major Atul Dev is stated to have retired from the Armed Forces and is one who is engaged in philanthropic activities. He is also reported to be a part of a society to which the defendant no.7 provides benefits. Dr. Neerja Lugani Sethi is stated to be an educationist, a PhD, and currently holding the office of Dean of Architecture at Indraprastha College, Dwarka, Delhi. It is further asserted that she has been closely involved in the administration of schools running under the aegis of defendant No.7 and is also a member of the School Management Committee3 of Gurugram Public School at Sector 62. The present application apart from being supported by an affidavit of Shri Bahushrut Lugani, the original applicant no.2, also encloses affidavits of Dr. Neerja Lugani Sethi and Major Atul Dev in support of the prayers that are made.

6. The prayers made in the instant application are opposed by the opposite parties who contend that upon the demise of original applicant no.1, the number of applicants surviving upon the application seeking leave stands reduced to less than two. In view of the above, it is contended that the application fails to meet the fundamental prerequisites of Section 92 and thus must be rejected. It was further urged that since the application seeking leave is not a

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