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1998 Supreme(Ker) 275

Judges : S.SANKARASUBBAN
Amrithakumari - Appellant
Versus
Ramanathan - Respondent
Case No : C.R.P.No.886 of 1998
Decided On : 07/08/1998
Advocates Appeared :
S. Ananthasubramanian, N. Sukumaran, S. Shyam & T.G. Lellulal For Petitioners P. Parameswamn Nair For Respondents

The main legal point established in the judgment is that a suit under S.92 of the Code of Civil Procedure is maintainable even with a declaratory relief, and the registration of a society does not change the character of the properties if a trust was created by the public for a charitable purpose.

Headnote:

S.92 of the Code of Civil Procedure - Public Trust - Act XXI of 1860, Societies Registration Act - [S.92, Act XXI of 1860, Societies Registration Act] - The court discussed the applicability of S.92 of the Code of Civil Procedure to a suit involving a public trust formed under Act XXI of 1860 and registered under the Societies Registration Act. The court held that a suit under S.92 is maintainable even if it contains a declaratory relief and that the registration of a society does not change the character of the properties if a trust was created by the public for a charitable purpose. The court also emphasized the need for independent consideration of leave petitions and the jurisdiction of the court to entertain suits under S.92.

Fact of the Case:

The petitioners sought leave to institute a suit under S.92 of the Code of Civil Procedure against a public trust, the Perinjanam High School, to recover properties and remove the present trustees for misdeeds and misappropriation of funds. The respondents objected to the leave petition, contending that the suit was not maintainable under S.92 and that the properties did not constitute a trust.

Finding of the Court:

The court held that the suit under S.92 was maintainable, even with a declaratory relief, and that the registration of a society does not change the character of the properties if a trust was created by the public for a charitable purpose. The court also emphasized the need for independent consideration of leave petitions and the jurisdiction of the court to entertain suits under S.92.

Issues: The main issues were the maintainability of the suit under S.92, the character of the properties as a trust, and the procedural irregularity in filing the leave petition and plaint together.

Ratio Decidendi: The court emphasized that a suit under S.92 is maintainable even with a declaratory relief and that the registration of a society does not change the character of the properties if a trust was created by the public for a charitable purpose. The court also highlighted the need for independent consideration of leave petitions and the jurisdiction of the court to entertain suits under S.92.

Final Decision: The Civil Revision Petition was dismissed, and the court held that the suit under S.92 was maintainable, the properties constituted a trust, and there was no procedural irregularity in filing the leave petition and plaint together.

Judgment :-

S. Sankarasubban, J.

This Civil Revision Petition is filed against the order in 1. A. No. 2868/96 in O.S. No. 7/96 of the 1st Additional District Court, Thrissur. By the above interlocutory order, the Court below gave leave for respondents 1 to 3 to institute suit under S.92 of the Code of Civil Procedure. Petitioners in this Civil Revision Petition are respondents 1 and 2. Notice to respondents 4 to 16 has not been served. But in the facts of this case it is not necessary to await return of notice, because they have not challenged the order in I. A. No. 2868/96. The application was filed for the grant of leave to institute a suit against the Perinjanam High School, which is a public trust and to recover the plaint schedule properties with mesne profit after declaring that all alienations made with regard to the trust properties are voidable and to set aside the same. It also prayed for removing the present trustees for their misdeeds and maldeeds and misappropriation of funds, for rendition of accounts and for other reliefs.

2. Some prominent persons of Perinjanam who wanted to spread education and do other social and community activities formed themselves as sponsors for registering a committee under Act XXI of 18 60 and applied for registration of a society for doing charitable work. The Registrar of Joint Stock Companies registered the society and gave a certificate of Registration as No. 11 of 1944. The seven sponsors continued as members of the Managing Committee till 1953. The founder committee President was V.K. Martian Chohan. After his death, a meeting was held on 29.1.1954 with one Sreenivasan in the presidential chair. Sreenivasan is the son of founder president V.K. Maman Chohan. The committee has admitted that the school is a charitable public trust. The aforesaid Sreenivasan, his wife the first defendant and the mother of Sreenivasan executed a deed of trust in 1958 as No. 386 of 1958 giving properties mentioned therein as endowments for the proper maintenance and up-keep of the school. The whole of 'B' schedule properties were endowed to the school. The income from the trust properties should be mainly used for the proper up-keep of the school and some help should be given for meeting the expenses of yearly festivals of their temple. The other trustees had released of their rights over the properties in favour of the trust. There are conditions in the trust deed under which it has been made clear that the properties encumbered for the purpose of the trust. But the allegation made in the plaint is that contrary to the conditions in the trust deed, the properties were alienated against the interest of the trust. The properties were detailed in the plaint. There is a prayer for settling out the same. They also prayed for laying out of the scheme for administration of the trust. Accounts of the trust were not given by respondents 1 to 3.

3. The present petitioners filed objections to the leave petition. The main objection was that even though the said Sreenivasan would have created the trust with regard to the properties, the school is being conducted by a society registered under the Societies Registration Act. Hence if at all any suit can be filed, it can be filed only in complying with the Societies Registration Act. Further, it was contended that since there was a prayer for declaring the Perinjanam High School as a public trust, a suit under S.92 of the Code of Civil Procedure was not maintainable. They also denied that there was any alienation contrary to the directions in the trust deed. The lower court after hearing both parties granted leave. It is against that the present revision is filed.

4. Sri. S. Ananthasubrahmanian, learned counsel for the petitioners attacked the order of the Court below. According to him, the order is vitiated on the following counts: The first contention is that in so far as there is a prayer for declaration that the Perinjanam school is a public trust, such a suit will n











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