High Court of Judicature at Madras
THE HONOURABLE MR. JUSTICE K.P.SIVASUBRAMANIAM
R.Raghupathy - Appellant
Versus
Nil - Respondents
CIVIL REVISION PETITION NO. 801 OF 1997
Decided On : 13 March 2003
Trust - Sale of Trust Property - Indian Trusts Act, 1882 - Section 34
Fact of the Case:
The case involved a Trust seeking permission to sell unremunerative lands and portions of a dilapidated building to secure a permanent source of income for the maintenance of the property and for the performance of 'Mandagapadi' every year.
Finding of the Court:
The court found that the lower court was justified in rejecting the petition due to lack of details provided by the Trustees regarding the nature of the property, expenses involved in the 'Mandagapadi', and the value of the property for which the properties could be sold.
Issues: The issues included the bar on alienation of the property under the Trust deed, lack of details on the nature and condition of the property, expenses required for 'Mandagapadi', accounts, and details of proposed purchasers and probable value of the property.
Ratio Decidendi: The court held that under Section 34 of the Indian Trusts Act, the Court can order sale of the property even in the face of the Trust deed containing a specific clause prohibiting sale, but only in rare and exceptional cases for the very preservation of the Trust.
Final Decision: The revision petition was dismissed, but the court held that it is open to the petitioners to approach the District Court again for the purpose of sale by furnishing all the required and proper particulars.
This revision is directed against the order of the learned District Judge, Nagapattinam in Trust O.P.No.38 of 1995.
2. The said Original Petition was filed by the petitioner/Trust represented by its hereditory Trustees. With reference to "Mandagapadi" on the second day of Vidayathi festival of Sri Rajagopalaswamy temple, Mannargudi, a Trust was created by the plaintiffs/Trustees. The ancestors of the Trustees had constructed a bungalow mentioned as 'A' Schedule property. The idol of Sri Rajagopalaswamy is brought and a Mandagapadi is conducted by their family. The festival involves considerable expenses. One K.R.Raghunatha Rao and K.R.Ramachandra Rao, two brothers, the predecessors of the present Trustees, were interested in providing for the above "Mandagapadi" and in order to perform the same regularly and permanently and to provide funds and income had set apart some properties for the Trust. They therefore, earmarked plaint 'A' schedule property for the mandagapadi expenses by way of a registered settlement deed named as "Kaingarya" Trust deed dated 16.9.1954. Under the said deed, they have provided that "mandagapadi" must be performed in the 'A' schedule building every year and that the income from the 'B' schedule properties must be utilised for that purpose. During their life time they were performing the "mandagapadi". Raghunatha Rao died on 14.12.1956 and Ramachandra Rao was looking after the same. He had executed his last Will and testament on 20.4.1965 by which he had nominated R.K.Rama Rao, father of the present Trustees, to succeed him. On the death of Ramachandra Rao on 23.6.1989 Rama Rao took over and he was managing the properties in terms of the Will. In his turn, he has executed a Will dated 3.8.1978 appointing his sons to be the Trustees after his life time. He died on 11.8.1978 and on his death one of his sons Padmanabhan died later. The other three sons are the present Trustees and they have filed the above petition.
3. It is further stated that the 'B' schedule properties are dry lands comprising of 13 acres and 14 cents, and not included in ayacut. Only punja crops could be raised if there are rains. Therefore, most of the years the lands will be left without cultivation. For the past eight years, there has been no cultivation for want of sufficient water supply. The lands are also on higher level. The Bungalow in 'A' schedule property is also more than 100 years old and now it is in a highly dilapidated condition. For want of funds, the Trustees are unable to carry out repairs to the old building, and even white washing is not possible. It is further stated that normal expenditure for the 'Mandagapadi" was steadily increasing and it was about Rs.15,000/- when the petition was filed. The Trustees have to obtain funds from other Trusts of their family and to perform "Mandagapadi" and there are no fixed deposits or fixed income for the Trust on which they can depend for the performance of "Mandagapadi". In fact, a portion of the lands, 4 acres and 7 cents were acquired by the Government under the Land Acquisition Act and a meagre compensation of Rs.14,901.75 was awarded. The High Court has directed the State Government to fix the value of the land afresh. Till now, no action was taken and the compensation with accrued interest was in Court deposit in L.A.O.P.No.2 of 1977. Even the interest amount has not been paid to the Trust. It is also stated that 'A' schedule property is in the main road and had to be kept under constant watch to avoid encroachments. The southern wall of the property has fallen down. There is frequent nuisance during night times and unruly elements encroach upon the open land and the cost for putting up a compound wall will be very high and the Trust has no funds to meet the same.
4. It is further stated that to secure a permanent source of income for the maintenance of the property and for the performance of "Mandagapadi" every year, it has become imperative for the Trustees
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