2011 Supreme(Mad) 4039
High Court of Judicature at Madras
R.S. RAMANATHAN
K.R. Diwakar
Versus
Kotta Manavaliah & Others
S.A.No.908 of 2011 & M.P.No.1 of 2011
Decided on : 23-09-2011
For the Appellant:S. Natana Rajan, Advocate.
For the Respondent: -
A Managing Trustee cannot continue after the prescribed period, and the appointment of a new Managing Trustee cannot be questioned by the erstwhile Managing Trustee.
Headnote:
Trusteeship - Managing Trustee - Indian Trusts Act, Section 74 - The judgment discusses the appointment and tenure of Managing Trustees, the authority of Trustees to prevent a former Managing Trustee from acting beyond the prescribed period, and the applicability of Section 74 of the Indian Trusts Act. The court affirmed that a Managing Trustee cannot continue after the prescribed period and that the appointment of a new Managing Trustee cannot be questioned by the erstwhile Managing Trustee. The judgment also emphasizes that if the appellant had any grievance, he should have filed a suit challenging the appointment of the new Managing Trustee.
Fact of the Case:
The respondents filed a suit seeking injunction to restrain the appellant from collecting rent from the Trust properties after his tenure as Managing Trustee expired. The appellant contested, alleging that the first respondent had taken funds from the Trust and created records to remove him from the post of Managing Trustee.
Finding of the Court:
The Courts held that the appellant had no right to continue as Managing Trustee after the prescribed period and decreed the suit in favor of the respondents.
Issues: The main issue was whether the appellant had the right to continue as Managing Trustee after the expiration of his tenure and whether the appointment of the new Managing Trustee was valid.
Ratio Decidendi: The court ruled that the appellant could not continue as Managing Trustee after the prescribed period and that the appointment of the new Managing Trustee was valid. It also emphasized that the appellant should have challenged the appointment if he had any grievance.
Final Decision: The Second Appeal was dismissed, confirming the judgment and decree of the Courts below.
1. The unsuccessful defendant is the appellant herein.
2. The respondents/plaintiffs filed the suit in the capacity of Trustees of Kota Manavaliah Sulochanamma Charities, seeking for the relief of injunction, restraining the appellant/defendant from collecting rent from the tenants of the Trust properties.
3. The case of the respondents/plaintiffs was that for the trusteeship of Kota Manavaliah Sulochanamma Charities, for a period of three years i.e., from 1.4.1997 to 31.3.2000, the respondents/plaintiffs and the appellant/defendant were elected as Trustees and the appellant/defendant was appointed as Managing Trustee for a period of three years ending with 31.3.2000. The appellant/defendant was not rendering proper accounts about the rent collected from the tenants and evenafter, the expiry of his period, he continued to collect rent from the tenants and the first plaintiff/first respondent was appointed as Managing Trustee from 1.4.2000 and despite notice sent to the appellant/defendant, requesting him not to collect the rents and to render proper accounts, he continued to collect rents from the tenants as Managing Trustee. Hence, the suit was filed for injunction.
4. The appellant/defendant contested the suit stating that he was not able to render the accounts properly, as the first respondent had taken a sum of Rs.60,000/- from and out of the Trust funds and he has to account the same to the appellant/defendant and he did not reimburse that amount and due to the fault committed by the first respondent, the appellant was not able to render proper accounts and taking advantage of the relationship between the respondents 2 to 4, who are close relatives, records were created, as if, the appellant/defendant was removed from the post of Managing Trustee and the first respondent was appointed as Managing Trustee and therefore, the respondents/plaintiffs are not entitled to the relief prayed for.
5. Both the Courts below accepted the case of the respondents/plaintiffs and held that the appellant has no right to continue to hold the post as Managing Trustee, after 1.4.2000, as the period stipulated for holding the said post had expired and therefore, he cannot collect the rent from the tenants of the Trust and decreed the suit. Hence, the Second Appeal.
6. It is submitted by the learned counsel appearing for the appellant that without proving that the appellant was removed from the post of Managing Trustee, the suit filed by the respondents for injunction, restraining the appellant from collecting the rent is not maintainable and the procedure contemplated under Section 74 of the Trust Act was not followed and therefore, the respondents cannot prohibit the appellant from collecting the rent, as the appellant continued to hold the Office as the Managing Trustee.
7. I am unable to accept the contention of the learned counsel for the appellant. It is not in dispute that the respondents and the appellant were elected as Trustees for a period of three years i.e., from 1.4.1997 to 31.3.2000 and the appellant was elected as Managing Trustee and he has to hold Office for a period of three years ending with 31.3.2000. Therefore, after the expiry of the period of Managing Trusteeship i.e., on 31.3.2000, the appellant has no right to continue to hold the Office as the Managing Trustee and it is the specific case of the respondents that the first respondent was elected as Managing Trustee from 1.4.2000 and that was not disputed by the appellant.
The appellant has only stated in the written statement that taking advantage of the relationship of the respondents, they have created records, without giving notice to the appellant, as if, the first respondent was elected as Managing Trustee of the Trust for a period of three years from 1.4.2000 onwards. Admittedly, appellant has not challenged the appointment of the first respondent as Managing Trustee or the constitution of the new Trust Board for a period of three years, from 1.4.2000.
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