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2011 Supreme(Mad) 4625

VINOD K.SHARMA
First – Appellant
Versus
Second – Respondent


Judgement Key Points

Key Points: - The court held that all trustees must be impleaded in a suit against a trust unless the trust deed provides otherwise. (!) - The compromise decree can be set aside if the trust was not properly represented and not all trustees were parties, violating Order 31 Rule 2 CPC. (!) (!) - Section 151 CPC can be invoked to set aside a consent decree if it is not valid under the Indian Contract Act. (!) - The suit was restored and the consent decree set aside due to improper representation of the trust. (!) - The civil suit was restored to proceed on merits following the setting aside of the consent decree. (!) - The applicant/trust contended that the decree was not binding on trustees not party to the suit; the court agreed given improper impleadment. (!) (!) - The trust was sued through its Managing Trustee, which raised issues about proper representation under Order 3 Rule 2 CPC. (!) (!) - The court found that in absence of proper impleadment, the suit framed was not maintainable against the trust. (!) - The application to challenge the decree was allowed; the consent decree was set aside; the suit was restored. (!)

How to challenge a consent decree on the ground that all trustees were not properly represented in a suit against a trust?

What is required under Order 31 Rule 2 CPC regarding impleading trustees in a suit against a trust?

What is the effect of Section 151 CPC on setting aside a compromise/decree when the trust is not properly represented?


Judgment :

VINOD K.SHARMA.J.,

1. A.No.3274 of 2010, under Section 151 of the Code of Civil Procedure, has been moved by the applicant / 2nd defendant, i.e. one of the trustees to set aside "Compromise Memorandum Judgment" and decree dated 13.07.2009, passed in C.S.No.455 of 2009 and to restore the civil suit No.455 of 2009, on record for decision on merit.

2. The plaintiff / non applicant filed a suit for declaration that the plaint A schedule property is exclusively for residential purpose of the members of the plaintiff association, and that the defendants have no right to use it for commercial or any other purpose.

3. Consequential relief prayed for is to grant permanent injunction, restraining defendant nos.1 to 3 from continuing, functioning, Vedagurukulam inside the colony, conducting monthly meetings, discourses of Vathikasri, performing religioius ceremonies Avaniavattam and Ganapathy and Sudarsana Homam on commercial basis and publishing spiritual magazines such as Vathikasri or any other magazines in any other name on behalf of its customers or doing any other commercial activities in the premises bearing New No.488, Old No.176, TTK Salai, Alwarpet, Chennai.

4. Relief o


























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