Back
High Court of Judicature at Madras
THE HONOURABLE MRS. JUSTICE R.BANUMATHI & THE HONOURABLE MR. JUSTICE M. VENUGOPAL
P.R.Pandurangan Chettiar & Others
Versus
M. Balakrishnan & Others
Appeal Suit Nos. 235 & 236 of 1994
Decided On :Decided On : 19-04-2010
TRUST - Pilla Muzhangi Trust - Suit for framing scheme for Trust and to remove respondents 1 and 2 from trusteeship and direct them to render accounts for trust funds and also to hand over Trust records and to deliver possession of the trust properties - Whether Defendants 1 and 2 acted in furtherance of the objects of the Trust as contended by Defendants 1 and 2? - Whether the finding of trial Court as to mismanagement and maladministration is correct? - Whether the dismissal of an appeal in A.S.No.3 of 2002 arising out of O.S.No.40 of 1988 would operate as res judicata and what is the effect of dismissal of Appeal A.S.No.3 of 2002? - Whether the finding and the judgment of the trial Court suffers from perversity warranting interference? - Held, the finding of trial Court that there was mismanagement and maladministration of Pilla Muzhangi trust is based upon evidence and materials on record. For leasing out the immovable properties in item No.2- S.No.74/29 to the 7th Defendant and for giving the property to the 6th Defendant - Rasipuram Educational Trust and no permission was obtained from the Court nor views or the advice of the Court was obtained as contemplated under Section 34 of the Indian Trust Act. Faced with the overwhelming evidence, the trial Court rightly held that the Trust Management was not properly managed and there was maladministration and that there is a need for framing a scheme for administration of the Trust and also removal of Defendants 1 to 4 from the trusteeship/positions. No substantial grounds are made out warranting interference with the findings of the trial Court.
Fact of the Case:
Plaintiffs filed a suit for framing a scheme for Pilla Muzhangi Trust and to remove respondents 1 and 2 from trusteeship and direct them to render accounts for trust funds and also to hand over Trust records and to deliver possession of the trust properties. Defendants resisted the suit contending that even after creation of Trust and registration of Trust deed in 1970, the Trust was not functioning properly and elections were not conducted till the year 1975. According to the contesting defendants – 1 and 2, elections were conducted in the year 1979 and 1984 and the 1st Defendant was elected as the Secretary and reforms were brought in the administration of the Trust only after the Defendants No.1 and 2 took over the charge. There was no mismanagement or maladministration as alleged by the Plaintiffs and the suit is highly motivated.
Finding of the Court:
The finding of trial Court that there was mismanagement and maladministration of Pilla Muzhangi trust is based upon evidence and materials on record. For leasing out the immovable properties in item No.2- S.No.74/29 to the 7th Defendant and for giving the property to the 6th Defendant - Rasipuram Educational Trust and no permission was obtained from the Court nor views or the advice of the Court was obtained as contemplated under Section 34 of the Indian Trust Act. Faced with the overwhelming evidence, the trial Court rightly held that the Trust Management was not properly managed and there was maladministration and that there is a need for framing a scheme for administration of the Trust and also removal of Defendants 1 to 4 from the trusteeship/positions. No substantial grounds are made out warranting interference with the findings of the trial Court.
Issues: 1. Whether Defendants 1 and 2 acted in furtherance of the objects of the Trust as contended by Defendants 1 and 2? 2. Whether the finding of trial Court as to mismanagement and maladministration is correct? 3. Whether the dismissal of an appeal in A.S.No.3 of 2002 arising out of O.S.No.40 of 1988 would operate as res judicata and what is the effect of dismissal of Appeal A.S.No.3 of 2002? 4 Whether the finding and the judgment of the trial Court suffers from perversity warranting interference?
Ratio Decidendi: The finding of trial Court that there was mismanagement and maladministration of Pilla Muzhangi trust is based upon evidence and materials on record. For leasing out the immovable properties in item No.2- S.No.74/29 to the 7th Defendant and for giving the property to the 6th Defendant - Rasipuram Educational Trust and no permission was obtained from the Court nor views or the advice of the Court was obtained as contemplated under Section 34 of the Indian Trust Act. Faced with the overwhelming evidence, the trial Court rightly held that the Trust Management was not properly managed and there was maladministration and that there is a need for framing a scheme for administration of the Trust and also removal of Defendants 1 to 4 from the trusteeship/positions. No substantial grounds are made out warranting interference with the findings of the trial Court.
Final Decision: The common judgment and decrees in O.S.Nos.310 and 1986 and 93 of 1986 on the file of Subordinate Judge, Namakkal are confirmed and the Appeals are dismissed.
R.BANUMATHI,J.
1. A.S.No.235 of 1994 is directed against the judgment in O.S.No.310 of 1996 decreeing the suit filed by the plaintiffs for framing scheme for Pilla Muzhangi Trust and to remove respondents 1 and 2 from trusteeship and direct them to render accounts for trust funds and also to hand over Trust records and to deliver possession of the trust properties. A.S.No.236 of 1994 arises out of dismissal of suit in O.S.No.93 of 1986. Since both the appeals arise out of common judgment, and points for consideration are one and the same, both the appeals were taken up together and disposed of by this Common Judgment. For convenience, the parties are referred to as per their array in O.S.No.310 of 1986.
2. The family of Pilla Muzhangi Trust chettis formed a Trust and dedicated certain properties for purpose of certain poojas and the benefit of Pilla Muzhangi community people. On 21.6.1970, Mahasabha/ General Body Meeting was convened and a Trust was created and Ex.A.1 – trust deed was registered on the same day i.e., 21.6.1970. Trust deed imposes certain obligations on the trustees to perform certain poojas – Dattatreya Homam, Vana Bojanam, Vinayagar Pooja and Utsavams. From out of 2.44 acres in Survey No.286 belonging to the Trust, an extent of 2.10 acres was acquired for Telephone Department for which an amount of Rs.3,31,634.55ps was awarded as compensation.
3. Defendants 1 and 2 have been in management of the Trust. The first Defendant was the Secretary of the Trust. 2nd Defendant was the Executive Committee member and Defendants No.3 and 4 were the members. The case of Plaintiffs is that Defendants No.1 and 2 have not acted as per the obligations cast upon them in the trust deed. Defendants No.1 and 2 have not performed the poojas nor convened the General Body meeting. The defendants have not acted for the benefit of Pilla Muzhangi community people. Compensation amount of Rs.3,31,634.55 paid for acquiring the lands for Telephone Department was received by the 1st Defendant. The Trust is having the account in Salem Central Cooperative Bank in Rasipuram. Instead of depositing the amount in the said Bank, the 1st Defendant has deposited the amount in Lakshmi Vilas Bank and the 1st Defendant is operating the account. The 1st Defendant has not shown the account to the other community people.
4. Further case of Plaintiff is that after acquiring the land for Telephone Department, from out of the remaining 34 cents, 29 cents was let off to the 6th Defendant for running a School. For giving the property on such long term lease, no permission of the Court was obtained nor it was brought to the notice of the General Body Meeting. In respect of 9 cents in S.No.274/29, Defendants 1 to 4 have executed a Bhokiam – usufructuary mortgage in favour the 7th Defendant. For creating such Bhokiam in favour of 7th Defendant, no permission of the Court was obtained. Defendants 1 and 2 are acting against the objects of the Trust and they have not convened Mahasabha meeting alleging mismanagement and maladministration. Plaintiffs have filed O.S.No.310 of 1986 for removal of Defendants 1 and 2 from trusteeship and also from forming a scheme regarding the management of Pilla Muzhangi Trust also to direct Defendants No.1 and 2 to render accounts and deposit the amount and records in the Court.
5. Defendants resisted the suit contending that even after creation of Trust and registration of Trust deed in 1970, the Trust was not functioning properly and elections were not conducted till the year 1975. According to the contesting defendants – 1 and 2, elections were conducted in the year 1979 and 1984 and the 1st Defendant was elected as the Secretary and reforms were brought in the administration of the Trust only after the Defendants No.1 and 2 took over the charge. There was no mismanagement or maladministration as alleged by the Plaintiffs and the suit is highly motivated. According to Defendants 1 and 2, compensation amount is properly inve
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
