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2012 Supreme(Mad) 2758

High Court of Judicature at Madras
S. TAMILVANAN
The Sengunthar Charitable Trust Rep by its Secretary T.P. Arumugam & Others
Versus
R. Manickam & Others
Civil Revision Petition (PD) No.1036 of 2010, Tr.C.M.P.No.464 of 2010 & M.P.Nos.1,1,1 of 2010 in C.R.P (PD).Nos.2350 to 2352 of 2010 & connected miscellaneous petitions
Decided on: 03-07-2012

Advocates Appeared:
For the Petitioners:T.V. Ramanujam, Senior Counsel for T.V. Krishnamachari, N. Jothi for M.C. Govindan, Advocates.
For the Respondents:N. Jothi for M.C. Govindan, T.V. Ramanujam, Senior Counsel for T.V. Krishnamachari, Advocates.

The main legal point established in the judgment is that the grant of leave under Section 92 of the Code of Civil Procedure is an administrative order and not a judicial or quasi-judicial order, and therefore, notice to the proposed defendants is not mandatory before granting such leave.

Headnote:

Section 92 - Public Trust - 104 of 1976 - The judgment discusses the application of Section 92 of the Code of Civil Procedure, 1908, and the relevant provisions of Act 104 of 1976 in the context of a suit filed against a public charitable trust. The court emphasizes that the grant of leave under Section 92 is an administrative order and not a judicial or quasi-judicial order, and therefore, notice to the proposed defendants is not mandatory before granting such leave. The judgment also highlights the legal principles established by various decisions, including the requirement of notice to proposed defendants before granting leave, the nature of the proceeding under Section 92, and the protection of public trusts from harassment by suits. The court concludes that the impugned order granting leave under Section 92 is not illegal or passed without jurisdiction, and dismisses the revision petition, transfer petition, and miscellaneous petitions.

Fact of the Case:

The suit was filed by the respondents, who are trustees of a charitable trust, seeking to settle a scheme for the property, remove certain defendants from the trust, and obtain accounts of the trust. The Principal District Judge granted permission under Section 92 of the Code of Civil Procedure to file the suit, which was challenged by the revision petitioners.

Finding of the Court:

The court found that the grant of leave under Section 92 is an administrative order and not a judicial or quasi-judicial order, and therefore, notice to the proposed defendants is not mandatory before granting such leave. The court also held that there was no illegality or material irregularity in the impugned order granting leave under Section 92, and dismissed the revision petition, transfer petition, and miscellaneous petitions.

Issues: The main issue was whether the grant of leave under Section 92 of the Code of Civil Procedure required notice to the proposed defendants before being granted, and whether the impugned order was illegal or passed without jurisdiction.

Ratio Decidendi: The court established the legal principle that the grant of leave under Section 92 is an administrative order and not a judicial or quasi-judicial order, and therefore, notice to the proposed defendants is not mandatory before granting such leave. The court also emphasized the protection of public trusts from harassment by suits and the requirement of balancing the interests of the public trust and the parties involved.

Final Decision: The court dismissed the revision petition, transfer petition, and miscellaneous petitions, and directed the Court below to dispose of the interlocutory applications at an early date.

Judgment

1. C.R.P (PD).No.1036 of 2010 is filed under Article 227 of the Constitution of India, by the respondents against the order, dated 19.10.2009 made in I.A.No.309 of 2009 in the unnumbered O.S.No... of 2009 on the file of the District Judge, Namakkal, granting leave to file suit under Section 92 of the Code of Civil Procedure.

2. The plaintiffs, who are respondents 1 and 2 in the Civil Revision Petition, had filed the suit, stating that they are trustees of the Sengunthar Charitable Trust, the first revision petitioner herein, having its registered office at Door No.47-1, S.N.D.Road, Tiruchengode, Namakkal District, represented by its Secretary, wherein the reliefs sought for are : (a) to settle a scheme for the property by constituting public charitable trust in accordance with law (b) to remove the defendants 2, 4, 6 to 9, 12 and 13 from the first defendant trust, as per Section 92 (1) CPC and (c) for directing the defendants 1, 2 and 3 to submit the accounts of the first defendant trust from the financial year 2006-2007 onwards till the date of the decree.

3. As per the Interlocutory Application in I.A.No.309 of 2009, the plaintiffs in the suit have filed a petition under Section 92 (1) read with Section 151 of Code of Civil Procedure, seeking leave to file and maintain the suit, as required under Section 92 (1) of the Code. Though in the accompanying affidavit, the number of the Interlocutory Application is stated as I.A.No.109 of 2009, in the petition the said number is stated as I.A.No.309 of 2009 and the Court below has also passed the impugned order only in I.A.No. 309 of 2009. Therefore, it is clear that the correct Interlocutory Application number relating to the Civil Revision Petition is only I.A.No.309 of 2009 and not I.A.No.109 of 2009 as stated in the copy of the affidavit and the index of the typed set filed by the petitioner herein.

4. It is seen that by order, dated 19.10.2009, the Principal District Judge, Namakkal, allowed the interlocutory application, whereby granted permission under Section 92 (1) CPC to file the suit. The Civil Revision Petition in C.R.P.No.1036 of 2010 has been preferred against the said order passed in I.A.No.309 of 3009 by the Court below.

5. In the interlocutory application, the respondents 1 and 2 herein, as applications / plaintiffs have stated that the suit properties are the properties of the first revision petitioner-trust and further, averred that the Trust is being misused and abused for the personal benefit of the petitioners herein, who are the defendants in the suit. According to the respondents 1 and 2 / plaintiffs, a heavy amount to an extent of 10 crores had been borrowed on behalf of the Trust from the fourth respondent Bank, for which neither there was any agenda nor any resolution passed by the Trust. According to respondents 1 and 2 / plaintiffs, though the first revision petitioner is a public and charitable trust by its nature, the revision petitioners herein have misused and abused the same, in view of their close relationship with each other and they act as a close net work keeping the plaintiffs / respondents 1 and 2 away from the affairs and administration of the trust and the plaintiffs were also kept in dark with regard to the affairs of the trust. It has been further averred that there was pre-suit notice sent by the plaintiffs as early as on 12.12.2008, for which, no reply from the revision petitioners 2 to 13 was received. However, they are keen in lodging caveats and extending the caveats for the reasons best known to them.

6. According to the respondents 1 and 2 / plaintiffs, they have locus standi and got sufficient cause of action to file the suit and hence, they sought leave from the Court below to file and maintain the suit, in terms of Section 92 (1) CPC. As per Section 92 (1) CPC, in case of any alleged breach of any express or constructive trust created for public purposes of charitable or religious nature or where the direction of the









































































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