The main legal point established in the judgment is the court's consideration of the breach of trust and mismanagement allegations against the trustees, the standing of the plaintiffs to bring the suit, and the grant of leave under Section 92 of the Code of Civil Procedure.

R. BANUMATHI, J.

Introductory:-

Whether the lease deed executed by the South Indian Artists Association represented by its Chairman, granting long lease of its valuable property worth more than Rs.150 Crores and situated in the commercial hub of T.Nagar in Chennai, in favour of a Public Charitable Trust managed by the close relative of the Chairman, and the subsequent decision of the Managing Trustee, allegedly, in collusion with the Chairman of the Artists Association, to enter into a lease in the nature of a Development Agreement with a private cinema company for a pittance and with a first option to the builder to purchase the entire property, without following a transparent tender process and in a collusive and secret manner, and more particularly without the association of any other members of the Artists Association or Trust treating the trust property as "Private Property", would constitute an act of breach of trust and mismanagement, thereby giving cause of action to the parties interested in the affairs of the trust to file a Scheme Suit, is the sum and substance of the issue that arises for consideration in this intra-court appeal, filed against the order granting leave to institute the suit under sub section (1) of Section 92 of the Code of Civil Procedure.

Background facts:-

2. South Indian Artistes Association, (in short, SIAA) formed in the year 1952 was registered under the Societies Registration Act with Registration No.50 of 1952. The Association has the objective of promoting harmonious and brotherly relations among the members of world of artists and to seek ways and means promoting art and culture. SIAA purchased a landed property measuring about 18 grounds and 2061 sq.ft. in T.S.No.4820 at new No.16, old No.153, Habibulla Road, T.Nagar, Chennai by a sale deed dated 15.7.1957 and the same was registered in the name of the Association. At present, the market value of the property is stated to be more than Rs.150 Crores. A building was constructed in the said land for the purpose of the Association and to fulfill the ideals laid down in the Bye-laws of the Association.

3. The Association by a deed of declaration of public charitable trust, on 30.5.1987 created a trust under the name and style of Nadigar Sangam Charitable Trust (hereinafter referred to as "Trust") and the same was registered under Indian Trust Act. The office of the Trust shall be located in the said property of SIAA at No.153, Habibullah Road, Madras- 17. The 3rd appellant is the only surviving founder trustee of the said Trust. Other trustees - R.S.Manohar and N.S.Krishnan passed away. The Trust was established with the avowed object of helping the poor artists and dramatists and persons belonging to weaker sections by providing educational, medical and other relief measures and declared that the benefits of the Trust shall be open for all without distinction of caste, creed or religion.

4. SIAA represented by the third appellant has executed a General Power of Attorney dated 6.8.2010 in favour of the second appellant, who is the Managing Trustee of the Trust appointing and empowering him to identify a suitable developer for commercially developing the property in Habibullah Road. On the very same day i.e., on 6.8.2010, a lease deed was executed by the 3rd appellant in his capacity as General secretary of SIAA as lessor leasing out the property in T.S.No.4820 for a period of 99 years to Nadigar Sangam represented by its Managing Trustee -second appellant as the lessee. For the valuable property of about Rs.150 Crores, the 2nd appellant/lessee -Nadigar Sangam Trust has paid only Rs.5,00,000/-and the rent payable towards the said valuable property is Rs.1,000/- per annum. The 2nd appellant, being the Managing Trustee of Nadigar Sangam, has been given the exclusive right to mortgage the property and to raise loans from any financial institutions/party at his sole discretion and choice. All the rental or any other income arising fro