High Court of Judicature at Madras
G.M. AKBAR ALI, J.
Arti Meenakshi Muthiah & Others
Versus
Lady M. Ct. Muthiah Chettiar Girls Higher Secondary School Trust, represented by
C.S. Nos. 598 & 603 of 2013
Decided On : 27-02-2014
Trust Deed Amendment - Public Trust - Sec.92 of CPC - [Sec.92] - The court allowed the amendment of the Trust Deeds for two public trusts, Sir M.Ct.Muthiah Chettiar's High School Trust and Lady M.Ct.Muthiah Chettiar Girls Higher Secondary School Trust, under Sec.92 of CPC. The proposed amendments were found to be not contradictory to the original trust deeds and not opposed to public policy.
Fact of the Case:
The plaintiffs filed suits to amend the Trust Deeds of two public trusts, Sir M.Ct.Muthiah Chettiar's High School Trust and Lady M.Ct.Muthiah Chettiar Girls Higher Secondary School Trust, to effectively carry out the objects and purposes of the trusts. The trusts were established in 1930 and 1945, and the proposed amendments aimed to address the difficulties in investment and comply with the provisions of the Income Tax Act, 1961.
Finding of the Court:
The court found that the proposed amendments were not contradictory to the original trust deeds and were necessary to overcome the difficulties in managing the trusts in the present time. The court held that it had jurisdiction and power to amend the Trust deeds under Sec.92 of CPC.
Issues: The issues involved the amendment of the Trust Deeds of two public trusts and the application of Sec.92 of CPC. The court considered whether the proposed amendments were in line with the original trust deeds and not opposed to public policy.
Ratio Decidendi: The court's decision was based on the interpretation of Sec.92 of CPC, which allows for the amendment of public charitable trusts. The court also relied on the precedent set in the case of Commissioner of Income Tax vs Kamla Town Trust, where the Supreme Court held that civil courts have jurisdiction to amend or rectify trust deeds.
Final Decision: The court allowed both suits and decreed the amendment of the Trust Deeds for Sir M.Ct.Muthiah Chettiar's High School Trust and Lady M.Ct.Muthiah Chettiar Girls Higher Secondary School Trust as prayed for, with the proposed amendments forming part of the decree.
C.S.No.598 of 2013
1. Suit filed to permit the plaintiffs to amend the Trust Deed dated 29.1.1930 registered as Document No.241 of 1930 in the Sub Registrar's Office, West Madras, of the 5th plaintiff Trust, namely, “Sir M.Ct.Muthiah Chettiar's High School Trust”, also known as, “Sir M.Ct.Muthiah Chettiar Higher Secondary School Trust” as stated in the Declaration of Amended and Restated Deed of Trust filed herewith as Appendex-A and Settle a Scheme in terms of the declaration of Amended and Restated Deed of Trust filed herewith as Appendix-A for more effectively carrying on the objects and purposes of the 5th plaintiff Trust, namely, “Sir M.Ct.Muthiah Chettiar's High School Trust”, also known as “Sir M.Ct.Muthiah Chettiar Higher Secondary School Trust”.
C.S.No.603/2013
Permit the plaintiffs herein to amend the Trust Deed dated 31.1.1945 of the 4th plaintiff trust, namely, “Lady M.Ct.Muthiah Chettiar Girls Higher Secondary School Trust” as stated in the Declaration of Amended and Restated Deed of Trust filed herewith as Appendix-A and Settle a Scheme in terms of the Declaration of Amended and Restated Deed of Trust filed herewith as Appendix-A for more effectively carrying on the objects and purposes of the 4th plaintiff Trust, namely, “Lady M.Ct. Muthiah Chettiar Girls Higher Secondary School Trust”.
2. Both the plaints have been filed under Sec.92 r/w Order VII Rule 1 of CPC and Order IV Rule 1 of Madras High Court Original Side Rules. Since both the suits are filed by the same parties, but for two different Trusts viz., Sir.M.Ct muthiah Chettiar Higher secondary school trust and Lady M.Ct Muthiar Girls Trust, they are disposed of by a common judgment.
3. Sir.M.Ct.Muthiah Chettiar trust(hereinafter referred to “Sir Muthiah Chettiar Trust), was established in the year 1930, the other Trust ( hereinafter referred as Lady.Mct.Muthiah Chettiar Trust) was established in the year 1945. The founder Trustee was MC.T.M. Chidambaram Chettiar, (late Lady Deivanai Achi). Both the trusts are running Higher secondary schools as the name represents for more than 8 decades. The object and purpose of the Trust was to impart education to the schooling population of the neighbourhood of Purasawalkam at Chennai. The Trusts are holding immoveable properties and the Educational institutions are established and the objectives are carried out as per the letter and spirit of the Trust. The trust deeds dated 29.1.1930 and 31.1.1945 contain sufficiently explicit provisions to cover all aspects of management and administration of the Trust. However certain aspects of investment of the surplus are not specified in the earlier trust deeds. Certain provisions of the Income Tax Act 1961 has to be applied which were not contemplated eight decades ago. In order to overcome the difficulties, the present Trustees have resolved on 27.6.2013 to amend the said Trust deeds to the best advantage of the Trusts and interest. Therefore the suits are filed for the amendment of the Respective Trust Deeds by way of a decree of this court.
4. Since the suits themselves are filed under sec.92 of Civil Procedure Code which governs Public Trust, there is no contentious parties to the proceedings. Necessary notice was issued by publication in a vernacular Tamil daily and English daily on 3.10.2013. There is no objection whatsoever to the proceedings.
5. Evidence were recorded separately in both the suits and one of the Trustees was examined as P.W.1.
6. In C.S.No.598 of 2013 Exs.P.1 to P.10 were marked and C.S.No.603 of 2013 Exs.P.1 to P.5 were marked. P.W.1 would state the object of the Trusts and the circumstances under which the amendment of the trust deeds are necessitated.
7. Heard Mr. P.J. George, learned counsel for the plaintiff. He pointed out that the plaintiffs Trusts are Public and Charitable Trust with the object of imparting education and they have established the above two schools. The learned counsel submitted that the earlier trust deeds were of the year 1930
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