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2017 Supreme(Mad) 3979

IN THE HIGH COURT OF JUDICATURE AT MADRAS
R. SUBRAMANIAN, J.
CH. Mahesh Kumar Reddy & Ors. - Applicants
Vs.
Sathyanarayana Charitable Trust & Ors. - Respondents
Application No. 3937 of 2011 in CS D. No. 29101 of 2011
Decided On : 24-10-2017

Advocates:
Advocate Appeared:
For the Applicants : Mr. S.V. Jayaraman, Mr. V. Ravi, G. Nanmaran
For the Respondents: Mr. K. Harishankar

Headnote:

Code of Civil Procedure, 1908 – Section 92 – Permanent injunction – Application has been filed seeking leave to institute the suit under Section 92 of the Code of Civil Procedure – Nature of the reliefs sought for are not in dispute. It is admitted that the suit as framed would be a suit under Section 92 of the Code of Civil Procedure. – According to the plaintiffs, the plaintiffs 1 to 3 are the grandsons and the 4th plaintiff is daughter-in-law of the author of the trust, namely CH. Sathyanarayana. – The said CH. Sathyanarayana, had created a trust, under Registered Trust – He also left a Will which was probated after his death in OP – According to the said Will certain properties were bequeathed by him to the Trust. – Held, Court is of the considered opinion that they have made out a case of grant of leave. – While considering the question of grant of leave, the Court cannot look for concrete evidence, which would 100% ensure that the plaintiffs would be entitled to a decree as prayed for. – Grant of leave essentially based on prima facie material and the allegations made in the plaint in court considered opinion would constitute a prima facie material. – Court do not think, it would be proper for me to go into the nature of the material and pronounce even a prima facie conclusion regarding the alleged breach of trust. – Court is making it clear that court is not going into the correctness or otherwise of the allegations made in the plaint. – Court is of the considered opinion that the plaintiffs have made out the grant of leave under Section 92 of the Code of Civil Procedure, to file the above suit. – Application Allowed

ORDER :

This application has been filed seeking leave to institute the suit under Section 92 of the Code of Civil Procedure.

2. The plaintiffs have sought for the following reliefs in the suit:

i. For a further declaration that the defendants 2 to 6 are not entitled to function as Trustees of Sathyanarayana Charitable Trust and direct removal of all Trustees.

ii. Directing the defendants to render accounts of the 1st defendant s Trust.

iii. For formation of the scheme by this Hon’ble Court to manage the 1st defendant Trust.

iv. Permanent injunction restraining the defendants from disposing the Trust properties.

v. For cost of this suit.

3. The nature of the reliefs sought for are not in dispute. It is admitted that the suit as framed would be a suit under Section 92 of the Code of Civil Procedure. According to the plaintiffs, the plaintiffs 1 to 3 are the grandsons and the 4th plaintiff is daughter-in-law of the author of the trust, namely CH. Sathyanarayana. The said CH. Sathyanarayana, had created a trust, under Registered Trust dated 05.06.1968. He also left a Will dated 19.06.1968, which was probated after his death on 07.02.1971 in OP No.165 of 1972. According to the said Will certain properties were bequeathed by him to the Trust. The main objects of the Trust are as follows:-

1. To establish, maintain run, develop, improve, extent, grant donation for and to aid and assist in the Establishment, maintenance, running, development, improvement and extension of General and Technical education, Industrial Technical or other Art, Craft and Science, Schools and institutions or all kinds of Educational Institutions of General, Technical, professional or of any other description whatsoever and to institute and award scholarship to deserving students for study, research and apprenticeship and to run or assist the running or hostels for the benefit of students and scholars.

2. To establish, maintain, run, develop, libraries and reading books.

3. To provide medical relief, namely running of hospital, Nursing Homes etc.,

4. Under the trust deed, testator had appointed three trustees and the mode of appointment of future trustees is also provided in the trust deed itself. The author had nominated his wife Sri. C.H. Balamoney, his son-in-law K.R. Purushotham, and himself as the first trustees of the trust. The said deed also provides that the first trustees shall hold the office for their lives and other trustees, who may be appointed shall hold office for a period of 3 years from their respective dates of appointment unless, by the terms of their appointment, some other period is fixed. The power to appoint trustees is also given to the trustees. Clause 16 of the trust deed reads as follows:-

“The trustees may at any time and from time to time appoint any person or persons as trustees or trustees to fill any vacancies in the office of the trustees or as additions to the existing trustees provided the total number of trustees shall not exceed maximum of nine mentioned above.”

5. The author of the trust died some time in 1971 and thereafter, it appears that the other two trustees, namely, K.R. Purushotham, C.H. Balamoney, continued to be trustees. By a letter dated 01.03.1985 the other trustee namely, C.H. Balamoney, wife of the founder trustee had required that her son should be appointed as the third trustee. The other surviving trustee had not acceded to her request. Thereafter, the 1st plaintiff in the proposed suit as legal heir of one of the sons of the founder of the trust had addressed a letter to the Managing Trustee, namely Mr. K.R. Purushotham, seeking details of the income and expenditure of the trust. It appears that the said Mahesh Kumar Reddy has also followed it up by another notice dated 24.01.2002, issued by his counsel claiming that he has a legal right and interest over the property of C.H. Sathyanarayana and Sathyanarayana Charitable Trust as well as in the properties vested in the trust by his grandfather. He also sought for det




























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