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2021 Supreme(Mad) 3526

IN THE HIGH COURT OF JUDICATURE AT MADRAS
V.PARTHIBAN, J.
Kanchi Charity Trust, Represented by its Managing Trustee, Mrs.B.K.K.Pillai, Wife of Late Dr.R.K.Pillai - Appellant
Versus
Mrs.Vailankanni – Respondent
Application No.3671 of 2021 in Application No.3676 of 2021, C.S.D.No.80695, 80696 of 2021, O.P.D.Nos.64544 and 64545 of 2021
Decided on : 27-10-2021

Advocates:
Advocate Appeared:
Mr.A.Saravanan

Headnote:

Civil Procedure Code, 1980 - Section 92, 92(1)(f) - Indian Trust Act, - Section 34 - Charitable and Religious Trusts Act, 1920 - Section 7 - Public charities - Powers of trustee to apply for directions - seeking leave to file respective suits - Right to apply to Court for opinion in management of trust-property - Court has its own reservations about filing of applications seeking leave of this Court under Section 92 of CPC, for sale of Trust property(ies) for intended purpose. (Para 12).

Findings of the Court – Court is of view that intention of Trust herein is to sell schedule mentioned properties, proceeds of which are intended for achieving charitable activities - On being satisfied with averments made in affidavits filed in support of O.P.D, Registry shall number both said O.P.D, after rectifying same, treating same as one filed under Section 7 of Charitable and Religious Trusts Act, 1920 read with Section 34 of Indian Trusts Act - Since O.Ps. are now entertained as issue involved in plaints in C.S..D, filed under Section 92 CPC, and O.P.s, same, said C.S.D. shall be returned by Registry to plaintiff(s), as same are not maintainable - Consequently, leave applications filed in suits, shall stand closed - This Court is of view that O.P.D are maintainable, by converting same into one under Section 7 of Act 1920 read with Section 34 of Indian Trusts Act.

Result – Ordered accordingly.

ORDER :

Application No.3671 of 2021 in C.S.D.No.80696 of 2021 and Application No.3676 of 2021 in C.S.D.No.80695 of 2021 are filed seeking leave to file the respective suits under Section 92 of the Civil Procedure Code, 1980 (for short, 'CPC').

2. The affidavits filed in support of the applications are sworn by the Managing Trustee and Trustee of the plaintiff-Trust (Kanchi Charity Trust) stating that the Founder of the Trust was desirous of starting a public charitable Trust for the purpose of alleviating human suffering, eradication of illiteracy and poverty and imparting of sound education with opportunities for research, etc. Accordingly, the plaintiff-Trust is formed by executing a Deed of Trust, dated 09.02.1983 consisting of Trustees and the said Trust Deed was registered as Document No.34 of 1983 before the Sub-Registrar, T.Nagar on 09.02.1983.

3. The Trust purchased agricultural land in S.No.351 ad-measuring an extent of Acres 46.70 cents, vide sale deed in Document No.703 of 1983, dated 14.03.1983 situated in Maduravoyal, Mathura Alapakkam Village, Saidapet Taluk, Chingleput District, within the Registration District of South Madras and Sub-Registration District of Virugambakkam. In this property, a School, namely Vailankanni Matriculation Higher Secondary School is run by the Trust for the past 35 years and the income derived out of the same is meant for achieving the charitable objects of the Trust. This School is now stated to be at loss due to Pandemic and less number of admission of students.

4. Dr.R.Kumaraswamy Pillai @ Dr.R.K.Pillai, Founder and Author, of the Trust, died on 20.05.2005 and his wife became the Managing Trustee of the plaintiff-Trust by Resolution, dated 07.10.2010 and subsequently, she also passed away. In the event of the Trust property not generating sufficient income, the Court may give permission to the Trustee to sell the property, and hence, the Trust has filed the present suit in C.S.D.No.80696 of 2021.

5. It is further stated that the Trust has been filing its Income Tax Returns regularly and income from the said School is only in paltry sum, which has become difficult to achieve the objects of the Trust.

6. It is further stated that from the extract of the Minutes of the meeting of the Board of Trustees of the plaintiff-Trust held on 07.10.2010, it could be seen that the Trustees unanimously voted to appoint Mrs.B.K.K.Pillai as Chairperson and it was also resolved to sell the schedule mentioned property to Mrs.Vailankanni (defendant in C.S.D.No.80695 of 2021) for a consideration of Rs.62,50,000/-. Accordingly, on 21.10.2010, a sale deed was executed conveying Western portion of the land measuring 0.06 cents comprised in Survey No.351/1B Part, 0.04 cents comprised in Survey No.352/2A1B Part and 0.09 cents comprised in Survey No.352/1A1A1B Part, in altogether, Acres 0.19 cents or 8276 Sq.Ft. and the same was registered as Document No.5670 of 2010 before the Sub-Registrar, Virugambakkam. The said sale consideration was paid by way of Cheque No.952518, dated 21.10.2010 drawn on Corporation Bank, T.Nagar Branch, Chennai-600 017.

7. Subsequent to the purchase, the respondent/defendant being the absolute owner of the schedule mentioned property, commenced construction of residential apartments. Since the land originally belonged to the Public Trust, the defendant could not sell the flats to the prospective purchasers and the nationalised Bank are reluctant to sanction loans to the prospective purchasers. Even the project could not be completed by the defendant owing to shortage of money. Hence, C.S.D.No.80695 of 2021 is filed to rectify the same as per Clause VIII of the sale deed, dated 21.10.2010. Unless this Court declares the said sale deed is legal as per the powers conferred with the Managing Trustee under the Deed of Trust, followed by Deed of Rectification, the defendant will be put to loss and hardship. Since the Trust is not generating sufficient income to run the School successfully, by se

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