IN THE HIGH COURT OF JUDICATURE AT MADRAS
T.RAJA, K.KUMARESH BABU, JJ.
Mr. S.Jayachandran - Appellant
Versus
Justice P.Shanmugam (Retd.). (Deleted) – Respondent
O.S.A.Nos.17, 81, 128 and 222 of 2022 and C.M.P.Nos.1874, 5850, 13443, 13534 & 13540 of 2022
Decided on : 28-04-2023
Trust Management - Pachaiyappa's Charitable Trust - Regulation VII of 1817, Section 92 CPC - The court discussed the management of Pachaiyappa's Charitable Trust, the historical decrees and schemes, and the need for modifications. The court emphasized the requirement of invoking Section 92 of the Civil Procedure Code for modifying the scheme and highlighted the historical context of the trust's management and the limitations on modifying the scheme.
Fact of the Case:
The case concerned the management of Pachaiyappa's Charitable Trust, including historical decrees and schemes, and the need for modifications. The court analyzed the issues related to the election of trustees, modification of the existing scheme, allegations of maladministration, and financial and administrative issues.
Finding of the Court:
The court found that modifications to the trust's scheme could only be made under Section 92 of the Civil Procedure Code and that the applications for modifications should have been filed as suits under Section 92. The court also appointed a retired judge as the Administrator of the Trust and directed the Administrator to consider various applications and issue a general publication for the members' views on the existing scheme.
Issues: The issues included the election of trustees, modification of the existing scheme, allegations of maladministration, and financial and administrative issues.
Ratio Decidendi: The court held that modifications to the trust's scheme could only be made under Section 92 of the Civil Procedure Code, considering the historical decrees and schemes. The court also emphasized the need for evidence and a full trial to decide allegations and counter allegations.
Final Decision: The court appointed a retired judge as the Administrator of the Trust, directed the Administrator to consider various applications and issue a general publication for the members' views on the existing scheme, and held that the application seeking cancellation of a registered lease deed should be pursued through an independent suit.
JUDGMENT :
T.RAJA, J.
Prayer: Original Side Appeal filed under Order XXXVI Rule (1) of the Original Side Rule r/w Clause 15 of the Letters Patent Appeal, to set aside the Judgment and Decretal Order dated 30.11.2021 passed in Application No.2416 of 2019 with costs.
Prayer: Original Side Appeal filed under Order XXXVI Rule (1) of the Original Side Rule r/w Clause 15 of the Letters Patent Appeal, against the Order and Decretal Order dated 30.11.2021 passed by the learned Judge in Application No.2416 of 2019 as a common order under on the file of the ordinary original civil jurisdiction.
Prayer: Original Side Appeal filed under Order XXXVI Rule (1) of the Original Side Rule r/w Clause 15 of the Letters Patent Appeal, against the Order and Decretal Order passed by the learned Judge dated 30.11.2021 made in A.No.1749 of 2019 and to set-aside the same.
Prayer: Original Side Appeal filed under Order XXXVI Rule 9 of the Original Side Rule r/w Clause 15 of the Letters Patent Appeal, against Common Order in A.No.10097 of 2018 in O.A.No.283 of 2018 dated 30.11.2021 of the learned Single Judge.
The issue in the Intra Court Appeals is mainly concerned with the Management of Pachaiyappa's Charitable Trust (hereinafter referred to as Trust).
2. A philanthropist Pachaiyappa Muthaliyar had executed a Will in the year 1794 divesting his properties to various charitable purposes. Consequent to his death, the properties and the charities were managed by the executors of the Will. As dispute arose, the matter was seized by the then Supreme Court of Madras which had passed 4 decrees, 1st on 03.02.1826, 2nd on 23.10.1832, 3rd on 30.10.1832 and 4th and final decree on 06.08.1841. By the fourth and final decree, the then Supreme Court of Madras had held that the performance of charities in the Provinces should be under the direction of the Revenue Board, as provided by Regulation VII of 1817. Thereafter, the Revenue Board had framed a scheme and also rules for better management of the properties and the charities under the Will of Trust on 28.04.1842. The said scheme was again subject matter of applications before this Court and by order dated 12.02.1909, 19.07.1920, 16.07.1963, 04.01.2007 and 14.08.2008 and based upon the order passed thereon, the scheme underwent certain modifications. The last modification was made by the Division Bench of this Court in Intra Court Appeal Nos.47 and 58 of 2007 dated 24.09.2008 and by way of an application in O.A.No.283 of 2018, an injunction was sought for restraining certain individuals from calling for and conducting elections for the offices of the Trust. The said application along with Application No.2624 of 2018 had been disposed of by a learned Judge of this Court by order dated 14.06.2018 by appointing an Interim Administrator.
3. Learned Interim Administrator had filed four detailed interim reports as to various aspects regarding the Trust. Various applications came to be filed before this Court seeking various reliefs including conducting of elections to the Trust, modifications of certain Clauses in the scheme made by the Division Bench. An application with regard to two of the Arangams viz., Anna Arangam and Amma Arangam had also been brought up by some of the members of the Trust. All these applications were taken up by a learned Judge and by order dated 18.12.2019 was inclined to dispose of all the applications with the following:
Charan Singh and Another vs. Darshan Singh and Others (1975 (1) SCC 298)
Vidyodaya Trust vs. Mohan Prasad R and Others (2008 (4) SCC 115)
Modifications to a trust's scheme must be made under Section 92 of the Civil Procedure Code, and historical context and limitations on modifying the scheme should be considered.
Section 92 of Code which reads public charities.
Restatement of settled issues disallows reintroduction of previously excluded constituencies in Trust governance, maintaining judicial economy.
The suit under Section 92 of the CPC was not maintainable as the validity of the MoU had already been upheld and a separate suit challenging it was barred.
The suit under Section 92 of the CPC is maintainable as the Sabha is deemed a public Trust, enabling remedial actions against mismanagement despite being registered as a Society.
Point of Law : Where the allegation of breach of trust, direction for administration of Trust is absent, the suit is maintainable and obtaining leave under Section 92 of the CPC is not necessary.
A public trust registered as a society under the Tamil Nadu Societies Registration Act can still be managed under Section 92 of the CPC, allowing civil court intervention for breach of trust allegati....
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