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2023 Supreme(Mad) 3060

IN THE HIGH COURT OF JUDICATURE AT MADRAS
R. SUBRAMANIAN, R. KALAIMATHI, JJ.
M/s. A.R.R. Charitable Trust Rep. by its Founder Trustee B. Ramachandran, Chennai & Ors. - Appellants
Versus
Amrita Vishwa Vidyapeetham, Rep. by its Chancellore Mr.Swami Abhayamritananda Puri, Coimbatore & Anr. - Respondents
O.P. Nos. 211, 252 & 183 of 2023
Decided On : 12-10-2023

For the Appearance :N. Umapathi, T.K.S. Gandhi, M. Vaidhiyanathan, Advocates. S. Parthasarathy, Senior Counsel, Amicus Curiae - Assisting the Court.

Section 92 of the Code of Civil Procedure can be invoked for administration of Public Charitable Trusts, even without an alleged breach of trust.

Headnote:

Indian Trust Act - Permission to Sell Trust Properties - Section 34

Fact of the Case:

The petitioners, Public Charitable Trusts, filed petitions seeking permission to sell trust properties under Section 34 of the Indian Trusts Act. The matter was referred to a Division Bench due to inconsistency in previous judgments.

Finding of the Court:

The court disagreed with the interpretation that Section 92 of the Code of Civil Procedure can only be invoked in cases of alleged breach of trust. It held that Section 92 can be invoked for administration of Public Charitable Trusts, even without an allegation of breach of trust.

Issues: Interpretation of Section 92 of the Code of Civil Procedure and its applicability to Public Charitable Trusts under Section 34 of the Indian Trusts Act.

Ratio Decidendi: The court interpreted Section 92 to allow for administration of Public Charitable Trusts, even without an alleged breach of trust. It also highlighted the inconsistency in previous judgments and the importance of maintaining the practice of the Court as the law of the Court.

Final Decision: The court concluded that applications seeking permission to sell Trust property under Section 92(1)(f) of the Code of Civil Procedure are maintainable. It directed the re-filing of the applications under Section 92 and permitted the amendment of the provision of law under which the applications were filed.

JUDGMENT

(Prayer: Original Petition filed under Section 34 of the Indian Trust Act, 1882 to permit the petitioner Trust to transfer free of cost by way of Registered Gift Deed to M/s.Tamil nadu Generation and Distribution Corporation Limited a land parcel of 853 sq.mtr of land comprised in S.No.47/2 and 34/1 of Nallur Village, Ponneri Taluk, Thiruvalluvar District, morefully described in the Schedule of property, towards obtaining 33/11 KV Indoor Substation HT connection to the petitioner Trust Property.

Original Petition filed under Section 34 of the Indian Trust act, 1882 to permit the 1st petitioner Trust herein to sell the property viz., 10.02 acres or thereabouts in Vengal Village, Tiruvallur Taluk and District and more particularly described in the Schedule hereunder in terms of the offer letter dated 02.04.2021 to the 1st respondent free of all encumbrances including that of the Cancellation dated 09.03.2009 and registered as Document No.1447 and 1448 of 2009 on the file of the Sub-Registrar, Arani and the sale proceeds to be utilized for the objects of the Trust.

Original Petition filed under Section 34 of the Indian Trust act, 1882 read with Section 7 of the Religious and Charitable Trust Act, 1920 a) to permit the petitioner to sell Item No.1 to 29 of the properties which are morefully described in the schedule hereunder to any purchaser who may offer to purchase for the market price, b) to permit the petitioner to invest the sale proceeds in any nationalized Bank in the name of the trust and to use the interest earned on the said fixed deposit for meeting the expenses of maintaining and managing the Trust and also for fulfilling the objects of the Trust.)

Commonorder

R. SUBRAMANIAN, J.

1. All these Original Petitions filed under Section 34 of the Indian Trust Act, 1882 have been placed before us pursuant to the order of the Hon'ble Mr.Justice K.Kumaresh Babu dated 05.06.2023, wherein the Hon'ble Judge found that there is a sharp inconsistency between certain judgments of this Court which is irreconcilable and hence it requires consideration by a Division Bench.

2. As already pointed out, all these petitions were filed seeking permission to sell trust properties invoking Section 34 of the Indian Trusts Act. The petitioners are invariably the Trusts themselves represented by the Trustees. It is also seen from the contents of the petitions that all the petitioners are Public Charitable Trusts.

3. Before the learned Single Judge the contention was that these petitions are maintainable only under Section 34 of the Indian Trusts Act read with Section 7 of the Charitable and Religious Trusts Act, 1920. Reliance was placed upon the judgment of the Hon'ble Mr.Justice V.Parthiban dated 27.10.2021 rendered in A.No.3671 of 2021 in C.S.D.No.80696 of 2021, A.No.3676 of 2021 in C.S.D.No.80695 of 2021 etc., By the said judgment, the learned Judge had held that Section 92 of the Code of Civil Procedure cannot be invoked in the absence of an allegation of breach of Trust. Support was drawn for the said conclusion from the judgment of the Hon'ble Supreme Court in Ghat Talab Kaulan Wala Vs. Gopal Das Chela Surti Dass (Dead) by Legal Representative Ram Niwas reported in (2020) 13 SCC 50.

4. Hon'ble Mr.Justice K.Kumaresh Babu had noticed that this Court in K.Srinivasan Vs. G.Kuppusamy Naidu Memorial Sport Trust, Kovilpatti reported in 2010 (5) CTC 438 had held that neither Section 34 nor Section 39 of the Indian Trust Act are applicable to a Public Charitable Trust and the remedy is only under Section 92 of the Code of Civil Procedure. In Swami Dayanadha Saraswathi Memorial Trust Vs. Sri Ramachandra Educational Trust reported in MANU/TN/3161/2020, the Hon'ble Mr.Justice Senthilkumar Ramamoorthy had held that Section 34 would not apply in case of a public charitable Trust. Since the learned Judge felt that the judgment in Kanchi Charity Trust and others Vs. Avilankanni and others in A.Nos.3671 of 2021 etc., batch dated 27.10.2021 takes a diametric

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