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2025 Supreme(Mad) 4402

IN THE HIGH COURT OF JUDICATURE AT MADRAS
S.S.SUNDAR, K.RAJASEKAR, JJ.
The Honarary Secretary Samyukta Gowda Saraswata Sabha - Appellant 
Versus
Mr.N.S.Balachandar - Respondent 
OSA.No.235/2022
Decided on : 06-01-2025


Advocates:
Advocate Appeared:
For the Appellant : Mr.Krishna Srinivasan Senior counsel for Mr.S.Ramasubramaniam
For the Respondent: Mr.V.Raghavachari Senior counsel for Mrs.V.Srimathi

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.

Headnote:(A) Code of Civil Procedure, 1908 - Section 92 - Public Trust - Appeal against order granting leave to institute suit for proper management of Trust - Court held Sabha is a charitable Trust allowing the suit under Section 92 on grounds of mismanagement and necessity for improvement - Appellant contended Society registered under Tamil Nadu Societies Registration Act not a public Trust, and suit not maintainable - Court rejected these claims affirming that Section 92 applies and that the suit serves public interest in the Trust's management. (Paras 1, 8, 24, 30, 33)

(B) Charitable Trust - Necessary conditions for invoking Section 92 - Breach of trust, necessity for directions, and representatives with interests in the Trust - Court emphasized the protective nature of such provisions for public Trusts against unscrupulous management and personal vindications. (Paras 3, 29)

(C) Nature of proceedings under Section 92 characterized as administrative rather than judicial - The Court held that notice to defendants before granting leave is not obligatory though prudent, and the order granting leave is appealable. (Paras 6, 12, 32)

(D) Final decision: Appeal dismissed with costs of Rs.25,000/- payable to Tamil Nadu State Legal Services Authority.

Table of Content
1. background on public trust and community association. (Para 1 , 2 , 4)
2. allegations against trustees and management issues. (Para 5 , 6)
3. court's analysis on leave granted under section 92. (Para 7 , 8 , 11 , 12)
4. appellant's contest against the leave for suit. (Para 9 , 10 , 15)
5. legal principles governing section 92 of cpc. (Para 13 , 19 , 26)
6. court's reconsideration of related case law. (Para 14 , 30)
7. final decision and order in the appeal. (Para 32 , 33)

JUDGMENT :

S.S.SUNDAR, J.

(1) The above appeal is directed against the order of the learned Single Judge dated 24.03.2022 granting leave to institute a suit under Section 92 of CPC for framing a scheme and for the proper management and administration of the affairs of a public Trust known as ''Samyuktha Gowda Saraswatha Sabha'' [hereinafter referred to as ''Sabha''] which is also registered as a Society under the Tamil Nadu Societies REGISTRATION ACT , 1860, [hereinafter referred to as ''the Act''] in Application No.6408/2019 in the unnumbered suit filed by respondents 1 and 2 herein.

(2) The appellant is the Honorary Secretary of the Sabha. Respondents 1 and 2 herein as plaintiffs, filed the suit which is yet to be numbered against 12 defendants including the appellant herein who is the 1st defendant in the said suit. The appellant is shown as Honorary Secretary of Sabha which is registered as a Society under the Act. (3) The suit is for the following reliefs: -

a) Framing a scheme for the proper management and administration of the affairs of the Samyukta Gowda Saraswata Sabha, 1st defendant as to effecutate the objects set out in bye-law 1 of the Sabha.

b) Removing the defendants 2 to 12 as the Trustees of the 1st defendant and consequently appoint a Board of Trustees comprising of eminent persons drawn from the United Gowda Saraswat Community ;

c) Directing defendants 2 to 12 to deliver up the inventory and other properties belonging to the 1st defendant which are in their powers and possession and direct that the same be vested in the Board of Trustees constituted supra ;

d) Directing defendants 2 to 12 to submit accounts for the incomes received by them for the 1st defendant and the amounts expended by them, and to cause the same to be inspected and audited ;

e) To grant such other reliefs as are just and necessary for the purposes of effectively administering and managing the 1st defendant to ensure that its objectives of the charity are not frustrated or defeated ;

f) In the event that this Hon'ble Court finds malversation of funds, to direct defendants 2 to 12 to personally make good all such losses caused to the 1st defendant.

g) To award the costs of this suit.

(4) Even though the status of Sabha is shown as a Society registered under the Act, it is the specific case of respondents 1 and 2/plaintiffs that Sabha represented by the 1st defendant, came into existence in the year 1912 and it was registered as a Society under the Central Act in the year 1925. The object of the Sabha as stated in the plaint is to provide intellectual, physical, social and moral advancement of the United Gowda Sarawatha community and undertaking other activities. It is the case of the plaintiffs that the Sabha is a public Trust and a charitable institution as it is found with an avowed objective to provide financial and other assistance to an infinite class of persons, i.e., economically weaker sections of United Gowda Saraswatha Community who are the beneficiaries of the Sabha.

(5) Some of the plaint averments as seen from the plaint which is relevant in the context, are reproduced hereunder:-

''9. The plaintiffs submit that the construction of the Sabha buildings was completed sometime in 1967 from the funds collected by donations from the members of community and loans availed from the Banks. It is relevant to state that tenders were invited and examined by the Managing, Building and Finance Committees constituted for the said purpose before issuing work orders for th

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