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2025 Supreme(Mad) 4688

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 of 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

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 allegations.

Headnote:(A) Civil Procedure Code, 1908 - Section 92 - Tamil Nadu Societies Registration Act, 1975 - Leave granted to institute a suit for framing a scheme for management of public trust - Appellant contested maintainability citing society registration - Court found prima facie case under Section 92 exists for alleged breach of trust, asserting jurisdiction of civil court despite society registration - The allegations of mismanagement and the need for court direction justified leave for suit. (Paras 3, 8, 30, 31)

Facts of the case:
The appellant, as Honorary Secretary, opposed a suit filed for managing the Samyukta Gowda Saraswata Sabha, claiming mismanagement by prior trustees and asserting the need for legal intervention due to allegations of financial improprieties. (Paras 1, 5, 6)

Findings of Court:
The learned Single Judge's order was upheld, affirming that the Sabha functions as a public trust associated with charitable purposes, thereby justifying the application under Section 92 of CPC for effective governance. (Paras 8, 10, 30)

Issues: The principal issues included whether the Sabha, registered under the Tamil Nadu Societies Registration Act, qualifies as a public trust under Section 92 of CPC, and whether the court can intervene in disputes regarding its management. (Paras 9, 10, 30)

Ratio Decidendi: The Court determined that Section 92 of CPC permits civil court intervention in public trusts, regardless of society registration, asserting that the suit satisfies the requirements for breach of trust. (Paras 10, 30)

Result: Appeal dismissed with costs of Rs.25,000/-. (Para 32)

Table of Content
1. appeal against leave to file suit under cpc. (Para 1 , 2 , 3)
2. plaintiffs allege mismanagement of trust. (Para 4 , 5 , 6)
3. court's satisfaction on the nature of the trust. (Para 7 , 8)
4. arguments against maintainability of suit. (Para 9 , 10)
5. judicial context of granting leave. (Para 11 , 12)
6. characteristics of suit under section 92 of cpc. (Para 13)
7. public trust requirements and rights. (Para 14 , 29)
8. court's rejection of appellant's arguments. (Para 15 , 16 , 30)
9. disclosure of trust properties and management. (Para 20 , 21 , 22)
10. legal provisions for winding up societies. (Para 23 , 24)
11. nature of orders and appealability in administrative proceedings. (Para 28)
12. final judgment and costs imposed. (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 f

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