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2024 Supreme(Mad) 2404

IN THE HIGH COURT OF JUDICATURE AT MADRAS
G.ARUL MURUGAN, J.
Sree Muthuvinayakar Kamakshiamman Ekambareshwarar Devasthanam, represented by its Secretary, C.P.Devaraj, - Appellant
Vs.
K.P.Subbiah (Deceased) - Respondent
S.A.No.319 of 2006
Decided On : 29-05-2024

Advocates:
Advocate Appeared:
For the Appellant : Mr.S.Mukunth Senior Counsel for Ms.T.R.Gayathri for M/s.Sarva Bhauman Associates
For the Respondent: Mrs.Chitra Sampath Senior Counsel for Mr.S.Kadarkarai

Community agreements for property use cannot be unilaterally canceled without proving a violation, preserving community interests is paramount.

Headnote:(A) Tamil Nadu Hindu Religious and Charitable Endowment Act, 1959 - Section 64 - Agreement on property use - Two agreements established between Devasthanam and Certified Goldsmith Association for the development of a school - Appellant claimed the agreements were violated leading to the suit for possession and injunction - Respective community interests and property rights analyzed. (Paras 5, 10, 44, 54)

(B) Equity in property and community welfare - The court emphasized that agreements should not be unilaterally violated, particularly when established for social community development. The interest of the community must be preserved in property matters. (Paras 4, 54, 56)

Facts of the case:
The appellant Devasthanam contended that the defendants violated agreements concerning property, including unaccounted rental income and improper tenant induction for a school. The suit aimed to reclaim possession due to these alleged violations. (Paras 5, 6, 9)

Findings of Court:
The court found that the agreements were still valid and intended for the benefit of the Viswakarma community, ruling that the suit should not interfere with the community school’s operation. (Paras 56, 58)

Issues: Whether the agreements were violated, the necessity of parties in the suit, and the appropriateness of the lower appellate court’s decision. (Paras 18, 47)

Ratio Decidendi: The court held that agreements for community benefit should not be canceled without clear evidence of violation and emphasized preserving community welfare and functions of the Devasthanam. (Paras 56, 58)

Result: The Second Appeal stands dismissed.

Table of Content
1. agreement terms between trust and association. (Para 1 , 2 , 4 , 5 , 6)
2. defendants' claims of community and agreements' validity. (Para 7 , 12 , 13 , 20 , 21 , 23 , 26)
3. trial court's findings on property use and agreements. (Para 14 , 15 , 16 , 17)
4. court's examination of necessary parties and agreements. (Para 18 , 19 , 30 , 31)
5. discussed the responsibilities and liabilities of the parties under agreements. (Para 22 , 29)
6. final ruling on the appeal and costs. (Para 58 , 59)

JUDGMENT :

G. ARUL MURUGAN, J.

1. This Second Appeal is filed challenging the judgment and decree of the Principal District Court, Coimbatore, dated 15.07.2004, in A.S.No.179 of 2001, reversing the judgment and decree of the III Additional Subordinate Court at Coimbatore, dated 31.07.2001 in O.S.No.656 of 1991.

2. The plaintiff is the appellant herein and the defendants 1, 3, 6 to 11 are the respondents herein. The defendants 2, 4 and 5 died pending trial.During the pendency of the appeal, the first respondent/first defendant also died and the sixth and seventh respondents were recorded as his legal heir.

3. For the sake of convenience, the parties are referred to as per their ranking before the trial court.

4. According to the plaintiff, Sree Muthuvinayagar Sree Kamatchiamman Ekambareswara Devasthanam is a Trust and the suit property belongs to the plaintiff Devasthanam. The defendants are Managing Trustees of “Certified Goldsmith Association”, “Sri Visweswara Trust” and “Lakshmiammal Educational Trust”. On 10.07.1979, the plaintiff Devasthanam and the Certified Goldsmith Association entered into an agreement to promote the social, religious, arts, educational and general welfare of the Viswakarma community. Again on 13.02.1985, the plaintiff Devasthanam entered into another agreement with the defendants.

5. As per the earlier agreement, the Certified Goldsmith Association was allowed to make construction in the suit property after preparing a plan, obtaining approval from the Devasthanam and sanction from the Municipal Corporation and use it without paying any rent. As per the second agreement, the Association can build new construction as agreed thereon, but, however, 50% of the rental income realized from 4 shops, should be paid to the Devasthanam. Pursuant to the agreements, buildings were constructed in the suit property and in fact, Sri Visweswara Vidyalaya School and four shops were constructed. The first defendant being the Managing Trustee of Sri Visweswara Trust is receiving the rent from the four newly constructed shops and paid a sum of Rs.1,000/- per month being 50% of the rent and also received receipts from the Devasthanam. When, as per the agreement, the defendants should account for the total rents, they have failed to do so. Also, the induction of the tenants should have been done only after the consultation with the Devasthanam. The first defendant had inducted tenants without the knowledge and consent of Devasthanam and also received Rs.50,000/- per shop as advance for the four shops, which has not been accounted for. The agreement contemplates that the Municipal Corporation taxes, water, land taxes and charges have to be paid in the name of the plaintiff Devasthanam but however, the first defendant has paid in his name and is retaining the receipts. Since the activities of the first defendant is prejudicial to the interest of the Devasthanam, the object of the agreements is not fulfilled and hence, both the agreements have become automatically cancelled.

6. In fact, on 28.02.1991, the defendants have entered into a further agreement among themselves without the consent of Devasthanam, thereby, the defendants have violated the terms of the agreements and as the defendants 1, 9 and 10 are slowly attempting to convert the Devesthanam properties into their properties and further, the plaintiff Devasthanam has not been informed about the formation of Sri Visweswara Trust and Lakshmiammal Educational Trust, the plaintiff

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