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2024 Supreme(Mad) 2439

IN THE HIGH COURT OF JUDICATURE AT MADRAS 
R.SAKTHIVEL, J.
N.Ranganathan - Appellant  
Versus 
N.Loganathan - Respondent 
S.A.NO.182 of 2017 And CMP Nos.3840 of 2017 And 27365 of 2019
Decided on : 12-12-2024

Advocates:
Advocate Appeared:
For the Appellant : Mr.N.Ranganathan
For the Respondents: Mr.K.K.Sivashanmugam for Mr.K.S.Sri Giri Prasath

The court affirmed that resolutions affecting individual trustee rights are not governed by Section 92 of the CPC, allowing the plaintiff's suit for reinstatement as valid despite the First Appellate Court's ruling.

Headnote:(A) Code of Civil Procedure, 1908 - Section 92 - Second appeal against reversal of trial court's decree - The Trial Court upheld the plaintiff's rights as life trustee of a public charitable trust, while the First Appellate Court erroneously concluded otherwise due to the plaintiff's subsequent re-appointment as a trustee. The plaintiff's original removal resolution was void due to lack of authority under the original trust deed's provisions. (Paras 10, 14, 16, 19)

Facts of the case:
The case involved a public charitable trust founded in 1981, with disputes over the removal of the plaintiff from trusteeship and his rights to participate in trust affairs after a resolution was passed against him. (Paras 3.1, 3.3)

Findings of Court:
The Trial Court's ruling that the resolution removing the plaintiff was invalid was upheld, reinforcing the correctness of the interpretation of Section 92 regarding the maintainability of the suit. (Paras 16, 19)

Issues: The main issues included whether the suit was maintainable under Section 92 and the validity of the resolutions affecting trusteeship. (Paras 7, 14)

Ratio Decidendi: The court established that suits concerning individual rights, such as trusteeship, do not fall under Section 92 of the CPC, and thus, a suit can be maintained without prior leave. The resolution removing the plaintiff was concluded to be illegal and invalid. (Paras 14, 16)

Result: The Second Appeal is allowed; the decree of the Trial Court is restored. (Para 19)

Table of Content
1. final decision and restoration of trial court's order. (Para 1 , 6 , 19)
2. foundation and management of trust. (Para 3 , 4)
3. trial court's initial findings. (Para 5)
4. arguments presented by appellant and respondent. (Para 7)
5. arguments regarding suit maintainability. (Para 8 , 9)
6. legal standing and nature of trust. (Para 10 , 11 , 12)
7. clarification on section 92 cpc. (Para 13 , 14 , 15 , 16)
8. resolution validity and appointment. (Para 17 , 18)

JUDGMENT :

R. SAKTHIVEL, J.

This Second Appeal is directed against the Judgment and Decree dated December 16, 2016 passed in A.S.No.1 of 2016 by the 'Second Additional Sub Court, Coimbatore' [henceforth 'First Appellate Court' for brevity], whereby the Judgment and Decree dated September 30, 2015 passed in O.S.No.624 of 2002 by the ‘III Additional District Munsif, Coimbatore' [henceforth 'Trial Court' for brevity] was reversed.

2. For the sake of convenience, hereinafter, the parties will be referred to as per their array in the Original Suit.

Plaintiff's Case

3. The B.M.Nanjian Trust was founded on September 10, 1981 and the Trust Deed was registered on September 17, 1981.

st According to the Trust Deed, the 1 defendant is the Founder as well as the Managing Trustee of the Trust while the plaintiff and defendants 2 to 4 are its Life Trustees.

3.1. The land in the Suit Property was purchased on behalf of B.M.Nanjian Trust and a Kalyana Mandapam was constructed thereon infurtherance of the objects of the Charitable Trust. The 1 defendant contributed a sum of Rs.5,001/- as corpus of the Trust. Apart from the funds raised from the public, the plaintiff and the defendants 1 to 4 jointly and individually made contributions for the construction of Suit Kalyana Mandapam. The construction was completed and it began functioning from August 21, 1989.

3.2. Then the 5th defendant was inducted as a Trustee of the Trust by the unanimous resolution of the Trust Committee on August 18th, 1996, post which, the Trust became untrust. The 1st defendant against the objects of Charitable Trust utilized one portion of the Suit Property as his own business premises.

3.3. Since the plaintiff raised objection to such acts, the defendants passed a Resolution illegally against the By-laws and the Memorandum of the Trust, removing the plaintiff from the Life Trusteeship and forbidding the plaintiff from entering the Suit Property and attending the day-to-day affairs of the Trust. Nobody is empowered by the Deed of Trust or the Memorandum of Association dated September 10, 1981 to remove any of the Life Trustees. Further, the plaintiff was attacked by the defendants and he was obstructed from entering into the Suit Property. The defendants refused to allow the plaintiff from attending the day-to-day affairs of the Trust. Hence, the plaintiff filed the Suit for the relief of permanent injunction and declaration.

Defendants' Case

4. The defendants filed written statement stating that the first defendant founded the B.M.Nanjian Trust on September 10, 1981. He was the Managing Trustee and appointed his sons as Trustees. B.M.N.KalyanaMandapam was constructed by the 1st defendant in his own property with his own income, to fund the various noble objects of the Trust covered in the Trust Deed. The Trust with a view to fulfil its objectives, also received donations from close relatives.

4.1. During the year 2000-2001, the plaintiff had incurred huge loss in his various personal businesses and begged for funds from the B.M.Nanjian Trust to recover from the same. But the Managing Trustee/first defendant refused to give any amount from the Trust fund since it was meant only for charitable purposes. The plaintiff in vengeance sent various false and frivolous letters to various concerned Government Departments. Due to the defendant's nefarious activities, the Board of Trustees passed a Resolution on July 5, 2001 to remove the plaintiff from the Board of Trustees.

4.2. The 1st defendant is entitled to use his own prop

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