The authority to challenge property sales under the Charitable and Religious Trusts Act requires the claimant to have standing as a trustee or beneficiary; mere worshippers lack legal grounds to contest transactions executed by a society formed from a trust.

ORDER :

RMT. TEEKAA RAMAN, J.

The present petition is filed under Section 7 of the Charitable and Religious Trusts Act, 1920, in the matter of the Addepalli Kandaswamy Chetty and Chenchu Venkatasubhu Guruvajamma Charitable Trust.

2(a) The petitioners have filed this application seeking the relief of declaration and declaring the documents and encumbrances created over the schedule mentioned property, misinterpreting the order dated 30.01.2008 in O.P.No.31 of 2008 passed by the learned Principal Judge, City Civil Court at Chennai, as null and void and not binding on the petition schedule property.

2(b) The charitable trust known as M/s.Addepalli Kandaswamy Chetty and Chenchu Venkatasubbu Guruvajamma Charitable Trust was created by a Deed of Declaration dated 02.11.1915 by Thiru. Addepalli Kandaswamy Chetty and Chechu Venkatasubbu Guruvajamma with the objective of performing poojas to the Lord Subramanya and Lord Nagathamman Deity situated at No.15, Kumarappa Mudali Street, Nungambakkam, Chennai-600034 and also for the purpose of prasadam distributions, brahmana sandarppana and feeding of relations and devotees. The above said founders of the trust also dedicated 3 items of property to the trust for the purpose of doing the above said public charities. The above said trust is a Public Charitable Trust with the objects of public charities and governed under the Public Trust Act. According to the petition, the petitioners are worshippers of the temple of Lord Muruga and Lord Nagathamman, which was maintained by the trust.

2(c) After exchange of legal notice, the petitioners alleged that the vesting of property in favour of the Society from trust is illegal and invalid. Since the trustees of the trust and office bearers of the society (President, Secretary and Treasurer of the trust and the society) are one and the same without there being anybody to object for the merger and by suppression of these facts, they had obtained the order in O.P.No.31 of 2008.

2(d) It is further contended that the object of creation of the society seems to be only to alienate the property for the personal gains of the trustees/office bearers. The property belongs to Public Charitable Trust and as such without any permission from the Court, the sale effected in favour of the respondents 3 to 9, is illegal and invalid. The sale effected to the third respondent is for Rs.1,72,48,000/-. Moreover, the mortgage created on the very same day is for Rs.7,38,00,000/-. It clearly establishes that the property has been undervalued for sale and black money seems to have been received by the respondents 1 and 2. Further, the sale was effected to the fifth respondent for Rs.4,12,96,125/- and further, the sale was effected to the respondents 6 to 8 for Rs.13,48,48,000/-. Finally, the sale was effected to the nineth respondent for Rs.3,37,12,000/- has been undervalued and hence, they seek for the above declaration.

3(a) In the Original Application, as per the Judge's summons under Order XIV Rule 8 of O.S. Rules r/w Order 39 Rule 1 and 2 of CPC, it was prayed that an order of Ad-interim Injunction restraining the respondents 6 to 9 from creating any encumbrance over the property, putting up any construction or altering the physical features of the property bearing Door No.91, New No.53 and 15, Kumarappa Mudali Street, Nungambakkam, Chennai 600 034, more fully described in the schedule to the petition. 3(b) The original trustees are arrayed as respondents 1 and 2 and the respondents 4 and 5 are the general powers of attorney. The property was sold to the third respondent. Subsequently, sold to respondents No.6 to 9. The respondents 1 and 2 remained ex-parte. The third respondent filed a counter. A separate counter is filed by the fourth respondent. Common counters by the respondents 6 to 8 were filed.

4(a) As per the counter of t