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2025 Supreme(Mad) 4966

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
V. LAKSHMINARAYANAN, J.
R. Asokkan – Petitioner 
Versus
The Sub Registrar, Chinnalapatti, Dindigul, District and Anr. – Respondents
W.P.(MD) No.31405 of 2024 
Decided On : 17-02-2025

Advocates Appeared:
For the Petitioner: Mr. N. Sathish Babu.
For the Respondents: Mr. R. Suresh Kumar, Additional Government Pleader, Mr. H. Lakshmi Shankar.

Trustees' unilateral resignations require acceptance by the Board, and the Registrar must register amendments without questioning internal validity.

Headnote:(A) Registration Act - Sections 32 and 34 - Trust governing body and amendments - The refusal to register an amendment deed based on non-unanimous resolutions is erroneous, as the Registrar does not have authority to question the validity of resolutions beyond defined statutory powers - Unilateral resignation from trustee position requires Board acceptance; absence of resolution renders claims of resignation unproven - Jurisdiction of the Registrar is limited in assessing documents presented by trustees and should not encroach upon civil rights or disputes of the Trust. (Paras 12, 16, 22, 30, 36)

(B) Writ - Powers of courts - The writ court confirms that a Registrar's role is limited to verifying identity and authority of document presenters and does not extend to adjudicating internal trust disputes or validity of resolutions. The refusal of registration cannot substitute judicial clarity. (Paras 24, 38)

Facts of the case:
This writ petition arises from the refusal to register an amendment deed presented by the Managing Trustee of a Trust following claims of internal disputes regarding trustee positions, resignations, and the proper amendment of Trust documents.

Findings of Court:
The Court emphasized that the Sub Registrar lacked the authority to reject the registration based solely on arguments concerning the unanimity of trustee resolutions. The amendment deed should have been registered.

Issues: The main issues revolved around whether unilateral resignations of trustees require Board acceptance and the scope of the Registrar's duties under the Registration Act.

Ratio Decidendi: The court ruled that the Registrar's inquiries are limited to confirming identity and authority; claims regarding document validity should be resolved in civil courts, highlighting that resignations cannot be unilaterally enforced without Board resolution.

Result: Writ petition allowed and the Registrar directed to complete the registration of the amendment deed.

Table of Content
1. challenge to the refusal of amendment registration (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8)
2. arguments on authority and legality of rejection (Para 11 , 12 , 13 , 14)
3. trusteeship and resignation acceptance requires board resolution (Para 15 , 19 , 21 , 22 , 23 , 36)
4. order to quash impugned proceedings and direct registration (Para 38 , 39)

ORDER :

V. LAKSHMINARAYANAN, J.

This writ petition challenges the refusal check slip issued by the first respondent on 13.12.2024.

2. There exists a Trust by the name of “Cheran Educational Trust” at Chettiapatti, Dindigul District. The Trust was originally formed by way of a registered trust deed on 15.07.1999. At the time of registration, the Trust had the following trustees:-

“i) A.Saravanan

ii) R.P.Ravindran and

iii) P.Chandraseharan”

3. Subsequently, A.Saravanan resigned from the Trust. Consequent thereto, a supplementary trust deed was executed on 31.10.2002. By this document, the resignation of Saravanan was accepted and the following persons joined the Trust as trustees:

“i) R.Asokan

ii) R.P.Ravindran

iii) M.Sivakumar and

iv) P.Chandrasekaran”

4. The trust deed was further amended by another deed of amendment dated 28.03.2009. By this document, one Jeyaraman was included as trustee. Consequently, the following persons were the trustees:

“i) M.Sivakumar

ii) R.Asokan

iii) R.P.Ravindran

iv) P.Chandrasekaran and

v) M.Jeyaraman”

Of these five, Sivakumar was given the title of managing trustee, R.Asokan was given the title of Executive Trustee and R.P.Ravindran as Financial Trustee.

5. The Trust is running a School under the name and style of “Cheran Vidhyalaya Matriculation Higher Secondary School”. Disputes arose between M.Sivakumar-the second respondent and the other trustees. One of the trustees, namely, Mr.R.P.Ravindran, passed away on15.07.2021.

6. It is the claim of the second respondent, which is not seriously disputed by the writ petitioner, that Jeyaraman resigned on 20.08.2015. The second respondent pleads that a memorandum of understanding had been entered into between the second respondent and the other 3 trustees including the deceased R.P.Ravindran that the latter will move out of the Trust on payment of certain amounts invested by them in the Trust. For the sake of disposal of this writ petition, I need not dwell into the inter se disputes between the trustees.

7. The cause of action in this writ petition is that the trustees, apart from the second respondent, held several meetings and in one of the meetings, they inducted one Suseela as a trustee. It is also their case that Jeyaraman, who had resigned from the Trust, was also invited to join the Trust. Consequent to the resolution passed by the Trust, the writ petitioner representing himself as the Managing Trustee of Cheran Educational Trust presented a document titled “deed to simplify the amendment”. In terms of the deed, it was stated that the second respondent-Sivakumar, had been removed from the position of Managing Trustee and a resolution had been passed appointing Suseela as Managing Trustee.

8. It was also recorded that in the meeting held on 22.09.2024, the Board of trustees reshuffled the Officers and appointed Asokan as the Managing Trustee with P.Chandrasekaran to act as Treasurer and Jeyaraman, Suseela and the second respondent to act as Trustees. This document was presented for registration with the first respondent. By the impugned order, the first respondent rejected the document on two grounds:-

i) the resolutions were not unanimous and

ii) M.Asokan, P.Chandrasekaran and R.P.Ravindran had removed themselves from the Trust.

Challenging the same, the present writ petition.

9. This Court had entertained the writ petition on 20.12.2024. Mr.D.Sadiq Raja, learned Additional Government Pleader took notice for the first respondent and notice was issued to the second respondent. Mr.H.Lakshmi Shankar has entered appearance for the second respondent.

10. I heard Ms.Saranya for the writ petitioner, Mr.R.Suresh Kumar, learne

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