IN THE HIGH COURT OF JUDICATURE AT MADRAS
P. DHANABAL, J.
N.Rajagopalan Charities - Plaintiff
Versus
Hotel Regent - Defendant
CS No. 654 of 2007, A No. 6611 OF 2007, A No. 2154 OF 2012, A No. 5578 OF 2009,OA No. 894 OF 2007, OA No. 895 of 2007, OA No. 376 OF 2012, A No. 6201 OF 2025, A No. 6202 OF 2025, and A No. 6203 OF 2025
Decided On : 30-04-2026
| Table of Content |
|---|
| 1. trust property lease execution without court permission under section 36 of indian trusts act (Para 1 , 2) |
| 2. defendant's contention that indian trusts act does not apply to religious charitable trusts (Para 3) |
| 3. section 1 of indian trusts act excludes religious charitable endowments; suit maintainable without section 92 cpc (Para 9 , 9 , 10 , 11 , 12 , 13) |
| 4. previous lease acceptance estops current trustee from challenging lease; suit for declaration and damages dismissed (Para 14 , 15 , 16 , 17 , 18 , 19 , 20 , 21 , 22) |
JUDGMENT :
P. DHANABAL, J.
1.The Civil Suit in C.S. No.654 of 2007 has been filed praying [a] for a declaration that the Original Lease Deed dated 08.02.1977 executed by S. Pandurangan, the then Trustee of the Plaintiff Trust with Mrs. Rahija Beevi and the subsequent deed of lease dated 28.02.1986 and registered as Doc. No.758/86, Book I in the office of the Sub-Registrar, West Madras executed by the said S. Pandurangan with the 1st defendant company in respect of the Suit property, more fully described in the schedule are illegal, invalid and non-est in the eyes of law and declare the same as illegal and void ab-initio as the same are in violation of provisions under Section 36 of the Indian Trust Act; [b] directing the 1st defendant to quit and deliver vacant possession of the Suit premises situated at No.8 (Old No.4), Kennet Lane, Egmore, Chennai-600 008 more fully described in the schedule, to the Plaintiff on day to be fixed by this Court; [c] for recovery of a sum of Rs.11,83,680/- as damages from the 1st defendant for the use and occupation of the Suit premises, situated at No.8 (Old No.4), Kennet Lane, Egmore, Chennai more fully described in the schedule at the rate of Rs.5,91,840/- per month for the period May 2007 and June 2007 and also for recovery of the future damages as determined by the Court; [d] for a permanent injunction restraining the 2nd defendant or its officers, subordinates, agents, servants or any other person or persons claiming through it or authorized by it from entertaining or renewing any application for license for running the restaurant-cum-Lodging House at No.8 (Old No.4), Kennet Lane, Egmore, Chennai-600 008 that may be submitted by the 1st defendant pursuant to the termination of lease effected by registered notice dated 08.04.2007 in respect of the Suit premises; and costs of the Suit.
2. The gist of the Plaint averments are as follows:-
The 1st defendant is a Partnership firm carrying on hotel business. The Suit property originally belonged to Sri. N. Rajagopalan, a Barrister at Law and he formed a Public Religious Trust on 16.03.1942 and thereafter he created a Trust Deed dated 16.03.1942 and also he executed a Will dated 01.02.1940 bequeathing the Suit property, in the said Trust Deed. As per the Trust Deed, the rent, profits and income derived from the Suit premises shall be spent for the payment of all taxes and charges of a public nature, one month rent in a year for ordinary repairs, whitewashing and painting of Suit premises, one month rent in a year to be invested and accumulated to defray loss for vacant periods and to meet the expenses of any unexpected or unforeseen major repairs or to make additions and improvements to the property, one half of the net income shall be spent for abishekam and archana of family deity Ayyanar (Sastha) in the Village of Sathanur, Narasinganpet, Tanjore District during the Fridays of the months of Aadi and Thai in every year and in the remaining half, ¾th of income shall be spent on feeding of poor brahmins on the Dwadasi Thidhi of each month or important month and the remaining ¼ of income on feeding poor people of any or all costs on any day, except Dwadasi days. The Trustees, who perform these religious and charitable acts are entitled to take from the rents of the property all sums necessary for travelling and lodging, but not for their personal trouble. While so, the said N. Rajagopalan Charities represented by its
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