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2026 Supreme(Mad) 1523

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

Advocates Appeared:
For the Plaintiff : M/s R.Thiagarajan
For the Defendant : Mr. V. Jayakumar

Indian Trusts Act inapplicable to public religious charitable endowments; Section 92 CPC requirements not attracted when suit does not involve trust administration; acceptance of rent creates estoppel against lease challenge.

Headnote:(A) Indian Trusts Act, 1882 - Section 1 - Indian Trusts Act does not apply to public or private religious or charitable endowments - Public Trusts are distinct from private trusts as beneficiaries in public trusts form an uncertain fluctuating body - Section 36 of Indian Trusts Act inapplicable to public religious charitable endowments.

(B) Code of Civil Procedure, 1908 - Section 92 - Suit for declaration of lease deed as null and void, possession and permanent injunction does not involve administration of trust - Section 92 requirements of leave of Court and joinder of parties not attracted.

(C) Estoppel - Acceptance of lease rent without protest by present trustee after demise of previous trustee estops dispute of validity of lease deed - Lease deed acted upon for 21 years cannot be challenged after acceptance.

Facts of the case:
Suit trust was created by trust deed for religious and charitable purposes. Previous trustee granted lease for 60 years without obtaining court permission. Present trustee after demise of previous trustee received lease rent without protest. Dispute arose later due to alleged breach of lease terms. Suit filed for declaration of lease as null and void, possession and damages.

Findings of Court:
Indian Trusts Act inapplicable to religious charitable endowments. Section 92 CPC not attracted as suit does not involve trust administration. Acceptance of rent estops challenge to lease validity. No evidence of breach of lease terms proved. Plaintiff not entitled to damages claimed. Lease deed acted upon for 21 years cannot be assailed after acceptance.

Issues: Whether suit maintainable in view of Section 1 of Indian Trusts Act? Whether present trustee entitled to represent trust? Whether lease deeds legal and valid under Section 36 of Indian Trusts Act? Whether suit bad for non-compliance with Section 92 CPC? Whether estoppel applies against disputing lease rights? Whether permanent injunction and damages maintainable?

Ratio Decidendi: Indian Trusts Act inapplicable to public religious charitable endowments as per Section 1 saving clause. Section 36 bar on long term lease inapplicable. Section 92 CPC inapplicable when suit does not seek trust administration. Long term lease acted upon and rent accepted without protest creates estoppel against challenge. Apostle summary for age determination, reaffirming headnote format as guide.

Result: Suit dismissed. Applications for reopening evidence also dismissed. No order as to costs. Plaintiff at liberty to file fresh suit in accordance with law.

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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