2009 Supreme(P&H) 1616
PUNJAB & HARYANA HIGH COURT
Adarsh Kumar Goel and Daya Chaudhary JJ.
Tara Chand Sharma
Versus
Uma Aggarwal
Letter Patent Appeal No. 112 of 2006,
Decided On : SEPTEMBER 14, 2009
The court has the jurisdiction to remove an Executor under Sec.301 of the Indian Succession Act, 1925, and can exercise this power if the Executor's conduct is mala fide, affecting the trust's operation and the interests of the beneficiaries.
Headnote:
Seth Bhagirath Dass, a senior advocate, executed a Will and Codicil bequeathing his property to a trust for educational and health needs. After his death, a dispute arose regarding the removal of the Executor and trustees, alleging misappropriation and failure to manage the trust. The court found the Executor's conduct to be mala fide, including pleading untrue facts about adoption and partition, and allowing trustees to use trust property for personal gain. The court held that the application under Sec.301 of the Indian Succession Act was maintainable and justified the removal of the Executor and trustees, ordering a suitable arrangement for the trust's operation.
ADARSH KUMAR GOEL, J.
1. Seth Bhagirath Dass was a well known Senior advocate practicing in this Court. He died on 25.4.1989. He was survived by his wife and sisters but had no issue. He executed Will and Codicil dated 21.1.1985 and 29.12.1989 bequeathing most of his property to a trust formed by him in his lifetime in the name of his mother. Main objects of the trust are meeting educational and health needs of the needy. He named Yadvinder Thakur, who was one of the trustees, as the Executive Trustee. Pror bate in respect of the Will was ordered to be granted in favour of Shri Thakur. However, application was filed by sister of the deceased under Sec.301 of the Indian Succession act, 1925 for removal of the Executor. The said application, after trial, has been granted with other consequential orders, which are sought to be assailed by the removed executor and trustees by Filing LPA Nos.112, 132 and 134 of 2006 which will stand disposed of by this order. Operative part of the impugned order is as under:
"in brief, the conclusions are as under: 1. Yadvinder Thakur-respondent No.1 is removed from the office of executor as also from the office of the Managing Trustee.2. Om Parkash Aggarwal-respondent no.2 is removed from the office of trustee.3. The appointment of all other Trustees by respondent Nos.1 and 2 is declared illegal.4. Respondents No.1 and 2 shall hand over the properties of the trust to the successor-Executor for being managed by the Trustees.5. They shall render accounts of these properties to the successor-Executor and the Trustees.6. The respondents will even be prosecuted if they defaulted in rendering accounts which remedy will be open to the successor-Executor.7. The tenant in House No.31, Sector 9a chandigarh (property of the Trust) shall be answerable and accountable to the Board of Trustees.8. The occupants of land measuring 22 kanals situated in village Kapat, District hoshiarpur, shall be answerable to the successor Executor-cum-Board of Trustees and will render account of income to them.9. Honble Mr. Justice G. C. Garg (retired)is appointed as successor Executor, as also the Managing Trustee.10. Shri M. S. Lobana, District and Sessions judge (Retd.) now practicing as an Advocate in this Court and Shri N. s. Saini, additional District and Sessions Judge (Retd.)resident of House No.599, Phase III SAS nagar, Mohali, are appointed as the Trustees, so as to make the Board of Trustees functional, as minimum 3 Trusteed are required.11. The Executor shall consolidate the properties of the trust and place it at the disposal of the Board of Trustees for being managed for the purpose for which the trust is created.12. He shall also take the accounts of the income of these properties and account for the same to the Board of Trustees.13. The various items of movable property etc. , shall also be consolidated in the SB account of the trust.14. The Board of Trustees shall manage and govern the properties of the trust in commensurate with the sentiments of the testator of the Will dated 21.1.1985 and founder of the C. C. Trust created by trust deed dated 18.1.1966 and in accordance with the contents of these documents. They shall maintain full accounts and the Executor-cum-Managing trustee would be paid Rs.20,000/-per month as honorarium, while the Trustees would be paid Rs.2000/- per meeting. All of them will also be entitled to actual expenses spent to achieve the aim and objects of the Will and of the trust deed.15. Proper accounts will be maintained and be filed in this Court within two months after the expiry of each financial year.16. The properties shall be managed by the Board of trustees in parentally manner. However, it will not be sold without prior permission of the Court.17. The successor-Executor or the Board of Trustees will be free to seek any clarification from this Court.18. Henceforth, the Bank accounts in the name of Champawati Charitable Trust or in any other name relating to this case, opera