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IN THE HIGH COURT OF ALLAHABAD
A. Banerji, J.
SMT.CHANDRA KALI - Appellant
Versus
MANAGING COMMITTEE ARYASAMAJ, MEERUT - Respondents
Appln. of 1986 in Testamentary Suit No. 5 Of 1984
Decided On : 04/13/1987
OFFICIAL TRUSTEES ACT - SECTION 25 - ADMINISTRATORS GENERAL ACT - SECTION 25 - OFFICIAL TRUSTEE'S POWER TO SELL TRUST PROPERTY - COURT'S SUPERVISORY JURISDICTION - BENEFICIARY'S RIGHT TO CHALLENGE SALE - MAINTAINABILITY OF APPLICATION - LEGAL NECESSITY FOR SALE - COURT'S PERMISSION REQUIRED FOR TRANSFER OF TRUST PROPERTY.
Fact of the Case:
An application was filed under Section 25 of the Official Trustees Act, 1913, read with Section 25 of the Administrators General Act, 1963, by a widow claiming to be a beneficiary of the Jyoti Swarup Trust, Meerut, challenging the sale of a trust property by the Official Trustee. The Trust was created by a Will, which directed the Arya Samaj, Meerut, to manage the property and distribute the income to Pardanashin widowed ladies. The Official Trustee took over the administration of the Trust after the death of the founder. The Managing Committee of the Arya Samaj, Meerut, passed a resolution to sell the house property, and the Official Trustee agreed to the sale. The applicant alleged mismanagement of the Trust and sought to restrain the Official Trustee from confirming the sale.
Finding of the Court:
The Court held that the applicant, as a widow residing in a village in Allahabad, had no right to maintain the application as she was not a beneficiary under the Trust. The Court observed that the Trust envisaged granting support to Pardanashin widows who had no support from their relatives and who were incapable of earning their livelihood, and that the applicant had not shown that she fulfilled these conditions. The Court further held that the Official Trustee had the power to sell the trust property if there was legal necessity, and that the sale of the dilapidated house in Meerut was a prudent act.
Issues: 1. Whether the applicant had the right to maintain the application as a beneficiary of the Trust. 2. Whether the Official Trustee had the power to sell the trust property without the Court's permission. 3. Whether the sale of the house property was in the best interest of the Trust.
Ratio Decidendi: 1. The Court held that the applicant, as a widow residing in a village in Allahabad, had no right to maintain the application as she was not a beneficiary under the Trust. The Court observed that the Trust envisaged granting support to Pardanashin widows who had no support from their relatives and who were incapable of earning their livelihood, and that the applicant had not shown that she fulfilled these conditions. 2. The Court held that the Official Trustee had the power to sell the trust property if there was legal necessity, and that the sale of the dilapidated house in Meerut was a prudent act. The Court observed that the Official Trustee was the sole trustee of the property vested in him, but that he had to seek an order from the Court before disposing of any immovable property. 3. The Court held that the sale of the house property was in the best interest of the Trust, as it was a dilapidated property that was fetching a meager income. The Court observed that the Official Trustee had acted prudently in selling the property and depositing the sale proceeds in a long-term deposit yielding annual interest.
Final Decision: The Court dismissed the application of the applicant, holding that she had no right to maintain the application and that the sale of the trust property was in the best interest of the Trust.
( 1 ) THIS is an application under Section 25 of the Official Trustees Act, 1913 read with Section 25 of the Administrators General Act, 1963. This is a proceeding under the supervisory jurisdiction of the Court under S. 25 of the Official Trustees Act. This case has been wrongly marked as testamentary Suit. The petitioner states that she is a widow and has nobody in the family to support her. She claims to be a beneficiary of Shri Jyoti Swarup Trust, Meerut and is as such interested in the proper administration of the said Trust. It may be noted that the applicant is a widow of Sri Jamuna Prasad Mishra, resident of village Kakraha, P. O. Atrampur, district allahabad.
( 2 ) IT is stated that one Shri Jyoti Swarup son of Munshi Jawahar Singh, resident of Mohalla chipiwara, Meerut executed a registered Will dated 26th April, 1936 creating a trust of his entire immovable properties for the benefit of widowed women on the terms and conditions mentioned in the Will itself, Shri Jyoti Swarup at the time of his death left behind a house bearing municipal No. 38, Chipiwara, Meerut and cash amounting to Rs. 13,000/- besides other movable property. In the Will it was indicated that the Aryasamaj afier taking into possession the house and the goods shall dispose of the movable goods and deposit the cash in the Bank and receipts from movable property in fixed securities i. e. Fixed Deposit Receipts. The Arya Samai, Meerut was directed to give effect to the aforesaid wishes under the guidance and control of the District magistrate, Meerut The interest from the deposits as well as income from the rent of the house was to be given to Pardanashin widowed ladies. It was also provided in the will that a stone plaque shall be put on the house No- 55 signifying it to be a waqf created by Jyoti Swarup son of munshi Jawahar Singh.
( 3 ) AFTER the death of Jyoti Swarup, the Arya Samaj Committee, Meerut discharged their function in accordance with the terms and conditions of the Will. They took possession of the movable property in the house and sold it away and deposited the cash. Certain interested persons applied for grant of succession certificate which was rejected and ultimately a Letter of Administration was granted in favour of the Administrator General, U. P. in Testamentary Case No. 13 of 1943 by an order of this Court dated 23-11-1945. The Administrator General administered the property and ultimately the Administrator General of U. P. who is the official trustee under the official Trustees Act became the Trustee of the Jyoti Swarup Trust.
( 4 ) THE petitioners case is that in spite of the fact that the Official Trustee took over possession of the Trust property but somehow the Trust property remained under the management and control of Arya Samaj Committee, Meerut, who worked under the control and guidance of District magistrate, Meerut. The Managing Committee Arya Samaj, Meerut each year gave financial help to needy Pardanashin widowed women and needy students.
( 5 ) THE applicant then stated that the Managing Committee Arya Samaj, Meerut, the District magistrate, Meerut as well as the Official Trustee completely mismanaged the Trust inasmuch as they varied the scheme of the Trust as created by the testator without any valid order of the competent Court and gave financial help at a rate higher than Rs. 5/-per month. Secondly, the managing Committee in theyear 1979 passed a resolution No. 5 dated 31-8-1979 that the house property be sold away. A copy of the resolution was sent to the Administrator General/official trustee. The Official Trustee did not, however, agree and asked the Managing Committee Arya samaj to carry out the repairs in the house. The Managing Committee Arya Samaj, Meerut persisted that the house be sold and persuaded the District Magistrate in his capacity as President of the Trust Committee to seek permission from the Official Trustee and wrote a letter on 20-3-1984 to the latter for permission to sell a
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