IN THE HIGH COURT OF ALLAHABAD
Rohit Ranjan Agarwal, J.
Jagdish Narain Tandon - Appellant
Versus
State of U.P. and Others - Respondent
Second Appeal No. - 470 of 2003
Decided On : 27.06.2022
Charitable and Religious Trusts Act, 1920 - Section 3, 4 (1), 5 (3) - Indian Trust Act, 1882 - Second Appeal - Appointment and incorporation of Treasurer of Charitable Endowment - Scheme for Administration of property vested in Treasurer - Whether Trust which is not Charitable can be governed by provisions of Charitable Endowment Act, 1890 - Whether Notification issued under Section 4 of Charitable Endowment Act, 1890 was void and without jurisdiction – Held, status of trust having been declared by this Court and same having been remained unchallenged by defendants-respondents, Notification of 1972 will have no bearing of it upon status of trust, as trust has been declared out of purview of Act of 1890 and 1920 by a judicial order of this Court and will prevail over Administrative Notification issued by State published in Gazette - Thus, second substantial question of law stands answered i.e. in favour of appellant and against defendants-respondents - Thus, both substantial questions of law as framed stand answered- Second Appeal allowed.
JUDGMENT :
Rohit Ranjan Agarwal, J.
1. Heard Sri Anil Sharma, learned Senior Counsel, assisted by Sri R.M. Saggi, learned counsel for the appellant and Sri P.K. Giri, learned Additional Chief Standing Counsel for the respondents.
2. This case has a long chequered history. A brief narration of the case is necessary for better appreciation of the case, which are as under:-
3. On 06th June, 1946, Baijnath Tandon, Kedarnath Tandon and Rajnath Tandon sons of one Lala Lallumal created a trust named ‘Tandon Trust’ in memory of Smt. Hira Devi and Lala Lallumal consisting of immovable properties with the object of encouraging education, culture, study of Hindu Religion, Philosophy and Social Service in order to perpetuate the memory of the grand mother and father of the Authors of the Trust.
4. The Trust consisted of the original nine trustees who were to manage the properties of the Trust. Para 7 provided for the vacancy caused in case of a trustee is removed, the same was to be filled according to the provisions of Indian Trust Act, 1882.
5. On 29.01.1966, two of the trustees, Dr. Govardhan Das Agarwal and Manohar Lal Shahaney applied to the Court of District Judge, Jhansi under Section 3 of the Charitable and Religious Trusts Act, 1920 (hereinafter called as “Act of 1920”) claiming the opposite parties, who were the other trustees, to furnish to the Court the full particulars as regards the nature and objects of the Trust, of the value, condition, management and application of all Trust properties, of the income that has arisen from the said property so far, directing Accounts of the Trust properties and money to be taken, examined and audited. The said case was registered as Case No.32 of 1966.
6. In the said Suit, opposite party no.8, Kailash Narain Shivpuri moved an application under Section 5 (3) of the Act of 1920 and gave an undertaking for instituting a suit for declaration before the Civil Court. The District Judge, on 17.08.1968, passed an order staying the proceedings of Case No.32 of 1966 and granted time for filing declaratory suit.
7. Kailash Narain Shivpuri, thereafter, filed an Original Suit No.1268 of 1968 in the Court of Munsif, Jhansi seeking a relief of declaration to the effect that the Trust in Suit (Misc. Case No.32/66-67 of the Court of District Judge, Jhansi) is not one to which the Act, 1920 applies. In the said Suit, both Dr. Govardhan Das Agarwal and Manohar Lal Shahaney, who were the plaintiffs in Case No.32 of 1966 were arrayed as the defendants. The said Suit was contested and the trial Court vide judgment and decree dated 17.05.1971 dismissed the Suit. Against the said judgment, First Appeal No.121 of 1971 was filed by Kailash Narain Shivpuri.
8. During the pendency of the said proceedings, six out of living eight trustees moved an application under Section 4 (1) of the Charitable Endowment Act, 1890 (hereinafter called as “Act of 1890”) for including and declaring a trust as Charitable Trust. A Government Notification was made on 07.07.1972 through Treasurer, Charitable Endowment, U.P. including the trust as a Charitable Endowment. Scheme of Administration was drawn and Committee of Management was constituted which was headed by the District Magistrate. The notification was published in the Gazette on 15.07.1972. The Additional District Judge, Jhansi on 05.08.1974 dismissed the appeal filed by Kailash Narain Shivpuri.
9. Against the said judgment, a second appeal being Second Appeal No.2655 of 1974 was preferred. This Court vide judgment dated 21.10.1981 set aside the judgment and decree passed by both the Courts below while allowing the appeal and decreed the Suit filed by Kailash Narain Shivpuri, holding that the Tandon Trust was not the trust for charitable purpose so as to be governed by the provisions of Act of 1920.
10. The judgment rendered by this Court was not challenged by any of the trustee or the State. One of the trustees Kailash Narain Tandon moved an application on 20.09.1990, before the Collector
Natha Singh and Another Vs. Heet Singh and Ors. AIR 1980 All 358
Booz-Allen & Hamilton Inc Vs. SBI Home Finance Ltd. and Ors. 2011 (5) SCC 532
The definition of 'specific endowment' is consistent across the 1951 and 1959 Acts, and prior judicial determinations regarding the Trust's character are binding, preventing re-litigation.
The main legal point established in the judgment is the requirement to file an application under Section 92 C.P.C. for managing public trusts involving public charity, and the necessity to implead th....
The main legal point established in the judgment is the inalienability of specifically endowed properties for religious purposes and the bar on alienation of Trust property under the TNHR&CE Act, 195....
The main legal point established in the judgment is that the determination of whether a trust is public or private depends on the intention of the donors and the nature of the beneficiaries. The cour....
A public or charitable trust does not require a formal deed for its creation. It may be inferred as a constructive trust through circumstantial evidence, including the history of the institution, the....
Doctrine that powers must be exercised reasonably has to be reconciled with the no less important doctrine that the court must not usurp the discretion of the public authority appointed to take the d....
Registration of public trusts is mandatory for enforcement of rights, regardless of the testamentary document's date.
The authority to challenge property sales under the Charitable and Religious Trusts Act requires the claimant to have standing as a trustee or beneficiary; mere worshippers lack legal grounds to cont....
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