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ARUN BHANSALI, VIKAS BUDHWAR
Sanjit Singh Salwan – Appellant
Versus
Sardar Inderjit Singh Salwan – Respondent
JUDGMENT :
(Vikas Budhwar, J.)
1. Challenge in this appeal under section 37 of Arbitration and Conciliation Act, 1996 (in short A & C Act, 1996) is an order dated 24.05.2024 of the Commercial Court, Court No-II, Meerut in Arbitration Suit No. 25 of 2023 (Sanjit Singh Salwan and Others v. Sardar Inderjit Salwan and Others) whereby the application for interim relief filed by the appellants under Section 9 of the A & C Act, 1996 was rejected.
Facts
2. Briefly stated facts sans unnecessary details are that there happens to be a Trust by the name of Guru Tegh Bahadur Charitable Trust having its registered office at 227, West End Road, Meerut Cantt, Meerut (in short 'Trust') engaged in charitable activities since 1970. The said Trust also manages an institution by the name of Guru Tegh Bahadur Public School in Meerut, which according to the appellants has a strength of all most 1700 students who are being imparted education from Ist to XIIth classes. The Trust has original Trust Deed dated 15.10.1979 which stood amended in the year 2019. The appellants and the respondents claim to be the Trustees. Certain dispute arose between the Trustees with regard to membership and administration of the
Disputes involving public charitable trusts are non-arbitrable under Section 92 of CPC, requiring specific legal procedures for resolution.
Point of Law : Where the allegation of breach of trust, direction for administration of Trust is absent, the suit is maintainable and obtaining leave under Section 92 of the CPC is not necessary.
Point of Law; Dispute in the matter of right in rem (right against the world at large), the same cannot be decided by an Arbitrator and the jurisdiction of the Arbitrator would be in relation to disp....
A public trust registered as a society under the Tamil Nadu Societies Registration Act can still be managed under Section 92 of the CPC, allowing civil court intervention for breach of trust allegati....
The suit under Section 92 of the CPC is maintainable as the Sabha is deemed a public Trust, enabling remedial actions against mismanagement despite being registered as a Society.
The main legal point established in the judgment is that the Maharashtra Public Trust Act is a complete code in itself and that section 92 of the C.P.C. is not applicable to public trusts as per sect....
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