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IN THE HIGH COURT OF UTTARAKHAND AT NAINITAL
Servesh Kumar Gupta, J.
Om Prakash, S/o Late Nechal Das and Others – Appellants
Versus
Public At Large, Haridwar and Others – Respondent
First Appeal No. 21 & 37 of 2015
Decided On : 28-06-2017
Trust Property - Sale of Property - Indian Trusts Act, 1882, Section 5 - Hindu Law - Religious and Charitable Trusts - Registration Act, 1908, Section 25
Fact of the Case:
The case involves a dispute over the ownership and management of a dharamshala and its appurtenant estate. The property was originally owned by Sheetal Das and was bequeathed to his wife, Smt. Laxmi Bai, who created a charitable trust for the welfare of the public. The property deteriorated due to poor maintenance and non-payment of rent by tenants, leading the trustees to seek permission to sell the property and construct a new modern dharamshala or hostel for students.
Finding of the Court:
The court found that the property was a public religious trust and that the plaintiffs were the valid trustees. It also determined that there was a bona fide necessity to sell the property due to its dilapidated condition and non-payment of rent by tenants. The court held that the trust document was not barred by the Registration Act, as it pertained to a public or private religious or charitable endowment, exempt from the Act's provisions.
Issues: The issues included the nature of the trust, the validity of the trustees, the necessity to sell the property, the description of the property, and the applicability of the Registration Act.
Ratio Decidendi: The court relied on the Indian Trusts Act, Hindu Law, and legal principles related to religious and charitable trusts to determine the nature of the trust and the validity of the trustees. It emphasized that the Registration Act did not apply to public or private religious or charitable endowments.
Final Decision: The court decreed the original suit, granting permission to sell the property and providing options for the utilization of the sale proceeds, while setting aside the lower court's judgment.
Servesh Kumar Gupta, J.
1. Both these appeals titled above challenge the judgment and order of learned District Judge dated 30.1.2015 rendered in Original Suit No. 6/2009, hence are being taken up together for adjudication by this single verdict.
2. Appeal No. 21/2015 assails the judgment in whole by the plaintiffs in the Original Suit, while Appeal No. 37/2015 challenges the operative part of such judgment to the extent of issuing the directions to the District Collector, Haridwar constituting a Committee headed by himself as an ex officio trustee and appointing five more members as trustees of such Committee to look after the property in question. This appeal has been preferred not by any of the defendants in the lower court, but by other three persons, namely, Hari Om, Preetam Lal and Sanjay Gupta, who have also sought permission of this Court to challenge such operative part of the judgment since they are the tenants in three shops out of many which are part and parcel of whole property in dispute.
3. The property under litigation is a dharamshala popularly known as Sheetal Das Laxmi Bai Sindhi Dharamshala situated at Ram Ghaat, Haridwar comprising 14 shops and several rooms, yard and a small appurtenant land. It is bounded and butted as under:
In the east – Pilibhit House.
In the west – Rasta Moti Bazar.
In the north – Street Ram Ghaat.
In the south – Alpana Hotel.
4. Whole property ad measures around 70 feet in the north-south and around 80 feet in the east-west, total area is 5600 sq. ft.
5. Before narrating the object of moving an application under Section 92 CPC, it would be worthwhile to set out a small description regarding the background and the nature of this property. It was originally owned by Seth Bimal Kishor, resident of Moti Mahal, Muzzafarnagar, Uttar Pradesh and was purchased under registered sale deed dated 5.11.1965 by Shri Sheetal Das (Sital Dass), resident of Sadar Bazar, Delhi. Shri Sheetal Das was issueless. Even then he executed a Will dated 9.5.1969 bequeathing whole property in favour of his wife Smt. Laxmi Bai @ Sadori Devi. Shri Sheetal Das died some time in 1972 and after his death, this Will was got registered by Smt. Laxmi Bai @ Sadori Devi in the concerned office on 1.8.1972. During her lifetime, Smt. Laxmi Bai executed an unregistered Will dated 2.9.1974, which was witnessed by two witnesses, both residents of Nawab Ganj, Delhi. Through this Will, she transferred all the movable and immovable properties owned by her at Delhi (besides the property, in question, which was also transferred through this instrument, but in a different manner because such transfer tantamount to creation of a trust during her lifetime and came into effect as such). This way, this instrument was in the nature of testamentary as well as non-testamentary. It was testamentary with regard to the properties of Smt. Laxmi Bai enumerated in paragraphs 5, 6 and 7 of such instrument where for she declared that such properties will be succeeded by her youngest brother Nihchal Das, resident of Nawab Ganj, Delhi and her nephew i.e. her younger sister Smt. Premi Bai’s son Verho Mal, also a resident of Nawab Ganj, Delhi. So, certainly these two persons, viz. Nihchal Das and Verho Mal got devolve all the movable and immovable properties owned by Smt. Laxmi Bai @ Sadori Devi as the absolute owner after her death. As regards the property, in question, which was in the shape of a dharamshala and a piece of plot ad measuring 200 square yards situated in rear side of the said dharamshala in Haridwar with three shops constructed thereon (as then were), it was divested by her by way of creating a trust, which was charitable and religious in nature and this will abundantly reflect by reproducing the paragraphs no. 8 and 9 of such Will as below:
“8. That I hereby create a Trust of my properties comprising of a Dharamshala and a piece of plot measuring 200 sq. yds. situated on the rear of the said Dharamshala at Haridwar with three shops c
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