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2025 Supreme(Online)(MAD) 1936

IN THE HIGH COURT OF JUDICATURE AT MADRAS
S.S.SUNDAR, K.RAJASEKAR, JJ
The Honarary Secretary Samyukta Gowda Saraswata Sabha – Appellant
Versus
Mr.N.S.Balachandar – Respondent
OSA.No.235/2022



Advocates:
For the Appellants/Petitioners: Mr.Krishna Srinivasan, Mr.S.Ramasubramaniam
For the Respondents: Mr.V.Raghavachari, Mrs.V.Srimathi

A society registered under the Societies Registration Act can be treated as a public trust under Section 92 of CPC, allowing civil court intervention for mismanagement.

Headnote:(A) Civil Procedure Code, 1908 - Section 92 - Tamil Nadu Societies Registration Act, 1975 - Public Trust - The court granted leave to institute a suit for framing a scheme for the management of a public trust, affirming the trust's charitable nature and the necessity for judicial intervention due to allegations of mismanagement. (Paras 1, 4, 8, 30)

(B) Public Trust - Definition and Jurisdiction - The court held that a society registered under the Societies Registration Act can still be treated as a public trust under Section 92 of CPC, allowing for civil court intervention in cases of mismanagement. (Paras 29, 30)

(C) Appeal - Maintainability - The court ruled that an order granting leave under Section 92 is an administrative order not subject to appeal under the Letters Patent unless it affects vital rights. (Paras 10, 14)

Facts of the case:
The appellant, as Honorary Secretary of a society, challenged a single judge's order allowing plaintiffs to file a suit under Section 92 of CPC for mismanagement of the society's affairs, which was claimed to be a public trust. The society was established for the welfare of the United Gowda Saraswatha community.

Findings of Court:
The trust was affirmed to be a public charitable trust, and the allegations justified the need for a scheme's formation to ensure proper management.

Issues: The main issues included whether the society qualified as a public trust under Section 92 and the maintainability of the appeal against the order granting leave.

Ratio Decidendi: The court determined that the society's registration did not preclude it from being treated as a public trust, thus justifying the suit's filing under Section 92.

Result: Appeal dismissed with costs.

Table of Content
1. background of the appeal and the sabha's status. (Para 1 , 2 , 4 , 5 , 6 , 7)
2. arguments regarding the nature and maintainability of the suit. (Para 8 , 9 , 10 , 15 , 16)
3. court's analysis of the legal framework and relevant cases. (Para 11 , 12 , 13 , 14 , 17 , 18 , 19 , 20 , 21 , 22 , 23 , 24 , 25 , 26 , 27 , 28 , 29 , 30 , 31)
4. conclusion dismissing the appeal with costs. (Para 32 , 33)

IN THE HIGH COURT OF JUDICATURE AT MADRAS RESERVED ON 20.08.2024 DELIVERED ON 06.01.2025 CORAM THE HONOURABLE MR. JUSTICE S.S.SUNDAR AND THE HONOURABLE MR. JUSTICE K.RAJASEKAR OSA.No.235/2022 The Honarary Secretary Samyukta Gowda Saraswata Sabha A Society registered under the provisions of the Societies Registration Act, having its registered office at No.55, Habibullah Road, T.Nagar Chennai 600 017. .. Appellant Versus

1.Mr.N.S.Balachandar 2.Mr.R.Suresh Mallya

3.Mr.A.Arjuna Pai

4.Dr.K.R.Shanbogue

5.Mr.C.J.Nayak

6.Mr.Vasant M.Shanbhog 7.Mr.K.P.Lakshmana Rao 8.Mrs.Vijayalaksmi R.Pai

9.Mrs.Vijayalakshmi R.Prabhu

10.Mr.V.Muralidhara Rao

11.Mr.H.Mohandas Pai

12.Mr.Suresh A.Pai

13.Mr.B.Balakrishna Rao

14.Dr.S.Dinesh Nayak

15.Mr.Suresh Shanbogue

16.Mrs.K.P.Kiran Rao 17.Mr.Praveen Kamath

18.Mr.R.Sathyanarayana Shenoy

19.Mr.M.Udhay Kamath .. Respondents Prayer:- Original Side Appeal filed under Order 36 Rule 9 of Original Side Rules read with 15 of Letters Patent Act, against order dated 24.03.2022 made in A.No.6408/2019 in CS.SR.No.112222/2019.

For Petitioner : Mr.Krishna Srinivasan Senior counsel for Mr.S.Ramasubramaniam For R1 & R2 : Mr.V.Raghavachari Senior counsel for Mrs.V.Srimathi For R3 to R19 : No Appearance JUDGMENT S.S.SUNDAR, J., (1)The above appeal is directed against the order of the learned Single Judge dated 24.03.2022 granting leave to institute a suit under Section 92 of CPC for framing a scheme and for the proper management and administration of the affairs of a public Trust known as ''Samyuktha Gowda Saraswatha Sabha'' [hereinafter referred to as ''Sabha''] which is also registered as a Society under the Tamil Nadu Societies Registration Act , 1860, [hereinafter referred to as ''the Act''] in Application No.6408/2019 in the unnumbered suit filed by respondents 1 and 2 herein.

(2)The appellant is the Honorary Secretary of the Sabha. Respondents 1 and

2 herein as plaintiffs, filed the suit which is yet to be numbered against 12 defendants including the appellant herein who is the 1st defendant in the said suit. The appellant is shown as Honorary Secretary of Sabha which is registered as a Society under the Act. (3)The suit is for the following reliefs: -

a) Framing a scheme for the proper management and administration of the affairs of the Samyukta Gowda Saraswata Sabha, 1st defendant as to effecutate the objects set out in bye-law 1 of the Sabha.

b) Removing the defendants 2 to 12 as the Trustees of the 1st defendant and consequently appoint a Board of Trustees comprising of eminent persons drawn from the United Gowda Saraswat Community ;

c) Directing defendants 2 to 12 to deliver up the inventory and other properties belonging to the 1st defendant which are in their powers and possession and direct that the same be vested in the Board of Trustees constituted supra ;

d) Directing defendants 2 to 12 to submit accounts for the incomes received by them for the 1st defendant and the amounts expended by them, and to cause the same to be inspected and audited ;

e) To grant such other reliefs as are just and necessary for the purposes of effectively administering and managing the 1st defendant to ensure that its objectives of the charity are not frustrated or defeated ;

f) In the event that this Hon'ble Court finds malversation of funds, to direct defendants 2 to 12 to personally make good all such losses caused to the 1st defendant.

g) To award the costs of this suit.

(4)Even though the status of Sabha is shown as a Society registered under the Act, it is the specific case of respondents 1 and 2/plaintiffs that Sabha represented by the 1st d

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