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2024 Supreme(Online)(Mad) 51700

IN THE HIGH COURT OF JUDICATURE AT MADRAS
G.R.Swaminathan, M.Jothiraman, JJ
N.AR.Thangavel – Appellant
Versus
N.Vasantha Rajan – Respondent
A.S.(MD)No.115 of 2018|A.S.(MD)No.123 of 2018|C.M.P.(MD)No.5812 of 2019|C.M.P.(MD)No.2043 of 2024|O.S.No.6 of 2013|O.S.No.39 of 2010



Advocates:
For the Appellants/Petitioners: Mr.Natarajan, Senior Counsel, for M/s.Vijayakumari Natarajan
For the Respondents: Mr.S.Parthasarathy

A trustee's resignation cannot be unilaterally withdrawn without board consent, and claims regarding trusteeship must align with trust deed stipulations and procedural requirements for public trusts.

Headnote:(A) Code of Civil Procedure - Order 41 Rule 1 and Section 96 - Indian Trust Act, 1882 - Trust and Trusteeship - The appellant contested the validity of the appointment of certain trustees under the trust created by the father, asserting that the trustees were not validly appointed, while the defence claimed validity based on family arrangements and the terms of the trust deed. The Court found that the plaintiff had voluntarily resigned as trustee and failed to prove the claims against the defendants, upholding the decision of the trial court. (Paras 2, 18, 39)

(B) Resignation and Trusteeship - A trustee’s resignation must align with the conditions in the trust deed; a trustee cannot unilaterally withdraw resignation without consent of the board, and the roles of trustees must comply with the provisions of the Indian Trust Act as applicable. The court ruled that subsequent nominations contravened the established trust conditions. (Paras 15, 31)

Facts of the case:
The appellant filed two suits concerning trusteeship of a public charitable trust created by his father, claiming invalid appointments of trustees by family members after he resigned. The trial court dismissed both actions, finding the plaintiff lacked standing to challenge the board's composition due to his resignation and the nature of the family arrangement. (Paras 2, 4, 18)

Findings of Court:
Membership of the trust board must respect the lineage specified in the trust deed, and the plaintiff's claims were legally untenable due to previous resignation as trustee and non-compliance with statutory requirements for challenge. (Paras 11, 39)

Issues: The primary issues included whether the plaintiff's resignation was valid and binding, whether the trial court correctly ruled against the plaintiff’s claims without a petition under Section 92 of the Civil Procedure Code, and whether the defendants’ appointments as trustees were valid under the trust deed. (Paras 12, 38)

Ratio Decidendi: The court affirmed that resignation must comply with the trust deed's terms, and the judicial process as outlined in the Civil Procedure Code for public trusts was a necessary avenue for any challenge regarding trustees. The plaintiff's suit was deemed not maintainable under procedural laws owing to prior resolutions. (Paras 36, 40)

Result: Appeals dismissed, confirming the trial court’s dismissal of both suits with no order as to costs.

Table of Content
1. validity of trustee appointments in a family trust. (Para 2 , 3)
2. issues framed for trial regarding trustee legitimacy. (Para 4 , 5 , 8)
3. admission of additional documents in appellate court. (Para 9 , 10)
4. citations on trustee succession and trust deed interpretation. (Para 14 , 16 , 20)
5. elements and scope of public charitable trusts. (Para 18 , 19 , 21)
6. disputes surrounding family arrangements and their significance. (Para 22 , 23 , 26)
7. rejection of claims based on lack of evidence. (Para 30 , 31 , 32 , 33)

COMMON JUDGMENT

(Judgment of this Court was delivered by

M.JOTHIRAMAN J.

Unsuccessful plaintiff / Thangavel has preferred an appeal in A.S. (MD)No.115 of 2018 as against the judgment and decree passed in O.S.No.6 of 2013. He has preferred an another appeal in A.S.(MD)No. 123 of 2018 as against the judgement and decree passed in O.S.No.39 of 2010. By a common decree and judgment dated 20.07.2017, both suits came to be dismissed. For the shake of convenience, the parties are referred to as per their rank before the trial Court.

2.Brief case of the plaintiff in O.S.No.6 of 2013 is as follows:-

The suit has been filed for declaration that the defendants 2 & 3 are not validly appointed trustees and for consequential permanent injunction. The plaintiff's father one Arumugam created a Trust in the name of “Shri Arumugam Pillai Seethai Ammal Trust” under registered trust deed dated 12.03.1966. He has nominated himself, his wife and his son Nagarajan as trustees. The object of the trust is to run Educational Institutions, to construct hospitals, maternity house, orphanage for poor children, old age home and various other charities for poor people and performance of some pooja to temples. He has constructed a College in the name of Arumugam Seethai Ammal College. He died in the year 1989. His wife pre-deceased him in the year1985. Soon after, the plaintiff and fourth defendant succeeded as trustees. The plaintiff and his deceased brother Nagarajan as trustees have been looking after the trust properties. In the year 1997, among family members an arrangement was made and in that process, the first defendant's father Nagarajan agreed to pay Rs.40,00,000/- to the plaintiff for construction of house and also to pay a sum of Rs.28,45,000/- for the difference in value of the properties. The plaintiff was forced to give resignation letter dated 30.07.1998. Even after a year or two, the amount was not paid. Thereafter, the plaintiff withdrew his resignation given on 30.07.1998, vide letter dated 27.10.2000. The first defendant's father Nagarajan died in the year 2004. As per trust deed, the eldest son of Nagarajan has to succeed as trustee. Accordingly, the first defendant had become trustee. As the first defendant started preventing the plaintiff from acted as trustee, the plaintiff had filed a suit in O.S.No.39 of 2010. The first defendant arbitrarily and unilaterally appointed his brother as one of the trustee, contrary to the trust deed. The first defendant nominated another brother, N.Arumugaranan as another trustee. As per trust deed only one member in a family alone should be the trustee of that family, whereas, the defendants 1 to 3 belonging to the same family, which is violation of wishes of the founder of the trust. The defendants 2 & 3 are not legally and validly appointed as trustees. Hence, the suit.

3.Brief case of the first defendant in O.S.No.6 of 2013 is as follows:-

The paternal grandfather of this defendant was one Arumugampillai. Consequent on the demise of Arumugam Pillai and Seethaiammal, new trustees was reconstituted. Because of the non- cooperation of the plaintiff, the trust could not be performed effectively. Therefore, in or about 1997 there was a partition in the family. The amounts payable as per the terms of the partition deed had no connection at all to the trust. The plaintiff had been to the Foreign Country, Malaysia and he had to stay there for quite long time. Therefore, he opted to

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