The court held that a Trust may enter into development agreements to secure funds for charitable purposes, provided such actions serve the Trust's objectives.

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 04-11-2025 CORAM THE HONOURABLE MR.JUSTICE P. DHANABAL CS No. 216 of 2025

1. Thondai Mandala Saandror Dharma Paribalana Sabai Represented by its Founder Trustee, Mr.G.B.Pachiyappan, Door No.21/1, C.P.Koil Street, Kutcheri Road, Mylapore, Chennai 600 004.

2.K.Velu S/o Mr.M.Kadhirvel, Trustee, Thondai Mandala Dharma Paribalana Sabai, No.216 D Block, Nattan Thottam, Mylapore, Chennai 600 004.

Plaintiff(s) PRAYER Suit filed under Order IV Rule 1 of the High Court Original Side Rules Read with Order VII Rule 1 of CPC and Section 92 of CPC to grant permission to the plaintiffs to develop the Trust Property, by entering into a Joint Development Agreement with M/s. Origin Homes having office at No.457/1, New No.726/61, First Floor, Annasalai, Nandanam, Chennai – 600 035 with respect to the property measuring an extent of 3530 sq.ft., of land, bearing old Door No.236, New Door No.80, Block No.67, Survey No.T.S.3358, R.K.Mutt Road, Mylapore, Chennai – 600 004, agreeing to share the constructed area in 50:50 ratio as contained in the terms of the Joint Development Agreement entered into between them, thereby permitting the 1st plaintiff Trust to execute a sale deed with respect to the one half undivided share of the abovesaid land in favour of the Developer.

For Plaintiff(s): Mr.K.Selvakumar @ K.S.Kumar

ORDER

This suit has been filed by the plaintiff-Trust to grant permission to develop the Trust property by entering into the Joint Development Agreement with M/s Origin Homes, having office at No.457/1, New No.726/61, First Floor, Annasalai, Nandanam, Chennai – 600 035 agreeing to share the constructed area in 50:50 ratio, as contained in the terms of Joint Development Agreement entered between them and thereby permitting the 1st plaintiff-Trust to execute a sale deed with respect to the one half undivided share in favour of the Developer.

2. According to the plaintiff, the 1st plaintiff-Trust was established under the Trust Deed dated 07.08.2023 and registered and enjoying exemptions under Section 80-G of the Income Tax Act. One G.B.Pachaiyappan is the founder of the 1st plaintiff-Trust and the object and purposes of the Trust are interalia to establish specific endowments and memorials for public charitable purposes, to construct old age homes, orphanages for children and destitute women and to organise and deliver lectures for upliftment of the downtrodden people through the Trust and for other purposes.

3. The 1st plaintiff-Trust has 12 Trustees including the Founder-Trustee, G.B.Pachaiyappan. The Trust, possessed a land and premises measuring 3530 Sq.Ft., at Old Door No.236, New Door No.80, Block No.67, Survey No.T.S.No.3358, R.K.Mutt Road, Mylapore, Chennai. The building situated in the Trust property is more than 100 years old and is in a dilapidated condition, which remains uninhabitable and unsafe to be retained. The Greater Chennai Corporation also granted permission to demolish old super structure through order dated 05.11.2024. The Trust does not own any other property and it does not have any income other than the rental income from the above said property, therefore, Trustees held a meeting on 15.10.2023 and resolved unanimously to take steps to augment some income for the Trust by developing the property by putting up some construction by entering into a Joint Development Agreement with some reputed builder. Accordingly, the Trustees agreed that the Trust would enter into a Joint Development Agreement with M/s Origin Homes by mutually agreeing to the terms and conditions set out in the said agreement.

4. It was agreed to develop the property in 50: